Panama may be best known for its iconic canal, but for older Americans, it’s also a retirement wonderland with sunny vistas, a low cost of living and a wealth of lifestyle amenities.
Geographically, the 29,000 square-mile island links North and South America in an elongated “s” shape that borders Costa Rica to the west and Columbia to the east.
Panama is also one of the Caribbean’s largest economic engines, with its gross domestic product expected to increase by nearly 33% between 2024 and 2029, reaching a record high of $116.23 billion, according to data from Statista. From its grand Panama Canal to its lush indigenous jungles, Panama is one of the most beautiful and economically enticing countries for retirees.
Where are the best places for foreign retirees to land in Panama? These Panamanian communities, listed in alphabetical order, will get you on track to enjoy your golden years.
— Boca Chica
— Boquete
— Chitré
— Coronado
— David
— El Valle de Antón
— Panama City
— Puerto Armuelles
— San Francisco, Panama City
— Volcán
Boca Chica
This tiny fishing village is the perfect antidote for retirees who want to put their feet up, enjoy the cool ocean breeze and get away from it all.
The coastal town, located about 70 miles east of the Costa Rican border, is a water sports paradise, offering beach town living at a fraction of the price found in Florida and California.
The town offers many sun-splashed activities, including snorkeling, scuba diving, fishing, kayaking and paddleboarding. Boca Chica also has some of the best coral reefs in the world and boat ramp access to neighboring islands like Boca Brava.
With a tiny population of 500 people, Boca Chica is a densely populated town that offers retirees a relaxed and quaint lifestyle. A single retiree can easily live it an ocean-view villa for $1,200 per month or purchase one of the area’s brightly hued homes with a jungle backdrop for about $250,000. Expect basic household utilities to cost about $40 per month.
Boquete
Located near Volcán Baru, Boquete is a quiet Panamanian locale with about 23,000 residents. The picturesque town offers beautiful mountain scenery, with the Caldera River flowing through its center.
Residents can enjoy the views while sipping coffee grown in nearby bean fields, which thrive in the region’s cool, breezy climate. Orange and pineapple trees also dot the town’s hillsides, providing a serene landscape for residents on the road to the Gulf of Chiriquí and its white sand beaches only an hour away.
Pensioners will also love Boquete’s budget-friendly vibe, with expats receiving up to 20% off hospital and clinic services, 25% off Panama airfares and at bars and eateries, and up to 50% off entertainment like movies, music and sporting events.
[Read: The Best Places to Retire in Latin America]
Chitré
One of Panama’s best-kept secrets, Chitré is located in the country’s visually stunning Azuero Peninsula, located in the country’s Herrera province right on the Pacific Ocean and just several hours from Panama City.
Like most Panamanian landing spots, Chitré offers abundant activities at a low cost. There are daily flights from the region’s local airport to Panama City that make transportation to the region convenient, and the Pan American highway is only minutes away.
The city is filled with local markets selling fresh fruits and vegetables, while abundant restaurants and bars offer retirees easy access to a relaxing night out on the town. Golfers have it made in Chitré, where the local championship course provides unlimited golf for only $80 per month for members.
The area explodes every February with Carnaval, a five-day festival that adds color to the Chitré lifestyle. Beachfront real estate is relatively low-priced compared with the U.S. and Mexico, and swimming, snorkeling, and scuba diving are big parts of the local beach experience.
Coronado
This beach resort is located on Panama’s gorgeous Pacific coast. New retirees can expect a unique experience specific to Panama: You can actually swim in the Pacific and Atlantic Oceans on the same day, starting in Coronado and ending the day in Colon, at the Atlantic end of the Panama Canal.
Aside from its lush jungle vibe, Coronado offers residents comfortable amenities like 24-hour supermarkets, easy access to good hospitals and medical clinics and daily activities like hiking to nearby Saltos de Filipinas waterfalls or relaxing El Valle’s hot springs. U.S. residents with a Pensionado Visa get significant discounts on medical services and entertainment. Golf, pickleball and scenic coastal walks are all mainstays in Coronado. Expect steady sunny days with little rainfall with average year-round temperatures in the low to mid-80s.
Only about an hour’s drive from Panama City and the region’s major airport, Coronado offers retirees a lifestyle experience largely unattainable given the low price and 50-mile stretch of villages and communities full of stunning beaches, great golf courses, wonderful gated communities, and loads of shops, restaurants and bars.
David
For a different Panamanian urban experience, visit David, the country’s third-largest city with 165,000 residents. David is located in Panama’s Chiriquí province in Western Panama, closer to the Costa Rica border.
David offers its burgeoning expat community most of the infrastructure and lifestyle amenities found in Panama City, but at a much lower cost. Located inland, the region is one of the warmest locales in Panama, with daytime temperatures in the mid-80s and 90s year-round.
Nighttime is a different story, as temperatures slide into the high 60s. Residents enjoy bountiful meals that are widely available at $5 from family-owned eateries. After a great meal, residents may stroll through nearby Cervantes Park, where musicians play nightly, and wind up at one of the town’s multi-cinemas or casinos.
David also offers retirees easy access via an international airport, plenty of malls and shops and an impressive network of health care facilities.
El Valle de Antón
If you ever wanted to live in the crater of a massive but extinct volcano, El Valle de Antón is the place for you.
Nestled among steep mountains about an hour from Coronado’s beautiful beaches and 75 miles from Panama City, El Valle de Antón offers a cooler climate than Panama City and even the country’s coastal regions. The area rises about 2,000 feet above sea level and is ringed by lush forests that help keep the heat away.
El Valle attracts many expats who love the area’s serene style, ample hiking opportunities and scenic landscapes. They also enjoy a low cost of living, with monthly rent for a one-bedroom apartment as low as $500 and a great meal out for two people about $30. The average monthly grocery bill is around $200, and the town offers a monthly transportation pass for $15.
[Related:How to Retire in Africa for $1,200 a Month]
Panama City
Known as the hub of the Southern Caribbean and the banking and finance capital of the region, Panama City offers retirees a big-city vibe in a tropical locale.
The city is home to around 430,000 residents, who comprise about 10% of the country’s population of 4.3 million. Panama City stands on the Pacific entrance to its famous canal and has earned its reputation as a thriving seaport.
Retirees can expect a high quality but low cost of living and are welcomed with open arms by the country and its biggest city. No visa is required to visit for house hunting and cultural due diligence, and retirees mulling Panama City as a retirement landing only need to demonstrate a retirement income or pension of $1,000 per month, which is the case throughout the country.
Ocean-view apartments can be had for about $1,200 per month, or one can be bought outright for as little as $150,000. Panama City also offers a world-class airport with direct access to major North and South American cities and is adjacent to some of the best jungle mountain hiking in the Western Hemisphere.
Panama City has a lot to offer retirees and living there doesn’t cost much, making it an ideal entry point for expats to start their Panama retirement experience.
Puerto Armuelles
This coastal town at the southernmost tip of Western Panama should feel familiar to U.S. expats, as it physically resembles many coastal American communities.
That’s because Puerto Armuelles was once a linchpin locale for the Chiquita Banana Company. The corporation made it a point to build larger, more amenity-laden homes for its workers.
At 20,000 residents, Puerto Armuelles maintains a small-town feel and a reasonable cost of living. Oceanfront properties are often sold for $200,000, and two-bedroom apartments can be rented for as low as $300 per month.
Given its rural location, it’s highly advisable that expats speak some Spanish and have patience for the slow, laid-back lifestyle that Puerto Armuelles offers.
[READ: The Best Places to Retire Overseas Where English Is Spoken]
San Francisco
If quaint local neighborhoods are high on your expat retirement priority list, look no further than San Francisco, ideally ensconced in Panama City. Aside from all the big city’s shopping, entertainment and high-quality medical services, San Francisco is an oasis in the heart of it all. The neighborhood includes Parque Omar, one of the largest public parks in Panama. It offers soccer fields, tennis courts, a community swimming pool and a local library.
San Francisco is also only 15 minutes away from Panama City’s Tocumen International Airport. High-end apartment and villa living — including water, phone, cable, housekeeping, groceries and entertainment — costs about $3,500, leaving retirees plenty of cash to enjoy the surrounding area on a regular basis.
Volcán
Known for its famous 11,000-foot volcano, Volcán Baru offers retirees grand views and plenty of amenities.
The city’s 10-block central area is loaded with shops, eateries, health and wellness clinics and floral shops selling some of the region’s most beautiful flowers and plants.
The town has about 15,000 residents and a healthy number of expats drawn to the cool mountain climate. Daily temperatures average between 70 and 75 degrees and usually fall to the 60s when the sun goes down.
Volcán also offers a vastly reduced cost of living compared to the U.S. Retirees can rent a two-bedroom, two-bathroom unit for $500 to $900 per month, while a three-bedroom unit only costs a hundred dollars more.
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10 Best Places To Retire in Panama originally appeared on usnews.com
Update 07/25/24: This story was published at an earlier date and has been updated with new information.
