In the modern world, it is not uncommon to relocate to a foreign country and spend a few years living there. We have become much more mobile and changing your place of residence is not a very challenging task today. However, the choice of countries is great and you have to do some serious research before you choose the country to move to.
Here we would like to draw your attention to the opportunity of relocating to Panama in Central America. It is a popular tourist destination because many places of interest can be found in Panama. Living there permanently may also be an option because Panama offers an everlasting summer, its economy is rapidly developing, and the local authorities welcome immigrants from many countries.
How can you relocate to Panama?
Many nationalities do not need visas to visit Panama as tourists. However, the period of their stay is limited and acquiring a residence permit takes some time and effort. In some cases, it also takes money. You can use one of the following opportunities of establishing permanent (or long-term) residence in Panama:
- Invest in the country’s economy. Citizens of most foreign countries (with the exception of just a few ones) can bring investments thus qualifying for legal residence in Panama. The choice of investment objects is rather large and the required investment amount will depend on where exactly you want to invest in Panama. The smallest amount of US$ 80,000 will make you qualified for a residence permit but you have to invest in the wood-processing industry. Alternatively, you can invest in a business venture in Panama but then the required investment amount is going to be twice as high. Another option is putting US$ 300,000 in a Panamanian bank or buying real property that costs as much. These sorts of investments will also make you eligible for a residence permit in the country.
- Apply for a Pensionado visa. Retirees from foreign countries are welcome to spend their golden years in Panama. They can acquire legal residence in the country and enjoy some special bonuses available to pensioners in Panama. The only essential condition that they have to meet is as follows: their guaranteed pension has to exceed US$ 1,000 per month. The Pensionado visa program is especially popular with North American retirees.
- Apply for a ‘friendly nations’ visa. Citizens of some countries that Panama finds especially friendly can acquire legal residence in the country by investment but the residence will come at a discount. Having US$ 200,000 in a local bank will be enough to make you eligible for a long-term residence permit in the country.
There are other ways of obtaining legal residence in Panama such as marrying a local person, for example, but they are a bit too exotic to dwell on them here.
Advantages of living in Panama
Panama attracts tourists by its climate and a holiday atmosphere but living in Panama permanently also has some important advantages. The main advantages include the following ones:
- The US dollar is in free circulation in Panama and the USA is its largest trade partner. Wherever the dollar is used as a national currency, it brings considerable economic benefits to the country. The economy of Panama is steadily growing and the use of the US dollar simplifies business operations with your counterparts in North America. The same holds for bank transfers. Panama is great for avid businesspeople.
- Panama offers great banking opportunities. Opening a bank account in Panama is easy and even non-residents of the country can bank there, let alone legal residents. Even Americans are taken onboard by Panamanian banks even though this is not wide-spread in many other countries of the world due to the FATCA-related problems. In Panama, you will find better interest rates on dollar accounts than you can find in the USA and other countries. Bank loans are readily available even to non-residents. Some banks in Panama have very mild initial deposit and security balance regulations: US$ 3,000 will often suffice. Needless to say, seamless bank transfers to Latin American countries can be made in Panama. If your bank in Europe or Asia does not want to deal with a bank in Columbia or Nicaragua, for instance, your Panamanian bank will be happy to do that. You can set up a bank account in Panama remotely even though a personal visit to the bank will greatly improve your chances. One of the downsides of banking in Panama is frequent changes of rules and regulations, which means that you need some professional support if you want to set up a bank account in the country. Besides, banking services can be rather slow in Panama at times.
- You will find a lot of entertainment and recreation facilities in Panama. What is important, the prices are much lower than they are in the USA or Europe.
- Panama has an advantageous geographical location between North and South Americas. You can catch a direct flight from Tocumen international airport to a great number of destinations.
- The level of personal security is much higher in Panama than it is in many other Latin American countries.
- The weather is warm and stable in Panama: about +30 degrees centigrade all year round. The climate of Panama makes the country especially popular with immigrants from countries with a cold and gloomy climate.
- You can find high-quality food products in Panama that sell at very reasonable prices. Panama is located between the Atlantic and the Pacific Oceans and there you will find an abundant choice of seafood. Fruit and vegetables are also readily available throughout the years.
- Locals are very friendly in Panama. You can hardly hear rude words in the country or find people screaming and shouting at each other. Everybody is relaxed and smiling.
- Low income taxes are charged in Panama. Panama is one of the most attractive countries in the world as far as its taxation system is concerned. An income of less than US$ 11,000 per year is not taxed at all. An income between US$ 11,000 and US$ 15,000 is taxed at 15%. The highest tax rate of 25% is applied to incomes that exceed US$ 50,000 per year. Besides, no income derived from foreign countries by Panamanian residents is taxed in Panama.
- Life in Panama has a holiday feel. The ocean breeze, the beautiful tropical nature, the wonderful beaches, and friendly local people will make you feel as if every day of your life was a holiday. An atmosphere of peace and relaxation found in Panama is probably one of the key reasons for relocating there.
- The quality of medical services is high in Panama. There you can find a large number of private as well as state-supported clinics. Of course, the doctors’ qualifications will vary depending on the place where the clinic is located but the doctors will always try to do everything that they can for you. Doctors in Panama City often speak English even though Spanish is the official language in the country.
Downsides of living in Panama
It must be admitted, however, that life in Panama has some downsides that can turn potential immigrants off. The main disadvantages of living in Panama include the following ones:
- The climate may prove too hot for some people. Besides, the weather can change in an instant in Panama: it was sunshine a minute ago and now it is pouring with rain.
- Traffic jams are frequent in Panama City during rush hours.
- Acquiring services (especially from governmental agencies) may take more time that you had expected.
- Some streets are heavily littered in Panama.
- Few people in the streets will speak English so the language barrier can be an issue.
In any case, however, Panama is a warm, beautiful, safe, and relatively inexpensive country and relocating there is an opportunity worth considering.
