Moving to
Panama
Moving to Panama: one person needs about $1,300/month in Panama City (a family about $3,200), the top personal income-tax rate is 25% — roughly $45,800 take-home on a $60,000 salary — and it offers a digital-nomad visa. Permanent residency takes about 2 years, and citizenship about 5.
Panama City is a modern, fully dollarized hub — a real skyline, international banking, US brands, and territorial taxation that leaves foreign income untaxed. The reality is heavy humidity, a long rainy season, chaotic traffic, and a capital that can feel generic outside the glassy business core. People move for the tax treatment, the US dollar, hub flight connections and one of the easiest residency paths in the Americas.
Last updated August 2026 · How we calculate this
Panama by the numbers
Relative scores across cost, safety, healthcare, quality of life and connectivity (higher is better).
Why move to Panama
- Uses US dollar, no foreign-income tax
- Easy residency, fast path to permanence
- Modern city, strong flight connections
The catch
- Hot, humid, long rainy season
- Traffic and uneven infrastructure
- Panama City feels generic to some
Take-home pay
Net salary in Panama on a $60k gross, after income tax and social security:
Panama taxes only Panama-source income on a territorial basis, so foreign remote income is generally untaxed; local brackets top out at 25%.
Cost of living · Panama City
Average all-in monthly cost in USD — estimates for guidance.
Compare cities →Visa & residency
The Short-Stay Remote Worker visa requires ~$36,000/year ($3,000/month) of foreign income and is valid up to 9 months, renewable once.
Typical income requirement: $3,000/month.
Beyond the short-stay nomad visa, the Friendly Nations Visa (for ~50 nationalities, needing a Panama tie — a job, a company, ~$200K in property, or a ~$200K bank deposit) leads to permanent residency then citizenship after five years; the Pensionado grants permanent residency immediately with a $1,000/month lifetime pension.
How can I move here? → Do I qualify? →Economy & everyday life
Panama uses the US dollar, so there's zero currency risk, and with GDP-per-capita PPP near $43,900 and outright deflation (-0.2%) prices are flat-to-falling — rare stability. Panama City feels modern and mid-priced: cheaper than the US, pricier than the rest of Central America. Life expectancy is 79.8; private hospitals in the capital are first-rate (some US-affiliated), and expats typically carry affordable private insurance for quick, high-quality care.
Healthcare
World Bank data, most recent available — shows how well the system is resourced, not what you'll personally pay.
Safety
US State Department advisory level, country-wide — general guidance, not neighbourhood-specific. Full advisory →
Education
World Bank data, most recent available — learning score reflects harmonised international test performance.
Connectivity
World Bank data, most recent available.
Getting a passport
Compare all countries →Spanish + civics/history exam; constitutional renunciation oath required but loosely enforced (reciprocal exceptions).
By residence — confirm with the official authority.
Best time to go
Full climate →Average daily temperature by month · 2023 (Open-Meteo).
Where expats live in Panama
Cost of living by city
All cities →All-in monthly cost for one person — tap a city for the full breakdown. Figures are averages, for guidance.
Living in Panama
Healthcare
Good private hospitals in Panama City (Punta Pacifica is Johns Hopkins-affiliated) with US-trained, English-speaking doctors at moderate cost, though care thins out beyond the capital.
Money & banking
Opening a Panamanian bank account is possible but due-diligence heavy (reference letters, proof of income) and slow; since the country runs on US dollars, American cards and cash work seamlessly in the meantime.
Internet
Fiber in Panama City is fast and reliable with growing coworking, but connectivity drops off in mountain and beach towns where Starlink is worth having.
Etiquette & culture
Greetings, tipping and the taboos to dodge — fit in fast. Open the guide →
On arrival
Full essentials →Getting there
Flight distances →Tocumen International (PTY) is the "Hub of the Americas," Copa Airlines' base with more direct links across Latin America than almost anywhere on the continent.
Panama City is comfortable for expats, with opportunistic theft the main everyday concern.
Dial 911 for police, ambulance or fire.
Best for retirees and location-independent earners who want USD stability, low taxes and a fast residency path.
Your move to Panama — roadmap
Key terms
- Effective tax rate
- The share of your gross income actually lost to income tax and social contributions combined — almost always lower than the headline top tax bracket.
- Take-home pay
- What actually reaches your account after income tax and employee social contributions are taken off your gross salary.
- Tax residency
- The country entitled to tax your worldwide income — usually where you spend 183 days or more in a year, though the exact test varies by country.
- Permanent residency
- The right to live and work in a country indefinitely — the stage before citizenship, and those years usually count toward naturalization.
- Cost of living
- The all-in monthly spend for one person — rent, food, transport and bills — in the country's main relocation city.
Moving to Panama — FAQ
Is there income tax in Panama?
Yes. Panama taxes income on progressive brackets. On a $60,000 salary the effective rate is about 23.7%, leaving roughly $45,800.
Can digital nomads get a visa for Panama?
Yes — The Short-Stay Remote Worker visa requires ~$36,000/year ($3,000/month) of foreign income and is valid up to 9 months, renewable once.
How do you get residency in Panama?
Beyond the short-stay nomad visa, the Friendly Nations Visa (for ~50 nationalities, needing a Panama tie — a job, a company, ~$200K in property, or a ~$200K bank deposit) leads to permanent residency then citizenship after five years; the Pensionado grants permanent residency immediately with a $1,000/month lifetime pension.
How much does it cost to live in Panama City?
A single person needs roughly $1,300/month in Panama City, and a family around $3,200/month, all-in.
Is tap water safe to drink in Panama?
Yes — tap water in Panama is generally safe to drink.