Retire in a Foreign Country – Panama
January 9, 2009 by Mr. GoTo
Filed under Places to Retire
Many baby boomers are intrigued by the possibility of retiring in a foreign country, either full-time or part-time. I have to admit that I have thought and read quite a bit about it myself.
Some foreign countries have passed laws and created government policies designed to attract American retirees. Panama is one of those countries.
As an introduction, here is a video I found that features Panama as a place to retire:
The U.S. dollar is legal tender in Panama, which gives stability to the economy.
New residents who build or purchase a home pay no property taxes for 20 years.
Residents of Panama pay no income taxes on foreign earned income, i.e., you can have a job in the U.S. and not pay income taxes in Panama on that income.
If you qualify as a “pensioner” (meaning that you are over 18 and have a guaranteed income of at least $500/month from Social Security or other government pension), a U.S. retireee receives many discounts ranging from 15% to 50% on medical care, transportation costs, restaurants, and hotels.
Panama also has geographic advantages for U.S. baby boomers who might want to live there. First, Panama is easy to get to from the U.S., with regular flights from Miami, L.A., Orlando, and Houston. Second, in Panama you can find very affordable real estate in the city, in mountainous rural areas, on the ocean, and even on an island.
Here is another video about Panama as a place for retirement, produced by International Living:
Panama has a very low cost of living. Here are some examples of that:
You can build a home similar to one in the U.S. for approximately $40 per square foot.
You can hire a full-time live-in maid for $120 to $160 a month.
A beer at a local drinking hole will cost your 35 cents. (I love this one, because I cannot even buy a canned beer at a grocery for that!)
A cup of coffee cost 30 cents. (I wonder if this includes Starbucks?)
A shave and a haircut will cost you $2 or you can spend about $8 for a full beauty salon service.
Utilities are low with water bills averaging $18 per year, land line telephone for 30 a month, Internet access for $14 a month, and cable TV for $30 a month.
Mrr. GoTo and I have never been to Panama. After studying these facts and figures and reviewing the videos, I want to visit.
Have any of you visited or lived in Panama? What were your impressions?
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I lived there for 3 years in the early 90’s and plan to live there again when I retire in a few years