A retired couple that has recently moved to Panama and purchased real estate.

Retiring in Panama: Cost of Living, Healthcare, Real Estate, and Residency Explained

Published On: August 8th, 2025

Retiring in Panama continues to be one of the most popular lifestyle and financial moves for expats across the U.S., Canada, and Europe. With low costs, warm climate, quality healthcare, and retiree-friendly policies, Panama has earned its place as a top global retirement haven.

In this guide, we’ll break down what it’s really like to retire in Panama—including detailed insights on the cost of living, healthcare system, real estate market, and how to secure legal residency.

Why Retire in Panama?

Panama offers retirees a rare balance of affordability, modern infrastructure, and safety—plus the ability to own titled property and qualify for long-term residency.

Top Reasons Retirees Choose Panama:

  • Low cost of living in comparison to the U.S. or Europe
  • World-class healthcare, especially in Panama City
  • Warm, tropical climate year-round, and NO HURRICANES
  • No tax on foreign income
  • The Pensionado Visa, one of the world’s best retirement programs
  • Access to both Pacific and Caribbean beaches
  • Direct flights to North America and Europe

Cost of Living in Panama

Living well in Panama doesn’t require a large retirement fund. The monthly cost depends on lifestyle, location, and whether you rent or own.

CategoryPanama CityCoronado/Boquete
Rent (2BR apartment)$900 – $2,500/month$600 – $2,000/month
Utilities & Internet$125 – $175/month$100 – $150/month
Groceries$300 – $500/month$250 – $400/month
Dining Out$5 – $50 per person, per meal$5 – $50 per person, per meal
Health Insurance$100 – $300/month$80 – $250/month

A couple can comfortably retire in Panama for $1,600 to $2,800/month, depending on location and preferences.

Real Estate for Retirees

Buying property in Panama is relatively straightforward for foreigners. You can purchase titled homes, condos, and land in your name, with full ownership rights.

Retirement Real Estate Options:

  • Beach homes and condos in Coronado, Gorgona, or Pedasi
  • Mountain homes in Boquete or El Valle
  • Urban apartments in Panama City
  • Gated communities with amenities and security

Tip: When buying in Panama, factor in HOA fees, maintenance costs, and property taxes alongside the purchase price. These ongoing expenses can vary greatly depending on location and type of property.

Healthcare in Panama

Panama offers both public and private healthcare options, with private hospitals in Panama City rivaling those in the U.S. in both quality and technology.

Private Healthcare Highlights:

  • Affordable: doctor visits as low as $25–$50
  • Top hospitals: Punta Pacifica (affiliated with Johns Hopkins), Paitilla, and Hospital Nacional
  • English-speaking doctors are common in Panama City and the larger urban centers throughout Panama
  • International insurance is widely accepted

Many expats choose local health insurance plans for $100–$250/month, or pay out-of-pocket for routine care.

Residency for Retirees — The Pensionado Visa

Panama’s Pensionado Visa is one of the most popular retirement visas globally. Processing time for the Pensionado Visa is typically 3-6 months.

Requirements:

  • Proof of $1,000/month lifetime pension (add $250 for a spouse or per dependent)
  • Passport valid 6+ months
  • Five 2″x2″ passport photos
  • National Criminal Record Certificate (≤6 months, apostilled/authenticated)
  • Retirement letter – $1,000+/month for life (≤6 months, apostilled/authenticated)
  • Panamanian health certificate
  • Signed sworn declaration form
  • Proof of Panama address (utility bill, lease, or hotel letter)

Benefits:

  • Permanent residency for life
  • Discounts: 25% off airfare, 15–25% off medical, 25% off utilities, etc.
  • Fast-track processing with qualified legal support
  • Ability to bring in household goods duty-free

Best Places to Retire in Panama

Each region offers a different lifestyle. Here are the most popular retirement destinations:

Boquete – cool mountain climate, expat hub, beautiful landscapes
Coronado – beach town near Panama City, full amenities
Panama City – urban, luxury condos, world-class hospitals
Bocas del Toro – Caribbean lifestyle, affordable
El Valle de Antón – cooler weather, hiking, nature
Pedasi – amazing beaches, great weather, small-town feel

Can I Work While Retired in Panama?

Yes, but only under specific visa programs. The Pensionado Visa does not allow active employment, but retirees may earn passive income from rentals, investments, or self-owned corporations.

If you wish to run a business or work, explore the Friendly Nations Visa or Qualified Investor Program.

Learn more about residency and visas in Panama.

Is Panama Right for Your Retirement?

Panama offers retirees a stable, comfortable, and affordable retirement, whether you want city luxury or a beachside bungalow. With clear legal pathways, low taxes, modern comforts, and global access, Panama stands out as a retirement destination.

Looking to retire in Panama? Contact Panama Sovereign Realty for all your needs.

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