Tired of the rat race? Endlessly pondering how to achieve that perfect work-life balance? Picture this: you start your day sipping coffee on a balcony overlooking the lush, green mountains of Boquete, or end it strolling along Panama City’s vibrant, palm-lined waterfront. In 2025 alone, thousands of Americans are expected to relocate to Panama, heads turned by the promise of affordable living, stunning landscapes, and easy residency programs. And best of all? Leaving all the chaos behind for Panama’s famously relaxed cero estrés lifestyle (meaning, literally, “zero stress”).
But idyllic as it may seem, nothing good comes easy. So, before you pack your bags, let us guide you through the groundwork. This comprehensive Remitly guide covers everything you need to know—from visa options and costs to everyday life and cultural insights—making your move to Panama smooth, successful, and yes, “cero estrés.”
Why move to Panama?
If you’re looking for beauty, convenience, and a calmer pace of life, Panama is hard to beat.
Located on a narrow land bridge—just 30 miles wide at its slimmest—connecting Central and South America, Panama’s paradisiacal position offers year-round tropical weather, stunning biodiversity, and easy access to both coasts and continents.
For expats, Panama checks nearly every box. Whether you’re craving laid-back island life or the buzz of city living, Panama may just have what you’re looking for. Think crystal-clear beaches, lush rainforests, cool mountain towns, and a cosmopolitan capital that rivals major world cities.
But more than just beautiful, it’s practical. The cost of living is 36% lower than in the U.S., with rent averaging nearly 50% less. The economy is stable, the infrastructure is strong, and Panama even uses the U.S. dollar, meaning no currency headaches.
Getting there is easy, too. Direct flights from cities like Miami, Houston, and New York take just 3-5 hours. Once you arrive, generous visa programs and foreigner-friendly policies make settling in surprisingly simple.
And people are noticing. In 2024, InterNations ranked Panama the best country for expatriates, with 82% of expats reporting satisfaction with their Panamanian life.
Panama at a glance
Panama is a cultural crossroads. It blends Indigenous roots, Spanish colonial heritage, Afro-Caribbean traditions, and global influence brought by the Panama Canal and international business.
You’ll hear Spanish, English, and Indigenous languages like Ngäbere and Kuna, especially in rural areas. In the city, expect a mix of Chinese, Arabic, and French Creole, too, reflecting the country’s rich multicultural identity.
The lifestyle is friendly, open, and celebratory. Locals embrace a “mañana syndrome” approach to time (everything can wait until tomorrow), and a “cero estrés” mentality. Life moves slower, more intentionally, and people genuinely mean it when they say, “No rush.”
Panama quick facts
- Official name: Republic of Panama
- Location: Central America, connecting Costa Rica (west) and Colombia (east)
- Size: Approx. 75,000 sq km (roughly the size of South Carolina)
- Population: ~4.4 million
- Capital city: Panama City (pop.: ~1.1 million)
- Major cities: San Miguelito, David, Colón, Santiago
- Foreign-born population: Approximately 4.4%, with immigrants primarily from Colombia, China, the U.S., and neighboring Latin American countries
- Ethnic groups:
- Mestizo (mixed European and Indigenous): ~65%
- Indigenous: ~12.3% (including Ngäbe, Guna, Emberá, Buglé, Wounaan, Naso Tjerdi, and Bri Bri communities)
- Black or African descent: ~9.2%
- Mulatto (mixed white and Black): ~6.8%
- White: ~6.7%
- Currency: U.S. dollar (USD) and Panamanian balboa (used only in coins)
- Official language: Spanish (English is widely spoken in expat areas)
- Climate: Tropical, with a dry season (Dec-Apr) and rainy season (May-Nov)
- Time zone: Eastern Standard Time (UTC -5); no daylight savings
How to stay in Panama: visas & residency
Whether you’re retiring, working remotely, investing, or simply looking for a lifestyle shakeup, Panama’s flexible visa options are a key reason so many expats make the move—and stay for good.
Tourist entry
U.S. and Canadian citizens don’t need a visa to enter Panama. You can stay for up to 180 days with just a valid passport, proof of $500 in funds, and a return ticket. Many expats use this time to explore and begin the residency process.
Pensionado Visa (for retirees)
Widely considered one of the best retirement visas in the world, this popular program offers permanent residency and generous discounts, up to 50% off on entertainment, travel, and healthcare. The application is straightforward, but it has to be filed in Panama. You’ll need proof of a $1,000/month pension (plus $250 per dependent) and a clean criminal record. That’s it!
Digital Nomad Visa (for remote workers)
Planning to work remotely from a hammock in Pedasí? The digital nomad visa offers temporary residency for up to 18 months (9 months, renewable once) for remote workers earning at least $3,000/month. You’ll need health insurance and proof of income.
This is an ideal option for freelancers, remote employees, or small business owners looking for a change of scenery without committing to permanent residency.
Friendly Nations Visa (for professionals and investors)
Citizens of the U.S., Canada, and most of Europe qualify for Panama’s Friendly Nations Visa, designed to encourage long-term stays through either employment or investment.
There are two main paths:
- Employment: Secure a job with a Panamanian company.
- Investment: Purchase real estate worth at least $200,000, or open a fixed-term bank deposit of the same value.
You’ll also need to show financial solvency and a clean police record. This visa no longer grants immediate permanent residency, but it’s still a fast-track option.
How to apply
All visa applications must be submitted in Panama, typically with the help of an immigration lawyer. You’ll need to provide a passport, background check, medical certificate, and financial documentation. Processing takes 2-6 months, and legal fees range from $1,000-$5,000.
How to prepare for your move to Panama
Relocating anywhere takes patience and planning, but getting organized early can save you hard-earned cash and lost sleep. Here’s what to consider before making the leap:
Budgeting your move
Expect to spend $3,000-$10,000 on moving costs, depending on your lifestyle, where you’re coming from, and how much you’re bringing. Typical costs include:
- Shipping: Container transport can run several thousand USD
- Flights: Book outside peak tourist seasons (Jan-Mar) for better deals
- Short-term stays: Budget for 2-4 weeks in an Airbnb or hotel while house-hunting
Tip: Downsize beforehand to cut shipping costs and avoid bringing appliances that won’t work on Panama’s 110V system.
Essential paperwork
Have these key documents ready:
- A valid passport (with at least 6 months remaining)
- FBI/RCMP background check
- Bank statements (3-6 months)
- Proof of income (e.g., pension letter, work contract)
- Health certificate (issued in Panama)
- Translations and apostilles, if needed
Tip: Set up international banking in advance. Remitly offers a fast, secure way to send money to Panama.
Health & vaccinations
While Panama doesn’t require vaccinations for entry, routine vaccines (hepatitis A/B, typhoid, tetanus) are recommended, especially if you’ll be in rural areas.
Public healthcare is available, but most expats choose private health insurance for greater access to English-speaking doctors and shorter wait times. Popular international insurers include Cigna Global, IMG, and GeoBlue.
Tap water is safe to drink in Panama City and most urban areas, but in rural or coastal regions, stick to filtered or bottled water. Many expats invest in home water filters as a precaution.
Living in Panama: costs, homes, transport, & safety
One of Panama’s greatest offerings is its high quality of life at a much lower cost. Compared to New York City, for example, consumer prices are about 35% lower, and rent is nearly 60% cheaper.
Cost of living in Panama
In Panama City, a one-bedroom apartment in a central area runs around $900-$1,200/month, while in places like Boquete, David, or Coronado, you might pay half that, or less.
Groceries, utilities, and services are also more affordable. A typical monthly budget for a single expat in Panama ranges from $800-$2,000, depending on location and lifestyle.
All in, budget around $2,000/month for a nice life, or $3,000 for a luxe one.
Finding a home
Most newcomers start with a short-term rental via Airbnb or Booking.com while looking for something longer-term. Trusted local real estate agents can help with rentals or purchases, and expat forums often share up-to-date listings.
Popular expat areas include:
- Panama City: best for job access, healthcare, and amenities
- Boquete: a western mountain town favored by retirees
- Coronado: a beachside hub with gated communities and shopping
- David: a quieter, more affordable city, with growing appeal
- Pedasí: a laid-back Pacific coast town known for surfing and wildlife
Getting around
In the cities, you’ll find mass transportation systems like buses and the Panama City Metro (Central America’s only subway). Taxis are affordable but often unmetered; be sure to agree on a price first. Outside urban hubs, many expats opt to buy or rent a car.
Note: You can drive with a U.S. or Canadian license for 90 days. After that, you’ll need to convert it to a Panamanian license.
Safety in Panama
Panama is generally safe, with crime levels comparable to major U.S. cities. In September 2024, the U.S. Department of State issued a travel advisory rating Panama at Level 2: Exercise increased caution “due to crime and potential for civil unrest.”
Urban areas like Panama City, Boquete, and Coronado are considered safe. Avoid the Darién Province and remote border regions. Take standard precautions: keep valuables secure, stay alert in crowds, and confirm taxi fares in advance.
Exploring Panama
Panama offers a vibrant mix of nature, culture, and history. From tropical islands to mountain peaks, there’s something here for everyone.
Must-see attractions
- Panama Canal: An engineering marvel connecting the Atlantic and Pacific Oceans. Watch massive ships cross continents and explore the museum.
- Casco Viejo: A UNESCO World Heritage site with cobbled streets, rooftop bars, and colonial-era charm in the heart of Panama City.
- Soberanía National Park: A biodiversity hotspot near the Canal, perfect for birdwatching and jungle hikes.
- Volcán Barú: Panama’s highest peak. A dormant volcano with hikes offering views of both oceans on clear mornings.
- Bocas del Toro: Caribbean island life with turquoise waters, coral reefs, and laid-back Afro-Caribbean culture.
- San Blas Islands: Over 300 pristine islands governed by the Guna Yala people. Ideal for cultural immersion and off-the-grid beach escapes.
Cultural highlights
Panama’s cultural identity is deeply layered. Indigenous roots, Spanish influence, and Afro-Caribbean heritage come alive through colorful festivals like:
- Carnival in Las Tablas: a vibrant, music-filled national celebration.
- Pollera Festival: honoring Panama’s traditional dress and folk customs.
- Panama’s Independence Day: celebrated in November with parades, music, and patriotic pride, marking Panama’s separation from Spain.
Panamanian cuisine is equally rich. Don’t miss local favourites like sancocho, ceviche, and arroz con pollo.
Practical tips for expats in Panama
Adjusting to life in Panama can be exciting—and occasionally challenging. A bit of cultural awareness and preparation goes a long way.
One of the biggest cultural shifts? The famous “mañana” attitude. While not always literal, it reflects a relaxed approach to time. Things don’t always (read: almost never) run on schedule, and delays are common, whether you’re waiting for an appointment or finalizing paperwork. Adopting a patient, flexible mindset (and a good sense of humor) will help you settle in with far less stress.
Language is another key adjustment. While many Panamanians in urban and tourist areas speak English, Spanish is the national language, and knowing even basic phrases will make your day-to-day that much easier. Try apps like Duolingo or Babbel to get started, or consider a local language class.
Making new connections early helps ease the transition. Look for expat Facebook groups, local meetups, and WhatsApp chats to ask questions, get recommendations, and build friendships. Sites like Internations and Meetup.com also host regular expat events in Panama City and Boquete.
Finally, live like a local! Embrace your new life by greeting people with a smile, trying all the food, and attending neighborhood events. Remember: cero estrés isn’t just a saying—it’s a lifestyle.
So, is Panama right for you?
Thanks to its affordable lifestyle, diverse landscape, and inclusive visa programs, Panama continues to attract expats from around the world. Whether you picture mornings in the mountains or beachside sunsets, this Central American gem offers a high quality of life with low stress and low cost. You’ll be living the dream—literally.
Add in modern infrastructure, the U.S. dollar currency, and short flights from North America, and it’s easy to see why so many are making the move.
That said, no international relocation should be rushed. Careful planning—from visa applications and housing to healthcare and community integration—makes all the difference.
Ready to start your next chapter? Check out more of Remitly’s relocation guides and trusted tips to support your journey. And when it’s time to transfer funds internationally, Remitly offers fast, secure service you can count on, giving you peace of mind from day one.
FAQs
Why are Americans moving to Panama?
Americans are drawn to Panama for its low cost of living, warm climate, and easy visa options. U.S. dollar currency usage, plus proximity to the States, make for a smooth transition.
Can U.S. citizens retire in Panama?
Yes, U.S. citizens can retire in Panama through the popular Pensionado Visa. It offers permanent residency and generous discounts on healthcare, travel, and more.
What is the cost of living in Panama?
Most expats spend between $1,500 and $3,000/month, depending on lifestyle and location. Urban living costs more than rural or coastal towns.
How much does a visa cost, and how long does it take?
Visa costs vary, but legal fees typically range from $1,000-$5,000. Processing can take 2-6 months, depending on the visa type.
Is healthcare good in Panama?
Panama offers decent public healthcare, but many expats choose private insurance for better access to modern facilities, English-speaking doctors, and shorter wait times.
Is Panama safe to live in?
Yes, most areas are safe, especially where expats live. Like any country, avoid high-risk zones and stay aware of your surroundings.
Do I need to speak Spanish to live in Panama?
Not necessarily. English is common in expat areas, but basic Spanish makes day-to-day life easier. Apps or local classes can help your transition.
Can I work remotely from Panama?
Yes, remote workers can legally work online with a digital nomad visa or during a tourist stay. Reliable internet is widely available in urban areas.