Retire in Panama
To retire in Panama you need a pension of $1,000 a month paid for life, and it gives permanent residency. Prices run at about 50% of the US, and a foreign pension is not taxed.
What it takes, what it costs, and where retirees settle, from Panama's law and official data. Checked on Oct 7, 2026.
- Retiree visa
- From $1,000/mo A pension paid for life, by a foreign government, an international organisation or a priva…. Decreto Ejecutivo 320 (2008); Panamá Digital. Checked Oct 7, 2026.
- Price level
- ~50% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Tax on a foreign pension
- 0% A foreign pension is not taxed. PwC Tax Summaries. Checked Oct 7, 2026.
- Travel advisory
- Level 2 of 4 Exercise Increased Caution. US State Department. Updated Aug 18, 2026.
- Health spending
- $1,558/person Per year; US $13,473. World Bank. Checked Oct 7, 2026.
- US tax treaty
- None No income tax treaty with the US. IRS. Checked Oct 7, 2026.
Do you qualify?
Most Americans and other retirees move to Panama on the Pensionado visa: permanent residency from the start for anyone with a pension paid for life. Savings, investment income and withdrawals from a retirement account (a 401(k), IRA, RRSP or personal pension pot) do not count unless they are turned into a pension paid for life.
Pensionado visa: documents and feesRetiring in Panama, topic by topic
Visa
Pensionado visa requirements
Documents, government fees and the other routes to residency.
Healthcare
Healthcare for retirees
The hospitals retirees use, what insurance covers, and Medicare abroad.
Money
Banking, pensions and tax
How US, UK and Canadian pensions reach a local bank, and what you report at home.
Budget
Cost of living
Official prices and a budget built from your own rent.
What it costs
Household prices in Panama run at about 50% of US levels. Rent is the line nobody publishes officially, so the cost of living page builds your budget from your own rent; food starts from the official basket.
Build your budgetOfficial food basket, per household, March 2026
Ministry of Economy and Finance. Checked Oct 7, 2026.
Where retirees settle
Panama City
- Capital, about 1.54 million people
- Home of the JCI-accredited hospitals
- Food basket $365.88 a month for a household
Boquete
- Highland town in Chiriquí at about 1,200 m
- Hospitals in nearby David
- Food basket outside the capital $341.81
Coronado
- Pacific beach area in Chame District, west of the capital
- Hospitals in Panama City for complex care
Bocas del Toro
- Caribbean island province, 159,228 people (2023)
- Far from the main hospitals
Wikidata; Pacífica Salud; Ministry of Economy and Finance; Hospital Chiriquí. Checked Oct 7, 2026.
Panama compared
- Panama City vs Boquete vs Coronado
- Costa Rica vs Panama vs Belize
- Panama Pensionado vs Philippines SRRV
- Mexico vs Costa Rica vs Panama Retirement Comparison 2026
- Costa Rica vs Panama for Retirement in 2026
- Mexico City vs Panama City for Retirement in 2026
- Panama City vs Lisbon for Retirement in 2026
- Penang vs Panama City for Retirement in 2026
More guides on Panama
Visiting Panama first
Most people spend a few weeks in Panama before they apply for anything. Two things to sort out for that trip:
Kiwi.com
Flights to Panama
Compare routes and dates before a scouting trip.
Airalo
eSIM for Panama
Mobile data from the day you land, without a local SIM.
Partner links: we may earn a commission if you book, at no cost to you. How this works.
Retiring in Panama: questions
Can I retire in Panama on Social Security alone?
Yes, if it pays at least $1,000 a month: a state pension paid for life meets the Pensionado rule. A comfortable life usually needs more; build a budget from your own rent on the cost of living page.
Is Panama safe for retirees?
The US State Department rates Panama Level 2, exercise increased caution. It cites crime such as theft and break-ins, and says not to travel to the Mosquito Gulf or parts of the Darién region.
Do I pay tax in Panama on my pension?
No. Panama taxes only income earned in Panama, so a pension from abroad is not taxed there. US citizens still file a US return.
Where do retirees live in Panama?
Mostly Panama City, for hospitals and flights; the highland town of Boquete in Chiriquí; and the Pacific beach area around Coronado. Bocas del Toro, on the Caribbean, is further from major hospitals.
