How to move to Panama as an expat in 2026

Dreaming of a life where the sun shines year-round, your money goes further, and home is only a few hours' flight away?

For many Americans, moving to Panama is exactly that.

It's one of the few countries that uses US dollars, is located in US time zones, and still feels completely new!

It's not just retirees, either! Remote workers, entrepreneurs and families alike are all moving to Panama, drawn by friendly visa options, modern healthcare, and a lower cost of living.

But moving to a new country comes with the usual host of questions and concerns surrounding visas, healthcare, employment and more. That’s why we’re here to help.

In this guide, you'll learn:

• Why Panama is so popular with expats

• How much you can expect to spend moving to and living in Panama

• When and how to sort out health insurance and visa applications

• Where to look for jobs and accommodation

• How to make sure your pets and belongings come along for the ride with you

By the end, you'll know whether Panama is right for you and exactly what to do to make the move happen.

Ready? Let's get into it!

What is life in Panama like?

Life in Panama runs at a slower, friendlier pace. Expect less urgency, more sunshine, and a culture that puts time with family and friends first.

The climate is tropical year-round, with a dry season from December to April and a rainy season from May to November. The coasts are hot and humid, while highland towns enjoy spring-like temperatures all year.

You'll also pay in US dollars everywhere, since Panama's balboa is pegged 1:1 to the dollar, and US bills are used in everyday circulation.

For Americans, the practical perks add up quickly:

• No jet lag (Panama sits on US Eastern Time)

• Direct flights of a few hours can be found from most major US hubs

• English is widely spoken in Panama City's business and medical circles.

Panama also ranks among the safest countries in Latin America on the Global Peace Index, with petty theft the main urban risk.

Still not sure if Panama’s right for you? Here are the key pros and cons to weigh:

Best cities for expats in Panama

Panama is small, but the lifestyle changes dramatically from place to place. A cool mountain town and a Caribbean island are only a few hours apart.

Here are a few of the most popular cities for expats:

Cost of living in Panama

Overall, living in Panama costs roughly a third less than in the US, with rent around 40% cheaper on average.

A single person can live comfortably in Panama City on $1,500 - 2,500 per month including rent, and in smaller towns like David or Pedasí, even $800 - 1,500 is realistic.

A couple should plan on $2,500 - 3,500 per month for a comfortable lifestyle, with the average retired couple spending around $2,600 per month (including rent).

A family of four in Panama City spends on average around $4,200 - 4,300 per month including rent, before private school fees, which we’ll cover later.

What does it cost to move to Panama?

Before booking your trip, remember to factor in these one-off costs:

• Flights: One-way fares from most US hubs are short-haul and modest — book early in dry season (December–April)

• Housing setup: First month's rent plus a deposit of one month (sometimes up to three)

• Residency costs: Attorney and government fees for your visa (see the visa section below for details)

Banking and money

Panama is a major financial hub with dozens of banks, including Banco General, Banistmo, and BAC Credomatic. That said, opening an account takes more paperwork than back home.

Banks apply strict due-diligence rules, and approval can take anywhere from a few days to several weeks.

To set up an account, you’ll have to provide:

• A valid passport plus a second ID (your driver's license, for example)

• A bank reference letter from your home bank, dated within the last three months

• Proof of income or source of funds

• Your immigration paperwork, if you already have residency

US citizens also sign a W-9, since Panamanian banks report American account holders to the IRS under FATCA.

Healthcare in Panama

Healthcare is one of the most common reasons Americans choose Panama over other destinations, and quality care in Panama City often sits at around 10% of US prices!

How the system works

Healthcare in Panama runs a two-track system, with both public and private options.

The public side splits into the social security system (CSS), funded by payroll contributions, and the Ministry of Health (MINSA), which operates hundreds of hospitals and clinics nationwide.

The private side is where most expats go. Hospitals like Pacífica Salud in Punta Pacífica and Hospital Nacional offer US-trained doctors and modern facilities.

Private consultations typically cost between $25 - 75, and many doctors in Panama City speak English.

Can expats use public healthcare in Panama?

Yes, CSS facilities are open to anyone who pays into the system with no co-pays or deductibles.

MINSA facilities also treat everyone, and routine appointments can cost as little as $2 -5. The trade-offs are long waits, Spanish-only service, and uneven quality outside Panama City.

For anything serious, most expats head private.

Learn more about public healthcare in Panama.

Health insurance options for expats

Going without insurance means paying every private bill out of pocket, which can quickly get expensive.

We recommend arranging cover before you arrive, so you're protected from day one.

Here are your main options:

• Local private insurance plans run roughly $50 - 100 per month, but insurers apply age limits, exclusions, and paperwork is most often in Spanish

• International health insurance costs more, but covers you across borders (including trips back to the US) with English-language service and direct billing at major private hospitals

• No cover + cash: Some long-term expats self-insure, but one serious illness can undo years of savings, so we would always recommend against this option.

When it comes to healthcare, don’t forget that Panama's digital nomad visa requires proof of private insurance, and local insurers may ask for proof of COVID-19 vaccination or a medical exemption letter.

Feather's international health insurance covers you from day one and works across borders.

Visas and immigration

Which Panama visa is right for you?

Figuring out which visa fits your situation can be confusing, so we've compiled the most popular routes for Americans:

Tourists from the US can stay 180 days visa-free, which is handy for a scouting trip before you commit.

How to apply

Visa applications differ slightly depending on the type, but here’s the typical process, step-by-step:

1. Hire a licensed Panamanian immigration attorney. All residency applications must be filed through one.

2. Gather your documents: FBI background check, proof of income or investment, a valid passport, and passport photos (all apostilled and translated into Spanish).

3. Travel to Panama to file: Your lawyer registers your passport, you get a health certificate from a local doctor, and you receive a temporary residency card

4. Wait for approval: The National Immigration Service typically takes 2 - 6 months to review your file

5. Return to collect your residency card, then apply for your cédula E (resident ID) if you have permanent status

Costs and timelines

Plan on 4 - 6 months from filing to approval for most residency visas, including at least one trip to Panama.

On top of this, remember to budget for:

• Attorney fees: $1,000 - 5,000 depending on the firm and visa type

• Government fees: around $300 per applicant for the Pensionado route, more for investment visas

• Extras: Apostilles at $30 per document, plus roughly $100 per person in translation fees

How to get Panama citizenship

Planning to put down roots for the long-term? A Panamanian passport is a realistic goal.

You can apply for citizenship by naturalization after 5 years of permanent residency. This drops to 3 years if you're married to a Panamanian or have a child born in Panama.

You'll take a test in Spanish covering Panamanian history and geography, plus a personal interview.

The downside is that approval timelines are generally slow. The process rarely takes less than a year, and 2 - 5 years is common.

Panama formally asks naturalizing citizens to renounce their previous nationality, but the US doesn't treat this declaration as giving up your US citizenship.

Many dual citizens hold both passports in practice, but we recommend talking to an immigration lawyer about your specific situation.

Working and paying taxes in Panama

The job market

Most expats in Panama don't compete for local jobs. Instead, they bring their income with them as remote workers, business owners, or retirees.

This is because average local salaries sit at around $1,250 - 1,350 per month, and work permits are tied to a sponsoring employer.

Panamanian labor law also caps foreign hires at a small share of a company's workforce, so local employment is realistic mainly in banking, logistics, IT, and multinational headquarters in Panama City.

Salary and taxes

Panama runs a territorial tax system, where only income earned inside Panama is taxed.

Foreign salaries, pensions, dividends, and rental income from abroad are exempt even if you bring the money into the country.

If you do earn Panama-sourced income, the personal income tax brackets are:

Local employees also pay 9.75% social security and a 1.25% education tax on salaries. Sales tax (ITBMS) is 7% on most goods and services.

US citizens still file with the IRS on worldwide income. Tools like the Foreign Earned Income Exclusion and Foreign Tax Credit usually reduce double taxation, but the filing obligation never goes away.

Renting and buying property in Panama

Renting

When it comes to finding accommodation in Panama, we recommend renting first.

Panama's regions feel completely different, and most expats change locations within their first year.

The good news is that you don't need residency or a visa to sign a lease, and foreigners have the same rental rights as Panamanians.

Here's a quick rundown of what to keep in mind when looking for a rental:

• Where to look: Encuentra24 is the main property portal, alongside local agents and expat Facebook groups

• Upfront costs: First month's rent plus a security deposit, typically one month (occasionally up to three)

• Typical rents: A one-bedroom in central Panama City averages around $1,100 per month. In Boquete or Coronado, rents start around $750

• Paperwork: A local bank account and a reference letter make landlords much more comfortable

Buying

Foreigners can own property in Panama outright, with the same rights as citizens. The main exception is land within 10 kilometers of an international border.

Stick to titled property, registered in the Public Registry with its own folio number.

Some coastal and rural land is sold as "rights of possession". Informal claims that are riskier, harder to finance, and can't anchor an investment visa.

Costs for real estate in Panama are highly reasonable. A 2% transfer tax, total closing costs of 4 - 7%, and legal fees of 1 - 1.5%.

Always hire an independent lawyer for due diligence.

Moving to Panama: shipping, pets, and schooling

As is often the case when moving to a new country, much of the planning comes down to logistics. Here's how to handle your belongings, your pets, and your kids' schooling.

Shipping and pets

Sea freight from US ports takes 3 - 4 weeks. Since most rentals come furnished, and humidity is hard on books and wooden furniture, many expats arrive with suitcases only.

Bringing a dog or cat takes a bit of paperwork, but no kennel quarantine. Here’s what you’ll need:

• Health certificate from a USDA-accredited vet within 10 days of travel, endorsed by APHIS and stamped by a Panamanian consulate (or apostilled)

• Rabies vaccination given at least 30 days before arrival, plus current core vaccines

• Home quarantine request emailed to Panama's health ministry at least 3 days before arrival. Your pet will then spend 40 days in "home quarantine" at your residence.

• Fees: $146 total, paid on arrival

Schools and education

Public schools teach in Spanish, so most expat families choose international schools in Panama.

The big names are the International School of Panama, Balboa Academy, and the Metropolitan School of Panama.

Expect tuition fees of $10,000 - 25,000 per child per year, with higher grades costing more. One-time admission fees can also reach $12,000.

Outside the capital, options thin out fast, though Boquete and Coronado have smaller bilingual private schools at lower prices.

Your "Moving to Panama" checklist

With all this information, you might feel a little overwhelmed, but don’t worry - we’re here to help.

Here are a few key checklists to make sure you’ve got everything covered, both before and after your move:

Before you leave

1. Choose your visa route: Check out the "Visas and immigration" section above if you’re not sure which to go for

2. Hire a Panamanian immigration attorney: Every residency application must be filed through one, so compare quotes early

3. Gather and apostille your documents: FBI background check, pension or income letters, and certified Spanish translations all take weeks

4. Take out international health insurance: Residency processing takes 4 - 6 months, and without cover you'll pay every private bill out of pocket

5. Apply to schools: The top international schools in Panama City have long waitlists and high admission fees, so apply as early as you can

6. Request a bank reference letter: It must be dated within 3 months when you open your Panamanian account

After you arrive in Panama

1. File your residency application: Your lawyer registers your passport, arranges your local health certificate, and gets you a temporary residency card

2. Sign a furnished rental: First month plus a one-month deposit is the norm (no residency required)

3. Open a bank account: Bring your passport, a second ID, your reference letter. You’ll have to be patient, since approval can take weeks

4. Swap your US license for a Panamanian one: Required once you hold residency. With embassy authentication you can skip the driving test and pay around $40

5. Choose your doctor and hospital: Pick an English-speaking GP at a private hospital near you before you need one

6. Track your residency file: Your lawyer monitors immigration's review, then you return for your card and cédula E

Before you go...

Moving to Panama is one of the easier international moves an American can make, with the same currency, same time zone, and a residency system built to welcome you.

The one gap to plan for is your residency application, which takes 4- 6 months to process, and Panama's excellent private healthcare is pay-out-of-pocket until you're insured.

Arranging international health insurance before you fly means one less thing to worry about while you settle in.

We hope this guide brings you closer to your Panama adventure. Wherever you land, we're here to help you feel at home.