Key Advantages of retiring in Panama

"Panama's Pensionado" program (incentive program for retirees), is considered one of the best in the world and is not necessarily age related. Panama has a stable democratic government

The US Dollar is the legal tender

US style infrastructure with a number of familiar franchises and businesses.

Residents do not pay tax on foreign earned income

Foreigners can buy and own property in Panama with the same rights and protections as Panamanian citizens.

Tourism investments have exemptions from import duties, construction materials and equipment, income, real estate taxes, etc.

Property tax exemptions apply to all new construction on a sliding scale according to value.

English is widely spoken.

Real Estate is comparably cheap; one can expect prime location at prices 50-70% lower than in comparable US locations.

US standard health care facilities and services with many US trained English speaking doctors available

High rate for tourist safety according to Pinkerton Intelligence Agency.

Panama has a reliable and modern communication system with fibre optic telephone lines and ADSL internet in much of the country.


Conveniently, Panama is also ranked among the best countries in Latin America in health care. Panama offers excellent quality medical care and modern hospitals in the metropolitan areas. Many Panamanian doctors are U.S trained, and the standards at the top Panamanian hospitals compare favourably to those in the US. American private health insurance policies are accepted in most Panamanian hospitals, though private health insurance is available and much less expensive than American insurance.


To encourage long term foreign investment, Panama does not require special permits, authorization or registration to qualify investors. The 1998 Investment Stability Law protects investments of more than $ 2,000,000 for 10 years from any changes in tax, customs, municipal and labour laws.


Over 80 banks have full service branches in Panama including international banks such HSBC, Citibank, Scotiabank, Dresdner, BNP/Paribas. Panama's currency is the US Dollar, no need to worry about exchange risks or high interest rates.

"Pensionado Program"

Panama's "Pensionado program" is considered to be among the best in the world for the large array of benefits it offers. Some of the key benefits are:

Import tax exemption for household goods

Tax exemption to import a new car every two years
•  25% discounts on utility bills
•  25% discount on airline tickets
•  30% discount on bus, boat and train fares
•  1% reduction on home mortgages for homes used for personal residence
•  20% discount on doctor's bills and 15% on hospital services if no insurance applies
•  15% off on dental and eye exams
•  10% discount on medicines
•  20% discount on bills for technical and professional services