How You Can Retire in Panama and Still Earn a Good Living

Panama has made itself an attractive destination for foreign investment through its well calculated tax laws, combined with its natural attributes and an abundance of economic opportunities. But its pensionado program, which offers the best retiree benefits in the world, sends it to the top of the list for many as a retirement destination. Even better, by putting retirement and investment together, Americans are finding they can retire in comfort and security in Panama - and still make money. RETIREMENT IN PANAMA Retirees on the “pensioner's visa” save on almost all of the costs of living, with large discounts on entertainment and dining out, public transport, both internal and external airfare, and medical and insurance costs. Also, there are duty-free provisions for importing household goods and cars. Healthcare is generally good in Panama and very inexpensive. Panama attracts “medical tourism” from around the world with its highly skilled doctors (many trained and certified in the U.S.) and leading-edge infrastructure. Most doctors are fluent in English, and Panama's currency is the US Dollar. There are many inexpensive medical insurance plans available in Panama, although the cost of hospitalization and medical treatment is remarkably cheap to an American's eye. Expats in Panama often choose simply to pay for healthcare as they go, as they would any other living expense. Drugs also are priced low in Panama, with many available over the counter that would require a prescription in the U.S. INVESTMENT IN PANAMA While it requires only a minimal guaranteed income to qualify for the pensionado program, those who can bring $50,000 into Panama for investment receive a vote of thanks from the government in the form of generous tax breaks. Investors receive 20-year exemptions on a wide range of import taxes and also on real estate taxes connected to the investment. Airport and pier taxes are waived, and real-estate assets are granted a rapid depreciation of 10% per year. On top of this attractive platform of incentives, Panama offers a 15-year exemption on income taxes as a sweet inducement to start a tourist business in a designated zone. Small wonder that retirees who planned not to work again decide they can't resist the opportunity to become a developer, a guest-house operator, to run a boat or dive charter - the list of possibilities is long. What's engaging to the retiree is the more relaxed pace of life and the boundless opportunities of Panama. The concept of continuing to "work" as a business owner or investor is not the hardship it would seem back in the States. In fact it's a way of staying active in a healthy way. All Panama asks is an influx of new capital and willing hands to work its existing capital. In return it offers the opportunity to keep the fruits of one's labor. LIVING IN PANAMA Renovation is big in Panama, as well as new development, and the government rewards both equally. Property is abundant at low cost. The real estate boom peaked in 2007 in Panama as it did all over the world. This has stabilized prices, and the countless bargains still found everywhere are in no danger of being hyped out of pocketbook range. Panama's economy has remained recession-proof, continuing to grow around 3%, with negligible inflation. The economy has grown 6.3% for 2010 and is the only country in the world that can boast 35 years of uninterrupted growth in its GDP. It's a stable republic with a rule of law and sound economic fundamentals. Miraculously, things work in Panama, with a first-class, American-designed infrastructure and great airports leading everywhere in the world easily. And yet, in Panama, where the places are very unspoiled, the prices too are very old-fashioned. You can live well on $1,500 per month. Panama City is a vibrant, worldly place, filled with its country's wealth of festival and culture, yet completely at home with a multitude of international banks and over 180 banking licenses issued. A million and a half people live here, and elegant and bohemian neighborhoods offer properties for sale at around $90,000. Or you can rent for $600 per month. It's a good idea to come to Panama with some time to explore, and Panama City is a good base. It is not exaggeration to say opportunity is everywhere. Taking the time to look around is the first wise investment, sure to yield both savings and profit.