In the next 10 years, 70 million baby boomers will retire. Some commentators have likened this coming retirement wave to a tsunami. Many of these baby boomers will be looking to retire in a tropical paradise. I encourage readers to look into Panama. Panama has strategic advantages over its neighbors Costa Rica, Nicaragua, and Mexico.
What are they? Panama has become one of the world’s top travel and lifestyle locations. This beautiful country benefits from a year-round tropical climate, is not in the hurricane belt (so you can stop worrying about tropical storms and hurricanes), has awesome scenery, friendly people, and a U.S. Dollar-based economy. Considering that no matter where you are in the country, you’re never more than 50 miles from the beach, I'm surprised more American baby boomers aren't already in Panama!
Further, Panama has a stable democracy. Since the U.S. imprisoned Manuel Noriega 17 years ago, Panama has democratically elected all of its leaders through freely contested elections. The current President of Panama, Martin Torrijos Espino, is a free market follower and has delivered the largest public works bond issue in Panama's history: the Panama Canal widening project. This project will pump billions of dollars into the economy of Panama in the next decade and for my money, further deepen Panama's strategic advantages over its neighbors.
The travel magazines already have Panama in their sights. "Panama: One of Six-to-Die-For Second Home Destinations in the Americas," according to Conde Nast Traveler, "Your Piece of Paradise; The Boom in Second Homes" – "Where to Buy Now; The Skinny on Six To-Die-For Destinations" – Panama is the new Central American bargain where the US dollar, the market currency, goes a long way.
A former gas company executive spent a year and a half researching a retirement spot with his wife before settling on a 2.4 acre lot on a beach resort near Coronado. “We wanted a tropical place with an ocean view in a politically and economically stable country,” he said. “Panama just kept coming up.”
Conde Nast Traveler (October 2004), Modern Maturity Magazine, and newsletter of American Association of Retired Persons (AARP), rank one region in Panama among the top four "best places to live abroad" in the world. International Living Magazine identifies Panama and Panama City as the best place in the world for living outside the United States.
Here's what the non-travel magazine press has been saying about Panama:
Content to Watch Bananas Grow, More Retirees Relocate to Panama
New York Times, April 2006
With low housing and living costs, a stable political environment, relatively safe streets and that tropical climate, people in their 50’s and early 60’s are flocking to the Central American nation, rather than working for a few more years to scrape together enough money for a condo on the Florida coast. “We’re seeing a significant number of Americans coming here to retire,” said William Ostick, a spokesman for the United States Embassy in Panama City. Mr. Ostick said the embassy did not keep statistics on Americans who have moved to Panama to retire, but he said there were 25,000 to 30,000 Americans living there.
Middle Ground: Panama May Be Central America’s Hottest Real Estate Market
Robb Report, Winter 2006
For anyone who envisions Panama as a sleepy bucolic country, the first view of the capital city may come as a shock. The skyline of Panama City bristles with high rise business towers and residential condominiums. The country's reputation as a hot new destination is based as much on its capital’s high-energy urban lifestyle as on the beautiful beaches of its coasts and its lush mountainous interior.
Paradise Found: Where to Retire Abroad
Fortune Magazine Retirement Guide 2005
Panama - Selected as one of the top 5 places in the world for retirement living.
Retiring in Panama
Where to Retire Magazine, July 2005
The country has several things going for it that mesh with modern-day retirement plans. Panama has a reputation for being friendly and welcoming, and Americans are not new to Panama. Retirees can choose among quiet beach communities on the Pacific Ocean, the urban and modern Panama City, tropical Carribean islands, or Panama’s highlands where year around spring makes sweaters comfortable in the evenings. "The best thing about living in Panama is that I feel relaxed and stress free here - beautiful scenery, climate and the people are so friendly," says Randy Moscorella, formerly of Ojai, California. The frosting on the cake is an affordable cost of living and inexpensive
real estate.
In Panama, American Retirees finding More Paradise for Less.
Los Angeles Times, February 2005
Boquete, Panama – Golf course manager John Sutton had enough of lawyers, telemarketers, and the US government. So the San Diegan and his wife took early retirement, sold everything they owned, and moved to Panama. The Suttons, who bought a house here last summer, exemplify the wave of American retirees who want to get away from it all - far, far away. Each month, about 20 new ones turn up in this remote coffee-growing town in the mountains of western Panama, buying houses and
starting new lives. It is the latest hot spot in Central America. "Boquete gave us the opportunity to have a great, comfortable lifestyle," said Sutton, 50. Other US retirees are making similar moves, attracted by Panama’s favorable tax treatment of foreigners, the relatively low cost of living, the lush surroundings, and the eternally mild climate.
Beauty and Tax Breaks Lure Buyers to Panama
New York Times, February 2005
Little wonder that Panama is increasingly lighting up the radar screens of those searching for an affordable alternative to more traditional south-of-the-border retreats. Touted as the next Costa Rica by travel magazines and newsletters like International Living, Panama is undergoing a land rush as its Tocumen Airport fills with planeloads of eager foreigners with cash in hand. The opportunities are appealing not only for those seeking a place to retire but also for entrepreneurs.
So, now that you've decided to move to Panama, what are the Retirement Visa Requirements? All you need to get a retirement visa to live in Panama is:
• A clean police report from where you currently reside.
• A health certificate from a Panamanian doctor.
• Proof you receive a minimum income of $500 a month and $100 each for any dependents
My friends at the law firm of Bernal & Bernal or Aaron Suero & Pedersini can help you with these requirements.
Yes, a foreigner can buy and own property in Panama. Foreigners enjoy exactly the same rights and protections as a Panamanian property owner.
Retired Americans also benefit from being able to do the following:
1. Bring in all your household goods free of taxes.
2. Bring in a new car every two years for private use.
3. Pay no property taxes on your home in Panama if that is your only residence.
Retirees typically also look for cost of living numbers. Well, there is great news in Panama. The cost of rent, homes, services, utilities, food, etc. are all well below USA prices. A few examples: a full-time maid can be hired for between $150 to $200 a month. A gardener costs $8-10 dollars a day.
Don't hesitate, the time to move to Panama is now. Happy retirement to the lucky folks who act on this piece and make Panama their retirement home.
©2007 Angel Reyes
Read more articles by Angel Reyes and Brian Cuban at BrianCuban-AngelReyesBlog.com.
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