Panama has positioned itself as an attractive destination for both tourists and those looking to establish a new residence, thanks to the numerous advantages it offers. Every year, thousands of visitors are captivated by the famous Panama Canal, its spectacular beaches and picturesque highlands, which leads them to extend their stay and even live in Panama.
Beyond its tourist attractions, the country stands out as an ideal place for those who desire a high quality of life and a favorable environment for personal and professional development. Its continuous growth and different opportunities have made this territory a popular choice for those looking for a new home.
Why Panama? This country is internationally recognized for offering one of the most accessible processes for obtaining Permanent Residency, which makes it an ideal option for those who wish to relocate. In addition, and according to our clients’ experience, there are four main reasons to live in Panama.
1. Cost of Living
First, Panama uses the U.S. dollar as its official currency. In addition, the cost of many public services, such as cell phones, internet, cable TV or electricity, is lower than in North America. And yes, it is possible to find fresh produce at great prices, especially when purchased at local markets.
Second, the country has some of the lowest inflation rates in Central America, below 1.87%, and the dollarized currency helps maintain a stable banking and commercial system.
Third, those who wish to retire and live in Panama can enjoy multiple benefits, such as discounts on food, airfare, prescription drugs or hotels. For example, retired residents receive a 50% discount on hotels from Monday to Thursday.
2. Quality Medical 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.
3. Lower Income Taxes
Another advantage of living in Panama is its 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.
4. 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),and is among the lowest homicide countries in Latin America. 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.
Considering living in Panama?
Panama combines modern infrastructure with beautiful weather, beaches, mountains, and touristic spots. In this article we only shared with you a few reasons to visit or live in Panama, but there are undoubtedly countless more.
If Panama is in your radar, we’ll be glad to assist. Contact us today
