Why Panama works
Panama uses the US dollar — eliminates exchange rate risk completely.
The Jubilado (Pensionado) visa requires just $1,000/month in pension income. Holders get extraordinary senior discounts: 50% off entertainment, 25% off airfares, 25% off restaurants, 20% off medical, 15% off hospital bills, 25% off utilities. Real, legally mandated discounts.
Territorial taxation: foreign-sourced income not taxed in Panama.
Modern banking, US-style infrastructure, large expat community.
Where to live
Panama City: modern, skyscrapers, walkable. Caribbean and Pacific access. $2,000-$3,000/month for a couple.
Coronado: beach town 1 hour from Panama City. Large expat community. $1,800-$2,500/month.
Boquete: mountain town, mild climate, large American expat community. $1,500-$2,200/month.
Bocas del Toro: Caribbean island life. Smaller community. $1,500-$2,200/month.
Visa pathway
Pensionado: $1,000/month lifetime pension (SS counts). Apply through Panamanian immigration with attorney assistance. Permanent residency immediately. ~3-6 month processing.
Friendly Nations Visa: was the easiest path; rules tightened in 2021. Now requires more documentation.
Citizenship: 5 years of residency + Spanish test + interview.
Taxes
Territorial taxation: foreign-sourced income not taxed.
Locally-sourced income (Panama rental, Panama employer) taxed at progressive rates.
No US-Panama tax treaty, but territorial system makes treaty less relevant for retirees.
Healthcare
Public system: low cost, lower quality than private.
Private hospitals (Hospital Punta Pacifica, Hospital Nacional): excellent quality, US-trained doctors.
Private insurance: $100-200/month for comprehensive coverage.
Pensionado's 15-25% discount on medical applies to private hospitals.