5 Reasons Why Americans are Leaving the Country to Live in Panama
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As the world gets smaller thanks to globalization, more and more Americans are packing up and heading to Panama. In fact, here at Panama Equity, we’ve seen real estate related inquiries from US-based clients double over the last 12 months.
Some site the upcoming US elections, others mention the contentious “cancel culture” that’s taken over, and some are simply just ready for the adventure that is living in another country.
The motives are different for everyone but resoundingly we see the reasons below come up year after year.
#1 Cost of Living
Panama’s cheap. Granted, not nearly as cheap as it was when we opened our doors back in 2007 but compared to places like Costa Rica, Brazil, Canada and most parts of Europe, Panama wins on value almost across the board.
Everyday expenses like local produce, transportation, and entertainment are all more budget-friendly than in most of North America and Europe. Healthcare costs are also significantly lower and quality medical services can be found consistently in the major cities. Overall, Panama’s lower cost of living lets expats enjoy a comfortable lifestyle and make their money go further, whether they’re retirees, digital nomads, or young professionals seeking new adventures abroad.
#2 Retirement Benefits For Americans
Panama’s got some pretty enticing retirement perks, especially for Americans. One big highlight is the Pensionado visa program. Basically, retirees with a guaranteed monthly income, like a pension or annuity of at least $1,000, can get in on this deal. It hooks them up with discounts on stuff like healthcare, transportation, entertainment, hotels, and restaurants. It’s a way for retirees to keep living the good life without blowing through their savings.
This is by far one of the most often mentioned perks that we hear from our American clients because the equivalent, other than the occasional retiree discount in the US simply doesn’t exist.
#3 Tax Advantages
Panama’s tax perks make it a hot spot for expats looking to trim their tax bills. One big advantage? No income tax on money earned outside the country for expats living there. Plus, there’s no capital gains, inheritance, or wealth taxes either, so you can hold onto more of your cash. Businesses dig it too, thanks to Panama’s territorial tax system, which means they often pay less tax on income earned abroad. All these breaks add up, making Panama a top choice for savvy folks like entrepreneurs, investors, and retirees who want to keep more of their money.
4 High-Quality Healthcare
Panama’s healthcare system is top-notch, which is great news for expats looking for reliable medical care. The country boasts modern hospitals and medical facilities that meet international standards. They’re equipped with advanced technology and staffed by well-trained professionals. Plus, healthcare here won’t break the bank – it’s way cheaper than in the US. Doctor’s visits, tests, and meds often cost a fraction of what you’d pay back home. This affordability extends to elective procedures and specialized treatments, making healthcare accessible even for retirees on a tight budget. And if you’re eligible for Panama’s Pensionado Visa program, you can score discounts on healthcare services, saving even more. Panama takes patient care seriously, offering personalized attention and speedy service. Whether it’s a routine check-up or a specialized treatment, expats in Panama can count on a healthcare system that’s up to snuff with international standards.
#5 Quality of Life
Panama’s got a lot more going for it than just money stuff – it’s a real magnet for expats looking for happiness, health, and job opportunities. The warm weather, diverse culture, and breathtaking scenery make it perfect for outdoor adventures like hiking, surfing, and birdwatching. Plus, there’s a lively expat crowd here that makes you feel right at home. Panama’s also crushing it in terms of human development – highest scores in Central America for things like life expectancy, education, and income. For Americans doing the remote work thing, Panama offers a pretty cushy lifestyle. With its mix of tropical beauty, friendly locals, and vibrant culture, Panama’s a standout choice for expats of all stripes.
Americans these days are practically falling over themselves to get out of the country, asap. And they’ve been telling us that Panama checks way too many boxes to discard: Its lower cost of living, tax advantages, appealing retirement perks, top-notch healthcare, and plenty of fun things to do, just to name a few.
Whether retirees aiming to make their savings last longer, entrepreneurs after tax-friendly business setups, or folks just craving a change, Panama offers a friendly atmosphere that celebrates diversity and offers a comfy lifestyle. As more Americans catch on to the perks of living in Panama, it’s clear that we’re going to be busy fielding inquiries and writing contracts for clients for years to come.
Kent Davis, founder of Panama Equity Real Estate, is a leading expert in Panama’s competitive real estate market. Originally from Honolulu, Hawaii, he holds a Marketing Information Systems degree from James Madison University. After a successful corporate career managing multimillion-dollar inventories at Hajoca Corporation, Kent pursued his dream of living abroad, moving to Panama in 2007.
Driven by an entrepreneurial spirit, he established Panama Equity to connect buyers, sellers, and investors with Panama’s top properties. Known for his transparency, expertise, and market insights, Kent has helped hundreds navigate Panama’s real estate landscape. Fluent in Spanish, he frequently publishes market reports to empower clients with informed decisions.
Beyond real estate, Kent is passionate about Panama’s culture, landscapes, and surf-friendly beaches. He lives in Panama with his wife and three sons, embracing the vibrant lifestyle the country offers.
