Top 5 Reasons Expats are Choosing Panama as Their New Home

Waaaay back in the early 2000's when Ryan and I needed a quick holiday from the cold mountains of Colorado in seek of warm weather adventures, heading South to Latin America was really our only option. It was affordable, easy to get to, warm, and the adventure opportunities were endless.

Being on holiday from a hectic life in a new place naturally conjures those dreams and contemplations of wondering to oneself if you could live there; It's a captivating way to explore the world. Mexico, Costa Rica, Ecuador, Nicaragua, Dominican Republic, and lastly Panama. There was no doubt this was the place but what was it exactly?

We get that question a lot because so many of our guests are doing the same thing - searching for a place to begin their next life adventure - living abroad. Deciding to live in another country is a lot of things: exciting, overwhelming, nervewracking, frustrating, scary, and selfserving too. It means you leave your life as it was behind as well as your family, your friends, work and security, and culture too, in search of something totally new and unpredictable in so many ways.

Those other countries we visited are fabulous places but none were quite right for us like Panama is and now that we have lived here over 10 years and still love it, it's no surprise to us that Panama was ranked #1 in the world for expats this year.

Many foreigners are now calling this Central American gem their home. Panama offers a unique blend of adventure, nature, and modern conveniences that make it one of the best countries for foreigners to live in. If you’re an adventure or eco traveler like us, here are the top five reasons why Panama might be the perfect place for your next chapter.

Waterfall in the Cerro Hoyas National Park

1. Incredible Natural Beauty and Biodiversity

Panama is a paradise for nature lovers. From dense rainforests and cloud forests to pristine beaches on both the Pacific and Caribbean coasts, the country offers endless opportunities to explore the outdoors. The biodiversity here is staggering, with thousands of species of birds, mammals, and plants found nowhere else.

For example, the Cerro Hoyas National Park, is one of the most biologically diverse areas in the Americas. It’s a dream for eco travelers who want to hike through untouched wilderness and spot rare wildlife. Living in Panama means you can spend weekends surfing uncrowded waves, kayaking through mangroves, hiking volcanoes, or snorkeling in coral reefs without traveling far.

Surfing Morrillo Beach

2. Affordable Cost of Living

One of the biggest draws for foreigners is Panama’s affordable cost of living. Compared to many North American and European countries, everyday expenses like housing, food, and transportation are significantly lower. This means you can enjoy a comfortable lifestyle without breaking the bank.

For instance, living on the Pacific or Caribbean coast with an ocean view costs a fraction of what you’d pay in the U.S. Fresh tropical fruits and seafood are abundant and inexpensive at local markets. Even healthcare costs are reasonable, with many expats praising the quality and affordability of medical services.

This affordability makes Panama one of the best countries for foreigners to live in, especially if you want to stretch your retirement savings or remote work income.

3. Friendly Visa and Residency Options

Panama has made it easy for foreigners to settle down with its welcoming visa policies. The country offers several residency programs designed to attract retirees, investors, and professionals. The popular Pensionado Visa, for example, grants residency to anyone with a lifetime pension or retirement income of at least $1,000 per month.

Other options include the Friendly Nations Visa, which allows citizens from over 50 countries to apply for residency with minimal requirements.

These flexible options make Panama one of the best countries for foreigners to live in because they reduce the hassle and uncertainty often involved in moving abroad.

Colorful colonial architecture of Casco Viejo, Panama City

4. Vibrant Culture and Safe Communities

Panama’s rich cultural mix reflects its history as a crossroads between North and South America. You’ll find a blend of indigenous traditions, Afro-Caribbean influences, and modern Latin American culture. This diversity shows in the food, music, festivals, and daily life.

Expats often mention how welcoming and friendly locals are, which helps newcomers feel at home quickly. Many neighborhoods, especially in Panama City and Boquete, have established expat communities that organize social events and outdoor activities.

Safety is another important factor. Panama is considered one of the safest countries in Central America, with low crime rates in most expat areas. This sense of security adds to its appeal as the best country for foreigners to live in, especially for those seeking peace of mind while enjoying an adventurous lifestyle.

5. Strategic Location and Modern Infrastructure

Panama’s location is a major advantage for travelers and remote workers. The country is a short flight from North and South America, making it easy to visit family or explore other destinations. The Panama Canal also highlights the country’s global importance and connectivity.

Despite its natural beauty, Panama offers modern infrastructure with reliable internet, international airports, and good healthcare facilities. Panama City is a bustling metropolis with shopping malls, restaurants, and cultural venues, providing a balance between urban life and nature.

For digital nomads and remote workers, this combination of connectivity and lifestyle makes Panama one of the best countries for foreigners to live in.

Panama City skyline with modern skyscrapers and ocean view

Choosing a new country to live in is a big decision, especially for those of us who crave adventure and want to stay close to nature. Panama offers a rare mix of affordability, natural beauty, welcoming culture, and modern conveniences. These factors make it clear why so many expats are choosing Panama as their new home and holiday travel.

We hope your dreams bring you to Panama to stay with us this winter. In fact, we still have availability over the New Year holiday so, if one of your resolutions includes travel to a new country, or even live in a foreign country, check out our all-inclusive packages to get a complete Panama experience and leave the all the details and planning to us.

Your Friends in Panama,

Cari & Ryan Mackey

Owners and hosts