If you will be in Panama, I highly recommend you go to the Boquete Jazz & Blues festival next February.
The 2 main days are always Saturday and Sunday, but the festival actually goes on for days.
This year it started on Tuesday night with a party. Wednesday featured a street parade and jam sessions. On Thursday there was a free concert at Boquete's central park followed by a performance and then another jam session. Friday afternoon and evening was one big jam session. On Saturday, the venue moved to the amphitheater at Valle Escondido in Boquete. Music started at noon and went into the evening. Then everyone reconvened at a restaurant for a big jam session at 8pm. On Sunday, they did the whole thing over again, but with all new musical acts.
100% of the festival profit goes to buy musical instruments and improve musical education in Boquete area schools.
Tickets are a bit steep at $35. Kids 12 and younger are free, which means one of mine got to go for free.
The high cost of the tickets means that most of the folks there were expats.
Which is also why it felt abit like I was back in the States. Everyone was speaking English.
Even people who aren't native English speakers, were speaking English.
I met a people from Holland, Germany, Italy, and Panama. All spoke excellent English. Then, of course, there were the many Americans and Canadians who filled the stands. We were surrounded by English.
On our way out, I saw one of the children who had put on a performance. (As part of Sunday's performances, a group of school children also put on a few brief numbers. These kids are part of the music programs that the festival helps to fund. ) I told him, in Spanish, what a good job he did. Turns out he is an American. No need to speak Spanish. However, I would say the vast majority of the kids on stage were obviously Panamanian.
I hear that hotels in Boquete fill up quickly for the festival dates I didn't even try to get a hotel there. We stayed in David at the Hotel Ciudad de David. David is about 30 minutes from Boquete. We had errands to run in David anyway so it worked out for us. Plus, we have an 8 year old, so any late night jam sessions were not in the cards for us.
We normally stay at the Gran National in David, but decided to try something new, and we are glad we did.
We were impressed by the excellent customer service at Hotel Ciudad de David. We had a very pleasant time there.
We'll be going, or at least I will, every year from now on.
I ran into Joan, of the Careening Cay Resort & Cosmic Crab Cafe in Bocas del Toro, there too. We like staying at their hotel when we visit Bocas.
Like me, she has lived in Panama for years but it is the first time she's made it to the Festival. She and her husband are very busy running their a hotel/restaurant along with being parents of 2 young children. She was enjoying a well-deserved break, and without kids! Maybe next year...
Group 1 is the easiest, Group 3 is the most difficult.
Let me say upfront that Americans can get bank accounts in Panama.
But not at all Panama banks.
Regardless of which of the 3 groups you are in, getting a bank account in Panama won't be fast.
Unless someone "in the know" connects you, it can take anywhere from 2 weeks to 2 months to get a bank account set up.
You will also need alot of paperwork and documents.
Every bank is different, but typically you will need to provide
Some banks also require
Some proof that you have a link to Panama, for instance:
You will also have to fill out a bunch of paperwork in which you describe who you are, your family, how and where you get your money, and more.
In the future, if you withdraw a large amount out, say $5,000 in a money order, you will have to report what you are spending it on. Or at least you do if you are an American, like we are.
This is their way to try to prevent money laundering and criminal activity.
When you are filling out all that paperwork, make sure you set up your account right.
If you are opening a joint account, make sure the names on the account are listed as:
If one of you dies (god-forbid!), it can be a time consuming nightmare to access the money unless you have that critical, "or".
You should also fill out a beneficiary form for your account. This will further ensure there are no issues in case one of you dies, or divorces, etc...
And while we are on the topic, it is recommended that you create a will in Panama as well. This can greatly ease future headaches, expenses, and bureaucratic hurdles for family members.
Many Panama banks charge fees on checking accounts, but not on saving accounts.
What I described above is the process for foreigners, whether you have resident status or not.
If you do have a cedula, or are in process of getting one, it speeds up the process.
Plus some banks require that you have a cedula (or are in process of getting one) in order to get a bank account.
In general, having a cedula simplifies and shortens many bureaucratic tasks in Panama. Officials here are used to dealing with people who have cedulas. When you don't, officials get more cautious and unsure, which slows the whole process down.
Yes, it can be problem opening a bank account if you are an American citizen.
But, no worries. Americans can open bank accounts in Panama - but not at every bank.
It is not Panama's fault. It is the fault of the US.
It is not news that the US is preoccupied by money.
It is one of the big culture shock eye-openers for westerners coming to Panama.
Most Panamanians are not motivated by money.
You cannot get most Panamanians to do a better job by dangling the carrot of more money. This is especially true if they are earning what they consider to be enough.
This is very baffling for Americans at first. My husband still has a hard time grasping it.
In my opinion, because of our money obsession, the US is the only country that
- Requires its citizens to pay taxes on all money earned - even if it is earned overseas
- Requires overseas banks to report on all its citizens with bank accounts with over $10K - this is laid out in FATCA
FATCA is the Act that requires that all foreign banks report on specific American-held accounts.
It is this reporting requirement that makes Panama banks hesitant to deal with Americans.
(For those of you who like to research the whys and wherefores, the FATCA requirement is laid out in Chapter 4 of the US Internal Revenue Code.)
FATCA is all about finding US citizens who are not paying their taxes back home. The US government is convinced that its overseas citizens are not paying US taxes to a tune of $100 billion - each year. I find that hard to believe, but that is why Americans are now the pariahs of the overseas banking industry.
The days of Panama being a tax haven are over, ever since Panama signed the tax treaty with the US.
The Panama government requires its banks to comply with FATCA.
What this means is Panama banks are required to file paperwork every year with the U.S. government telling them your name and your balances (if they are above $10k or $50k, depending on the required form) to stay in the good graces of the IRS and Department of Treasury.
So for bank accounts held by Americans, banks must figure out which ones they need to report, then fill out, and send in the correct forms - each year. If the banks don't report properly, the US can impose big fines on the bank.
Who needs that headache, right?
There are alot of Americans in Panama. So many banks do accept Americans.
When the FATCA regulations first came out many banks put up a "no Americans" wall. That is when the rumors of Americans not being able to get bank accounts started.
My husband and I tried to open up a 2nd Panama bank account about that time and we were told "no" at a number of banks. This included Banco Azteca, which is currently known as a pretty easy bank for Americans to get bank accounts.
Now that banks understand the regulations better, many accept American account holders. Although some banks now have a residency requirement. Their residency requirement applies to all foreigners, not just Americans.
At this time, the following banks allow Americans to open a bank account:
Some other Panama banks accept Americans too. I mention the banks above because I know of Americans, and others, who are happy at those banks.
For convenience, you many want to join a bank that has a branch in your town in Panama.
For a list of all banks in Panama, go here.
Keep in mind that individual bank branches may not be thrilled to have American account holders.
A bank may officially state that it accepts Americans. However, the person at the branch you go to may really hate all that paperwork and the stress of maybe making a reporting mistake.
While he or she may tell you, "Yes, please submit your paperwork", it may never be enough.
If a bank keeps asking you for one more thing in order to finalize your application, what he or she is really saying is, "No, you cannot open an account here".
Panamanians tend to be big-time conflict avoiders. Your banker simply doesn't want to tell you the bad news and deal with the fall out.
Don't keep hitting your head against the wall.
Start the process over at another bank or another branch of the same bank.
If you know someone who knows someone at the bank, it can make the process go alot faster and smoother.
I am not suggesting paying money to grease the wheels. That is a bad idea. However, having a connection can smooth the road.
I hope this information helps you out.
Please comment on your Panama banking experiences below.
Thanks.
Sources:
I wanted the .com address from the beginning of this website.
But someone had already bought it, although they weren't using it.
It took awhile (years) for the person who was sitting on LivingInPanama.com to sell it to me at a reasonable price.
He was always willing to sell it, but his price started at a ridiculous level.
Now, with some help from a gentleman in India the transfer is almost complete.
It should be fully synced and functional on Tuesday, February 3.
The day after Ground Hog Day
You will still be able to use your .org addresses and links.
They will forward to that same page on the .com site.
On Tuesday evening I will lift my glass in celebration.
I will give a toast to all of you, my readers.
So many of you have emailed telling me that they appreciate this site and the work I do.
Thank you!
It definitely makes the whole process more fun to hear that others enjoy the site and find it useful.
Feb. 1, 2015
We talked with the Museum's Curator, George Angehr (seen at right)Just before we went in, we were lucky enough to meet the curator of the museum, George Angehr.
When I asked the curator about the museum, he said:
It is the best museum in the world.
The BioMuseo is more than the usual museum since it isn't just a building that displays artifacts. But the museum is designed to reflect and incorporate aspects of the natural environment that the artifacts' display."
I thought it was hyperbole at the time. Then I went in.
Photos. You can get a peek at our visit with the photos below. Click on any photo to start slideshow.
It really is an excellent museum. Very well done.
You could touch and interact with many of the displays about the rock, fauna, and flora of Panama.
I enjoyed the integral role that Panama's land mass played in worldwide climate and other changes such as the creation of the gulf stream.
Because, at one time, Panama did not connect to South America as it does now.
My younger daughter who normally groans her way through museums loved it.
The audio handsets were especially well done. They come in 5 different languages.
I don't usually like audio narration handsets. But these were very interesting, especially when paired with some of the video displays.
The highlight was the sound and visual display room. It very effectively immerses you in the sounds and sights of Panama.
Landscapes and sounds of animals, rain, wind, and more surround you - overhead, under your feet, and 180 degrees in front of you.
It is very well done. My photo does nothing to convey what it was like.
All but 3 of the 8 of galleries are complete.
We went on a day with good weather, as my photos attest.
I have friends who recently visited the museum when it was raining. They say it leaks - badly.
When they visited there was a crew of 10 people mopping up all the water.
Our friends were not as enthusiastic about their visit.
They told us that the staff tried to say it was part of the museum's desire to reflect the environment into the architecture. Our friends didn't buy that explanation.
Regardless, it is a good museum, especially when it isn't raining.
I just hope they generate enough money to both finish and maintain it.
Updated - August 2017
God forbid you forget to include a document, that can bring the whole process to a crawl.
The exception is if you are buying a property from a developer that already has a relationship with a bank.
These are usually the large developments, especially those who sell property in the pre-construction phase.
Then your loan can be granted in a matter of days.
But most property in Panama is not is those kind of developments.
UPDATE: It is now somewhat easier for foreigners to get a mortgage in Panama.
You still need alot of paperwork done. And they will check your credit report back home. But expats have had good luck going through Scotiabank for a mortgage loan. Scotiabank has loans for Panama resident and non-residents. Check out this link for more.
Some expats have had good experiences going through bestmortages to find a good mortgage loan.
But you do need to be under 75 years of age (see below for more).
In North America, qualifying for a loan is all about your credit history.
However in Panama, the banks focus on your ability to pay and the the property’s loan to value ratio.
What this means is that Panamanian banks require massive amounts of documentation.
Documents that:
Generally, Panama banks will only give loans on land that is
Note, All non- residents qualify for the same interest rate if approved, rates are not credit score driven.
If you think you will be applying for a loan, you should bring these documents with you to Panama.
Some banks require that you have a Panama bank account for at least 6 months before you can be given a mortgage.
Of course, every bank has slightly different requirements.
Once all the required documentation is in the bank's hands, it goes to the bank's credit committee.
They have 14 days to analyze your loan application. Once approved, the buyer gets to review the terms.
If the buyer agrees to the loan, he signs it and returns it to the bank.
In return the bank issues an irrevocable promissory letter for the approved loan amount.
If this seems daunting to you, you should read my "18 Ways To Finance Real Estate In Panama" post.
Also, if you are interested in one of our properties, we offer financing.
Find out more about our financing offer here.
When I was a poor college student, I wanted to go traveling. I was sad that I would never be able to afford it.
One of my professors, who had spent years sailing around the world, told me I was wrong.
He insisted you didn't need much money to do it, just the will to do it.
My reaction was anger. He just didn't understand my situation, etc.
Then a year later, without much money, I traveled for one year all around the world.
It was one of the greatest experiences of my life.
While I was angry with my professor at the time, he did plant the idea that maybe I could afford it.
I have traveled extensively since as well as bought and sold overseas property.
Two things, that at one time, I thought I would never be able to do.
One that will lead you to become an international real estate investor.
You never know.
This means that you refinance an existing house loan for a larger amount than the existing mortgage loan. Then you (the borrower) will get the difference between the original amount of the loan and the higher refinanced amount in cash.
You can do anything you like with that cash.
For instance, you could refinance your house in Houston, Texas. Take out the extra cash and use it to buy some property in Panama.
Investing that cash in something with a higher return than the new and higher refinanced amount of the loan is your smartest option.
We did used this type of refinancing to buy a rental property in the US. It turned out to be an excellent investment for us.
I don't know who else can do this, but Canadians can borrow up to an amazing 80% of the value of any Canadian real estate to take out ‘cash’ to purchase your overseas property. And it is at a very low interest rate.
For this loan a maximum amount of money is lent for an agreed upon period (term). The collateral is the borrower’s equity in their house.
It is smart to set up an Home Equity Line of Credit, even if you don't think you will ever use it. You won't be charged any interest unless you use it.
We always have an equity line of credit. It gives you the flexibility to quickly get cash.
Something you sometimes need to do to quickly capitalize on an amazing property bargain.
This is a loan in which the borrower uses the equity of his home as collateral.
A reverse mortgage is another way to use the equity you have built up in your home.
It is available to homeowners who have equity in their home and who are 62 years or older . It allows them to convert part of their equity in their home to cash.
The great thing about reverse mortgages is that there are no monthly payments. The loan is paid off when you sell the house.
If you qualify, you can tap into your home's equity to buy your dream property in Panama.
This is a specific type of asset-based loan financing. THe borrower receives funds that are secured by the value of a parcel of real estate that he or she is purchasing. These "hard money" loans are typically issued by private investors or companies.
Generally speaking, this type of loan is easier to qualify for, but the loan also comes with higher fees and interest rates.
This can be either an unsecured or secured loan.
This is one of our favorite types of loans. We have been both lenders and borrowers of personal loans.
Especially if you are self-employed, as we are, it can be next to impossible to get a loan from a bank these days.
Of course, you have to know people who not only have "extra" money, but with whom you feel comfortable asking to borrow it. Depending upon the type of property you are investing the money in, you will have to figure out if you will make payments with interest over time, give them a portion of the deal, or some other renumeration.
We have had great success with this method. Of course, you must have a clean financial track record with the person who you ask to borrow money from. In general, it is a win-win situation.
Self directed or self managed IRAs give you complete control over selecting and directing where to invest your IRA - including real estate.
If you have an IRA at a traditional brokerage, you can roll it into a self directed IRA. Then you can use your IRA to invest in overseas real estate.
However, this option is not for everyone. You need to be actively involved in managing your IRA and to learn the rules of the self-directed IRA. Also, depending upon how it is used, it may generate taxable income.
For a summary of the issues, visit fox business news here.
Explore Our Puerto Armuelles Property Listings.
Our properties are both affordable & beautiful.
Most credit cards allow you to withdraw cash either from an ATM or over the counter at a bank or other financial institution.
This allows you access to quick cash if you stumble upon a great real estate bargain.
You take your credit card, head on over to an ATM, and withdraw cash. Or you might be able to do a balance transfer straight into your checking account.
This is especially appealing if you have a card that offers 0% interest for cash advances for say 6 to 12 months.
That way you can buy that great piece of property and then pay back the original amounts before you ever get charged interest. Nothing better than an interest-free loan for a good investment.
This is like the Cash Out Refinance on your home. It is a refinancing of an existing auto loan, where the new auto loan is for a larger amount than the existing auto loan, and you get the difference between the two loans in cash.
You can do this if you have a paid off car. You can then secure a new auto loan, and use that cash. If the interest on the car loan is less than you will think you will make on the investment, especially if its a short-term investment, it is a sound option.
You have money invested in the stock market that you instead use for overseas real estate
Cash out some of your stocks or bonds and invest the proceeds in real estate.
Make sure you factor in the capital gains tax you will have to pay on the sale of those stocks and bonds
This is another option for getting around the more traditional loan route.
Some sellers offer to finance your purchase of their property. This way you can avoid dealing with a bank or mortgage company.
Seller financing is a good option for buyers who want to buy a home in Panama, but need to sell their current home to pay for it.
You will need to negotiate the financing terms directly with a property owner for all or part of the purchase price.
You can also get a loan directly with the developer of a property rather than the bank or mortgage company.
This is very common with pre-construction and during-construction developments.
It usually consists of small down payments, small monthly payments, and then a balloon payment once your property is complete.
This is when you apply for a mortgage loan from a local bank.
Two banks, of many, that offer mortgages in Panama are MultiBank and Global Bank.
Most banks in Panama will give you a mortgage on a property in Panama.
The banks are mostly interested in your ability to pay back the loan given your assets and income.
Your credit record is of secondary importance to getting a mortgage in Panama.
Click here to read my post on how to get a mortgage loan in Panama
In Central America there are international banks that will provide mortgage financing in 2 or more central american countries.
Toward the bottom of this banks of Panama link, the international banks of Panama are listed.
If you are planning on investing in Panama and another Central American country, you may want to develop a relationship with one of those types of banks.
International banks such as Lloyds TSB International will often finance overseas properties in a range of countries. These larger banks will sometimes finance up to 70% of the value of the property.
Sometimes when you cannot get financing for a specific type of property from one sector of the banking community, another will find it more attractive.
When you have an investor provide the capital, but who is not involved in the day to day decision making of the investment property.
This works well when you have time and know-how, but no money. And you know someone who has money, wants a good investment, but has no time.
In a nutshell, you provide that on-the-ground labor of finding the property and making it look good for resale. Your silent partner provides the money.
This arrangement is unique to each partnership. You will have to hammer out the details, it might be investment specific, or you might have an open line of funds to access.
If you make your first investment a cash-flow property, you can use the proceeds to buy or finance future properties.
The CAP rate can be excellent. We know some people in Puerto Armuelles who paid rent of $500/month to an expat who had just bought the rental house for $50,000. You do the math.
Even without looking at the CAP rate, the investor is making 12% a year plus appreciation. Right now in Puerto Armuelles, property is appreciating at 10% or more a year.
Crowdfunding is increasingly popular for a wide range of projects, including real estate.
Typically crowdfunding is done via the Internet. It allows you to get a large number of people to pool their funds together.
There are more and more online resources where you can invest a little bit of money, with other investors, to buy real estate.
Here is a link citing the Top 10 sites for real estate crowdfunding.
Taylor White's post on the "17 Ways To Finance International Real Estate" both inspired and greatly contributed this post. Thank you Taylor.
It is on the beach, next to Las Juanas Restaurant, in the San Vicente neighborhood
The bar & grill's menu is very meat oriented. They have a full bar as well.
It is part of Puerto Armuelles' new hotel, Heavenly's Hotel.
As most people know, the Superbowl will be between the New England Patriots and the Seattle SeaHawks.
We Promise Not To Paint Our Faces GreenWhen we are in the States, we live in Seattle.
I was in Seattle last year when the Seahawks won the Superbowl. There was alot of excitement on the streets afterwards.
Seattleites have since become a bit Seahawk crazed.
Although we may not be as ardent Seahawk fans as other Seattleites, we will show up with at least one number 12 placards.
Hope to see you there.
A Good Employee Can Make Life Fun
In my previous post on employees in Panama, I talked about:How to choose a good employee, What to expect, and Real cost, as opposed to the perceived cost of a worker
If you speak to enough expats, you are bound to find at least one who has a nightmare saga to report about an employee. An employee who reported the employer to the Labor Ministry (“Ministerio de Trabajo”).
The Labor Ministry is sort of like the Gestapo in Hitler's Germany.
You really don't want to be called in to see the Labor minister to face charges of illegal hiring practices.It is always painful, frustrating, and often expensive.And it is one of the more corrupt branches of Panamanian Government (This is saying a lot!)
Most often an employer is called before the Labor Minister, because a worker is incapable, or unwilling, to perform the required task, and simply wants to get a big “severence pay check” prior to quitting, or being fired. This can even happen when an employee has as little as a few days of employment with the foreign employer.
This whole situation can be avoided, if the expat employer had performed the necessary research to find an employee capable of performing the task. Mostly by asking other expats whether the "employee worked successfully in the past?'
To sum up so far, to successfully hire an employee in Panama, one must take one's time. Do not rush things. If you are in a hurry to get a project started, and you hire the wrong person, or persons, it will end up costing you dearly, in both time, and in money, and frustration. If you get too frustrated on your first attempt, who knows, you might not try again too soon. Particularly if you are a retiree. You just don't know how much stamina you have left for work relationships that don't go smoothly. Far better to take your time, do your research, and hire well the first time.
Often it might be a better approach to hire a Panamanian contractor for a task, particularly a construction project, rather than trying to save money and hire a laborer, so that you can be your own contractor. Be honest with yourself; If you really don't have any construction experience, Panama might not be the place to attempt your first project, especially if you only plan on building your own home. You would surely learn a lot in such an endeavor. But if you don't plan to continue to build, then all the knowledge, and experience acquired will not have been of much value (Unless you have always wanted to contract your own house construction project, in which case the satisfaction of a project well- executed would have been its own reward.
If you hire a building contractor, again, be sure to get lots of recommendations from expats. This is your best guarantee of getting what you are hoping for. If the project is not too big, you might find that a contractor need only be a single individual, or a guy and his helper. You might not be charged much more than the usual wage for a day laborer. But, you would have the assurance that the contractor, and not you is responsible for paying his own social security taxes, and those of his helper. This is definitely worth something. You will gain some piece of mind, and you will, hopefully, have hired someone who has performed the task at hand numerous times in the past, be it masonry, painting, plumbing, etc...A word of caution. Be sure to get a copy of the contractor's (up-to-date) license and related paperwork. Be sure to check with the local authorities in the labor department to be sure that they accept as valid the paperwork in question.
If you hire a laborer as your own, personal, or professional employee, be aware that you will be required to fill out social security paperwork every two weeks and deliver it to the local Social Security office in person. (Although, you may now file it online!).
If you are from the US, or any other modern nation, you will likely be taken on “a trip down memory lane” at the social security office.It will either remind you of how things were done in the US 50 years ago at a similar social security office, or it will remind you of your worst recollections of endless lines, and incompetence at the US Postal Department in years past.
You will try to recall when the last time was that you saw endless forms filled out, longhand, and then stuffed randomly into unlabeled file boxes to be forgotten forever.
If you are enticed by the idea of hiring a domestic servant, or cook, or gardener for $10-$15 per day, but you are also reluctant to go through all the hassle of wrestling with the Panamanian social security system, you will definitely have to get creative. One thought is that you may be able to train the employee to take their own paperwork to social security, stand in the line, and file their own Social Security payments. You pay your part, but you do not have to lose your sanity, little by little, dealing with the incompetence and glacial torpor of the Social Security process.
In the case of having your employee do their own filing, it is a brilliant concept, but not so simple in the execution. The success of this one goes right back to principal #1 of part one of this article:Hiring the right employee.
In our own case, we had a wonderful woman working for us as a domestic helper. She was smart, nice, talented, she could cook really well. The whole family loved her. But, little by little, over the years, she began to show up for work less and less. Since she was doing her own social security paperwork, it should come as no surprise that this woman was not a reliable person to have the responsibility for doing this important job. Though it was with tear filled eyes, we eventually ended up letting her go.
I think that if you hire the right person, you should be able to train this person to do their own bi-weekly social security filing. This is a target that I believe is entirely achievable, within the Panamanian social security system, and it is one that should not drive you crazy. Although, now that you can file online, this is not such an issue.
Another possibility, especially in the case of heavy manual labor, such as gardening, logging, hauling, construction, etc...is that of helping your trusted worker to acquire their own contractor's license. There are a number of specialty licenses available, including “gardener” “general contractor” “handyman”, among others. If your laborer has other clients, it is entirely feasible that your relationship with this person be that of contractor and client, rather than that of employee and employer.
Costs of such licenses are not too high. Also, if you truly value this person, and not just this person's services, then you may want this person to pursue their highest potential. If they are licensed contractors, you will always be encouraged to pay the best wages to your valued employee, or you will lose your employee to the competition. Hopefully, as Panama continues to develop, wages will keep pace with the cost of living, and your laborer will continue to be more valuable, year after year.
We have witnessed the experience of expats who tried to maintain an artificially low wage for their own trusted, long-term employee(s). Invariably, that employee will eventually leave, even if the employee never openly voices dissatisfaction with the wages received.
Panamanians are well known for being conflict avoiders. If an employee doesn't think he's getting a square deal, the first time you hear about it will probably be the day he asks for his final wages.
It's likely that you will not get a second chance to negotiate, especially if your ex-employee has already been hired by another employer who shows greater appreciation of your now ex-employee.
Where Will Your Monthly Panama Budget Fall On This Graph?
The budgets are from a wide range of people who live throughout Panama
All the retired singles are males. This gives a false impression.
There are plenty of single female retirees in Panama as well, but they didn't seem to respond to Don Winner's request.
If you examine the budgets below, it will give you a good jump start when figuring out what it will cost you to live in Panama.
1. Those who made larger capital investments, up front & in cash, to buy homes and cars tend to have lower monthly living expenses
2. There are big, sometimes huge, differences in the way people decide to live their lives. These seemingly subtle differences and decisions can double or even triple the monthly cost of living, per person.
The 25 Real Budgets of Expats in Panama
A retired couple ages 70 and 68 both receive Social Security checks, for a total of $2,394 every month between the two of them.
They live near Volcan in Chiriqui, full time in Panama, and have been here for about 7 years.
A 62 year old man and his 59 year old wife are retired and have been living in Panama City full time for about three years.
They have income from Social Security and an IRA.
A retired couple, both 65, have been living in Chiriqui since 2008.
Their total income is about $2,800 per month.
Barry & Janice are 64 and 67 years old.
They built their own house in Altos del Maria and have been living here full time for two years.
A 51 year old man and his 48 year old wife are retired and they live in downtown Panama City.
A 46 year old single guy lives in Los Altos de Cerro Azul about four months out of the year.
A 70 year old single American male has been living in Panama full time since 2000.
A full time girlfriend lives with him, so these monthly expenses are for two people.
A single American man lives on his farm in Boquete.
He has a live-in girlfriend who spends a lot of time with him, especially on weekends, so these expenses are for two people.
A 55 year old man and his 45 year old wife live in Ojo de Agua, which is near the Playa Venao on the Azuero Peninsula, Panama.
They bought their home in Panama 6 years ago. They started living full-time in Panama 2 years ago.
A retired American male has been living in Panama City for the past five years.
His only source of income his his monthly Social Security check, so he has to "watch every dollar."
A retired husband and wife live on an island in the Bocas del Toro archipelago in the Republic of Panama.
A young working couple and their 3 kids live in a house they bought in Veracruz, located just outside of Panama City.
A 61 year old male lives alone in Cerro Azul. Cerro Azul is located about 40 minutes by car outside of Panama City.
Lloyd and Linda Sherman live full time in Altos del Maria.
They return to the US about once a year.
An American man, his Colombian wife, and their school aged daughter live in Gamboa. Gamboa is next to the Panama Canal where the Chagres river enters Gatun Lake.
Summary
A 65 year old retired American male lives in Las Tablas, in the Azuero region of Panama.
He's been coming to Panama since 2001, but has been living here full time for the past seven years.
He has not been back to the United States.
This family, a 51 year old retired law enforcement officer, his 45 year old wife, and their 12 year old son, moved to Pedasi in Los Santos after selling all of their belongings in the United States.
They moved to Panama and rented for the first five months, but now they have purchased their home and they have been in there for seven months. They live in Panama full time.
An American couple in their 70's purchased a 2-bedroom ground floor condominium in a gated community in Boquete, Panama.
A family of 5 - an adult man and wife, two grown children, and one small child all live together in an apartment in Panama City.
A retired couple lives in the province of Los Santos in Panama. He's 71, she's 61.
He's retired from the US Navy and also has income from US Social Security.
They live in a small mountain community and have a good sized garden. They don't like to go into town very often, and they've been living in Panama for eleven years.
They rarely travel back to the US to visit relatives - and when they do the relatives pay for the plane ticket.
A retired couple lives in Las Tablas, specifically Playa Las Comadres in the Azuero peninsula.
They have been in Panama since 2003, but consider themselves to be "part timers."
A 70 year old man lives alone in Boquerón. It is located to the West of David in the province of Chiriqui. He lives in a Panamanian neighborhood.
He's been living in Panama for two years and his only income is the $1,200 he receives each month from the US Social Security system.
A couple, ages 58 and 56, live in Cabuya, located just outside of Coronado, near Panama's Pacific coast.
They are part timers who have been coming to Panama for 4 years.
They only spend about 4 months per year in Panama.
A family of four lives in downtown Panama City - two adults, and two kids under age 12.
A family of 4 lives in a house in Panama City.
