Panama vs. Ecuador: Where Is the Best Place to Retire? (2024)

FAQs

Why is Panama considered one of the best countries to live after retirement? ›

The countries were ranked on the basis of factors such as cost of living, healthcare, climate, and retirement benefits. It seems Panama's pension program, Pensionado, has earned the country the first slot on the index.

It's no wonder that Portugal has topped the charts for the best places to retire through the years. This tiny country in the southwest corner of Europe has something for everyone.

Panama is one of the world's top retirement destinations. In this country, you have three dramatically different retirement lifestyle options to choose among: cosmopolitan cities, beautiful beachfront towns and cooler mountain climes.

While both countries have areas that are safer than others, Panama is definitely the safest overall.

Panama boasts one of the lowest crime rates in Central America, especially outside of the capital, Panama City. Belize has a higher overall crime rate per capita because it's much smaller than Panama, but most criminal activity is found in Belize City and we don't recommend living there.

#1. Portugal. Portugal is one of the world's healthiest places to live, with low rates of disease and an average life expectancy of 81.6 years. People in Portugal die 12% less often from cancer than people living in other European countries.

Public Healthcare in Panama

The public hospitals in Panama are funded by the Social Security System and the Ministry of Health. Services in these hospitals are almost free. However, those who can afford private healthcare may choose to do so.

How much do you need to retire comfortably in Panama? ›

Cost of living estimates for a retirement in Panama vary, but generally you can expect to spend between $1,500 and $3,000 per month to live in Panama. Your spending level will depend somewhat on where you live.

Human trafficking for sexual exploitation and forced labor remains a serious problem despite some government efforts to combat it. Both Panamanian and migrant workers in certain sectors—including the agricultural sector, where many workers are Indigenous people—are subject to exploitative working conditions.

areas to avoid while visiting Panama due to higher crime rates are: The Caribbean Coast of the Darien Province (Drug Trafficking Region) The Mosquito Gulf coast region (Drug Trafficking Region) The Caribbean Port Town of Colon (Poverty Based Street Crime and Gang Activity)

Uruguay. According to the GPI, Uruguay is the safest country in South America, ranking 46th in the world with a score of 1.795. It's one of the most economically developed countries on the continent, with a low level of corruption, stable democracy and a high standard of living.

So which expat destination is right for you? For those expats who require a large selection of goods at great prices, Panama will likely be a better fit. But if you value living a high-quality lifestyle in safe, peaceful, and ecologically beautiful communities, we highly recommend you choose Costa Rica.

Never Bored in Boquete: Panama's Best-Known Retirement Destination. Finally, there's Boquete, home to Panama's most famous expat community…and with good reason. Located in the Chiriqui Highlands, Boquete is an hour-long flight (or about a six-hour drive) from the capital.

Panama is in the good books of American retirees among so many other expats because of its world-renowned Pensionado program. The program is truly unparalleled when it comes to providing the best discount benefits, services, and perks to people who want to retire in Panama.

Retired US citizens living in America can retire to Panama and still receive their Social Security benefits.

Panama is an excellent country to live in for American expatriates. It currently has a thriving expatriate community, with over 50,000 Americans who have already taken up permanent residency within the country. One reason for this is that the real estate in Panama is reasonably priced.

Where is the cheapest warmest place to retire? ›

More often than not, retirees will find the most affordable and sunniest retirement destinations in the southernmost state of the continental U.S. — Florida. In fact, one third of the 15 U.S. cities on this list are in Florida.

Specifically, as we've been pointing out, you could retire comfortably in this country on a budget of as little as US$800 per month… or even less. And you could qualify for residency here simply by showing a minimum income of US$1,275 per month. Bottom line, we say Ecuador is the cheapest place to retire overseas…

Iceland. Canada might be closest; but, if you sail east a little more than halfway between North America and Northern Europe, you'll hit Iceland, which has claimed the title of the safest country in the world every year since the mid-2000s.

France. The fashion capital of the world is also known for its best healthcare for expats. The country has world-class health facilities and medical professionals. The 'Protection Universelle Maladie' or PUMA law allows anyone residing in the country access to public healthcare.

Definitely one of the cheapest and safest places to live in the world, Portugal is very popular among people leaving the US to move abroad. Transportation is very sophisticated and easy to use all over Portugal, and you can travel cheaply around the country by train or bus.

Augusta, a small city near Georgia's border with South Carolina, is one of the cheapest and safest places to live in the USA. It has a low crime rate and a low cost of living, making it perfect for those looking to live comfortably and save money.

Out-of-pocket care is still cheap in public hospitals in Panama, especially when compared to the USA, but it is becoming more expensive. Expats have quoted costs of US$20 to US$30 for a GP visit and of $US60 to US$65 to see a specialist.

What is the income requirement to live in Panama? ›

You must prove that you have a minimum of 1,000 USD monthly income for the rest of your life. Perhaps you do not have a 1,000 USD monthly income but can provide proof of a 750 USD monthly income.

Panama Taxation: Is Foreign Income Taxed? Residents and non-residents are taxed only on their Panama-sourced income. Regardless of nationality or residency status, you are not required to report worldwide income for Panama taxation.

Panama Social Security Tax

Employers and employees pay social security taxes when the employee is paid. Currently, employers pay 12.25% and the employee pays 9.75%.

Another reason that many consider Panama: It's possible to live in Panama for as low as $1,000 per month. However, this is only in very specific cities. It's not a country of rock-bottom prices like living in Thailand or even the affordable costs of living in Mexico.

If you live in the countryside, you can save vs. the high cost of property and amenities in large urban cities like Panama City. Panama's imported goods are less expensive than Costa Rica's. Both Panama and Costa Rica have a lower cost of living than the US, UK, and other regions.

Panama is a tropical country and does have its fair share of bugs. It is, however, not as bad as you might think, and with the proper amount of protection you will be fine. Sand flies (known locally as chitras), who tend to bite ankles and feet, can be a nuisance on some beaches and are worse during the rainy season.

Corruption is Panama's biggest challenge. Panama ranked 111 out of 180 countries in the 2020 Transparency International Corruption Perceptions Index. The U.S. and other international investors have voiced concerns about corruption and inconsistent treatment of investors and businesses.

Panama is a peaceful and stable democracy. On rare occasions, large-scale protests can turn violent and disrupt commercial activity in affected areas. Mining and energy projects have been sensitive, especially those that involve development in the designated indigenous areas called Comarcas.

Can you flush toilet paper in Panama? ›

In Panama, they don't flush toilet paper down the toilet. The little trash bin they have next to every toilet is there for a reason and you should use it. Most businesses have septic systems and flushing any materials down the toilet will mean more regularly cleaning the tanks out.

About 14% of the Panamanian population is fluent in English, the second most common language in the country. Most professionals and business people speak English, and even rural populations have a reasonable degree of proficiency due to their interactions with tourists.

Panama is the safest country in Central America and an important trade zone due to its namesake canal. Here's what to know when traveling in the isthmian country. Panama is an incredibly beautiful country that's well worth exploring and it's notably safer than neighboring Costa Rica and Colombia.

Happiness Index, 0 (unhappy) - 10 (happy), 2021 - Country rankings: The average for 2021 based on 10 countries was 5.79 points. The highest value was in Uruguay: 6.47 points and the lowest value was in Venezuela: 4.93 points.

Panama's beautiful beaches and warm climate have made it a popular location for Americans to retire in recent years. While this means you'll likely be able to find some fellow American retirees to befriend, simple economics means that the influx of American immigrants has resulted in a rise in the cost of living.

The place is an all year hotspot that offers a variety of different activities for people to partake in such as arts, entertainments, fishing, and sports. In addition to these, Panama City provides people with affordable housing and a friendly environment to raise a family.

Cost of Living

Besides, Panama has some of the lowest inflation rates in Latin America – under 3%, and the dollarized currency helps keep a stable banking and commerce system. Those who retire in Panama also enjoy multiple benefits such as discounts on food, airfares, prescription drugs, or hotel.

How much income do you need to retire in Panama? ›

To acquire the retiree residence status in Panama, you have to prove a monthly income or pension of $1000 for life. For each of your dependents, that figure is $250.

However, corruption and impunity are serious challenges, affecting the justice system and the highest levels of government. Discrimination against racial minorities is common, and Indigenous groups have struggled to uphold their legal rights with respect to land and development projects.

Hiring a maid to do the housework is popular among capitalinos (Panamanian Panama City dwellers) and expats alike. A full-time live-in maid costs around $250 per month, whereas as-and-when visits for quick cleans or cooking meals are usually priced at around $15 apiece.

1. Panama. Not for the first time, Panama tops the list of the world's best places to retire. Located away from Central America's hurricane belt, its warm tropical climate is tempered by breezes from the Pacific Ocean on one coast and the Caribbean Sea on the other.

Renting real estate in Panama is big amongst expats, and the market is hot in practically all areas of the country. In fact, even if your plan is to buy real estate, we recommend renting first to get a feel for your area and the lifestyle of living in Panama as a whole.

Americans living in Panama, or in any other country, must file US expat tax returns each year. The US also requires that you include all worldwide income on your expat tax return, including any income that is also subject to tax in Panama.

Boquete, Coronado, and El Valle de Anton are the three most popular expats destinations in Panama, partly because each of these cities are easy places set up an expat lifestyle.