The Ultimate Guide to Panama Expat Communities: Where To Live & How To Relocate

Panama is considered one of the best countries for expats, often ranking first in surveys that examine factors like the cost of living, healthcare, and safety. The number of expats in the country is measured in hundreds of thousands, and they inhabit communities across both big cities and small towns.

In this article, we’ll examine the top Panama expat communities and share practical advice on expat life in the country, along with the steps to take when moving there.

Benefits of Being an Expat in Panama

Panama offers several advantages that make it an attractive residency destination for foreign citizens:

• A lifestyle that doesn’t strain your finances, with manageable day-to-day expenses
• Favorable climate and diverse biosystem
• No tax on income or capital gains from foreign sources
• No taxes on inheritance, wealth, or gifts
• Access to world-class healthcare services
• A stable economy with a dollarized currency and a strong banking system

The country has also implemented many residence programs to facilitate foreign migration, especially if you can contribute to the country’s economy or prove the ability to sustain yourself while there. 

Where To Live in Panama as an Expat: 5 Factors To Consider

Roughly the size of South Carolina, Panama offers an extremely diverse landscape, both geographically and in terms of different lifestyle experiences. The country’s combination of mountain ranges and rainforests, as well as beaches and archipelagos, supports various types of settlements, each with distinct ways of life. 

With such variety on offer, finding the right place to settle can be challenging. Existing expat communities might serve as useful points of reference, but there is variety between them, too. Not every expat community is perfect for every expat.

When choosing where to live in Panama as an expat, here are some considerations to take into account:

Factor	Explanation
Weather	Panama has a warm and humid climate, but mountain towns might offer a more temperate alternative
Amenities	Larger cities inherently offer more amenities, but small towns near larger cities are also a viable option
Lifestyle	Panama offers everything from island life and off-the-grid living to international cities with luxury high-rises
Budget	Costs of living generally decrease in more remote areas, though lower prices usually come at a cost of access to amenities and services
Healthcare	Access to quality hospitals and clinics varies by location, with cities (especially Panama City) having a wider range of healthcare services

Top Panama City Expat Neighborhoods

Panama City is home to the largest expat community in the country, offering different lifestyles and business options that attract a wide range of foreigners. You can find luxury high-rises and international-standard services, as well as historical neighborhoods and vibrant cultural districts in the city. 

Some of the best parts of the city to live in as an expat include:

1. Punta Pacifica
2. El Cangrejo
3. San Francisco
4. Costa del Este
5. Casco Viejo

Punta Pacifica

Punta Pacifica is the most upscale neighborhood in Panama City, featuring luxury high-rises with ocean views and the most advanced medical center in Panama, Pacifica Salud. It offers a serene, secure living experience with high levels of comfort and easy access to services needed to support a high-end lifestyle, including entertainment, shopping, and dining. 

Punta Pacifica mostly attracts an expat community of retirees who choose it for its proximity to first-class medical facilities, and high-net-worth individuals who value its financial and business services. If you plan to travel often, the neighborhood also offers easy access to land, air, and sea transport. 

El Cangrejo

El Cangrejo is a vibrant neighborhood located in the center of Panama City with a rich cultural and gastronomic scene and a bustling nightlife. Its central location and extensive public transport coverage make it a vital hub for exploring the rest of the city, while the neighborhood itself is known for its walkability. 

El Cangrejo offers a mix of new luxury developments and older buildings dating back to the 1950s, making it easier to find an affordable apartment by Panama City’s standards. You can find a diverse demographic living in El Cangrejo, from digital nomads and expat parents to foreign retirees and the younger Panamanian population. 

San Francisco

Another centrally located neighborhood of Panama City, San Francisco, is often cited for offering a perfect balance of urban and residential living. You can find modern, even luxury apartments in it, but you can also choose among houses with yards.

San Francisco is a quiet part of the city near other, busier neighborhoods, making it a good choice for families with children. It’s the location of Parque Omar, a former golf course converted into a park offering various outdoor activities for the whole family. 

Costa del Este

Costa del Este is an upscale neighborhood with a distinct Florida feel, reminiscent of Miami. It’s known for being one of the few parts of Panama City developed according to an urban master plan, a fact reflected in its high-quality infrastructure and walkability. 

Costa del Este offers proximity to all the amenities required for an elevated city lifestyle, including shops, dining options, and a burgeoning nightlife scene. Its mix of residential and commercial development allows for easy commuting, making the neighborhood a favorite among expats working for international companies.

Casco Viejo

Known for its colonial architecture and rooftop bars, the historical quarter of Casco Viejo is one of Panama City’s biggest tourist attractions. The busy streets and weekend nightlife make the area more suitable for younger people who aren’t necessarily interested in a family-oriented lifestyle.

Casco Viejo offers a rich cultural scene in a walkable neighborhood that provides easy access to the rest of the city. The only downside is the high cost of living, as rents in Casco Viejo tend to be higher than in other parts of Panama City.

Best Expat Cities and Towns in Panama 

While Panama City might be the main hub of expat life in the country, Panama’s cities and towns outside of the capital provide different climates, lifestyles, and service options, typically at more affordable prices.

Some of the best cities and towns in Panama for expats include:

1. Boquete
2. Coronado
3. Pedasi
4. Bocas del Toro
5. David

Boquete

Located in Panama’s Pacific West, in the Chiriqui Province, Boquete is a mountain town with a large expat community. The town’s cooler climate is one of its major draws, especially for retirees who want to avoid the hot weather of the coastal towns and cities.

Moving to Boquete means trading some of the advantages of a large city for a slower, small-town lifestyle. The town offers seamless access to healthcare services, and its proximity to many natural attractions makes it a good fit if you’re looking for a more active lifestyle.

Coronado

Coronado is a coastal resort community located 54 miles southwest of Panama City. Known for its gated communities, golf courses, and beaches, Coronado offers a relaxed beach lifestyle with convenient access to supermarkets, healthcare services, and other amenities. The town has a well-developed expat community.

Coronado’s proximity to the country’s capital makes it an appealing option if you want to experience coastal living with easy access to Panama City’s infrastructure and services. The town itself offers malls, supermarkets, and an international school, as well as plenty of opportunities to enjoy watersports. 

Pedasi

Located at the tip of the Azuero Peninsula on the Pacific Coast, Pedasi is a fishing village that’s been increasingly popular with expats wanting to experience Panama’s rural life. It’s known for its beaches, proximity to national parks and reserves, and is a popular fishing spot.

The village offers decent infrastructure and connectivity, along with stores, bakeries, restaurants, and a medical clinic. It’s serviced by the Pedasi Airport and a well-maintained network of roads, connecting it to the rest of the country. 

Bocas del Toro

Bocas del Toro is an archipelago in the Caribbean Sea. Its rich and biodiverse natural environments, which include coral reefs, mangroves, rainforests, and abundant marine life, are often compared to those of the Galapagos. 

Bocas del Toro offers a relaxed island lifestyle, attracting many expats looking for a life surrounded by nature or even complete off-the-grid living. The majority of services and amenities are located on Isla Colón, the main island. The main hub, Bocas Town, is where most shops, restaurants, and essential services are concentrated. The expat population is mainly located in the Big Creek residential area.

David

The capital of the Chiriquí province and one of Panama’s largest cities, David, serves as the main hub for western Panama in commerce, healthcare, education, and transportation. The city offers reliable infrastructure and a range of services, including those necessary for the immigration process. 

David is more affordable than Panama City, while offering a comparable level of convenience and access to modern amenities, making it attractive to expats. Thanks to its central location, you can easily access national parks, beaches, or the town of Boquete from David.

Moving to Panama as an Expat: The Essentials

Panama’s large expat community might help cushion some of the cultural shock you might experience if you’re moving to the country. Still, becoming an expat in Panama can be a logistical and regulatory challenge. 

To make the process easier, here are some essential steps you should consider:

1. Researching Panama and expat communities
2. Understanding your migration options
3. Finding the right help

Researching Panama and Expat Communities

Before moving, it’s important to have more than just the basic information on possible places to live, especially if you plan to stay in Panama longer. To better understand the country and find an expat community that supports your desired lifestyle, you could:

• Visit Panama expat forums to connect with people who live in places you’re interested in
• Research the rentals or real estate markets, depending on whether you want to rent or buy
• Visit the country for a longer exploratory stay, especially if you plan to relocate to Panama permanently

Understanding Your Migration Options

Panama’s variety of migration programs allows foreigners from different walks of life to stay in the country, including:

• Investors
• Property owners
• Digital nomads
• Retirees

Each program has its own set of requirements, most of which are financial. Understanding these requirements is paramount when you’re applying for residency in the country, as failure to meet them can result in overturned applications, delays, and additional costs.

Here are some of the more popular residency programs and their qualifying criteria:

Program	Requirement
Friendly Nations Visa	Citizenship of one of a select group of countries Panama deems “friendly,” and Purchase of a USD 200,000 property in Panama or placement of a fixed-term deposit of the same value in the bank, or An employment offer from the country
Qualified Investor Visa	A USD 300,000 investment in a business in Panama, or Purchase of USD 500,000 in securities in the country, or Placement of a USD 750,000 deposit with a bank in Panama
Retiree Visa	A pension of at least USD 1,000 per month, or Ownership of a property in Panama worth at least USD 100,000, and a pension of at least USD 750 per month
Digital Nomad Visa	Proof of employment, or having your own company or agency Annual income of at least USD 36,000

Finding the Right Help

Relying on professional services during the relocation process can help you ensure a more successful move. During some stages of the process, expert assistance might be mandatory. For example, you cannot submit your own residency application to Panama; only a Panamanian immigration lawyer can do that.

For more complex situations that involve making investments or starting a company in Panama, access to reliable services is invaluable. High-net-worth individuals who want to move to Panama for business or taxation purposes can ensure a smooth transition by employing professionals at Nomad Capitalist.

Become a Panama Expat With Nomad Capitalist

Nomad Capitalist is a specialist advisory company focusing on global mobility and wealth preservation. Our services have helped over 1,500 clients find international investment opportunities, reduce tax liabilities, and acquire residency in countries that support their lifestyle and financial goals.

For each client, we create an Action Plan, a blueprint that defines their specific goals and details every step towards meeting them. The process of creating and executing the Plan includes:

1. Asking you to fill out a form to help determine whether we’re a good fit
2. Scheduling a 45-minute onboarding call to examine and better understand your situation
3. Developing the Action Plan and presenting it to you for approval
4. Implementing the Plan over a 12-month period
5. Providing you with lifelong support after the Plan is implemented

Once you’ve decided to live as an expat in Panama, we can help you determine whether it’s a viable idea for your circumstances. If so, we can proceed with ascertaining the best residency path for you and administering all the necessary steps to secure it.