Moving to Panama Checklist: Everything Americans Need to Know

Last Updated: January 8, 2026

Affordability

Healthcare

Taxes

Safety

Stability

Relative Ratings versus the United States

TL;DR

Panama remains the gold standard for American retirement in 2026 with U.S. dollar currency and tax-friendly environment. Pensionado Program requires $1,000+/month lifetime pension with massive discounts (electricity, airlines, etc.). Friendly Nations Visa available for job placement or $200,000+ real estate investment. Cost of living in Panama City is ~40% less than Miami or Houston with no currency fluctuation concerns. Healthcare provided through Johns Hopkins-affiliated hospitals with affordable private insurance.

Why Is Panama Still the Top Choice for American Retirees?

Panama has historically been the gold standard for American retirement, and 2026 is no different. Its use of the U.S. dollar eliminates exchange rate anxiety, making financial transitions effortless. Beyond its famous canal, Panama offers a diverse landscape ranging from the cosmopolitan skyline of Panama City to the cool mountain highlands of Boquete. For Americans seeking a tax-friendly environment and a high standard of living in the tropics, Panama remains a top-tier choice.

The country is uniquely positioned as a bridge between the Americas, offering a level of connectivity and air travel options to the U.S. that few other Latin American nations can match.

What Are the Main Visa Programs Available to Americans in Panama?

Panama's visa programs are specifically designed to attract American investment and retirees.

Pensionado Program: Widely considered the best in the world. If you have a lifetime pension of $1,000+ per month, you get permanent residency and massive discounts on everything from electricity bills to airline tickets.
Friendly Nations Visa: Americans can qualify for residency by either getting a job in Panama or by investing in real estate (usually $200,000+ in 2026). It is a fast track to permanent residency for those looking to work or start a business.

Available Visa Pathways:

Education
Work
Entrepreneurship
Retirement
Study
Other (Investment)

Can You Retire Early in Panama?

Panama's Pensionado program is open to anyone with a $1,000/month pension (plus $250 for a spouse); there is no minimum age requirement, making it popular for "early retirees" who have military or government pensions.

How Does Panama's Cost of Living Compare to Major U.S. Cities?

Panama City offers a high-end lifestyle for roughly 40% less than Miami or Houston. Because the currency is the USD, you skip the "inflation" often seen in other countries due to currency devaluation, keeping your budget predictable and stable.

What Is the Healthcare System Like in Panama?

Panama City is home to Johns Hopkins-affiliated hospitals, providing a standard of care that matches the U.S. at a fraction of the cost. Private health insurance is affordable and highly recommended for Americans, as it allows access to top-tier facilities without the bureaucratic hurdles of public systems.

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At Bring Me Abroad, we synthesize official government data, local legal requirements, and real expat experiences to create our relocation guides. Our goal is to simplify the complex process of moving abroad for US citizens.

About Aaron

Aaron is a seasoned designer and entrepreneur with over 15 years of experience building digital products for the SaaS and hospitality industries. In 2023, he navigated the complex journey of relocating from the U.S. to the Netherlands—a process that revealed a fragmented landscape of outdated visa blogs and "browser tab overload." After successfully launching a design studio in the Netherlands, Aaron co-founded Bring Me Abroad to solve the "Day 1" information gap. His mission is to democratize relocation by replacing expensive consultants with high-utility, data-driven reports that help early-stage explorers get situated quickly. When he isn't decoding immigration logistics, Aaron can be found cycling through the Dutch rain in search of the perfect apple pie or navigating the nuances of the Dutch language.