Why Panama is Rising to #1 For Expats & Retirees

In multiple surveys and indices recently, Panama has shot to the top in categories like retirement desirability and best places for expats. Some of the key findings:

• Expat Insider 2025 placed Panama as the world’s best destination for expats, for the second year in a row, based on metrics such as quality of life, ease of settling in, expat essentials, etc. Time Out Worldwide

• A Global Retirement Index and International Living rankings have named Panama #1 retirement destination in 2025, unseating previous favorites like Costa Rica. IGR Panama+1

• InterNations surveys report high levels of satisfaction among expats in Panama: for example, in 2024, ~82% of expats said they were happy with their life there, well above the global average. Casa Solution+2Central America+2

These results are backed up by improvements in things that really matter to retirees and migrating expats: financial satisfaction, access to healthcare, stability, visa options, and quality of life. Newsroom Panama+3Central America+3Forbes+3

What Makes Panama Stand Out

Here are some of the specific features and advantages that keep putting Panama ahead:

1. Retiree Incentives & Visa Programs Panama has long offered the Pensionado program (visa for retirees/pensioners) with benefits: discounts on things like flights, entertainment, prescription meds, import duties, etc. Forbes+2Newsroom Panama+2Also, the residency / immigration system is relatively flexible and welcoming. Taxes for Expats+1

2. Affordability vs. Quality Compared to many Western countries, the cost of living in Panama can be much lower (though it varies depending on lifestyle and location, e.g. capital vs rural or beach areas). Healthcare is generally good and much cheaper than in, say, the U.S. or Europe for many services. Forbes+2Zerra+2

3. Modern Infrastructure & Connectivity

   • Panama uses the U.S. dollar for currency, which helps eliminate currency risk for many retirees/expats. Taxes for Expats

   • Panama City, Tocumen Airport, etc. are well-connected internationally. Panama Living+1

   • Internet/digital infrastructure is fairly good. For remote workers or people who travel often, that matters. Panama Living

4. Diverse Geography, Climate, and Culture Panama offers a lot of variety: beach/coast, mountains (e.g. Boquete), tropical rainforest, modern city life vs quiet small towns. For travelers and retirees who want a mix, this helps. Forbes+2Reside Panama+2

5. Stable Political & Economic Environment While no place is perfect, Panama is generally viewed as relatively stable politically, with a growing economy. Also inflation and cost fluctuations are less extreme than some other countries in the region. Taxes for Expats+1

6. Friendly Local / Expat Communities & Lifestyle Expats report that people are friendly, it's relatively easy to integrate (language can be a barrier, though Spanish is dominant), and there are a lot of amenities targeted to foreigners / retirees. Newsroom Panama+2Casa Solution+2

   
   

Areas Where Panama Still Has Challenges

It’s not all sunshine, and any serious assessment should consider what to watch out for:

• Variations in Cost Depending on Location: Living in Panama City or upscale beach/coastal areas can be expensive. Local towns are cheaper but may have fewer services.

• Language Barrier: Spanish is the dominant language; while English is spoken in expat and tourist sectors, getting by in more rural areas often requires some Spanish.

• Healthcare Quality Variance: While there are good hospitals especially in major cities, rural areas have less access or lower quality.

• Infrastructure Gaps: Though improving, some places still have issues with roads, water, utilities, especially when you go outside of well-developed zones.

• Cultural Adjustments: Any move abroad involves adjustments — customs, food, bureaucratic processes.

• Climate / Natural Risks: Tropical climate means rainy seasons, humidity, possibly risk of tropical storms, etc.

  
  

What Being “#1 for Retirement / Expats” Actually Means

What do these rankings and surveys indicate, in practical terms?

• More people are considering relocating to Panama, including retirees seeking a comfortable post-career life and expats looking for better work–life balance.

• Services for expats / retirees are growing: more legal/real estate/investment advisors, more foreign-friendly infrastructure, more international schools, etc.

• Competition for desirable real estate (especially in popular towns or coastal areas) may increase, which could drive up property prices in those areas.

• As popularity grows, some costs may creep up (e.g. rents, imported goods), so early movers might have an advantage.

  
  

What to Consider If You’re Thinking of Making the Move

If you're considering retiring in or moving as an expat to Panama, here are useful steps & tips:

1. Explore the Visa / Residency Options

   • Pensionado visa

   • Friendly Nations visa

   • Others (remote worker visas, etc.)

2. Visit First Spend a few weeks or months in different regions (city, beach, mountain) to see what fits your lifestyle best.

3. Budget Realistically Include in your budget housing, healthcare, transportation, food (both local and imported), taxes, entertainment, travel.

4. Check Healthcare Access For medications, medical specialists, emergencies: proximity and quality matter. Consider private health insurance.

5. Factor in Language & Culture Try to learn Spanish or use bilingual communities; integrate with locals to fully enjoy life.

6. Plan for Logistics & Administration Banking, importing goods, moving, licensing, driving, taxes — all require research.

7. Stay Informed of Local Laws / Policies Immigration laws, tax laws, residency/visa terms can change.

Conclusion

Panama is not becoming #1 by accident. It is delivering a combination of affordability, natural beauty, modern conveniences, and welcoming policies that many retirees and expats are seeking. The evidence from surveys & indices shows broad satisfaction among people who have already made the move, particularly in terms of financial comfort, quality of life, and ease of settling in.

That said, star-rankings are only one piece of the puzzle. Whether Panama is the “perfect” choice depends a lot on your personal priorities: climate, language, how urban or rural you want to be, what budget you have, and what risks you accept.