Panama welcomes thousands of tourists every year, who come to visit the Panama Canal, enjoy the beaches, or explore the highlands.
This Central American country is also internationally recognized as one of the easiest places to obtain Permanent Residency, reason why it is an attractive destination to relocate whether you apply as a single
You may wonder, why Panama? We’d like to share 4 reasons our clients frequently mention, which you may find useful in 2023.
Panama City Skyline
Cost of Living
Panama uses the US dollar as its currency, and the cost of many items is lower than that of North America. Consider utilities such as cell phones, internet, cable tv, or electricity. And yes, it is possible to find fresh produce at great prices, especially when purchased at local markets.
Besides, Panama has some of the lowest inflation rates in Central America – under 3,5%, and the dollarized currency helps keep a stable banking and commerce system.
Those who retire in Panama also enjoy multiple benefits such as discounts on food, airfares, prescription drugs, or hotel. For example, retired residents receive a 50% discount on hotels from Monday to Thursday.
Panama has a dollarized economy
Quality health care
Private hospitals and clinics provide high quality services topping those of North America, with modern infrastructure and doctors able to assist in English – especially in Panama City.
Do you need private health insurance? It really depends. You can usually walk into a clinic and see a general doctor for under $50, and you can book an appointment to see a specialist for under $100. These prices are even lower in the countryside. A dentist appointment costs around $50, and a new pair of glasses $200 – $300. A blood test to find your blood type costs under $40.
For that reason, many expats who enjoy good health use the Panama private health system on demand, since the cost is inexpensive compared to the monthly payment for private health insurance.
Lower Income Taxes
Panama has a territorial tax system. This means that only income generated from Panamanian sources is subject to income taxes, while income from abroad is not. This is true to personal and corporate taxes.
Besides, any personal income earned in Panama is tax-exempt up to $11,000. The next tax bracket is 15%, up to $50,000 . Since Panama’s average salary is close to $1,500, most Panamanian pay little or no income taxes.
Expats safely enjoy Panama anywhere
Safe and welcoming environment
The historical average homicide rate in Panama has been close 0.018% for the last decade (18 per 100,000 people), but the Government reported in early 2019 a homicide rate under 10% for the year 2018.
Tourists and expats alike consider Panama as one of the safest countries in Central America, where people can safely enjoy walking on the streets.
This is also evident in the large and diverse expat communities, You can find them in areas such as Panama City, Coronado, David, Boquete or Volcan. Do you have questions about these communities? You will certainly find facebook groups who are willing to help before and during a visit.
Panama combines modern infrastructure with beautiful weather, beaches, mountains, and touristic spots. We shared with you only a few reasons to visit – or relocate.
If Panama is in your radar, we’ll be glad to assist. Contact us to discuss your case and provide you with the right legal assistance.