When you’re thinking about relocating, Panama isn’t usually the first place you’d think of moving to. But you should.
The Pensionado visa is one of the most well-known retirement programmes in Latin America and comes with real discounts on healthcare, transport, entertainment, and more.
However, for remote workers, the best thing about Panama isn’t the luxury retirement lifestyle. Instead, it’s that Panama doesn’t tax foreign-sourced income. When you couple that with the fact that the time zone works with US business hours and that there’s fibre internet coverage in most urban areas, it becomes a paradise.
Understand Your Visa and Residency Options
The Pensionado visa, which is offered to retirees, requires proof of a lifetime pension income of at least $1,000 per month. If you buy a property in Panama worth $100,000 or more, that threshold drops to $750 per month. You will need to add $250 per month for every dependent you bring with you.
On the other hand, the Friendly Nations visa is better for working-aged applicants. This is also open to citizens of over 50 countries, which is great for non-US residents who are thinking of relocating to Panama.
The qualifications for this visa include:
- A minimum of $200,000 invested in Panamanian real estate
- A $200,000 fixed-term bank deposit in a Panamanian bank
- A valid job contract with a Panamanian company
The Self-Economic Solvency visa is open to anyone regardless of nationality.
For this visa, you need to invest a minimum of $300,000 in either a 3-year fixed-term deposit at a Panamanian bank or in property free of mortgages. You can also invest in both if they total $300,000. Your investment threshold increases by $2,000 per dependent.
Whichever route you pick, the document requirements are largely the same, including:
- A valid passport with at least 6 months remaining
- A certified birth certificate
- A criminal background check apostilled in your home country
- Financial documentation
Quick note: Anything not issued in Spanish needs a certified translation, so be sure to do that before the application process!
Create a Relocation Budget
Most relocation budgets underestimate costs because they only factor in the move itself. But there are a few other expenses that need to be considered as well…
Immigration attorney fees typically cost around $1,500 to $3,000, depending on the complexity of your visa. In fact, you’re legally required to use a licensed Panamanian-based immigration attorney for all residency applications.
On top of that, you need to include a rental security deposit of 1-2 months, shipping costs, utility setup fees, and whatever you need to buy locally when you arrive.
Ongoing living costs
A 2-bedroom apartment in Panama City costs around $900 to $1,800 per month. This is largely dependent on the neighborhood you’re living in, though.
Utilities for a mid-sized apartment average $150 to $250 every month as well, so be sure to factor that into your rental budget.
Local transport is cheap, although most expats eventually get a car. And private health insurance costs around $250 to $400 each month.
Setting Up Your Essential Services
The first two weeks in Panama are mostly admin.
For example, opening a local bank account may take longer as a foreign national. The requirements vary by bank, but typically include your passport, proof of address, proof of income, and a reference letter from your home bank. Keep in mind that some banks also require a minimum opening deposit of $1,000 to $5,000.
Additionally, iron out your healthcare details as soon as you can. Register with a local GP in the first two weeks rather than waiting until you actually need one.
You may also want to sign up for mobile phone and internet services in the first few days.
Make Your Move to Panama Smoother
With good planning, relocating to Panama is more of an adventure than a stressful move. And part of that planning is scoping out the areas you’re interested in moving to.
If you aren’t fully committed to the idea of relocating just yet, you can always check out seasonal cruise deals to Panama for a short scouting holiday that doesn’t break the bank. That way, you can figure out if Panama is right for you and which region you love most before starting your visa application.
Once you’ve seen the beauty of Panama for yourself, though, you won’t have any doubts.
