Living In Panama Expat Guide part 1 – that will be the topic of today’s article.

Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here. 

The best time to consider your financial situation is when you are moving to a new country.

Introduction

There are many reasons why people might choose to move to Panama. Perhaps you’re looking for a change in scenery, or you want to take advantage of the lower cost of living. Maybe you’re looking for someplace warmer to live in, or you want to retire in a beautiful setting.

Whatever your reasons, Panama offers plenty of opportunities for expats. One of the biggest advantages of living in Panama is its location. The country is bordered by the Pacific and Atlantic oceans, which means there are plenty of beaches and coastal towns to choose from.

Panama is also a short flight from the United States, making it easy to visit family and friends back home. And, thanks to its well-developed infrastructure, Panama is relatively easy to get around. That being said, Panama is a diverse country with something to offer everyone.

Whether you’re looking for metropolitan excitement or rural peace, you can find it in Panama. The cost of living is also relatively low, making it an affordable place to live. Healthcare is also good, and the country has several excellent schools.

In this article, we will walk you through the basics of moving to Panama, from finding a place to live to get set up with utilities. We will also give you some tips on adjusting to life in this beautiful country. I’m sure you’re ready to see what we’ve got, right? Continue reading to get a glimpse of what we’re saying.

Interesting Facts about Panama Cultures and Traditions

The culture and traditions of Panama are a mix of indigenous, Spanish, and Afro-Caribbean influences. Here are some interesting facts about some of the most notable aspects of Panama’s cultural heritage.

The Traditional Dress

The traditional dress for women in Panama is the pollera. A pollera is a large, full skirt made from many layers of brightly colored fabric. A pollera typically has a ruffled edge and is worn with a blouse and a shawl. Also, women in Panama often wear a headscarf called a rebozo.

The Traditional Dance

The traditional dance of Panama is the baile de la conga. The conga is a lively, upbeat dance popular throughout Latin America. That being said, there are many different styles of dance in Panama, each with its unique flavor. Besides the congas, some of the most popular dances in Panama include the paso doble and the mambo.

The Traditional Food

The traditional food of Panama is a mix of indigenous, Spanish, and Afro-Caribbean flavors. Some of the most popular dishes include sancocho (a stew made with chicken, beef, or pork), ceviche (a dish made with raw fish, shrimp, or lobster), and Arroz con Pollo traditional (rice with chicken).

The Music

The traditional music of Panama is a mix of indigenous, Spanish, and Afro-Caribbean influences. Some of the most popular styles of music include salsa, merengue, and reggaeton. Also, Panama is home to several well-known musicians, including Ruben Blades, Marc Anthony, and Shakira.

The Holidays

The most important holidays in Panama are Christmas, New Year’s Day, and Carnival. Christmas is celebrated on December 25th, New Year’s Day is celebrated on January 1st, and Carnival is celebrated throughout February. These are just a few of the many interesting facts about the culture and traditions of Panama.

Pros and Cons of Living in Panama

When it comes to the pros and cons of living in Panama, it really depends on what you are looking for in your home country. If you are looking for a place with pristine beaches and lush rainforests, Panama may be the right choice for you.

However, if you are looking for a more developed country with all of the amenities of first-world living, Panama may not be the best option. In this article, we will walk you through the pros and cons of living in Panama as an expat. Without further ado, take a look at the pros and cons below.

Pros

The Weather Is Amazing

If you’re looking for a place where the sun shines almost every day, and the temperature is perfect, Panama is a great choice. The country enjoys year-round sunshine, with 75 to 85 degrees Fahrenheit. Also, there is very little rainfall, so you don’t have to worry about dealing with rain all the time.

The Cost Of Living Is Low

Compared to other popular expat destinations, such as Spain or Italy, Panama is much more affordable. You can easily get by on a budget of $1,000 to $1,500 per month, including rent. And, if you’re looking for a bargain, there are plenty of great deals to be found on housing, food, and entertainment.

Panama Is A Safe Place to Live

Panama is a relatively safe country, with low levels of crime and violence. This makes it a great place to raise a family or to retire. In addition, the government is stable, and there is little political instability. Also, the healthcare system is good, and it’s easy to find reliable medical care when you need it.

The Infrastructure Is Well Developed

 Panama has a well-developed infrastructure, with good roads, airports, and telecommunications. This makes it easy to get around the country and stay connected with the rest of the world. Besides, the locals are friendly and welcoming, and it’s easy to make friends in Panama.

Panama Is A Great Place to Learn Spanish

If you’re looking to learn Spanish, Panama is a great place to do it. The locals speak a clear and easy-to-understand form of Spanish, and there are plenty of language schools where you can get started. Also, the country is home to a large expat community, so you’ll have plenty of opportunities to practice your new skills.

The Food Is Delicious

Panamanian cuisine is a mix of African, Spanish, and Native American flavors, and it’s delicious. You’ll find plenty of restaurants serving up traditional dishes, as well as international fare. And, if you’re feeling adventurous, you can always try cooking Panamanian food yourself.

Panama Is A Great Place to Live

All in all, Panama is a great place to live. The weather is amazing, the cost of living is low, and the infrastructure is well developed. Plus, the locals are friendly and welcoming, and there are plenty of things to do and see in the country. If you’re looking for a place to call home, Panama is a great option.

Cons

Traffic Congestion Is a Problem

 Panama City is notorious for its traffic congestion. Expats who are used to living in cities with less traffic will find themselves spending a lot of time in their cars. The best way to avoid traffic is to leave early in the morning or late at night. Also, using public transportation can help you avoid traffic jams.

It’s Expensive To Live In Panama

Compared to other countries in Central America, Panama is more expensive to live in. Expats will need to budget their money carefully to afford necessities such as food, housing, and transportation. Also, keep in mind that the cost of living can vary depending on the city or town you choose to live in.

The Weather Is Hot and Humid

Panama is located in a tropical climate, which means that it’s hot and humid all year round. Expats who are not used to this type of weather may find it difficult to adjust. Besides, the humidity can be very uncomfortable, and it’s hard to stay cool during the summer months. Moreover, there is a high chance of experiencing a hurricane or tropical storm.

High Crime Rate

 Panama has a high crime rate, which can be alarming for expats. Petty crimes such as theft and robbery are common, so it’s important to take precautions and always be aware of your surroundings. The best way to avoid becoming a victim of crime is to be street smart and know where to go and not go in the city.

Inadequate Healthcare System

 Panama’s healthcare system is not as developed as other countries in the region. This means that there are not many hospitals or clinics, and available ones are often overcrowded. Expats who require medical attention may travel to a neighboring country for treatment.

Top 7 Cities for Expats in Panama

There is no question that Panama is a welcoming and hospitable country for expats. But which city is the best place to live? Well, that depends on your lifestyle, and what you are looking for in a city. Without further ado, here are the top 5 cities for expats in Panama:

Panama City

The capital of Panama and the largest city in the country, Panama City offers Expats all the amenities they could want, from international restaurants and nightlife to hospitals and schools. It is also a great place to network, as many expats live in the city. That being said, it can also be expensive to live in Panama City, and the traffic can be a nightmare.

Boquete

A mountain town about two hours from Panama City, Boquete is a popular destination for expats looking for a more relaxed and rural lifestyle. The town is home to many ex-pats who have moved here for the cooler weather, stunning scenery, and friendly community.

David

David is the second-largest city in Panama after Panama City and is a great option for expats looking for an affordable and convenient location. The city has all the amenities you would expect, including hospitals, schools, and malls. It’s also a great jumping-off point for exploring the rest of Panama.

Bocas del Toro

This archipelago is a popular destination for expats looking for a tropical island getaway. With its white-sand beaches, crystal-clear waters, and lush jungles, Bocas del Toro is hard to beat. However, it can be expensive to live here, and the infrastructure is not as developed as in some of the other cities on this list.

Coronado

This beach town outside of Panama City is a great option for expats who want to live near the city but enjoy the peace of a smaller town. Coronado is home to many ex-pats and has all the amenities you would expect, including grocery stores, restaurants, and pharmacies. It’s also a great place to retire.

Santiago

Santiago is a small town in the province of Veraguas that is becoming increasingly popular with expats. It’s a great option for those looking for a quiet and rural lifestyle, as Santiago has all the amenities you need, including grocery stores, schools, and hospitals. Moreover, the cost of living is very affordable.

San Carlos

San Carlos is a small town on the border with Costa Rica that is becoming a popular destination for expats. It’s a great option for those looking for a quiet and rural lifestyle, as San Carlos has all the amenities you need, including grocery stores, schools, and hospitals. Also, it’s a great place to retire.

Living In Panama Expat Guide part 2 – Part one is here.

Overview of the Best Tourist Attractions in Panama

Have you been craving a vacation to Central America? Panama is a great choice with its diverse landscape and interesting culture. Here are seven tourist attractions you won’t want to miss.

1.    Panama Canal

The Panama Canal is one of the most famous tourist attractions in Panama. It is an artificial channel that connects the Pacific and Atlantic oceans. The canal was completed in 1914, and it took 10 years to build. The canal is 48 miles long, and it has three sets of locks. More than 14,000 ships use the Panama Canal each year.

2.    Casco Viejo (Old Panama City)

Casco Viejo is the old part of Panama City. It was built in the 16th century, and it is a UNESCO World Heritage Site. A fire destroyed the city in 1671, and it was rebuilt in the 17th century. Casco Viejo is a mix of Spanish and French architecture. The city is home to many restaurants, bars, and shops.

3.    Embera Village

The Embera Village is a village of indigenous people who live in the rainforest. The village is located on the Chagres River, and it is home to about 1,500 people. The Embera people are known for their basket weaving and woodcarving. The village is open to tourists, and you can visit it by boat or canoe.

4.    Soberania National Park

Soberania National Park is a national park in Panama. It was founded in 1975, and it covers an area of more than 100,000 acres. The park is home to animals, including jaguars, monkeys, and caimans. The park is also home to many different plants, including orchids and bromeliads.

5.    Miraflores Locks

The Miraflores Locks are a set of locks on the Panama Canal. They are located near Miraflores’ city and are used to raise and lower ships between the Pacific and Atlantic oceans. The locks were completed in 1914, and they are 83 feet wide and 164 feet high. More than 14,000 ships use the locks each year.

6.    Gatun Lake

Gatun Lake is an artificial lake in Panama. It was formed by the construction of the Gatun Dam in 1913. The lake covers an area of 265 square miles, and it is home to many different types of animals, including crocodiles, turtles, and birds. The lake is also home to many different plants, including mangroves and lilies.

7.    Panama City Beach

Panama City Beach is a popular tourist destination in Panama. It is located on the Pacific coast, and it is home to many different types of restaurants, bars, and hotels. The beach is also home to many different types of wildlife, including dolphins and whales.

Things People Will Not Tell You about Panama

One of the Most Diverse Countries in The World

With research indicating that Panama is one of the most diverse countries in the world, it’s no wonder why expats are flocking to this Central American country. From its stunning rainforests and exotic wildlife to its cosmopolitan cities and vibrant culture, there’s something for everyone in Panama.

Panama Is Great For Retirees

Panama has been dubbed one of the best countries globally for retirees, thanks to its favorable climate, low cost of living, and well-developed infrastructure. Whether you’re looking to relax on a beautiful beach or explore all that Central America has to offer, Panama is a great place to retire.

Home to Some of the Best Beaches in the World

From the white sand beaches of Bocas del Toro to the surfing mecca of Santa Catalina, Panama has no shortage of beautiful beaches. So if you’re looking for some sand and surf, Panama is definitely worth checking out. Also, the coral reefs around Panama make for great diving and snorkeling.

Panama Is A Great Place to Do Business

Thanks to its well-developed infrastructure and favorable business climate, Panama is a great place to do business. In fact, the World Bank has named Panama one of the best countries in the world to start a business. In fact, there are now more than 15,000 companies registered in Panama.

Panama Is A Great Place to Live

Thanks to its comfortable climate, affordable cost of living, and diverse culture, Panama is a great place to live. In fact, it was recently voted the best country in the world to retire. So if you’re looking for a great place to call home, Panama should definitely be at the top of your list.

The People Are Friendly and Welcoming

From the moment you arrive in Panama, you’ll notice how friendly and welcoming the Panamanian people are. They’re always happy to chat and willing to help out a stranger, making for a great and welcoming community.

Panama Is Still a Developing Country

While Panama is rapidly developing, it’s still considered a developing country. This means that some areas are not as well developed as others and that you may experience some bumps in the road while living here. But with its rich culture and welcoming people, Panama is well worth the journey.

Frequently Asked Questions about Living in Panama

Which are the benefits of living in Panama?

Some of the benefits of living in Panama include its moderate climate, its low cost of living, its friendly and welcoming people, and its diverse culture. Panama is also a great place to retire, as it offers a host of retirement-friendly amenities, such as affordable healthcare and a wide variety of activities and cultural experiences.

What is the cost of living in Panama?

Compared to many other countries, the cost of living in Panama is relatively low. Expenses such as housing, food, transportation, and utilities are all much more affordable in Panama than in most other places worldwide. Also, Panama’s currency, the Balboa, is worth about the same as the American dollar, making it easy for foreigners to adapt to life in Panama.

What is the climate like in Panama?

Panama has a moderate climate, with temperatures ranging from around 70 degrees Fahrenheit in the winter to around 90 degrees Fahrenheit in the summer. The country also experiences a fair amount of rainfall, which helps to keep the climate pleasant year-round.

What are the people like in Panama?

Panamanians are known for being warm and welcoming people, and they make it easy for foreigners to adapt to life in their country. They are also a very diverse population, with cultures from all over the world represented in Panama. Also, because English is spoken widely in Panama, it is easy for foreigners to get by without speaking Spanish.

What is the culture like in Panama?

Panama’s culture is a mix of diverse influences from all over the world. The country has a rich history and a vibrant arts scene, and its people are known for their friendliness and hospitality. Panama is also a great place to experience different cultures, as it is home to communities from all over the world.

Conclusion

If you’re thinking of moving to Panama or are already living here as an expat, you’ll want to read our guide for everything you need to know. This country is a great place to live for many reasons. It’s affordable, has a great climate, and is home to some of the friendliest people on earth. Refer to this platform for more information about moving to Panama.

Before introducing this article, if you are interested in our core services which are expat financial, insurance and mortgages, you can contact me here. 

The best time to consider your financial situation is when you are moving to a new country.

Introduction

Why do you think many people love to relocate to Central America? For expat from the United States, Panama is a convenient place to live. No matter where you’re from, you’ll likely appreciate the fact that there are many English speakers in the country. And guess what! Panama is beautiful inside and out.

This country is finally starting to catch on as a top-notch destination for expat. Some people are looking to retire overseas, while some are looking for a life on the beach, others tend to move abroad and start a new life. Regardless of your motive for moving, Panama has a lot to offer, and we are here to explore.

Well, a large number of expats relocating to this country have chosen this tropical paradise as a destination for retirement. However, there are many things to explore in the country. From different outdoor activities to unique cultural backgrounds, the benefits of living in Panama cannot be overemphasized.

Moreover, one of Panama’s primary attractions is the miles of beautiful coastline. In fact, we can tell you that a move to Panama is almost like moving to an island due to the tremendous amount of beachfront, both Pacific and Caribbean. Also, many Americans favor Panama as a destination because it’s close to the United States.

Moving to Panama, therefore, does not greatly separate your friends and families in the United States. Of course, we’ve got you covered in this article. We have compiled this article to explain the concept of moving to Panama. Here, you’ll understand the pros, cons, and many others. Read further to know more!

What to Know About Panama

At first, you should know that Panama is a country located in the extreme southeast of Central America and the official language is Spanish. While there are tons of Native English speakers in Panama, the tourism sector represents a large part of the country’s economy. Let’s quickly take a look at the facts.

Before the, when mentioning where is Panama, for many, only its famous channel will come to your mind. Others may have heard that it’s one of the most biodiverse countries in the world. And some may have heard of its paradisiacal beaches. To all this, we must add additional facts that seem special about Panama. So, without further ado, let’s proceed.

Panama’s Capital

Panama’s capital is a stunning city with a skyline that’s made up of modern skyscrapers that are reflected in the ocean. This city is perfect for going shopping, eating, or having drinks, and staying in luxurious hotels. With local ingredients and lots of passion, and creativity, Panamanian cuisines are extremely a compelling reason to visit the country. Besides, one can get around in the city with ease.

Folding Panama Hat

This is one of the countries whereby you hardly leave without a folding hat. However, we are not saying that you have to get a Panamanian folding hat, but it is something you’d see everywhere, and that’d trigger you to buy one. The Panamanian folds their shape, and they’re affordable for both the locals and expats.

Panama Travel Costs    

Getting around Panama is quite easy and straightforward. They use both the Panamanian Balboa (PAB) and the US Dollars. ATMs can be found in all larger towns and touristy areas and thus contribute to what makes the travel cost easy and affordable. Perhaps, accommodation is cheap, with a night in a hostel dorm costing from $11-$13 per night for nearly 6-8 bedrooms.

Cultural and Language Challenge

If you’ve ever dreamt of dating a Panamanian, you should always prepare for a cultural and language challenge. A good example is when you marry a Panamanian, be rest assured that you’re connecting with the family members too. This is because; family is of paramount importance in Panama. Also, you need to beware of the sugar daddy and mommy situation because the arrangements may never end well.

Panama Might Not Be As Affordable As You Think

You might be hearing several bloggers telling you that Panama is affordable. Well, it may seem as though what you’ll expect could create a shock. Perhaps, where you live and how you spend your money will determine how affordable the country is. Although Panama City used to be affordable but not like before. So, you should expect to pay at least $1,200 to rent a decent place in the city.

Buying Of Local Brands

As an expat, if you’d like to save money while moving to Panama for the first time, you’ll need to buy local brands. This means buying fruits from local or street vendors is crucial. Not only that, you’ll save money on your products, but they will be fresher, and if you live in a small town, it is both cheaper and fresher.

Buying In Bulk Often Cost More

In Panama, buying goods or shopping in bulk could sometimes be more expensive than buying in one. Also, if you buy a case of something in the state, the per-unit price will usually be less than if you bought one of those items. That’s why we advise you to read through this fact before planning to relocate.

Panama’s Travel Information and Guide

As said earlier that Panama is a country popularly known for its mountain, beaches, and historic ruins; there are a lot of activities to do while living in the country. In recent times, the number of tourist visits has steadily been on the rise since the turn of the decade. Now, let’s quickly talk about the travel guide.

Panama Visa Types

A visa requirement is essential when moving to the country for the first time. There are different visa requirements for Panamanians depending on the destination or your stay in the country. The type of travel permit also varies according to the length of time you plan to stay and the purpose of your visit.

Moreover, Panamanian nationals can obtain a visa or travel authorization online for a number of destinations. And this is regarded as the easiest and quickest option for getting an entry permit. However, visitors from Panama can apply for one of these electronic visas (eVisas) or electronic travel authorizations (eTAs) from the comfort of their own homes.

●        Friendly Nations Visa – The friendly nation’s visa is also known as the permanent residence for nationals of specific countries. This kind of visa opens the door for professionals and entrepreneurs from 47 countries that maintain friendly, professional, economic, and investment relationships with Panama. Some of the countries eligible for this kind of visa include the U.S and Canada. However, the visa requires an individual to open a local bank account with a minimum balance of $5,000 and many others.

●        Professional Residence Permit – This type of visa is open to foreigners who would like to work in the country, provided they do not choose professions reserved for Panamanian nationals. Also, applicants must have a university education, and unlike other visas, must make two applications two years apart. On the other hand, applicants must show that they have been employed in Panama for nine months.

●        Panama Tourist Visa – If you’re from the U.S or Canada, you probably do not need a visa for tourist visits of up to 90 days. For a Panamanian visa, tourists may stay up to 90 days, and, in general, extensions are not available unless expat can prove they need more time because you’re changing their status from a tourist.

National Public Holidays in Panama

Pros and Cons of Moving to Panama

High-Quality Healthcare Service

High-quality healthcare service is one of the advantages of moving to Panama. In fact, it has one of the best healthcare facilities in Latin America. However, Panama City offers top-notch medical facilities, equipment, and well-trained doctors in all areas of medicine. Besides, more remote areas have local clinics where expats will often find doctors regularly visiting hospitals in Panama City.

Modern Infrastructural Facilities

Aside from the high-quality healthcare services, Panama has a modern infrastructure that captivates foreigners’ attention to live in the city. Not only that, but they have a good and reliable internet al. ong with the best phone service. Also, you’ll find good drinking water from your kitchen faucet. Overall, Panama’s infrastructure is seen to be the best in Latin America.

Political and Economic Stability

In recent years, the country has enjoyed good economic stability, intending to transform the country. Irrespective of the city’s location, it’s quite impossible that you’ll visit a Panamanian town without a sufficient supply of social facilities such as drinking water, fast internet connections, social centers, and improved healthcare systems.

US Dollar as Currency

Don’t be surprised to see that the official currency used in Panama is the US Dollar. Their currency unit is called the Balboa, which is similar to one US Dollar, but Panama hasn’t printed it for decades. Similarly, all prices are in US dollars, but it avoids everyday annoyance and discomfort by measuring the worth of something when it’s in a foreign currency.

Excellent Security Measures

As a principle, the Panamanian doesn’t like conflict. With that being said, they prevent it at all costs leading to low conflict. Like everywhere else, the country has some sort of crime, but it’s usually petty theft. However, using the same caution and common sense as you should have in every environment worldwide will contribute to your safety while living in the country.

Affordable Living

If it comes to importance and variety, there’s no better place to reside than in Panama. This is the place where you can get what you’re paying for. In addition, for as little as $1,000, you can lead a comfortable life in the country for decent access to food, transportation, and a month’s worth of grocery supplies. Meanwhile, renting a property in Panama is relatively cheap in more remote regions, and friendly locals are always available to help you with everything you might need on a daily basis.

Diverse Weather Conditions

Undoubtedly, Panama has diverse weather conditions. Moreover, you’ll find cooler temperatures in the Sore Mountains and the already popular Boquete and Aton valley in the country. Also, if you prefer hot and dry, the eastern coast of the Azuero Peninsula tends to be dry, as well as parts of the Central Pacific, including Playa Santa Clara.

Cons of Relocating to Panama

Language Barrier

Language barrier seems to be one of the factors that could hinder an expat while moving to Panama for the first time. This is because; the people of Panama are Spanish speakers. And depending on your location, you might even be required to learn the language if you want to interact and integrate perfectly with your community.

However, learning the language is a bonus in expatriate cultures, and this is due to the fact that you’ll fit in with a better knowledge of some Spanish. Meanwhile, some people find it frustrating to go to a store to buy something, and they don’t know how to ask for it.

Life May Seem to Slow in Panama

Don’t be surprised to see things moving slower in Panama. Most times, you might think that the person you’re dealing with doesn’t care, but in the face of it, just the way it’s here, you just have to be careful. Also, if you want to get some things done in the country, you may need to cultivate a special skill to keep you calm.

Cultural Differences in Panama

Cultural differences could also be a problem when you’re relocating to Panama for the first time. This is because; its culture is very different from the U.S, and the systems and structures can sometimes make no sense at all. Therefore, if you can’t roll things when they’re going wrong or get frustrated, going to Panama may not be the right decision for you.

Sexual Harassment in Panama

Another problem faced by expats in Panama is about sexual harassment. This is because; the country is a male-dominated society where a single woman may be sexually abused and maybe raped by local men who see them as a new toy to use and then throw away after they’ve gotten what they want. However, the majority of the people in the country are good people, but there is also a layer of people who will victimize you, particularly if you have little to no understanding of the complexities of this community.

Noisy Neighborhood in Panama

From our research, it is drafted that the Panamanian motto is work, not to live to work. This means; parties are the norm and usually start at around nine o’clock in the night, going into the early hours of the day. This factor can be annoying and disturbing to the early birds who prefer to have a quiet and peaceful day.

Cost of Moving to Panama

While we all know that Panama offers a very comfortable retirement solution, you should glimpse the cost of living in the country. By moving to Panama, you’ll enjoy the benefits of a developing economy where you can still take a taxi across town for a buck or two and get your haircut for a couple of dollars. Also, your power depends on where you live.

Like many foreigners, you may find it challenging to resist having a maid, and it’s easy to find help in the country. Besides, a full-time, live-in maid can cost you as little as $250 a month, while a part-time maid can cost you nothing less than $15 per visit. Without further ado, below is an analysis of the cost.

Is It Hard to Relocate To Panama In 2021?

According to the USNews, Panama is one of the world’s top retirement destinations for expats. Additionally, in a survey done by the international living magazine, the country came out on top in their 2020 Annual Global Retirement index. With that being said, you should know that Panama is interesting.

However, with the advent of the COVID-19 pandemic, the country has been struggling with its economy due to the lockdown measures placed by the government. So, before you travel, it’s quite better to understand that Panama is easy, but you need to have the necessary documents and visa applications.

Negative Impact of COVID-19 on Panamanian Economy

In the quest to understand the concept of relocating to Panama, it’s quite essential to know how the impact of coronavirus has affected the country’s economy. Although the country’s economic slowdown can be attributed to several high-profile corruption scandals, but there are several factors placed by the pandemic. Without much talk, below are the negative impacts of COVID-19 on the country’s economy.

Decline in Panama Tourism

As a result of the COVID-19 pandemic, travel restrictions and policies banning employees of multinational companies from traveling have led to hotel reservation cancellations. With that being said, there’s a decline in revenue for restaurants, shopping, retails, transportation, centers, and the tourism industry in general.

Drastic Drop in Consumer Spending

As restaurants, nightclubs, cinemas, bars, beauty salons, and many other establishments were forced to close, consumers spending is falling drastically. And many restaurants have seen their sales fall by 80 percent due to the pandemic.

Unemployment Rate in Panama

Undoubtedly, the unemployment rate in Panama stands at 7.1 percent, and 13,000 jobs are needed to reduce unemployment by one percentage point. However, the pandemic has caused higher unemployment as businesses are forced to close, and owners may need to dismiss personnel.

Impact on Banking Sector

The pandemic has also caused a great impact on the banking sector. This is due to the fact that the Panamanian Superintendency of Banks approved a first package of temporary measures that will allow banks to modify loans to customers who have been affected by the coronavirus and allowed delayed payments. With this in mind, the country has suffered more on the banking sector.

Lower Tax Collection

As at the period of writing this post, the research disclosed that a ninety-day extendable moratorium on tax obligations is currently being debated in the country’s National Assembly. And if enacted, payments on taxes and public water as well as electricity provided by the states have been suspended.

Frequently Asked Questions about Panama

How strong is Panama’s Passport?

As of 2021, Panamanian citizens had visa-free or visa on arrival access to nearly 142 countries and territories, making the country’s passport rank 34^th in terms of travel freedom according to the Henley Passport Index.

Can I have dual citizenship in Panama?

As of today, Panama does not allow dual citizenship. Therefore, you need to renounce your current citizenship to become a Panama citizen. In addition, Panama’s policy of jus soli – or right of the soil – means that children you give birth to while living in Panama will obtain Panama citizenship through birth.

Is Panama safer than other countries?

Of course, Panama is relatively safe in comparison with other countries. However, with the rates generally higher than one would expect to find in most parts of the United States, Panama is safe and could even be considered safer than country like Costa Rica.

What’s the safest city in Panama?

As of the time of writing this blog post, Boquete is considered the safest city in the country. The city is a quaint mountain town along the Caldera River, and it captures the hearts of travelers from all over the world. Not only is it scenic and a cultural haven with popular jazz festivals, but it is safe for travelers.

Conclusion

The idea that moving to Panama means a drastic change of life has made many expat choose this country as a destination. Panama attracts expatriates and has become an increasing trend of Americans moving to the country for work. Nonetheless, if you choose to relocate to Panama, check more details as we’ve mentioned above.