Unless you are a city person, living in Panama can be very affordable. Jackie Flynn at International Living gives you some hard examples of the cost of living here.
Why is Panama such a bargain?
As I shared in my note yesterday, Panama is the kind of place where you can live very comfortably…luxuriously, even…no matter your budget. You can easily afford household help ($20 a day), or a gardener ($30 a day). A doctor’s visit is just $50 or even much less (even as little as $5 in some rural communities). For just a few dollars, you can take a taxi across town or go to a newly released movie in a VIP theater… A couple can go out to eat and have a couple of beers and spend just $30, including tip.
And these are just a few examples.
Why, you might ask, do things cost so little in Panama?
One reason is that labor costs are low in Panama. With affordable public transportation, low healthcare costs, and fresh fruits and vegetables that grow in abundance all over the country, it’s easy to live in Panama on a very low income.
Plus, there’s not as much bureaucratic overhead for businesses—rents, licensing and permit costs, insurance, taxes, and so on. These are low to non-existent in Panama and these savings are passed on to consumers.
There’s another perk that makes life in Panama so affordable:
It’s home to the world’s best retirement program.
The government of Panama was very farsighted (and very generous, too) when they created their famous Pensionado (Retirement) Program. It was created for Panama’s own seniors—men over 60 and women over 55—but foreigners with a Panama residence visa can also take advantage of it. And it entitles you to BIG discounts on everything from entertainment and dining out to medical services and prescriptions, travel, and more.
Here are just a few of the discounts this program offers:
- Up to 50% off entertainment—such as movies, theaters, concerts, and sporting events—anywhere in the country
- 50% off closing costs for home loans and more…
- 40 to 50% off hotel stays from Monday through Thursday
- 20 to 30% off hotel stays from Friday through Sunday
- 30% off bus, boat, and train fares
- 20 to 25% off airline tickets
- 20 to 25% off at restaurants
- 25% off utility bills
- 20% off medical consultations
- 20% off professional and technical services
- 15% off hospital bills (if no insurance applies)
- 15% off dental and eye exams
- 10 to 20% off prescription and over-the-counter medicines
- And MUCH more…
Expats in Panama say the Pensionado Program is one the most important reasons they chose Panama. You can understand why. This program can save you a bundle on the already low cost of living.
Plus, as a newcomer on a pensionado visa, you qualify for a one-time exemption from duties on the importation of your household goods (up to $10,000) and tax exemptions on the importation or local purchase of a car.
There is no other country that offers the retirement discounts and incentives you’ll find in Panama.
Remember, Panama is arguably the most advanced and progressive country in Central America. You’ll find great roads, high-speed internet everywhere, first-class healthcare, and most every food, tech, and name-brand products you have at home… (Panama City is Latin America’s hub for not just air travel, but shopping, too.)
If you’re looking for a low-cost but top-quality retirement spot, Panama is it.
I’ve lived in Bocas del Toro, Panama since 2010, and the low cost of living, investment opportunities and the boating and island lifestyle was a big draw for me. I recommend for those looking for the same to check out https://www.redfrogmarina.com