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There are two types of people in this world. The ones that know what’s going on in Panama and the ones that don’t. In which category are you? Assuming you are reading this article for a reason, we’ll assume you’ll fall in the latter category.
We just returned from our Panama investor exploratory trip this past week which we hosted in Panama city after meeting the ministry of commerce who manages the Investor Residency program, Pro-Panama government investment arm, local bankers, and the largest and most established real estate developers in the Santa Maria, Costa De Este, and Punta Pacifica neighborhoods in Panama City.
If you’re living in one of the big metropolitan cities in North America or anywhere in the world as a matter of fact, you’re going want to hear what’s going on in Panama – and compare to what you have or are receiving in your current city.
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In case you’re based in North America and watching this video, perhaps you are in Toronto, New York, maybe Chicago, Denver, New Jersey, or California just to name a few of the big cities, you will know what we are referring to when we talk about crime, security, public services, etc. Based on where you live you may have to lock your home and have extra security in case of break-ins, watch out for your car being stolen from your driveway (in case you’re in Toronto), you pay millions of dollars for real estate on top of the high taxes where you live, and public education is going down the drain with extremely high private school tuitions and post-secondary public and universities. In most of these cities I mentioned you don’t even have good weather – besides California which also experiences the side effects of the wildfires unfortunately and is right on an earthquake fault. And of course, no matter where you live you probably have politicians talking non-stop on the airwaves 24/7 and you don’t even know who to believe or what’s going on. Now, I would like to provide you a realistic picture of what’s going on in Panama City after we hosted our investor trip last week. Either sit down or hold on, because you will feel scammed by your current city or government after I explain to you on what you’re missing out on.
How is the weather in Panama?
Let’s start with the easy part: The Weather in Panama is nice if you like tropical weather all year round. Since it’s close to the equator the temperature is always between 28 degrees Celsius to 32 Celsius (for our American friends that’s approx. 82 to 90 Fahrenheit). You can find cooler weather in the mountainous regions, such as Boquete which is also a destination for many expats. It rains 2 hours a day like clockwork during the rainy season, and other seasons a bit less. But you know it’s in the afternoon usually and it starts and stops like clockwork. It freshens and cools the atmosphere – similar to Miami. It’s non-stop sunshine 365 days a year. There is only 1 season in Panama to enjoy.
How are the Taxes and Banking in Panama?
You are probably paying income tax, property tax, and whole bunch of taxes you probably don’t remember in your current country, province or state. Since Panama is a jurisdictional tax regime, any income or funds you source from outside Panama are tax free. In a nutshell, if your income sources are from outside Panama, there are no questions asked as you are exempt from taxes 100% - no exceptions. If you’re into Crypto, then this is also music to your years. If you have high income or a pensioner, you don’t need to worry about double taxation in Panama. They have a whole list of free zone options as well in which you can incorporate your business in case you want tax free dealings besides your personal income. Panama also has over 100 banks in Panama to support your financial needs. Whether it’s private banking, corporate banking, or daily retail banking, you have very good options, probably more than you actually need. Opening a bank account is easy – either if you are a resident or non-resident. It is probably easier to open a bank account in Panama than any other country I have visited or done business with whether it’s in Asia, Middle-East, Europe or North America. We visited MMG bank during out trip which is a large corporate and private wealth bank in Panama City, and Aliado bank which is a smaller local retail bank. Thanks to both banks for hosting us with our group of investors and partners. No matter if you use these banks or the other +98 or more operating in this country – you will understand what true banking is about.
Yes, it’s easy to bank, transact business, and earn tax free income in Panama.
How is the safety & crime rate in Panama?
It’s safe in Panama City. People leave their condo doors unlocked. You can walk in the old city in the middle of the night and nobody will bother you. You are not going to have shootings, or home invasions, or your car being stolen. This is a safe city. With over 100 local and international banks and many expats living in this city – Panama cannot afford to allow crime to be out of control in this city. All efforts have been made and for good reason to make this city super safe, friendly and comfortable for you, your family and children.
How is the Economic stability in Panama?
The currency and economy in Panama is 100% based on the US Dollar. Your investment whether it’s in the bank account or real estate is safe. You don’t need to worry too much about currency fluctuations wiping out your wealth or exchanging money to the local currency. Everything is in USD cash in the city and the business world. Due to the Panama Canal, this country is also quite an important geographic hub for international maritime companies, trade and investment – making it in the best interest of all the superpowers in the world to make sure Panama stays an autonomous and stable country. So far, since November 1903, since it’s independence, it has experienced relative stability and continue to do so to promote itself as an international hub for trade, investment, finance, and lifestyle.
Are people in Panama friendly?
Everyone greets you on the street, on the trails, in the shops, or anywhere else you may be - even if they don’t know you. Does this come at a shock? You will feel like you’re living in a small happy village. Unfortunately, this doesn’t exist anymore in North America cities.
Is this normal? Maybe it’s the sun, maybe it’s the low taxes, maybe it’s the stress-free lifestyle. Either way, it’s a very positive vibe and it will not make you feel out of place in case you are an expat.
In Panama, people of different communities and religions even get along and respect each other. That’s mind blowing in today’s world!
How are the education options in Panama?
Panama hosts some of the best international private schools which are either based on UK, American, French, Italian, or even Chinese language and curriculums. Whether you prefer your child to learn according to the UK curriculum at King’s College or the Balboa school as per the US system – you are still paying lower private tuition fees than UK, Canada or USA. It’s a no brainer. Safer schools, less tuition, the same language and the same quality education or maybe even higher. As an example, you can expect to pay a semester at King’s College in Panama City $3,198 to $7,396 depending on the age of your child (these tuition rates were validated with the college and correct at the time of publishing of this article)
How is the Healthcare system in Panama?
You have many healthcare facility options in Panama City since many of the surgeons and doctors who work in Panama City have practiced and were licensed in the US before moving to back to Panama, The medical system is definitely more efficient than Canada and more cost-effective than USA.
Some of the best medical centres and hospitals in Panama City are Hospital Punta Pacífica, a prominent private hospital in Panama City. It's known for its affiliation with Johns Hopkins Medicine International . Additionally, "Hospital Sud" could also refer to Hospital San Fernando, a hospital located in Panama City's Costa del Este area – another highly attractive area for expats working and living in this area. Clinica Hospital San Fernando was the first hospital in Panama to receive JCI accreditation in August 2011. The hospital is affiliated with multiple U.S. hospitals, including Tulane Medical Center, Baptist Health South Florida and three other children’s hospitals.
And in case you are wondering about fertility clinics and flexible fertility regulations in Panama, it’s very competitive and has many options for foreigners. One of the well known fertility clinics dealing with international parents is Panama Fertility Clinic . Children born in Panama receive automatic citizenship, and the parents can apply for to receive permanent residency based on their child being Panamanian.
How expensive is Car & Home Insurance in Panama?
It’s cheap! Or at least cheaper than North American insurance premiums. Since there are no hurricanes, storms or earthquakes in Panama, home insurance is very cheap. Car insurance is also very competitive and cheaper than most metropolitan regions in North America. You can expect to pay anywhere from $60 to $100 a month on your car insurance depending on the model, year, value and location you reside. Condo insurance can range from $1900 to $5000 per year depending on the size, location, construction type and value of your condo. For a $1m condo in Panama city you may end up paying insurance premiums in the higher brackets but for budget-friendly condos around the $200,000 to $400,000 range you will be paying in the lower range premiums.
How is the real estate market in Panama?
If you are living in one of the large metropolitan cities in North America or on any other continent, you can’t own a new house or luxurious apartment by the ocean with a budget below $3m. You can own a villa in Panama City, 15-minute drive from the core, for $1m. You can own an apartment in Costa Del Este (one of the most sought after neighborhoods) for $300,000 overlooking the ocean, a mall within 2 minutes’ walk from the building, and a hospital. This is one of the most popular expat neighborhoods in all of Panama.
If you’re not worried about the Golden Visa threshold of investing $200,000 or $300,000 (depending on your nationality) to receive a permanent residency in Panama, there are units available even for $150,000 to $250,000 depending on the location, size, and facilities. The answer to your question is ‘Yes’, you can be a home owner in a sunny, safe neighborhood, by the water, in brand new building with a $200,000 to $300,000 budget. Is this possible in New York, Chicago, Los Angeles, Toronto or where you currently reside? Is this possible in Miami or Marbella, Spain? If we’ve hit a nerve, then stick around for the rest of this article on the interesting features of living or investing in Panama.
The most expensive apartments or condos around the world are the branded ones such as Fendi, Bvlgari, Ritz and so forth. If you want to buy a Fendi branded condo in New York, Miami or Dubai, you’re looking at $10m to $30m price tag. In Panama, the same quality and even better facilities in the building cost you $1.5m.
And if you don’t fancy branded residential towers, there are new luxury towers and lower priced units available as well.
If you like beach living, why don’t you go for the Playa Bonita neighborhood where Westin has their new projects launching with existing units available in their older towers. Playa Bonita is 15 minutes from the city core, beach front, jungles, and resort style living. A new gold course is being developed right next to this resort style living neighborhood. We work very closely with this developer and have access to both their existing units and the upcoming project at discounted prices for our clients. 
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Or perhaps you like the old city in Panama, Casco Viejo, which is now a UNESCO heritage site dating back to the 1600’s. The whole neighborhood is now under renovation and development and you can find brand new NYC style lofts for under $300,000 in these gorgeous boutique style towers in the old city complete with swimming pool, rooftop terrace, sauna, event space, and full time reception and concierge. Check out some of our photos below. We have access to exclusive units in this building which are not listed on the market and have the entire breakdown of maintenance and property management fees offered by the developer. The advantage with this project is that it has 3 year property tax exemption and also have a short-term rental license for the whole building. Turn-key offering by the developer no matter if you want to reside there full time, rent it out, investment purpose or have it as your casual getaway.
So you think this is all too good to be true and maybe all a marketing gimmick? It’s all fact and we have seen it with our own eyes during our recent Panama investor exploratory trip.
How is the ROI on rental income for your property in Panama?
The bare minimum is 5% in Panama for a condo unit. You can even achieve 8% per annum returns on your property in case you opt for short-term rental options. Yes, your building has to have a short-term rental license, but many buildings do, and you can check with our developers in advance or ask us to let you know which ones do, and which ones don’t. Developers create buildings and apply for the whole building’s short term rental permit in advance – so it’s ready for you to utilize whether you prefer to use it for yourself or rent out. The major developers we work with, top 3 in Panama City, also have their own in-house property and rental management services for you to utilize at between 10 to 20% of the income you earn, depending on whether it’s short term or long term. And if you’re worried about taxes on your rental income, well the reality is you can easily offset it against your costs to operate and own the property. The tax rules are very relaxed in Panama on rental income for expats J So far I have not met any expats who actually paid anything on their rental income.
How do I apply for the Panama Qualified Investor Program, also known as the ‘Golden Visa’?
By now you must be wondering, how can I move to Panama on a permanent residency status or alternatively invest and casually visit when I want to?
Both options are super easy. Here are some facts about Panama and the Qualified Investor Program which you need to know as of April 2025:
• Anyone can obtain permanent residency in Panama within less than 90 days by investing in any type of real estate in the country. It could be office, commercial, residential or even bare land. Land is cheap in Panama relative to its infrastructure, safety and USD denominated economy. It’s the fastest Investor Permanent Residency Program in the world – and if you think Dubai is faster, then you have to differentiate between a temporary residency and a permanent residency which Panama offers but Dubai doesn’t.
• You don’t need to apply for permanent residency or immigration process if you just want to invest in Panama (create a business, own real estate and rent it out, buy land, open a bank account, etc.)
• The minimum investment in real estate is either US$200,000 or $US$300,000 depending on your citizenship to obtain the temporary or permanent residency. If you are from the friendly-nations-list of countries such as USA, Canada, Europe, South Africa, Japan, Singapore or other regions you can invest $200,000 in real estate. See below the full list of the friendly-nations with Panama. If you are not from the friendly-nations countries then you will need to invest $300,000 in any real estate freehold property to obtain the permanent residency. You only need a bank statement with your funds, a police check and a valid passport to apply.
This friendly-nations $200,000 investment threshold for the Qualified Investor Program is available to citizens of countries that maintain close economic and professional ties with Panama. These countries are:
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• The Qualified Investor Program is open to all nationalities. No exceptions.
• The residency is renewable every year, which can be renewed even if you are outside the country.
•The residency requirements are 1 day every 2 years to maintain your residency while you hold on to your investment, and after 5 years you can become eligible for Panamanian citizenship.
The whole process for the qualified investor residency program takes approx. 90 days to be completed and for the investor and his/her family to enter Panama to collect their permanent residency cards.
You can reach out to our office in case you are reading this article significantly later than the publishing date for our latest Panama Residency & Investor Guide with all the latest policy and regulation updates.
If you still think Panama is weird, unsafe, slow, or unstable to invest or do business or perhaps move your family – I hope I’ve given you a serious wake up call. This is one of the hidden gems in central America and we hope you consider it in your Plan B or next potential move for your business, investment or family life. Of course, you can reach out to us and we have a network of service providers, developers, bankers ready in Panama to provide their services for our clients. From VIP airport pick up service to making sure you are staying at the right hotel, seeing the right developers and projects, and meeting the right bankers – we have the right resources to support your residency and investment in Panama. Keep in mind, half of our team speak Spanish and are from that part of the region, so it’s easy for us to handle your entire process from beginning to end – with local support in Panama and North America.
If you are ready to put your Plan ‘B’ into action, for yourself, your family or perhaps your clients, you can reach out to us here. Join our online live stream every Thursday at 11am EST, or 8am PST, to share your feedback, post your questions, and engage with others who are also exploring these opportunities – just by clicking on our YouTube channel link down below.
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