Panama Moving Guide
Ready for an adventure in Panama? Imagine exploring the vibrant streets of Panama City, soaking up the culture and experiencing the colorful nightlife. Take a stroll through the charming countryside, with lush green landscapes and cascading waterfalls. Relax on the white sandy beaches of Bocas del Toro, or dive into the crystal clear waters of San Blas. Indulge in the delicious traditional cuisine, meet friendly locals and enjoy a cost-effective lifestyle. Don’t miss out on the opportunity to call Panama home. Pack your bags and go on the journey of a lifetime!
Key Facts
Language: Spanish
Currency: Panamanian balboa (PAB)
Population: Approximately 4.3 million
Capital City: Panama City
Climate: Tropical climate, with a rainy season from May to January and a dry season from January to May
Time Zone: Eastern Standard Time (UTC-5)
Country Code: PA
Top Destinations
- Panama City
- Coronado
- David
- Boquete
- El Valle de Anton
- Pedasi
- Bocas del Toro
- Las Tablas
- Santa Clara
- Playa Blanca
Valle Escondido, Boquete, Panama
Why Panama?
Low cost of living: Compared to many other countries, the cost of living in Panama is relatively low, especially in terms of housing, utilities, and transportation.
Friendly and welcoming locals: Panamanians are known for being friendly and welcoming to foreigners, making it easy for expats to integrate into the community.
Great weather: Panama has a tropical climate, with warm temperatures and sunny days year-round.
Natural beauty: Panama is home to a diverse range of natural landscapes, including beaches, rainforests, mountains, and islands.
Good healthcare: Panama has a well-developed healthcare system, with both public and private hospitals and clinics that offer high-quality medical care.
Strong economy: Panama has a strong and stable economy, which has led to an increase in job opportunities and a growing expat community.
Good infrastructure: Panama has a well-developed infrastructure, including good roads, public transportation, and internet connectivity.
Tax benefits: Panama has several tax benefits for foreigners, including a friendly tax regime and a lack of inheritance tax.
Retirement benefits: Panama has a program called the Pensionado Program which offers discounts on various goods and services for retirees.
Variety of activities: Panama offers a wide range of activities for all ages, from outdoor activities like hiking, fishing, and surfing, to cultural events and festivals, to shopping and dining.
Fun Facts
Panama is home to the Panama Canal, one of the greatest engineering marvels of the modern world. The canal allows ships to cross between the Atlantic and Pacific Oceans, avoiding the long and treacherous journey around the southern tip of South America.
Panama is home to one of the largest indigenous populations in Central America, with over 70,000 Ngäbe-Buglé living in the country.
Panama is known for its diverse wildlife, including monkeys, sloths, toucans, and jaguars. Panama is also home to over 900 bird species.
Panama is known for its traditional craftsmanship, particularly in the areas of basket weaving and molas, a type of textile art.
Panama is the only place in the world where you can see the famous “Monkey Island” which is a small island in the Gulf of Panama, where you can see different types of monkeys living together in the wild.
Potential Downsides
Traffic: Panama City can have heavy traffic during rush hour, which can make commuting time-consuming and stressful.
Pollution: Panama City has high levels of pollution and smog, which can be a health concern for some people.
Natural disasters: Panama is situated in an area where hurricanes, floods and earthquakes can occur, which can cause damage to infrastructure and property.
Language barrier: Although the official language is Spanish, English is widely spoken and understood in the expat communities and tourist areas, but not all locals speak English, especially in rural areas, which can make communication difficult.
Limited job opportunities: While the economy is stable, job opportunities for expats may be limited, especially in certain industries and for certain levels of experience.
High crime rate: Panama City has a relatively high crime rate, which can be a concern for some people. It’s important to take safety precautions and be aware of the risks.
Limited cultural activities: Panama is a small country and it might be limited in terms of cultural activities and entertainment, especially compared to larger cities in other countries.
Lack of transparency: Some sectors of the country, such as business, may lack transparency and bureaucracy can be a challenge in some areas.
Natural Disasters: Panama is in the tropical zone, which means that there is a risk of natural disasters such as hurricanes, floods, and earthquakes.
Checklist for Moving to Panama
✓ Research the area
✓ Obtain a work or residence permit
✓ Find a place to live
✓ Sort out your healthcare
✓ Learn some basic phrases
✓ Open a bank account
✓ Find a school for children
✓ Get familiar with the transportation
✓ Find a doctor and dentist
✓ Get to know the community
✓ Get a local SIM card
✓ Get your documents translated
Taxes in Panama
Panama has a relatively low tax rate compared to many other countries. The country’s tax system is based on a territorial principle, meaning that only income generated within Panama is subject to taxes.
Individuals who are considered residents of Panama are subject to income tax on their worldwide income. Non-residents are only subject to income tax on income generated within Panama.
The income tax rate for residents is a progressive rate, starting at 7.5% for income up to $11,000 and increasing to a maximum rate of 27% for income over $160,000.
There is also a sales tax of 7% and a value-added tax of 7% for goods and services.
Panama does not have property, inheritance or wealth taxes.
It’s important to note that it’s always best to consult with a tax professional or accountant familiar with Panamanian tax laws to ensure compliance and understand the tax implications of living and working in Panama.
Real Estate in Panama
Foreigners can buy real estate in Panama. There are no restrictions on foreign ownership of property in Panama and the process of buying property is similar to that for Panamanian citizens.
Foreigners can purchase property in their own name, or through a Panamanian corporation, which can be useful for tax and estate planning purposes.
The process of buying property in Panama typically involves the following steps:
- Finding and selecting a property
- Signing a reservation agreement or a purchase contract
- Completing a due diligence process, including checking the title of the property and making sure it is free of liens and encumbrances
- Paying a down payment (usually 10-20% of the purchase price)
- Signing a final purchase contract, known as an Escritura Publica (Public Deed)
- Registering the property at the Public Registry
It’s important to note that it’s always best to consult with a legal professional familiar with Panamanian real estate laws to ensure compliance and understand the legal implications of buying property in Panama.
Guides for traveling
Final thoughts
In conclusion, Panama offers a unique blend of culture, natural beauty, and economic stability that can make it an attractive destination for expats. With a low cost of living, friendly locals, and great weather, Panama is a great place to call home. Additionally, it has a well-developed healthcare system, strong economy, good infrastructure, and tax benefits.
However, it’s important to be aware of some of the downsides to living in Panama as well. The heavy traffic and pollution in Panama City, the risk of natural disasters and high crime rate, the limited job opportunities and cultural activities, and the lack of transparency in some sectors of the country, should be considered before making the decision to move. Furthermore, it’s essential to be aware that the official language is Spanish, so a language barrier may exist in some areas.
Overall, Panama can be a great place to live, work and retire, but it’s important to conduct thorough research and due diligence, and be aware of the potential challenges before making the decision to move. It’s recommended to visit the country, speak with expats and professionals, and gather as much information as possible before making a decision.
ica
A Seattle native who decided to embark on a journey of a lifetime. Together with my husband Kostika, we're on a mission to find our new home abroad and live the life we've always dreamed of. From exploring new cultures to meeting fascinating people, we're excited for all the adventures that lie ahead in our pursuit of creating the ultimate international lifestyle.
