In a world of increasing air travel and fluid borders, retiring to one of the many developing countries with year-round pleasant weather and a booming economy is becoming a popular trend, and Panama is at the forefront of the phenomenon.

With the rise of so-called ‘second world’ countries, the mass migration of people of retirement age to places like Central America has reached an all-time high. The warm, tropical climate, affordable land prices, and political stability of countries such as Panama, Costa Rica, and Belize have attracted an increasing number of middle-class to well-to-do baby boomers eager to claim Your piece of paradise, at a fraction of the first. -World costs.

The best of both worlds

The rise of ‘Second World’ countries is relatively new, an effect of global trade and a host of new technologies targeting rural and underdeveloped areas. Access to modern telecommunications has fueled the rapid expansion of previously depressed economies, bringing advanced technologies to pristine natural environments.

This has created a unique environment: untouched beauty with access to first world amenities.

Panama City, in particular, boasts modern infrastructure, excellent healthcare services, and a dollar-based economy, allowing for an easy transition and comfortable lifestyle for expats. But just minutes from the convenience of the city, serene white-sand beaches flank lush tropical forests, which thrive with wildlife.

Best in the world

With its low cost of living, streamlined immigration process, and impressive incentive package, Panama has consistently ranked among the best places in the world to live and retire, earning top marks from the American Association of Retired Persons and magazines like International Living, Conde Nast Traveler and Modern Maturity.

So how does one settle in this little tropical paradise?

Retirees can apply for residence in Panama as pensioners or pensioners. To be eligible for a pensioned tourist visa, applicants of any age must show proof of a monthly pension of $500 (plus $100 for each dependent) from a foreign government, international organization, or private company.

With a guaranteed monthly income, retirees get tax breaks on the importation of their belongings, up to $10,000, which can be a significant advantage over many other countries that heavily tax foreign imports. In particular, residents with pensioner status can import one motor vehicle duty-free every two years.

Residents are not required to pay taxes on any income earned abroad, including income from business transactions, pensions, or Social Security, and new owners are exempt from property taxes for 20 years.

age knows best

Even without the pensioned tourist visa, seniority is an advantage. Women 55+ and men 60+ can take advantage of a variety of discounts, including:

Transportation

– 25% discount on air tickets

– 30% discount on all public transport (including bus, boat and train)

Medical/Dental

– 20% discount on medical consultations and surgeries

– 15% discount in hospitals (in the absence of insurance)

– 15% discount on dental and vision exams

– 10% discount on prescription drugs

loans

– 50% discount on closing costs for mortgage loans

– a 1% reduction on personal home mortgages

– 15% discount on personal loans

Services

– 20% discount on professional and technical services (including lawyers, architects, nurses, physiotherapists, etc.)

– 25% discount on utility bills

Entertainment/Accommodation

– 50% discount on all entertainment (including artistic, recreational, cultural, sporting events, etc.)

– 50% discount on hotel accommodation from Monday to Thursday and 30% discount from Friday to Sunday

– 25% discount at dine-in restaurants and 15% discount at fast food restaurants

Best bang for your buck

In addition to a host of incentives for settlers, Panama’s economy is strong and growing. The average growth rate of GDP in the last three years is 5.1%, largely driven by a boom in the construction sector. Property values, while very low by North American standards, are steadily appreciating and real estate investing is proving very lucrative.

Foreigners are allowed (with few exceptions, such as near the borders) to own any of the three types of property (title, rights of possession, and concession) in Panama, and all share the same property rights as nationals.

The diversity of properties available is astounding, for all tastes and budgets. Whether you’re looking for a quiet mountain retreat, an ocean-view condo in the bustling metropolis of Panama City, or the languor of seaside life along the sprawling shorelines of this small country, retirement never looked so good.