Rich retirees: Panama attracts retirees from the south

In a world of increasing air travel and fluid borders, retiring to one of the many developing countries with pleasant year-round weather and a booming economy is becoming a popular trend, and Panama is at the forefront of the phenomenon.

With the rise of so-called ‘second world’ countries, the mass migration of people of retirement age to places like Central America has reached an all-time high. The warm, tropical climate, affordable land prices, and political stability of countries such as Panama, Costa Rica, and Belize have attracted a growing number of middle-class to well-to-do baby boomers eager to claim your piece of paradise, a fraction of the first. -World costs.

The best of both worlds

The rise of ‘Second World’ countries is relatively new, an effect of global trade and a host of new technologies targeting rural and underdeveloped areas. Access to modern telecommunications has fueled the rapid expansion of previously depressed economies, bringing advanced technologies to pristine natural environments.

This has created a unique setting: unspoiled beauty with access to first world amenities.

Panama City, in particular, boasts modern infrastructure, excellent health care services, and a dollar-based economy, allowing for an easy transition and comfortable lifestyle for expats. But just minutes from the convenience of the city, serene white-sand beaches flank lush tropical forests, thriving with wildlife.

Best in the world

With its low cost of living, streamlined immigration process, and impressive incentive package, Panama has consistently ranked among the world’s best places to live and retire, earning top marks from the American Association of Retired Persons and magazines such as International Living, Conde Nast Traveler and Modern Maturity.

So how does one go about settling down in this little tropical paradise?

Retirees can apply for residency in Panama as pensionados or pensionados. To be eligible for a pensioner tourist visa, applicants of any age must show proof of a monthly pension of $500 (plus $100 for each dependent) from a foreign government, international organization, or private company.

With a guaranteed monthly income, pensioners get tax exemptions on importing their belongings, up to $10,000, which can be a significant advantage over many other countries that heavily tax foreign imports. In particular, residents with pensioner status can import a motor vehicle duty-free every two years.

Residents are not required to pay taxes on any foreign-earned income, including income from business transactions, pensions, or Social Security, and new owners are exempt from property taxes for 20 years.

age knows best

Even without a pensioner tourist visa, seniority is an advantage. Women over 55 and men over 60 can take advantage of a variety of discounts, including:

Transportation

– 25% discount on airfare

– 30% discount on all public transport (including bus, boat and train)

Medical/Dental

– 20% discount on medical consultations and surgeries

– 15% discount in hospitals (in the absence of insurance)

– 15% discount on dental and vision exams

– 10% discount on prescription drugs

loans

– 50% discount on closing costs for mortgage loans

– a 1% reduction on personal home mortgages

– 15% discount on personal loans

Services

– 20% discount on professional and technical services (including lawyers, architects, nurses, physiotherapists, etc.)

– 25% discount on utility bills

Entertainment/Accommodation

– 50% discount on all entertainment (including artistic, recreational, cultural, sports events, etc.)

– 50% discount on hotel accommodation from Monday to Thursday and 30% discount from Friday to Sunday

– 25% discount at dining restaurants and 15% discount at fast food restaurants

Best investment for your money

In addition to a host of incentives for settlers, Panama’s economy is strong and growing. The average GDP growth rate over the past three years is 5.1%, largely driven by a boom in the construction sector. Property values, while very low by North American standards, are steadily appreciating and investing in real estate is proving very lucrative.

Foreigners are allowed (with few exceptions, such as near borders) to own any of the three types of property (title, rights of possession, and concession) in Panama, and share the same property rights as nationals.

The diversity of properties available is amazing, for all tastes and budgets. Whether you’re looking for a quiet mountain retreat, an ocean view condo in the bustling metropolis of Panama City, or the languor of seaside life along the sprawling coastlines of this small country, retirement never looked so good.