| So, why should YOU consider retiring to Panama? | | | | represented here. Panama is also considered high on |
| There are probably as many reasons as there are | | | | the list of international destinations for banking |
| people considering it, but below I give you seven of | | | | privacy. |
| my personal economic reasons. | | | | Number 4: There is no tax on foreign income. Panama |
| Panama is not new to the top ranking of retirement | | | | does not tax income earned elsewhere and brought |
| destinations. It has continually ranked in the top ten | | | | into the country. Coupled with the benefits of |
| for a decade or longer. International Living magazine, | | | | importing a car and personal goods free of import |
| the American Association of Retired People, Modern | | | | duty through the pensionado program, this tax status |
| Maturity magazine, Retire and Invest Overseas, and | | | | is of tremendous benefit to the retiree. In the case |
| a multitude of other newsletters and publications | | | | of U.S. retirees, you are still responsible for U.S. taxes |
| have praised the benefits of retiring to Panama. | | | | the same as if you were in the States and still need |
| After doing much research on retirement | | | | to file an annual return. The U.S. allows certain |
| destinations, I personally chose Panama as my | | | | deductions for foreign earned income, but that is |
| country of choice. I have listed my lifestyle reasons | | | | another topic for another article. |
| for choosing Panama in another article so here I only | | | | Number 5: Foreigners can buy and own property. This |
| consider the economic ones. | | | | is an advantage that many retiree destinations do |
| Number 1: The Panamanian pensionado (retiree) visa | | | | not offer. Whether looking for a growth investment |
| is second to none. Since its inception in June of 1987, | | | | over time or simply a home during your retirement |
| the Panama pensionado visa has continued to | | | | years, Panama real estate offers retirees |
| improve. It is basically a lifetime visa for foreign | | | | geographical variety and a large range of purchase |
| retired persons and unlike the retiree program for | | | | prices. Whether you want property in the city, in the |
| native Panamanians, the minimum age can go as low | | | | mountains, or beachfront property, it is all available |
| as nineteen years of age (or just over the age for | | | | and you have the right to purchase real estate as a |
| for classification as a dependent). The amount of | | | | foreigner. |
| monthly income required to obtain the visa recently | | | | Number 6: The cost of living is relatively low. The |
| increased but so have the benefits. Simply by | | | | cost of living in Panama is not as low as in some |
| demonstrating your pensionado status, you will | | | | other destinations, but neither do the cheaper |
| receive discounts ranging from 10% up to 50% off | | | | destinations offer the additional benefits than living in |
| everything from doctor's visits to movie tickets. Even | | | | Panama does. For U.S. and European retirees, the |
| airfare within the country carries a 25% discount with | | | | cost of living is generally well below that in their |
| COPA airlines. | | | | respective native countries. |
| Number 2: Panama uses the American dollar. The | | | | Number 7: The country's infrastructure is continually |
| official currency is the balboa, but the bills are all in | | | | being upgraded. A major factor in the future benefits |
| the form of U.S. dollars. Paper money is both called | | | | of a country to the retiree is the status of the |
| dolar and balboa. Likewise, U.S. pennies, nickels, dimes, | | | | country's infrastructure. Several major projects are |
| and quarters are used for change but balboa | | | | currently underway in Panama that will aid both the |
| denominated coins(in the same size and shape of the | | | | native and foreign inhabitants. The Panama Canal is |
| U.S. coins) are also used. There is therefore no | | | | being expanded with a third set of locks that will |
| problem with exchange rates or currency exchange. | | | | accommodate the world's largest ships. New roads |
| Number 3: Panama is a major international banking | | | | are going in throughout the country. Several regional |
| center. Both the retiree and the active businessman | | | | airports are in the early planning stages, and there is |
| can readily make international banking transactions | | | | even talk of putting in a subway in the metropolitan |
| since most of the major world banks are | | | | Panama City area. |