Complete Expat Guide Panama 2026 : Live & Retire in Panama

Panama offers a unique combination: a dollarised economy, excellent healthcare, zero taxes on foreign-source income, a tropical climate and one of the world's most famous retirement visa programmes : the Pensionado. It is consistently ranked as a top retirement destination in the Americas.

Updated: 20 May 2026 : Editorial Team, eVisa-Card.com

⚠️ Important 2026 update : Panama: Executive Decree 196 : visa exemption expanded

Executive Decree 196 (28 October 2024) expanded visa exemption to nationals of 'visa-required' countries who hold a valid multi-entry visa or residence from the US, Canada, UK, EU, Japan, South Korea, Singapore or Australia. Only validity on the day of entry is required. Maximum stay under this regime is 30 days. Proof of USD 500 and a return ticket remain mandatory.

Effective: 28 October 2024

Source: Panama Migración

Panama at a Glance

Capital	Panama City
Currency	Balboa / USD
Language	Spanish
Monthly cost	~$1,200-2,500/month

🛂 Visa & Residency Options

Visa Type	Details
Pensionado Visa	Panama's flagship retirement visa. Requires a guaranteed lifetime pension of $1,000/month from a government or private pension. No age minimum. Permanent residency from day one. No stay requirement. Includes a long list of discounts (20-50%) on healthcare, restaurants, entertainment.
Friendly Nations Visa	For citizens of 50+ 'friendly nations' (including USA, EU, UK, Canada, Australia). Requires $200,000 in a Panama bank account OR employment with a Panamanian company OR business ownership. Permanent residency.
Self-Employed / Business Visa	For investors or business owners. Capital investment of $40,000+ (with at least 3 Panamanian employees). 2-year permit, path to permanent residency.
Digital Nomad Visa (Short-Stay Permit)	Panama introduced a Remote Worker Permit in 2021. Monthly income proof $36,000+/year. 9-month renewable permit. Not full residency.
Tourist Visa / Stamp	US, EU, UK, Canadian citizens: 180 days visa-free. Many nomads use Panama as a hub and renew easily with a short border run.

Step-by-Step Process

Choose your visa category (Pensionado for retirees, Friendly Nations for qualified nationals)
Hire a Panamanian immigration lawyer (~$1,500-3,000 in legal fees)
Gather documents: passport, pension letter, police clearance, health certificate, bank statements
Apostille and translate all foreign documents to Spanish
Submit application to the National Immigration Service (SNM)
Initial temporary residency issued (~3-6 months processing)
Permanent residency card (Carnet) issued : usually within 6 months
Apply for cedula (national ID) at the Civil Registry
Obtain RUC (tax ID) at the DGI if conducting business

💡 Pro Tip: The Pensionado Visa is one of the world's best retirement programmes : permanent residency with a modest $1,000/month pension, no age limit, and remarkable discounts on healthcare and daily expenses. It can be obtained with a pension as small as a US Social Security benefit.

🏥 Healthcare in Panama

Public Healthcare

Panama has a two-tier public system: Social Security (CSS) for formal workers and public hospitals (MINSA) for the general population. Pensionado visa holders can access CSS at discounted rates. Quality in Panama City is good; rural areas are underserved.

Private Healthcare

Panama City has excellent private hospitals: Hospital Nacional, Hospital Punta Pacifica (affiliated with Johns Hopkins), Clínica Hospital San Fernando, Hospital Chiriquí (David). English-speaking doctors are common. Costs are significantly lower than the US.

Typical Costs

Service	Cost
Private GP consultation	$40-80
Specialist consultation	$80-200
Emergency room (private)	$200-800
Hospitalisation (private, per night)	$400-1,500
Dental cleaning	$40-80
Major dental work	50-70% cheaper than US

ℹ️ Recommended: Most expats use a combination of private health insurance and occasional CSS access (if eligible via Pensionado). Panama City's private hospitals offer US-quality care at 30-50% of US prices.

🛡️ Supplementary Health Insurance

Health insurance is not legally required for residency in Panama but is strongly recommended. Hospitalisation and specialist care at private hospitals can be expensive without coverage. Pensionado holders receive a 20% discount on private medical services.

Top Providers for Expats

Pan-American Life Insurance (PALIC)
Major regional insurer with strong Panama network. Widely accepted at private hospitals. From ~$150/month.

BlueCross BlueShield (Panama)
Popular with US expats. Good network of hospitals. From ~$180/month.

ASSA Compañía de Seguros
Panama-based insurer. Comprehensive plans, dental included. From ~$120/month.

Cigna Global
International plan covering Panama and worldwide, including US. From ~$150/month.

Aetna International
Good for US citizens who need US coverage too. From ~$200/month.

💡 Pro Tip: Pensionado visa holders receive a 20% discount on private healthcare services : keep this in mind when comparing insurance plans. Even with insurance, you'll pay a fraction of US costs for the same procedures.

🏦 Opening a Bank Account in Panama

Panama is a major banking hub in Latin America. However, post-FATCA compliance has made account opening stricter, especially for US citizens. A Panamanian bank account is essential for visa purposes (Friendly Nations) and daily life.

Recommended Banks

Banco Nacional de Panamá : State-owned bank. Most accessible for new residents. Competitive rates. Good for retirement pension deposits.

BAC Credomatic : Largest private bank in Central America. English service, good digital banking. Popular with expats.

Banistmo (HSBC affiliate) : Good for international transfers, especially to/from Europe. English support available.

Multibank : Expat-friendly, good for Friendly Nations visa applicants (requires bank balance proof). Good English service.

Global Bank : Relatively easy account opening. Good for Pensionado applicants.

Required Documents

Valid passport
Panamanian residency card (Carnet) or tourist visa
Proof of address (rental contract or utility bill)
Proof of income (pension letter, employment contract or investment proof)
Personal and professional reference letters (2 each, some banks)
Initial deposit ($500-5,000 depending on bank)

Step-by-Step Process

Obtain your residency card or at minimum a tourist entry stamp
Visit bank branch in person (no online opening for non-residents)
Present all documents including reference letters
Compliance interview (standard KYC process)
Account opened within 1-4 weeks (compliance checks take time)

💡 Pro Tip: US citizens face the most scrutiny due to FATCA reporting requirements : some banks decline US applicants entirely. Multibank and Global Bank are more open to US expats. Non-US expats typically have a smoother experience.

🏠 Buying Property in Panama

Panama has among the most foreigner-friendly property laws in Latin America. Foreigners have the same property rights as Panamanian citizens. No restrictions on type of property, location or amount owned. The property market is dollarised.

Options for Foreigners

Freehold (Titled Property)
Full ownership, same rights as citizens. Most condos, houses and commercial properties. Registered at the Public Registry.

Rights of Possession (ROP)
Untitled land where occupants have use rights but not formal title. Common in rural and coastal areas. Higher risk : verify carefully.

Pensionado Property Exemption
First purchase of primary residence by a Pensionado is exempt from certain taxes. Confirm with your lawyer.

Purchase Process

Hire a Panamanian real estate lawyer (abogado)
Obtain your RUC (tax ID) from the DGI
Sign a Promise to Purchase contract (Promesa de Compraventa) : pay 10% deposit
Lawyer conducts title search at the Public Registry
Verify no liens, encumbrances or property tax debts
Sign the final Purchase Deed (Escritura de Compraventa) before a Notary
Register at the Public Registry (Registro Público) : takes 2-8 weeks

Typical Costs

Item	Cost
Transfer tax (ITBMS)	2% of higher of sale price or registered value
Notary and legal fees	1-2% of purchase price
Public Registry fee	~$500-1,500
Annual property tax	0% up to $120,000 value (primary residence exempt to $300,000 for new construction)
Agent commission	3-5% (paid by seller)

💡 Pro Tip: Panama's primary residence tax exemption is excellent : new properties up to $300,000 are exempt from property tax for 20 years. Always verify titled property (vs Rights of Possession) before purchase. Coastal property near the beach requires additional due diligence on concession rights.

About This Guide

This guide is researched and maintained by the editorial team at eVisa-Card.com. Last updated: 20 May 2026. Always verify current requirements with official government sources and consult a licensed professional before making major decisions.