Best Cities in Panama for Expats

Right now, Panama is one of the most compelling expat destinations in the world.

With its territorial tax system, easy access to residency, and strategic location close to North America, this small nation offers a rare combination of financial efficiency and lifestyle appeal.

Add in modern infrastructure, warm weather and a welcoming culture, and it should come as little surprise that high-net-worth individuals (HNWIs) are taking a closer look.

Whether you’re looking for a vibrant capital city, a laid-back beach town, or a cool mountain retreat, Panama has something for every kind of expat taste.

In fact, the InterNations’ Expat Insider Report 2025 named Panama City one of the world’s top cities for expats in 2024. Its popularity means there’s a large and growing expat community there. On top of that, if you buy real estate there, you can qualify for residency. 

So, where are the best places to live in Panama? 

In this guide, the Nomad Capitalist team explores six of the country’s best cities to live in and what makes each one a smart choice for global citizens.

Pros and Cons of Expat Living in Panama 

Like anywhere, Panama has benefits and drawbacks that you should weigh against your own preferences and needs. 

The Pros

Panama offers a unique mix of tropical beaches, rainforests, lazy beach towns and exciting cities. Compared to the United States, Canada and much of Europe, the cost of living in Panama is noticeably lower. 

The financial benefits grow due to its territorial tax system, where the income you earn abroad is free from taxation. 

In practical terms, Panama City has impressive infrastructure and a healthcare system with an excellent reputation. English is also widely spoken in business circles, tourist areas and within the large expat communities found in the main cities we cover here.

The Cons 

Although English is widely understood in Panama City and tourist spots, you’ll likely find that daily life and connecting more deeply with the local culture is much easier if you learn some Spanish, especially if you settle outside the main expat centres. 

It’s also worth noting that while the capital has modern infrastructure, the standard of amenities and services can vary, potentially being more basic in smaller towns or rural areas. 

Lastly, dealing with official matters requires a degree of patience. Government processes, including securing residency permits, move at a slower pace and can feel cumbersome to navigate. 

Coming to terms with its slower pace is part of adjusting to life in Panama.

How to Move to Panama (Panamanian Residency)

Panama offers a range of residency options.

With its Friendly Nations Visa, as long as you come from one of the 60 nations that qualify, you can gain residency by:

• Starting a company in Panama and hiring yourself
• Buying Panamanian real estate worth at least US$200,000
• Depositing US$200,000 in a Panamanian bank.

This will grant you temporary residency, which can be upgraded to permanent after two years. 

Thankfully, many other residency options are open to citizens of all countries, not just those of Panama’s Friendly Nations. 

The Self-Solvency Visagrants you a two-year temporary residency if you invest US$300,000 in Panamanian real estate, a bank deposit, or a combination of both. 

Again, this can be upgraded to a permanent residency after two years. 

Alternatively, through the Qualified Investor Visa, you can gain permanent residency in Panama by investing at least US$300,000 in local real estate, US$500,000 in Panamanian stocks or a US$750,000 bank deposit. 

Through the Reforestation Visa, you can gain temporary residency by investing US$100,000 in local reforestation projects. 

If you receive a pension income of at least US$1,000, you can gain permanent residency through Panama’sPensionado visa. 

Lastly, Panama also offers a Digital Nomad Visa for those with a remote job earning at least US$3,000 per month, but this only lasts a maximum of 18 months. 

After five years as a permanent resident of Panama, you can apply for citizenship by naturalisation, although the naturalisation process is far from smooth, guaranteed or even reliable.

Best Cities in Panama for Expats

With the benefits and practicalities covered, let’s explore where expats thrive in Panama. 

Panama City

The capital, Panama City, is naturally the country’s main hub for business activity. It’s also where you will find the most highly regarded hospitals and international schools, making it a practical choice for families and professionals.

There are several upscale neighbourhoods in Panama City where wealthy expats like to reside. The majority of these are based on the south coast of the city, where residents enjoy scintillating views of Panama Bay. 

Punta Pacifica, Costa Del Este and Coco Del Mar are among the favourites. 

The city’s infrastructure is impressive, standing out not just within Panama but across much of Central America, with a skyline marked by ultra-modern skyscrapers. While road traffic can be heavy at times, the city’s Metro system is an efficient alternative for getting around.

The proximity to Tocumen International Airport is a key benefit. This is Panama’s biggest airport by some distance, with flights to 92 destinations in 38 countries. 

Bocas Del Toro

For those dreaming of Caribbean island life, Bocas del Toro is a popular option. Located in Panama’s northwest province near the Costa Rican border, it’s an archipelago known for its laid-back vibe and stunning natural beauty. 

You can enjoy picturesque beaches like Starfish Beach and Bluff Beach alongside lush rainforests in areas like the Bastimentos Island National Marine Park.

Bocas Town, situated on the main island of Isla Colón, serves as the primary centre for residents and visitors and offers a base for exploring the surrounding islands. 

While Bocas del Toro generally appeals to expats seeking a calm, nature-oriented lifestyle close to the water, it also boasts a busy nightlife and plenty of activities.

Coronado

Coronado is a small beach town about 90km southwest of Panama City, which is popular among expats, particularly those looking to enjoy their retirement.

It’s a town packed with the kind of amenities that active retirees would enjoy, from a world-class golf course to pickleball courts, shopping malls and several reputable hospitals.  

The gated Coronado Es Vida community is popular with higher earners. Coronado is also a popular getaway spot for Panama City residents who want to spend the weekend on the beach. 

Boquete 

Boquete is a picturesque town in the west of Panama, popular with retirees. 

A key attraction is Boquete’s cooler, spring-like climate and hiking trails, which provide a welcome contrast to the heat of the capital and coastal areas. 

Despite its relatively small size, there’s a large and active expat community here, with numerous events and activities catering to foreign residents.

El Valle De Anton

A two-hour drive west from Panama City, El Valle de Anton is a charming mountain town situated inside the crater of an extinct volcano – one of the world’s largest inhabited craters. Its elevation at around 600 metres above sea level contributes to a pleasant, cooler year-round climate.

With a population of about 5,000, including a strong expat contingent, El Valle has everything you might need at a significantly lower cost than Panama City. 

It’s also known for its weekend market.

David

As Panama’s third-largest city and the capital of Chiriquí province in the west, David offers a different dynamic.

 It shares some similarities with Panama City, such as a warm climate, a substantial expat community and a good selection of quality schools and healthcare options.

While it might offer slightly fewer entertainment choices than the capital, the cost of living is considerably lower. 

For those who prefer city life but find Panama City too intense, David presents a more manageable alternative, serving as a commercial hub for the region. 

The Enrique Malek International Airport primarily handles domestic flights, providing useful connections, particularly to Panama City, though it also has a limited international service.

Best Expat Cities in Panama: FAQs

Go Where You’re Treated Best 

Panama has something for everyone. With so many residency options available, it is simple enough for expats to qualify to live there. 

A slight downside is the government bureaucracy that can slow things down, but once you’ve been given the green light to stay in Panama long-term, it won’t be too hard to find a neighbourhood that you love. 

With that said, it pays to have a detailed plan before you consider embarking on a new life in a foreign country. 

That’s where we come in. 

Nomad Capitalist helps investors and entrepreneurs to ‘go where they’re treated best’, whether that’s by moving their business offshore, relocating to a more tax-friendly country or seeking a second citizenship. 

If you need help to ensure your offshore move comes off without a hitch, learn more about what we do here.