Panama City
Panama City has spent two decades building one of the most deliberately foreigner-friendly residency systems in the region, anchored by the territorial tax system that exempts all foreign-source income from Panamanian tax and by the US dollar as legal tender, which removes currency risk for dollar-earning expats and retirees. The Friendly Nations Visa, introduced in the early 2010s, made Panama one of the fastest and cheapest residency routes anywhere for nationals of a defined list of countries; it was substantially reformed in 2021 and now requires either an employment contract or a qualifying investment (real estate or a term deposit) rather than the older, lighter-touch version, so applicants should verify current thresholds directly. The Pensionado Visa remains one of the most generous retiree programmes globally, open to applicants with a qualifying pension regardless of nationality. The city itself is a genuine logistics and financial hub built around the Panama Canal, with a skyline of high-rise condo towers that has expanded rapidly, giving newcomers an unusually large stock of modern apartments. Panama City combines big-city infrastructure — the region's first metro, international private hospitals, and a major airport hub — with a noticeably smaller footprint than São Paulo or Buenos Aires, part of its appeal to retirees wanting convenience without megacity scale.
Neighbourhoods
Casco Viejo
The restored colonial old town, UNESCO-listed, boutique hotels and rooftop bars, popular with a younger and creative crowd, though still bordered by lower-income areas in parts.
Rent 1BR: 700-1200
Punta Pacifica
Panama City's most exclusive high-rise district, waterfront towers, home to the Johns Hopkins-affiliated Pacífica Salud hospital, favoured by executives and retirees wanting maximum convenience.
Rent 1BR: 900-1500
Costa del Este
A modern, master-planned business and residential district, popular with corporate relocations and families for its newer infrastructure and mall access.
Rent 1BR: 800-1300
San Francisco
Central and well-connected with a genuine mix of local and expat residents, generally offering better value than Punta Pacifica for similar convenience.
Rent 1BR: 600-1000
El Cangrejo
Centrally located near Via Argentina's restaurant strip, popular with budget-conscious long-stayers and digital nomads.
Rent 1BR: 500-850
Obarrio
Business-district-adjacent, convenient and mid-range, a common choice for those working nearby without paying Punta Pacifica prices.
Rent 1BR: 550-950
Real estate snapshot
- buy per sqm usd
- 2000-3800
- rent 1br centre usd
- 700-1200
- rent 1br outside usd
- 400-650
- notes
- Foreigners have the same property ownership rights as Panamanian citizens across most of the country (some restrictions apply to land within 10km of international borders and on certain islands). Because the US dollar is legal tender, there is no currency-conversion step in buying or renting. Punta Pacifica and Costa del Este carry the highest per-square-metre values among the newer high-rise developments.
Transport
- • Metro / subway
- • Ride-hail (Uber / Bolt)
- Panama City is home to the first metro system built in Central America; Line 1 opened in 2014 and Line 2 in 2019, with further expansion ongoing. There is no tram network. Uber operates fully legally alongside local taxis and Cabify, and is the default choice for most expats. Tocumen International Airport (PTY) is a major regional hub for Copa Airlines, giving Panama City unusually good long-haul and regional connectivity for a city of its size.
Expat community
Panama City has one of the largest and longest-established North American retiree and expat communities in Latin America, built around the territorial tax system, the US dollar, and the Pensionado programme's benefits for qualifying pensioners. A parallel community of bankers, logistics professionals, and entrepreneurs has grown up around the Canal-adjacent financial and shipping sectors. Casco Viejo and Punta Pacifica have the most visible concentrations of foreign residents, and a well-developed relocation-services industry (lawyers, property agents, immigration consultants) caters specifically to newcomers.
Visa pathways
Related on The Citizenship Desk
Sources & last verified
- Last verified