Can I buy property in Panama as an American?

Yes. Americans can own property in Panama with the same freehold rights as Panamanian citizens. There are no restrictions on foreign ownership — you can hold title directly in your name.

How much does it cost to live in Panama per month?

A comfortable lifestyle in Panama typically runs $1,500–$2,500 per month for a couple. Panama City is the most expensive option, while towns like Boquete and El Valle are significantly cheaper.

Do I need to speak Spanish to live in Panama?

Not strictly, but it helps enormously. Panama City has a large English-speaking expat community, but daily life outside the capital runs in Spanish.

Is Panama safe for Americans?

Panama is generally safe for expats, with most Americans living comfortably in neighborhoods like Casco Viejo, El Cangrejo, Clayton, and Boquete.

How do I get healthcare in Panama as an American?

Private healthcare is excellent and affordable — Hospital Punta Pacífica is affiliated with Johns Hopkins. Specialist visits run $50–$150.

What visa do I need to move to Panama?

The most popular option is the Pensionado Visa ($1,000/month pension), Friendly Nations Visa, or Self-Economic Solvency Visa.

How long can I stay in Panama without a visa?

Americans can stay up to 180 days on a tourist visa, issued on arrival at no cost.

Can I work remotely from Panama?

Yes. Panama does not restrict remote work for tourist visa holders working for foreign companies. Panama City has strong infrastructure and the time zone (ET +1) is compatible with US work.

How do I open a bank account in Panama as an American?

Banking has become more restrictive post-FATCA. Best bets are Banistmo and BAC International Bank. Having a residency visa significantly improves your chances.

Can I get citizenship in Panama and how long does it take?

After 5 years of legal residency you can apply. If married to a Panamanian, 3 years. Panama allows dual citizenship.

Panama

Panama City · North America · Central America

Spanish

English

USD

Territorial Tax

Why Panama?

Last verified March 14, 2026 by GoMoveAbroad Research Team

Panama is the pragmatist's choice for relocating abroad. It's not as romantic as Portugal or as culturally rich as Mexico, but it offers something Americans value: efficiency, stability, and English (more widely spoken here than Mexico). The economy is dollarized (USD is the official currency), which eliminates currency risk. The business environment is friendly to foreigners. And the lifestyle is genuinely pleasant — tropical climate, reasonable cost of living, and a cosmopolitan vibe that feels modern without losing character. **The Numbers:** - **Cost of Living:** $1,000–2,200/month depending on area and lifestyle - **Currency:** US Dollar (no currency risk) - **Official Language:** Span

Where to Live in Panama

### Panama City (The Capital, The Hub) **Best For:** Career opportunities, infrastructure, international community, nightlife, restaurants **Vibe:** Modern, cosmopolitan, international, skyscraper-heavy, mix of old and new **Population:** 1.9 million (metro area) **Average Rent (1BR):** $800–1,400 depending on neighborhood #### Casco Viejo (Old City) - **Vibe:** Historic, colorful, touristy but genuinely charming, bohemian - **Neighborhood character:** Colonial architecture, narrow streets, plazas, restaurants, galleries - **Average Rent:** $1,000–1,400 (premium for charm and location) - **Why:** Most beautiful neighborhood; walkable; restaurants/bars; cultural heart - **Downsides:**

City-by-city breakdown

Cost of Living in Panama

**The Numbers:** - **Cost of Living:** $1,000–2,200/month depending on area and lifestyle - **Currency:** US Dollar (no currency risk) - **Official Language:** Spanish (but English is widely spoken, especially in Panama City) - **Visa Options:** Pensioner Visa (retirees), Investor Visa, Friendly Nations Visa, Business Visa - **Americans Living Here:** Among the largest American expat communities in Central America (no official census count available) - **Population:** 4.4 million - **Best Cities:** Panama City, Boquete, San Blas Islands ---

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Overview

Population

4,571,000

GDP per Capita

$19,802

Currency

US Dollar (USD)

Top Income Tax

25%

Corporate Tax

25%

Capital Gains Tax

10%

Cost of Living

Average
vs Miami, FL: 42%

Rent (1BR)

$900/mo

Food & Dining

$450/mo

Healthcare

$150/mo

Transportation

$130/mo

Utilities

Visas & Residency Paths

### Pensioner Visa (Best for Retirees) **Requirements:** - Monthly income of $1,000 (government pension) OR - Monthly income of $2,000 (private income) - Proof of funds (12 months of bank statements) - Clean criminal record - Health insurance (local provider recommended) **Valid income sources:** - Social Security - Pension - Investment returns - Rental income **Duration:** Indefinite (renewable annually with minimal paperwork) **Cost:** Application $200–400 (with lawyer help) **Timeline:** 60–90 days **Path to Citizenship:** Can apply after 5 years of residency; not automatic but possible. **Reality:** This is extremely accessible. Many Americans apply right at retirement age ($1,000

The Honest Assessment

### Green Lights (Panama is Great If...) ✅ You're retiring (pensioner visa is extremely accessible) ✅ You want English-friendly environment ✅ You value stability and modern infrastructure ✅ You want to avoid currency risk (dollarized economy) ✅ You appreciate tropical climate ✅ You want proximity to other Latin American countries ✅ You're comfortable with expat communities (large, established) ✅ You value business-friendly environment (if entrepreneurial)

Entertainment

$100/mo

Total monthly: $1,890Source: Numbeo, Expatistan, GMA Research 2026

Boquete
vs Miami, FL: 34%

Rent (1BR)

$700/mo

Food & Dining

$380/mo

Healthcare

$130/mo

Transportation

$100/mo

Utilities

$140/mo

Entertainment

$70/mo

Total monthly: $1,520Source: Numbeo, Expatistan, GMA Research 2026

David
vs Wichita, KS: 38%

Rent (1BR)

$400/mo

Food & Dining

$300/mo

Healthcare

$70/mo

Transportation

$35/mo

Utilities

$80/mo

Entertainment

$60/mo

Total monthly: $945Source: Expat forums, Numbeo Panama, Feb 2026

Panama City
vs Miami, FL: 49%

Rent (1BR)

$1,100/mo

Food & Dining

$500/mo

Healthcare

$170/mo

Transportation

$150/mo

Utilities

$175/mo

Entertainment

$120/mo

Total monthly: $2,215Source: Numbeo, Expatistan, GMA Research 2026

This information is not legal advice. Consult an attorney for your specific situation.

Visa & Residency Programs

Panama Digital Nomad Visa (Short Stay)

Short-stay visa for remote workers earning at least $3,000/month from foreign sources. Valid for 9 months, not renewable but can reapply. Panama uses USD — no currency risk. No tax on foreign-sourced income under territorial tax system. Fast processing.

Income Req: $3,000/mo($3,000/mo, fixed USD)

Threshold adjusts annually — verify current amounts with official sources

Processing: 30 days

Validity: 9 months, reapply after

Panama Friendly Nations Visa

Permanent residency for citizens of 50+ 'friendly nations' including the US, Canada, UK, and all EU countries. Requires a $200,000 investment (real estate, bank CD, or securities) OR proof of employment with a Panamanian company. Previously required only $5,000 bank deposit, but requirements increased in 2021. Grants 2-year provisional residency, then permanent. One of the most popular pathways for Americans.

Min. Investment: $200,000 USD

Threshold adjusts annually — verify current amounts with official sources

Processing: 3-6 months

Validity: 2 years provisional, then permanent

Path to Citizenship (5 yrs)

Work Permit Included

Panama Pensionado Visa

One of the world's best retirement visa programs with extensive benefits and low income requirement.

Income Req: $1,000/mo($1,000/mo pension (USD, fixed))

Threshold adjusts annually — verify current amounts with official sources

Processing: 3-4 months

Validity: Permanent

Path to Citizenship (5 yrs)

Panama Qualified Investor Visa

Fast-track permanent residency for investors. Three routes: real estate ($300,000+), securities ($500,000+), or bank deposit ($750,000+). Grants immediate permanent residency with work permit. Processing is faster than Friendly Nations route.

Min. Investment: $300,000 USD

Processing: 2-4 months

Validity: Permanent

Path to Citizenship (5 yrs)

Work Permit Included

Tax Information

Income Tax

25%

Top marginal rate

Corporate Tax

25%

Capital Gains

10%

Tax System

Territorial

Panama Territorial Tax System

Panama only taxes income earned within Panama. Foreign-source income is completely tax-free.

remote workers

entrepreneurs

investors

💰 Potential Savings: 100% on foreign income

Panama Zero Tax for International Business

Panama corporations earning income outside Panama pay zero tax. Personal income from abroad also tax-free.

entrepreneurs

investors

💰 Potential Savings: 100% on international income

Property Opportunities

Panama City Ocean View Condos

Modern high-rise condos in Panama City with ocean and skyline views. Dollar-based economy.

Foreigners Can Buy

From $200,000

Trip Itineraries

Panama — Test the Waters

Test the Waters

5 days

A 5-day mid-range itinerary to explore Panama as a potential new home.

Estimated Cost: $850

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Important Disclaimer

The information on this page about Panama is for general informational purposes only and does not constitute legal, tax, or immigration advice. Tax rates, visa requirements, and immigration policies change frequently. Always consult with qualified professionals (immigration attorneys, tax advisors) before making relocation decisions. GoMoveAbroad makes no guarantees about the accuracy or completeness of this information.

Panama