We’ll discuss:
Note: No tourist visa is necessary to visit Panama for most tourists*. To enter Panama, you only need:
Wherever you enter Panama, the immigration official will put a stamp on your passport stating you can be in the country for 180 days.
NOTE:
You qualify for this type of visa if you receive at least $1,000 per month from a pension, retirement fund, or other types of reliable income source. Don’t receive that much? If you buy a property for at least $100,000, then you only need a monthly retirement or pension income of $750.
Since August 2021, this friendly and easy-to-get visa is not nearly as friendly or easy to obtain. To qualify, you must be a citizen from one of the 50 friendly nations* and must either buy a property in Panama for at least $200,000 or be employed by a Panama company professionally.
*Citizens from any of the 50 nations considered “friendly” to Panama can move here with their immediate family and acquire a permanent residency visa. Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Marino, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Serbia, Singapore, Slovakia, Spain, South Africa, South Korea, Sweden, Switzerland, Taiwan, United States of America, Uruguay, United Kingdom (Great Britain & Northern Ireland).
A fast and affordable visa to obtain, but only good for 18 months. However, if you are a remote worker, who earns at least $36,000 a year from that work, you should consider applying for a Panama Digital Nomad Visa.
All of the reforestation investments must be held for a period of 5 years, and they can be made in your personal name or in the name of a Panama entity, corporation, or foundation.
This has three options to qualify for this visa created to attract wealthy foreigners
If you're an Investor, you have 3 options to obtain expedited (30 days) permanent residency in Panama (leading to citizenship and a Panama passport after 5 years) with this program
If you have been offered a job in Panama, you will need to apply for a work visa that allows you to reside and work professionally within the country. It is important to check with your employer or a professional lawyer as to what other documents and information may be needed for the work visa application process.
Whether you want to stay in Panama for a short vacation or move here permanently, there is a visa that is right for you. If you have any questions about which type of visa you need, I would be more than happy to provide guidance.
We soak up everything that Lonely Planet, Rosetta Stone and Wikipedia have to offer about our soon to be new home.
In our zeal, we are prone to misgauging our own proficiency.
We are pumped . . . and ready . . . and oh so naive.
Set for swindling.
A big thank you to Jerry of thecultureblend.com. This post is a reproduction of his article, "The Seven Lies of Living Cross Culturally". He expresses the expat situation so well, I wanted to share it with my readers.
There are seven great deceptions and most of us fall for at least five. I have personally tested them all. You know . . . for research.
I lay them out now NOT for the sake of those who are packing up their lives and getting ready to go. That would be like telling newlyweds that marriage is hard.
They just tilt their head and grin at you as if you’re the cute one . . . “yeah, we know it’s hard for everyone else but we’re sooooo in love . . . and it will never, ever be hard for us.” You’re sweet and I would never steal this time from you. Proceed.
But for those of you coming down from the honeymoon (and possibly even some of you veterans) . . . here are seven deceptions which you may or may not have noticed just yet.
It’s perfectly natural when we relocate from one country to another country to focus entirely on those two cultures. Give me a spreadsheet with TWO columns and tell me how our cultures are different.
WE like personal space — THEY don’t.
WE are direct — THEY are indirect.
WE use a fork — THEY use their fingers
BOOM! I got this.
There are tests and inventories and boatloads of brilliant research that can help you size up YOURS and THEIRS. Culture to culture, side by side.
I love that stuff. I could get lost in it but the big reality shocker comes when you realize that living cross-culturally is not simply TWO cultures but it requires MULTIPLE layers of cultural adjustment.
Here’s the kicker — often times the OTHER cultures are more consuming than the one of your host country.
This list goes on.
It’s never just two
Learning a new language is hard. Sure it’s easier for some people than others and no doubt there are gifted learners who seem to have flair for picking it up quickly. The rest of us are . . . what’s the English word?
NORMAL
Regardless, one of the most painful realizations is that a new language doesn’t just grow organically in your brain because you are surrounded by it.
Expats are survivalists first and foremost. We pick up the absolutely essential phrases, we seek out picture menus, we print taxi cards, we download apps and we are shameless masters of hand gestures and charades.
Never has there been a group of people who have worked harder to communicate without learning how to.
In many places, you can be (and you will not be alone) an expat for years upon years and never learn the language. Intentionally choosing the harder option is key.
It doesn’t just happen.
“Culture shock” is a deceptive phrase. The word “shock” insinuates some kind of unforeseen, instant jolt. As if you stuck your fork into an outlet and BAZZZAAAPPP!
“WHOA! Should have used chopsticks! Didn’t see that coming.”
Consequently, when we don’t have the quick sizzle, hair raising, eye-bulging zap followed by the easily distinguishable and obviously dysfunctional meltdown we assume (incorrectly) that we have beat the system. No culture shock for me.
“I am Transition Man! Your culture bolts are no match for my defences!”
But the transition from one system to another system is not a switch that we flip, it is a process that we go through. That process includes the stress of adjusting from the way you have always done it to the way it is now done.
It includes wrestling with knowing, without a doubt that your way is better . . . and then thinking that it probably is . . . and then wondering if it might be . . . and then acknowledging there may be two good ways . . . and then (sometimes) recognizing the new way is better.
For some people, the process is harder, deeper, darker, more dysfunctional. Some people thrive on the instability.
It’s not the same (by any means) for everyone but no one gets immunity.
Maybe you’ve seen something like this:
Tools like this are especially helpful when cultural transition feels like puberty. “Why am I feeling like this?! Why am I acting like this?! GET OUT OF MY ROOM!!”
In the complicated, confusing moments of adjustment, charts like this serve as a sweet reminder of a simple yet solid truth.
“I’m normal??. Waaahh, that’s fabulous. But seriously, get out of my room.”
The problem with the standard culture shock continuum is NOT that it is inaccurate. It is that we think it was designed to be more accurate than it is.
“I feel like my transition had more dips than that.”
“I think my dip wasn’t so deep but it lasted longer than 6 months.”
“I don’t think I ever got a honeymoon phase.”
Yes. Yes. Yes. You are spot on. Your transition is yours. It is dramatically different than the next guys and his is different than everyone else. If you are expecting to fit exactly into the right schedule for adjustment you’re likely to slip back into feeling weird or abnormal or dysfunctional or superhuman.
There are too many variables for everyone to have the same transition.
This was mine.
In human years, expats move from 5 to 16 in about two months. Let me explain.
Expats are uber inquisitive on the front end. “What is that? How do you say this? What’s that smell? Why do they do that? What’s the history behind this? Who? What? When? Where? How? Why? Why? Why?”
Like a 5 year old. We embrace ignorance on a quest for answers.
BUT (and this is where it ALL falls apart): We think when we get an answer, we understand it (you should read that sentence again). Soon we “know” (finger quotes) everything.
Like a 16 year old.
When we have answers, we stop asking questions. This can be a fatal flaw for expats. There is ALWAYS more to it.
“Ignorance is not your problem unless you think that you’re not ignorant.”
-Albert Einstein – should have said this
Embrace ignorance and stay 5 for a while.
For contrast, imagine describing the climate of North America as frigid because you spent Christmas day in Northern Canada. Check out Guatemala in July before you share your expertise.
There is always more to it.
This one is doubly deceptive. It sneaks up on you and you never see it coming. There are no instant, clear cut signs, but one day . . . months from now . . . maybe even years, you realize you’ve been duped.
No one is more excited than the honeymooning newbies to engage local culture.
“We’re going to make lots of local friends and study language, learn their customs, and teach them ours. We’ll share cooking lessons and laugh about idioms. It’ll be great!”
Then . . . over time . . . and one interaction at a time, you take the least challenging option.
It’s frustrating to speak a language you don’t know. You don’t connect with these people on sports or politics or food or fun and it feels more like work than friendship.
That’s how the bubble is built.
For clarity let me just say . . . I love the bubble. Some of my best friends are in that bubble and I like hanging out there.
BUT I don’t want to be STUCK inside of it. To live cross culturally and never genuinely experience (deeply) your host culture is a BIG miss. To be surrounded by people who are SO different and could teach you SO much and never find a friend, is a sad thing.
The lie we believe is that it won’t happen to us. However, without tremendous and ongoing intentionality it almost always does.
This varies dramatically depending on who you are and where you are living. It is painfully easy to mistake cultural hospitality for respect and admiration. “These people treat me like a rock star.”
It’s easy to let that misguided reaction go to your head (much like a rock star would). The result is typically tragic.
This is where cultures get abused and foreigners leave a trail of mess behind them. In their arrogance, they assume that they have all of the pieces — “They smile when they see me, they laugh at my jokes, they want to spend time with me . . . they must love me.”
There is always more to it.
Or maybe they love you.
Point is, you can’t know until you stick around and build a real relationship. That’s where the good stuff is. The real stuff.
If you’ve been duped, welcome to the club. Actually you’ve been here for a while, but none of us wanted to say anything. Welcome back from your honeymoon.
This is where it gets good.
Bocas del Toro is very casual. Flip-flops, shorts, a t-shirt, or even a tank top is fine.
In Panama City people tend to dress more stylishly than elsewhere in Panama. Business casual is more the norm. Suits and high heels are seen more often, but overall the dress is still casual.
I know I rachet up my wardrobe - slightly - while in Panama City. Of course, all those air-conditioned places in PTY makes getting dressed up a more comfortable option.
The highland areas (eg. Boquete, Volcan, El Valle) also dress casually. However, it is warmer-clothing casual since it is cooler in the highlands. So more long-pants and jeans, as well as sneakers or casual city shoes.
Before I tell you how people dress in Panama, I will show you.
Check out the photos below. Click on any photo to start the slide show.
In general, it's good to look decent when you go out.
Yes, it is casual, but it is neat and tidy casual, not beach bum casual.
Of course, if you are simply on vacation, you can get away with dressing more casually.
However, if you are moving somewhere in Panama, it is a good idea to be presentable.
The truth is that you will likely be judged based on what you wear.
Most places in Panama are small towns, heck the whole country only has 3.5 million people, and they notice what you wear.
If you go out looking disheveled, with short shorts, or inappropriately attired, locals will notice and talk. It is always a good idea to respect the cultural norms of an area, whether you are a traveler or resident.
I'll give you an idea of what I mean by presentable.
For a few years, my daughter Skylar and her friend Bryan, who is also our Panamanian next-door neighbor, were almost inseparable. Each time Skylar and Bryan would head into town, Bryan would make a pit stop at his house. He would emerge transformed.
He would no longer be in a t-shirt and shorts. He would have changed into spotless jeans (maybe long shorts) and a polo shirt, with his hair freshly wet-combed.
Only then did his mother give the okay for him to walk or bike into town. I wish I could say Skylar had been as nicely attired.
A Tip: If you are invited to dinner at a Panamanian's house, dress appropriately. If you show up wearing shorts and a t-shirt, your Panamanian hosts probably won’t say anything, but they’re probably thinking, “how uncivilized.”
In this section, I will try to give you a general idea of what Panamanians usually wear out in public. If you want to fit into the local community, follow these general guidelines.
I am not saying that expats or travelers should dress like a local. However, to be respectful, you should dress so you don't outrage local sensibilities. And given that Panama's dress style is casual, it is pretty easy to dress appropriately.
Business Attire
Also, if you are in business, you might want to take special note of what to wear. You will be given more respect and deference if you wear long pants, polo shirts or button-down shirts, rather than shorts and t-shirts. Think business casual.
Panamanian men typically wear
Older men wear
Panamanian women typically wear:
Older women
Workers
Workers (eg., maids, gardeners) tend to arrive at work in nicer clothes, then change into work clothes. They reverse the process when they head for home.
If you will be going into any government offices know that they have a dress code.
You can be asked to leave if you do not comply.
Dress code: long pants or a knee-ish length skirt/dress/capri pants. Your shoulders must be covered. Men should wear a polo or button down shirt, not a t-shirt. Shoes must cover your toes.
If you wear shorts, flip-flops, and a tank top, you can guarantee you will be asked to leave.
I have been fine going into government offices with over the knee-capri pants, Keen sandals (which cover my toes) and a short-sleeve button-down shirt. Children wearing toe-revealing sandals seem to be okay as well.
Theoretically, banks have the same dress code. But I find it has more to do with the mood of the bank's security officer than with anything else.
I have gone into banks wearing flip-flops (but otherwise complying with the dress code) and have almost never been asked to leave. Usually, I simply forget that I am wearing flip-flops. However, if you remember, it is best to comply with their dress code.
In Panama, except at the beach, it is illegal for men to be shirtless in public. This no shirt law also applies while you are driving a car. You occasionally will see a man shirtless in public, but not often.
It is always illegal for a woman to be shirtless in public in Panama - even at the beach.
You should have a light jacket. There are many places where the air conditioning can be freezing.
Also, the temperatures in the highlands are lower, sometimes making a jacket a good idea.
Plus, elsewhere, particularly near the ocean, it gets cooler and breezier in the early mornings and evenings, especially in the rainy season. At those times, you may appreciate a light wrap.
It really is.
And WhatsApp is one more reason to get a smartphone. That is if you are someone still stubbornly holding out on getting one.
Find out about your cell phone options in Panama
WhatsApp is a messaging app that allows you to send and receive:
Free, But Need Internet
In order to use WhatsApp, you do need wifi or data on your phone, but otherwise, it is free.
And it is not limited to your phone. You can use WhatsApp on your computer too.
Encrypted & Secure
Also, WhatsApp uses end-to-end encryption so your communications are secure. Not even WhatsApp's employees can read the messages that are sent across its network.
In Panama, it is common to see WhatsApp contact numbers everywhere from business cards to advertising campaigns. People not only use it to message their friends, but also doctors, lawyers, plumbers, and maids.
In the US, a common expression is "Google it". In Panama, it's “Mandeme un WhatsApp”, the Panamanian equivalent of "give me a call".
WhatsApp groups are another good reason to use the app. WhatApp groups are very popular.
For instance, my neighborhood in Panama has one. There are also WhatsApp groups for expats in my town of Puerto Armuelles (and in most towns). It is a great resource to get questions answered, to announce get-togethers, to ask for help, and more.
A Tip: Make sure you turn off the auto download setting. If you don't, all the images shared via these groups will automatically be saved to your camera roll. You can still save the ones you want.
Voice Messaging
Voice messaging is a very popular way to communicate via Whatsapp. You will often see people with their phones in front of their face, talking into the phone. They are sending voice messages.
Myself, I much prefer the voice to text function - for both sending and receiving. I'd rather read a message at a glance, esp since you cannot listen to voice messages just anywhere, at least not without headphones. Although, it is nice to hear a person's voice sometimes.
WhatsApp is not only popular in Panama, but in most of the world. Its initial attraction was due to SMS text fees.
In the US, texting usually is unlimited and is packaged with your cell phone service plan. But in many other places, the fee for texting is an issue. Which is where Whatapp's free service steps in.
Since it started in 2009, WhatsApp has become the primary social network in many countries, including Panama, Brazil, India, and in large parts of Europe.
It is so popular that you will often see advertisements from local cell phone carriers offering free data for WhatsApp use. It undermines their own texting services, but it entices people to chose their company for data.
You know it is a WhatsApp number if it starts with a plus sign (+).
A WhatsApp number follows this format:
+ then country code then cell phone number.
About Phone Numbers in Panama: There are no area codes in Panama. Cell phone numbers in Panama are 8 digits long and always start with a 6. Landlines are 7 digits long.
Here is some information that is helpful to know before you download and set up your WhatsApp app.
Your WhatsApp number will be whatever your cell phone number is at the time you download and set up the app. If you download the app in the States, it will be your US phone number.
As long as someone also has WhatsApp, they can WhatsApp your WhatsApp number regardless if they are in the US, Panama, or Egypt - for free.
How To Change Your WhatsApp Number
If you want, you can easily change your number on WhatsApp. For instance, say you put a new SIM card into your phone when you get to Panama. You can choose to make that your WhatsApp number, not your US number.
To change your WhatsApp number, simply open WhatsApp, click settings, then Account. You will then see an option to "change number". Follow the simple instructions.
It is easy and has no repercussions.
You do not need to notify all your contacts to let them know you changed your number. It is seamlessly done. They can continue to contact you at your US WhatsApp number and you will receive it. They never need to know you changed it. Your text threads will remain unchanged. (However, if they have never Whatsapped you on your old number, I believe they need to use your new number to successfully contact you.)
No Need To Change Your WhatsApp Number
The wonderful thing is that you can still use your original WhatsApp number, even if your cell phone number subsequently changes.
I switch SIM cards when I go to the States and again when I go back to Panama. This means that although my phone number changes, my WhatsApp number stays the same regardless of which country I am in. Unless I decide to manually change it, as I explain how to do above.
Whether you are traveling or moving to Panama, it is a good idea to come armed with WhatsApp on your phone. Download it today.
And, just as important, ask your friends and family back "home" to download it too. That way, you can continue to communicate with them via your phone. It will almost be like you are still there. Well, except that you will be in a tropical paradise, and they won't.
In future posts, I will discuss other essential apps to have in Panama
Don't forget to read about your cell phone options in Panama.
My daughters explain how to preserve your bananas and more in the video above.
Betsy: Welcome to the 2nd video in our "Fruit in Our Yard" series.
By the way, our yard is in the charming beach town of Puerto Armuelles, Panama.
We are producing these videos in alphabetic order.
Join us as my daughters show you the Bananas In Our Yard.
[I'm Betsy from Living in Panama, the place for information and advice on being an expat in Panama. Interested? Click subscribe, and hit the bell. So you don't miss a video.]
Skylar: These are the bananas in our yard. They're a little past their prime on the tree.
We've been picking them slowly.
Normally, if you wanted to preserve the entire bunch and ripen them at your leisure, you would chop it here and hang it from a sort of a rafter or any high place you have. Then put a bag around it to protect it from the birds that might want to get at it before you.
Blaise: And what you can also do is, you can leave actually them on the tree and get some mesh bags to cover it.
And as you can see, some ripen at different times.
These are very small, just starting. These are green and these towards the top get more sun and are ripe. Like here, they are ready on this side.
Skylar: Yes. These here have been all picked and some of them have been eaten by birds.
Blaise: Like these and that.
Skylar: This is what happens when you don't preserve the bunch. So if you wanted to preserve it, as we said, you put a mesh bag around, either on the tree, or take it off and hang it somewhere for it to ripen.
[Note: you can use plastic or any other opaque bag to cover ripening bananas in order to keep birds from eating them.]
They usually ripen better off the tree actually.
Blaise: And we can show you one is still green. It has not been covered, over in our front yard.
Skylar: Okay, so this is across the yard from the earlier bananas that we showed you. But these are not quite ready to be picked or even for the birds to want them.
It's quite a beautiful bunch, honestly.
Blaise: As you can see, up there, it is starting to ripen a little bit on the higher branches.
Betsy: Where? Oh, yeah.
Blaise: You can see a little yellow. And so that is normally the time you should probably start bagging.
Actually, if you remove some of the leaves above it, it can help it as well.
Betsy: Help it what?
Skylar: Ripen more quickly of course.
Blaise: And grow.
Skylar: Yeah.
Blaise: And in the next video we'll probably be showing you how to use bananas and plantains in dishes.
Skylar: Yes, how to cook your bananas or plantains - for beginners.
Skylar & Blaise: Bye. Thank you for watching. Subscribe. And like. And share with anyone who might be interested. And click the notification bell. Have fun.
Betsy: Please click the link below for more information about Puerto Armuelles. Thanks for watching.
Our next "Fruit In Our Yard" video will feature the cashew tree.
The Living In Panama House is, in essence, is a big covered porch, wrapped around the bedrooms and the bathrooms. Compare this with a more typical construction of a house with a porch attached.
Depending upon the model you choose, up to 75% of the house is an open-air secured and covered porch.
Our design gives you the same cool feeling as being in the shade under a big mango tree by the beach.
You’re protected from the sun, and there is nothing between you and the refreshing breeze.
Being under a big shady Mango tree at the beach is as cool as it gets here. That is, unless you turn on the air conditioning.
We are positive about this.
There is a big beautiful mango tree on lot 6 of our Corazon de Oro property, where we check the temperature throughout the day. It is the coolest spot around.
Made in the Shade of A Mango Tree
Why is it so cool and comfortable under a big shade tree with a cool breeze blowing?
This seems like a silly question. We all know it’s true.
However, when designing the perfect tropical house, you must ask, “Why is it true?"
1st - Mature Mango trees provide a wide area of dense shade.
The dense shade of the Mango tree protects you from the sun. Not only that, it also shades the ground all around you. This means that the entire area under the tree does not heat up, allowing you to stay cool and comfortable.
2nd - Mango tree branches are high up, so they don't block the ocean breezes.
Because it can easily flow under the Mango tree, the breeze is free to work its evaporative magic upon your skin, keeping you cool.
And, don’t forget about the psychological effect of air movement. Air flowing over our skin, makes us feel cooler, even if the temperature hasn’t changed. This phenomenon is known as the “perceived” cooling effect.
What else can we learn from the Mango tree, so we can build a really great tropical house?
Actually, that’s it. The secret to building a cool tropical house, believe it or not, is not to ruin this simple formula: Provide deep shade and don't obstruct the cooling breeze -- Shade, air movement, evaporation, and perceived cooling.
Most builders botch tropical houses because they build the way they always have. They don't stop to think about context, about what produces a comfortable house in the tropics.
Expats' Thoughts On Their North American Style Homes
From various studies and surveys, and through our own observations, we have learned a lot about expats who live in North American style homes in Panama.
How does the Living in Panama House bring together all the elements necessary to imitate the cool, comfort beneath our big mango tree? Shade, air movement, evaporation, perceived cooling.
The mango tree has these going for it. What about the Living in Panama House?
1st, the Living in Panama House has wide, 5-foot roof overhangs. This means that, just as if you were relaxing in a hammock beneath our big mango tree, you are protected from the sun by this big, sheltering roof. It also means that no part of the Living In Panama House, except the roof, is exposed to sunlight. By keeping the house structure from heating up during the day, you don’t heat up. What’s more, you will stay cool and comfortable all night.
Now, back to our mango tree comparison: The leaves at the top of the Mango tree get very hot, during the day, due to direct contact with the sun’s rays. Since a mango tree has so many layers of leaves, all that heat is trapped; It never gets to you, napping in your hammock down in the shade.
In the case of the Living in Panama House, we actually have the mango tree beat here. The mango’s tree’s thick canopy requires tons of branches and leaves to provide shade down below. Obviously, this is not a good model for building a house; It’s an inefficient use of materials), By contrast, The Living In Panama House has a metal roof, and galvanized steel roof framing.
Metal roofing is the most popular roofing in Panama, so it is readily available.
2nd, our metal roof system is very lightweight, or low in mass, which means that the roof can’t store heat.
3rd, the roof has a dramatically energy-efficient roof color, white. A white roof can reduce surface temperatures by as much as 100 degrees Fahrenheit, compared to a dark roof color. This means those solar rays are reflected right back into space. This is known as the Albedo Effect. The end result: a significantly cooler house. To learn more about why a white roof is the best choice for a cooler house, check out this article on the Texas Smart Roof, here.
4th, the metal roof is strong. It does not rest on top of the walls the way it does in typical house construction. Instead, the Living in Panama House roof is connected to the walls by a series of steel columns. The steel column supports are welded to steel reinforcement poured integrally into the concrete walls. This is the strongest roof design we have seen here.
Our Living In Panama House roof system is special in another way too.
5th, there is ample ventilation space to allow heat to escape and daylight to enter. In our current model home, there is 132 lineal feet of open ventilation between the roof and the top of the walls. At 2.5 feet in height, this ventilation system provides 330 square feet of ventilation, high up where you want it. (By comparison, a big 3’x 5’ double-hung window offers about 9 square feet of ventilation). This is just one of our vent systems.
What’s more, this high vent is not only a perfect way for the house to expel heat, but it is also the ideal location for clerestory lighting. This design, allowing natural daylight to enter the house high up, completely eliminates the dark, cave-like feeling that is found in many expat homes in the tropics.
Our tropical sun here is extremely bright. Without the extra effort to balance the lighting, the contrast between the blinding tropical sunshine and the relative dimness of the indoors gives an impression of gloominess. The interior daylight of most houses here makes you feel a bit as if you were in a basement apartment in the States. I like spaces that are light and cheery, so I find the interior light of theses homes depressing.
6th, There is no space where the heat will get trapped. Beneath the Mango tree, there are no walls (no doors, nor windows either). Nowhere for heat to get trapped. The Living In Panama House is similar, in that there is almost no floor to ceiling walls except in the bathrooms and bedrooms. (However, the bedrooms and bathrooms also have tall windows and doors for light and ventilation). The breeze can circulate freely throughout all of the living spaces, constantly exchanging the interior air for clean, fresh air right off the ocean.
7th, Long and lean design to allow free airflow. Another advantage to our design is that the Living In Panama House is long and lean, so the breeze can easily pass through the entire house.
Wide, fat houses are a mistake here in the tropics. That style of house requires more walls, plus interior hallways to access the spaces deep inside the house.
8th, Gable roof acts as a chimney to release any heat build up. The gable roof of The Living In Panama House is perfect for cross ventilation. Both ends are open. The peak of this beautiful roof is way up there, nearly 19 feet off the ground. There are no drop ceilings (unless you add them). This means there is a vaulted ceiling sloping upward from 13 to 19 feet overhead. We all know that heat rises. Since heat is free to migrate naturally upward and then be whisked away by the breeze, The House stays cooler. You stay cooler.
I have always loved the look of the old Chiquita Banana houses with their half-hipped roofs. You have probably seen them on our website, or maybe you’ve already visited Puerto Armuelles and seen them there. These roofs are a classic. They are part of the historic look of Puerto Armuelles.
When we first arrived in Puerto, I thought I'd like to copy the look of the Chiquita era homes, including the half hip roofs, but with a few design tricks to make them more efficient. To be honest, it took me a few years to finally accept the reality that hip roofs are beautiful and historic, but they don’t work.
Hip roofs, even half hip roofs trap heat. Even when they have those charming little wooden vents on the half gable ends In fact, the attic of our own Chiquita Banana House heats up to over 150 degrees on summer days. Finally, I had to let go of my love affair with the Chiquita Banana half-hipped roof.
9th, the Living in Panama house is designed for big ceiling fans for those days when the wind doesn’t want to blow. Ceiling fans are an attractive and efficient way to move warm air up and out of the house. They are a classic, tropical look that dates back over a hundred years.
10th, the Living in Panama house is A/C ready too. Obviously, not everyone wants to live without air conditioning. Some days, you just feel like going indoors and sitting in the media room, or the office, or taking a nap in a truly “chill” space. For that reason, the bedrooms, office/media room, and the bathroom zones are all designed for air conditioning. The decision to create an air-conditioned “cool zone” is up to you. These zones can be as big, or as small as you wish.
11th, easy to enclose more space over time. With our Living In Panama House design, it’s simple to enclose more space. You could even enclose it all if you really want to A/C the entire house. However, we suggest that you live in your new house for a while to experience what combination of fan vs A/C fits your tropical lifestyle. Then, with our system, it is very easy and fast to add walls, windows, etc, if you decide to adjust the Living In Panama House to your needs.
We think you will enjoy living in a Living in Panama House. If a Living In Panama House fits your needs, please let us know.
We will send you its construction plans. They cost $250 if you are not buying one of our properties. The plans are free if you do buy a property from us.
Don't forget, if you buy one of our properties, we are here to help answer your questions about the LIP House all along the way.
If you have questions, please feel free to contact us.
Explore Corazon de Oro: The most beautiful beach properties in Puerto Armuelles.
1. First, before you move, determine if Panama is right for you. To discover that, you should be clear on what you need to have in your life? What are the most important things to you? What will help make for a happy life?
If you go ballistic when the Internet (or electricity) is out and you cannot imagine life without readily available organic food or same day Amazon deliveries, you may need to rethink your desire to move to Panama. Be honest with yourself.
There are many wonderful places you could choose to live. It doesn’t have to be Panama.
Take our "Will Panama Make You Happy?" quiz to get a sense whether Panama is right for you.
2. Are you and your spouse/partner and/or kids on the same page? Your spouse's ideas about what he or she is looking for may surprise you. Your kids will be happier with the move if they feel you really listened to their thoughts and concerns. For a successful move, it is best to quickly get everyone involved in the decision process.
3. Manage your expectations. If you expect a trouble-free paradise, you will surely be disappointed. No place is perfect. No climate is ideal. No place is 100% crime-free.
4. Do you dream of finding a life partner in Panama? You may find one. But keep in mind, if you marry a Panamanian, there will be cultural and language challenges. For instance, when you marry a Panamanian, you are also marrying his or her family. Family is of paramount importance in Panama. Family members typically spend their Sundays together - all day. There is little buffer for cultural differences when you marry into the culture. The differences will be in your face, every day. To be happy, you will need to become accepting and tolerant very quickly.
Also, you should beware the Sugar Daddy/Mommy situation. That arrangement usually never ends well.
Successful Panamanian/Expat marriages can happen. I know a few expats who have been happily married for many years to locals they met after they moved here. But I know even more in which it was a disaster.
Of course, you may also meet a compatriot while in Panama and fall in love. Then you will encounter all the joys, trials, and challenges every relationship offers.
5. Panama is a different culture and lifestyle. The lifestyle issue is especially hard for Americans to come to terms with. The specific lifestyle issue I am taking about is convenience and customer service. If you are from the States, you are used to a level of convenience that no other country on earth offers. For example, many stores in Panama (and in many places in the world) are closed on Sundays. Also, in Panama and many other places, government offices close for lunch and many holidays. The entire country of Panama took the day off when the national team qualified for the 2018 World Cup. You need to get used to stores and offices being closed at inconvenient times.
Panama’s businesses are not set up to make the customer’s life easier and more convenient. It is something you need to get used to and plan for. Along those same lines, keep in mind that in Panama (and other places in Latin America and elsewhere) appointments and schedules are simply a goal, not a firm commitment. Expect to wait - not only to wait, but to wait without being annoyed about waiting.
6. Don’t drink and buy property. It can happen. You arrive in the land of palm trees, hammocks, margaritas, and cheap beer and your common sense tends to drift away. You meet a guy at a hotel bar, he buys you a few drinks. Then he's driving you around showing you property you could buy. “Look at that view”, he’ll urge you. “Feel that breeze. Boy, it doesn't get better than this. And, you know, there are only two lots at this price remaining. A couple of buyers are expected in town tomorrow. I'd hate for you to miss out…”
Would you buy a piece of real estate under those circumstances back home? A piece of property you are seeing for the first time, in a place you have never been to before? You need to do more due diligence when investing in a piece of property in another country - not less.
7. Speaking of buying property, there is no MLS in Panama. (Well, Panama technically has something called an MLS, but since the vast majority of property for sale does not appear on it, it does not function as an MLS as you know it in the States). In fact, only a handful of real estate markets outside the States have effective Multiple Listing Services. This means that your property search will not be very efficient, and that getting reliable information on comparable properties will be impossible.
8. Rent first. Don't buy property until you have made sure Panama is the place for you (and your companions). Even if you decide Panama is the right place for you, you may decide that a different area or neighborhood is a better fit. Renting gives you the time and flexibility to figure that out.
9. Panama might not be as affordable as you’ve heard. Where you live and how you spend will determine how affordable Panama is. For instance, Panama City used to be affordable, but not anymore. Like most major and popular cities in the world, living right on the water or downtown in Panama City can cost a lot. Expect to pay at least $1,200 to rent a decent place in the city (and that’s on the low end). In the high rent areas, your utilities and grocery costs will probably be more than you are used to paying back home, especially for items that need to be imported.
This doesn’t mean you can’t retire to Panama on a shoestring budget. You absolutely can. You just have to know how to do it. In most places in Panama, it is still very possible to rent a place for $200 - $500 a month. You can live well in many places in Panama on only $1200 a month. But you cannot do that in Panama City and it is harder to do in the more popular expat spots as well.
How and what you spend your money on also determines how affordable Panama is for you. See the next tip for more on that.
You can find more information on Cost of Living in Panama in various parts of Panama on my site and other places.
10. To save money you need to buy local brands. You have to learn to shop like a Panamanian. This means buying your fruit and vegetables from street venders. Not only will you save money on your produce, but it will be fresher. If you live in a small town where fishermen bring in their catch each morning, buy your fish off the boat, or at the local fish market. Again it is both cheaper and fresher that way.
Watch our video of buying fish off a boat in Puerto Armuelles.
If you insist on buying all the same food brands as you bought back home, you will pay more. Imported items cost more, more than they cost in their country of origin.
Also, Panama is not like the U.S., there is no Target or a Walmart where you can buy everything you need in one spot. You can do a lot of your shopping in places like City Mall, El Champion, and Discovery Center, where a they sell a wide variety of items. But you pay for that convenience. You may buy some items at PriceSmart (like Costco, but smaller), but other items at your local Romero grocery store, and still others from a street vendor.
If you learn what to do and what not to do, you can live well in Panama on a fairly low budget. Plus, you now have the time to enjoy the shopping experience.
11. Another thing about shopping, buying in bulk often costs more in Panama. In the States, if you buy a case of something, the per unit price will usually be less than if you simply bought one of those items. But not in Panama. (The exception to that rule is PriceSmart, usually, but not always).
I am not sure why. Perhaps the reasoning is that the person who can afford to buy in bulk can also afford to pay more. I know you might be shaking your head at that rationale. But Panamanians think about money and fairness very differently than most westerners. One of the many cultural differences you will get to know and, hopefully, embrace.
12. Your health insurance won't cover you once you leave the U.S. (and most other countries as well). Don't worry, you have options. Go to this link to start reading our series on health insurance in Panama.
13. Learn Spanish. Start now. Most Panamanians do not speak much English, if any. Yes, you can find English speakers at high-end hotels and tourist places, but in general you will not find much English spoken elsewhere. If you don’t speak Spanish, at least some Spanish, you will not only be frustrated, but you won’t be able to engage in the community and make friends with anyone but other English-speaking expats. Panamanian are wonderful people. It is worth the effort to learn to speak their language so they can be part of your life.
I review a few ways to learn Spanish online
14. You will regret your move - temporarily. There will come a time when you will frantically ask yourself, “What have I done! I must have been insane to leave my home and move here.” It happens to 98.7% of people who move overseas. Expect it and prepare for it. Remind yourself that nothing has changed. All the reasons you decided to move are all still true. You simply need to give yourself time to internally adjust to your new world.
15. Hire people to do stuff for you. What a joyful thought. You can now afford to have someone clean your house every week, or even every day. Don’t like yard work? hire a gardener to do it for you. It is pretty affordable. But it does have its challenges.
If you aren’t used to people making your bed and washing your dishes and clothes, it can take some adjustment. You may feel guilty or uncomfortable allowing others to do those things, especially if you are just hanging out while they are working. Think about how you will feel about lifting up your feet for someone to sweep under them while you are hanging out reading or chatting or watching TV. It can take some getting used to.
Then, there is the issue your maid putting your stuff somewhere you would never ever think of putting it. Breathe. It works best to simply learn where has decided your shoes should live. It is best to roll with these quirks of your workers. Focus on the big stuff, like learning about Panama’s employment compensation regulations, including social security payments.
Read more about hiring people in Panama.
16. Loud music is a part of life here. Stores will blast stereos in an attempt to grab your attention. Parties especially have loud music. I have been to a number of parties in Panama where the music was playing so loudly it was impossible to talk to anyone. A general chaos of noise is tolerated here. Once I was in a restaurant where both the stereo and the TV were blaring. I had to ask them to turn off the TV. We were their only patron so it was easily asked and complied with. But in general be prepared for loud music. This is something to keep in mind when deciding where to live. If you choose to live in a dense neighborhood, you may have to deal with loud music, especially if your neighbor decides to throw a party into the wee hours of the morning.
17. You will see lots of litter. It is common in Central America. Many expats visiting Panama will express their astonishment over the amount of garbage strewn on streets and beaches. Personally, I have seen many people simply drop their juice container or plastic bag on the ground when they had finished with them. In some neighborhoods in Panama City, people will pile their garbage in one spot, as if it were a collection spot, but it is not.
The good news is that the anti-litter forces are growing. In general, there has been a gradual change of attitude about littering in Panama. You will find more and more signs posted that admonish people not to litter. And more garbage cans are being installed in public places. Panama City has bought new garbage trucks and is increasing its collection range.
A friend of mine in Puerto Armuelles says that when her local school gave prizes for cleanest yard the whole neighborhood quickly became cleaner. The kids were bringing home the anti-litter lessons from school, and telling their parents. And thankfully, the parents started picking up litter too. And it seems that more and more people are coming together to pick up litter. Maybe you will decide to keep your street or beach clean, and encourage others to do likewise.
There has even been a growing push to recycle. I’ve started to see recycling bins in public places in Panama City, Penonomé, and David.
18. Stay in contact with friends and family back "home". Separation from family and friends is frequently cited as the hardest part of living in another country. Fortunately, technology has made it easy to keep in touch.
One good way to easily keep in contact is to have the important people in your life download at least 2 of the following apps to their smartphone.
Whatsapp is the texting/calling app of choice for almost everyone in Panama. WhatsApp allows you to call and text other people with WhatsApp for free. You do need an internet connection to use it, as you do for all such technology.
For live video communication, Zoom, Google Hangouts or Skype are good options. I especially like Zoom and Google Hang outs. If you are all iPhone users you could simply use FaceTime, which comes preloaded on all iPhones.
I encourage you to figure out how you will keep in touch before you move to Panama. Explore all the apps to discover which works best for you and your friends and family.
Find out more about cell phones in Panama.
19. Religion in schools. Religion is a part of the school system here in Panama - for both public and private schools. So, if you have school-age children, be mentally prepared for this. Whether you think religion in schools is a good idea or a bad idea, there is no escaping it (unless you homeschool).
Read about our experience with Panama schools
20. The customer is NOT right in Panama. You cannot expect to get the same level of customer service in Panama that you are used to back home. Of course, sometimes you will get great service in Panama. But it is best for everyone if you don’t expect it. Customer service is particularly bad at restaurants and retail stores. Service can sometimes be slow and seemingly unfriendly.
I think it is a cultural thing, graciousness is not necessarily emphasized in Panama. It is not that they mean to be rude, it is just that they don’t consider their actions rude. It is only rude through the prism of our culture. Of course, that doesn’t make it any easier or less frustrating to deal with. The real problems begin if you start to make a stink about it. If you thought that you had bad service before, you will most likely get worse service if you insult your server.
Keep in mind, bad service is not limited to restaurants and retail stores, you may also get it from businesses and governmental offices. If the electricity will be turned off because they are working on the lines, don’t expect any notification. They will just turn it off. It is usually only the expats that get up in arms about this behavior. The locals just shrug it off. The same is true of small businesses. For instance, if you hire a contractor they may show up late, or maybe not at all. They will not contact you about this.
You can treat the lack of good customer service as as minor annoyance or let it drive you up the wall. Most people adjust, but if you cannot, maybe Panama is not the right choice for you.
21. Need to make money? Come with a plan. If you are coming to Panama to retire on a fixed income, then this will not apply to you. But if you need to make money in Panama, it’s important to have a good idea of how you will make a living to support your lifestyle in Panama. Coming to Panama without a plan of action often ends in disaster.
There are a lot of money making opportunities for expats in Panama, especially if you are an entrepreneur. Just keep in mind that you must have a work permit, even if you only plan to work in your own business. (Note: If your work is solely online, you do not need a work permit.)
You may want to check out my articles about making money in Panama for more advice.
Think you will find a job here? Then you need to know that local salaries are low. Most jobs pay less than $1000 a month. Is that a workable budget for you? Of course, if you can find a multi-national or US company, with an office in Panama to hire you, you will likely get paid more.
You are unlikely to find a company to hire you and sponsor your work permit, unless you have a valuable skill to offer. Getting you a work permit costs them both time and money. In addition, the number of foreigners a company can hire is limited; most companies can only have 10% of their staff be non-Panamanian.
Also, if you are coming down here on job offer from a company, make sure to do some research first. Make sure that the company is reputable and that other expats have had good experiences working for them. You don't want to move down here, only to find that the job evaporated or the work permit never comes through.
22. Pay attention to your instincts. All your online research and calculations cannot substitute for the your gut reaction to being in a place. It is important to do research, but it won't give you the whole story.
I strongly recommend you visit Panama, especially the parts of Panama that most interest you, sooner rather than later. You will save yourself alot of time and emotional energy that way.
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Sources:
Our experiences, including being reminded of good tips by reviewing similar lists made by Kathleen Peddicord of Live and Invest Overseas and Chris at Panama for Real.
But, yes, there are real estate-related taxes in Panama.
In this post, I cover real estate-related taxes as follows: property, sales, transfer, capital gains, rental income, and gift taxes in Panama.
As you may have heard, Panama has radically revised its property tax system. It goes into effect on January 1, 2019.
Through 2018, if your Panama property is valued at or under $30,000, your property is completely exempt from property tax. In 2019, that exemption surges up to $120,000.
Learn about the current 2018 property tax rates and rules
Since most property in Panama is valued at under $120,000, most real estate in Panama will have zero property tax. Keep in mind, this exemption only applies to your primary residence.
Own 1 Property? If you only own one property in Panama, regardless of anything you own outside of the country or how much time you spend in Panama, Panama views that property as your primary residence.
Own Multiple Properties? If you own more than 1 Panama property, all but your primary residence will be taxed at the investor rate (see below). This rate is still a 50% reduction from the old Panama property tax rate. And even those properties enjoy an exemption on the first $30,000 of value.
Primary Residence Property Tax Rates
A property tax example. Say you buy your house for $350,000. You would pay property tax on $230,000 ($350,000 - $120,000) at a rate of .5%. Which means you would owe $1,150 in property taxes a year.
Investor Property Tax Rates
This "investor" rate applies to secondary residences, commercial and industrial properties.
A property's registered value is the same as the sales price. The registered value will only get updated when you sell the property. Panama has no property assessors.
ANATI is the government department that keeps records of a property's registered value. Keep in mind, only titled property is registered; and therefore, has a registered value.
Right of Possession (ROP) properties do not pay property taxes. And most property in Panama is ROP..
Most people don't title their ROP property because of cost. Not only does it cost money to title, but once you title, you are required to pay property taxes.
Learn more about ROP property.
For many people, especially Panamanians, there is little reason to title their ROP property. Titling means they will have to pay a lawyer and the government a chunk of change. And then property taxes every year after that.
But the Varela government really wants to rid Panama of its informal ROP property system. It wants to modernize its land system to include better centralized tracking and to allow for better protections of property owners.
Enter the new property tax law. The new law slashes property tax rates. Most critically, it exempts properties valued at up to $120,000 from paying any property tax whatsoever. As I've mentioned, the vast majority of real estate in Panama is under $120,000.
The Varela government is doing all it can to get property titled. It has even created mobile ANATI offices to travel around Panama to help ROP property owners to title their property. Time will tell how effective the new property tax law & government efforts are at nudging people to title their ROP homes.
Panama is also under pressure from the World Bank and other lending institutions to do a better job at collecting the millions of dollars of unpaid property taxes.
Given that Panama does a terrible job at collecting property taxes, it won't be hard to show improvement.
Many, maybe most, property owners in Panama don't pay their property taxes until they sell.
That is only time the government tries to collect property taxes - at the point of sale. At that time, the seller not only has to pay all unpaid property taxes, but all the fines accrued for the late payments.
Notification of Taxes Owed
Of course, not paying your property tax in Panama is an easy thing to do. Property owners never receive a bill or reminder to pay the tax. No instructions are given on how to pay property taxes at the time of purchase. So unless you remind yourself, it is easy to forget to pay. (FYI Panama property taxes are due 3 times a year: April, August and December.)
Starting in 2019, Panama will likely try to develop some kind of property tax-notification system. The easiest way, for those with a mortgage loan, is to partner with banks to notify owners.
However, most expats do not have mortgages. And given Panama's lack of a postal system, it is unclear how property owners with no mortgages will be notified of their tax bills. The electric company in my town, slips my power bill into my fence. But that does not seem like a viable option for ANATI. And regardless, it is certainly not a good "system". (Find out how to pay your utilities in Panama)
Panama’s has had a famous tax exoneration law.
In 2008, it allowed for a 20-year tax exoneration for properties which were built prior to January 1, 2012. Then, in 2012, the tax exoneration rules changed. You could get a property tax exoneration for houses or condos built after 2012. But not a 20 years exoneration, depending on the price, the tax exoneration varied from 5 to 15 years.
Panama's tax exoneration program ends on January 1, 2019; the same date the new property tax system comes into play.
However, if you own a property that is currently built and has an exoneration, then you are good.
And if you buy a property that has a tax exoneration, you are good too. The exoneration remains with the building, not the owner. So it can be transferred from one owner to the next.
Keep in mind, the tax exoneration only applies to the improvements or construction. You will still need to pay taxes on the land.
As far as registering improvements, you need to file the value. This is done as part of the construction permit process. That is what constitutes “mejoras,” (improvements). Improvements can still be exonerated from taxes, but the filing must be done before the law changes in 2019.
Remember, after the exoneration law ends, $120,000 of your property's value will be fully exempt from property taxes.
As I mentioned above, the seller must pay any unpaid property taxes upon the sale of the property.
At the time of purchase, the following taxes must also be paid:
The capital gains tax is a little complicated. The seller will initially be charged, and must pay, 3% of the sales price. After this payment, if 10% of the actual gain is less than 3% of the sales price, the seller can then apply to the government for a refund for the difference. However, getting this refund takes time. But I know of people who have been successful.
Technically, you are supposed to include your capital gains as part of your income tax return. But that is not generally done, and you will not be penalized for not doing so.
(FYI Most expats do not file an Panama income return. You are only required to file an income tax return if you earn income in Panama. Keep in mind, income earned online, even while you are in Panama, does not count as income earned in Panama.)
Using A Corporation
If you form a corporation to buy or sell property, you don't pay a title transfer and capital gains tax.
However, you are then required to pay a 5% share transfer tax. Tax-wise it is usually a wash. You effectively pay the same amount of tax. And you lose out on getting a refund if your capital gain is less than 3% of the sales price.
In addition, you also have to pay to create a corporation and then pay an annual fee to keep it current. However, as in every country, you do gain protections from having your property in a corporation's, rather than in your own, name. (Read about the dangers of buying from a corporation)
Purchase The Corporation Instead?
If the property is owned under a corporation and the registered value of the property is significantly lower than your purchase price, you should consider purchasing the corporation. This is because, for tax purposes, the registered values do not update when the shares of the corporation are sold. Of course, this only applies if the corporation only owns the property you are purchasing.
If you rent out your property, you may need to pay tax on the income.
Rental income is taxed at the following progressive rates.
However, if you own a hotel or condo-hotel in one of the special “tourism zones,” you may be exempt from income tax for 15 years.
Deductions. Panama does allow the following deductions when calculating your rental income.
The inheritance tax does not exist in Panama. It has been completely abolished.
However, there is a gift (inter-vivos) tax on properties located in Panama.
The gift tax rate depends on the degree of relationship between the donor and the donee. You should speak with your lawyer for the details. This tax does not apply to gifted property located outside of Panama.
Overall, Panama real estate taxes are low. You can make them lower, if you pay your property taxes on time. Then when you sell your property you can avoid paying late fees. Another tax saving is to pay the whole year's property tax at once. Then Panama will give you a 10% discount.
If you are an American, you can avoid double taxation, use loop-holes and more by reading this article on how buying and selling real estate in Panama can impact your US taxes.
Buying Panama real estate can also help you qualify for one of Panama's best visa programs, the Friendly Nations Visa. This visa program allows you to get your permanent residence quickly, as well as gives you a shot at becoming a Panama citizen in 5 years.
Please note: I am not a tax accountant. While I strive to make sure everything in this article is up-to-date and accurate, you should consult a knowledgable tax accountant when making your tax-related decisions.
Updated: July 28, 2019
My screen was a mass of colorful lines in motion.
Very pretty. But useless as a phone.
I felt disconnected from the world.
Cell phones are the easiest way to connect with friends and family - no matter where you are.
For people newly transplanted to Panama, having that connection is very important. It will help you feel less lonely and alone as you find your place in your new country.
I strongly recommend that you figure out your phone situation before you move to Panama.
An aside: When my iphone died (above), I bought a refurbished one off ebay and had it sent to me in Puerto Armuelles. Shipping to Panama cost only $13! I used Hot Express. Find out more about getting products mailed to Panama.
Your 1st step is to decide on the cell phone you will use in Panama. If you use your current phone, know that paying your plan's expensive international roaming charges is not your only option.
Luckily, it is easy to avoid paying those high roaming charges.
You have 3 options to avoid paying international roaming charges while in Panama.
This is a good option. Having an unlocked phone allows you to buy a SIM card from the provider of your choice and start using their service.
One of the main advantages of using your current (and unlocked) phone while in Panama is you will have access to all your contacts and other information that you store on your phone. This makes life a lot easier.
What is an unlocked phone? If you signed a 2-year contract to get a cheaper phone, it’s probably locked. Which means it will only work with your current service provider. However, most phone plans these days don’t require a contract. When you have an unlocked phone you are free to use any service provider.
Some background info: A SIM card is the little chip your service provider gives you. It is inserted into your phone and determines your phone number. You need a new SIM card whenever you change service providers.
Thankfully, the SIM card is independent of your phone storage. Changing your SIM card does not affect any of your contacts, photos, apps and other information you have stored on your phone. Which is why unlocking your phone is the best option. You can keep all your info, even as you change to a new provider in Panama.
Keep in mind, to use a SIM card, your phone must use GSM technology. Your phone probably uses GSM. Most phones in the world do. There are some phones in the US that do not. They use CDMA technology. For example, Verison, Sprint, and US Cellular have CDMA phones. But these companies have been switching to GSM or Universal phones. Universal phones accommodate both technologies.
The best way to get an unlocked phone is to get your current phone unlocked, if it isn't already.
It is easy to unlock your phone.
For instance, back in 2015, the USA passed a law requiring providers to unlock customers' phones upon their request. However, the company is only required to do so if you don't owe money on your contract or phone.
1. Call your provider. Don't go to your nearest cell phone store and ask them to unlock your phone. They most likely won't be able to help you. You need to call the 1-800 number for your service provider. Explain to them that you need it unlocked so you can use a local SIM card in Panama. Don’t let them talk you into signing up for their international roaming plan. Those are almost never a good deal. Once they do their part of the unlocking process, they will give you a code or a few things to enter into your phone for the unlock to take effect.
2. Online unlocking services. There are plenty of services available online that will unlock your phone. For instance, ebay features a few. Check their reviews to choose a good one.
3. Unlock in Panama. Most locations have someone who can unlock your phone. However, I'd recommend getting it done before you come to Panama.
We always buy unlocked phones. We usually buy them refurbished on eBay. It is my favorite way.
You can also buy an unlocked smartphone in Panama. One option in Panama is to buy an Android smartphone that takes 2 SIM cards. The dual SIM card option enables you to use 2 different Panama service providers. If you don't have coverage with one provider, you could switch to your other SIM card provider. (Maybe you can do this in the States as well. I don't know. So far, I have only used iPhones.)
Please buy a smartphone.
Not a simple phone that can only call and text.
People in Panama do not text, they Whatsapp.
Whatsapp is a messaging app only available on smartphones. Find out about Whatsapp here.
Sending a normal text in Panama is expensive because unlimited texting plans do not exist. Which is why everyone communicates with messaging apps - esp. Whatsapp - that use data plans.
You really should download Whatsapp before you come to Panama.
If you use Tmobile, then you don't have to make any changes to your phone or phone service at all. You can just continue to use your phone with your TMobile service.
TMobile offers unlimited texting and data (3g only) in Panama (and in over 210 other countries). The data service can be slow in Panama since they do throttle the data. TMobile says they don't throttle data in the US, but I cannot confirm that.
(Note: TMobile usually has a cheaper plan for people age 55 or older. Something to check out.)
TMobile also charges a somewhat reasonable rate for phone calls made while in Panama: $0.25 a minute. However, a better choice is to use WhatsApp, or other wifi based call app, for your calls and then you can avoid those roaming charges.
(Below, I list other free or inexpensive video and calling methods you can use to keep in touch with family and friends back home.)
You pay the same amount for your TMobile service whether you are in Panama or in the US. Well, except for any phone calls you make while overseas.
However, if fast Internet on your phone is important to you, you should get an unlocked phone and a local service provider. Your data speed with TMobile will be fine for texting and calls, but you won't be able to stream or do other high-load activities.
Another point against Tmobile: It does not like its customers to use data overseas on a long term basis. If you use Tmobile as your provider while living in Panama, they will continually remind you should not do that. (See the photo)
Tmobile states that using over 50% of your voice or data off-network (as in use in Panama) for an extended period of time is a violation of its Terms and Conditions. They also state that if you are in continual violation it will affect your service.
Once you have your phone choice all settled, you need to decide which service to use. As I mentioned, using the international roaming option with your current provider is usually an expensive option. Unless you use TMobile, and that has its limitations, as I discuss above.
Local Service Providers
Movistar, MasMovil, Claro, Digicel, Cable & Wireless are some of your service options.
How well a cell service works in Panama depends upon your location. You should ask people in your area of Panama about which provider works the best there.
You can easily switch providers if it doesn't work out. It will only cost a $3 SIM card. Make sure to ask your new provider to port your number to their service.
How To Use A Local Provider
Panama's Main Cell Service Providers
Our Opinion
Personally, we like Movistar the best. One of the biggest pluses for me is that its data seems to be faster and more available than MasMovil. Most people I talk to agree with my assessment. Keep in mind, I have never used Claro or Digicel, only MasMovil and Movistar.
You can buy minutes and Internet as you need them via pre-paid cards or by signing up for a monthly plan. Your choice will depend upon your needs and preferences.
You can buy minutes as you need them. You simply buy a prepaid card. You can buy these cards at grocery and other stores.
Ask for a "tarjeta de (your provider)". Tarjeta means card.
The cashier will ask you what value you want on your card. I have the best luck using $5 cards. I don't know why, but often when I try to input a card with a higher value I have more difficulties. You may not find that true.
Instructions for inputting your minutes are on the back of the card. The instructions are in Spanish. It is very simple.
Listen to the recorded message that plays right after you hit "send". It will be in Spanish. But if you hear the value you input, "cinco balboas" for $5, that means it worked. If it didn't, do it again. It will probably work the on the 2nd try. It usually does.
You can input a new card into your phone when you run out of minutes or you can recharge your phone online. Your provider will most likely text you instruction on how to add more minutes to your phone online. If not, you can ask someone, or look on your provider's website.
Minutes Expire
Once you input the minutes into your phone you have 2 months to use them. Any remaining minutes will expire.
However, the clock does not start running until you input the minutes into your phone. It is good idea to have an extra card on hand for when you unexpectedly run out of minutes, or when you re-enter Panama after some time away.
Internet - Pay As You Go
You can also use these prepaid cards to input data on your phone. It is not the best method if you are going to need data on a regular basis, but it works for your short-term needs.
Technically, you can automatically use your minutes for talking or internet use, but I find it works better if I explicitly ask for the data. Plus, it means you will save that value for internet alone, and it won't be used up by a phone call.
Typically, after you input your minutes, your provider will send you a text telling you how to convert those minutes into data. But not always. Here is what you do.
After hitting send, you’ll be guided through an on-screen setup process asking what you want to buy and how much of it you want. It is all in Spanish, but it is easy to figure out. Basically, you want to respond that you want a "paquete de datos" and yes, you want to buy ("comprar") whichever packet of data you selected.
All the providers offer a monthly data/talk/text plan.
The price depends upon the amount of data. No provider offers unlimited data plans.
Visit their offices or websites to get more information on what each plan offers. You can only start your plan in person, by visiting one of your provider's service stores.
My Local Monthly Plan
I have a monthly plan with Movistar that costs me $17 a month. They have less expensive and more expensive plans than mine.
To set up my plan, I needed to visit an official Movistar office in person. It was easy to do and the gentleman who helped me spoke English well.
I have never used my online Movistar account. The only thing I can use it for is to change my plan. I cannot start or stop my plan online.
No Contracts
Typically there are no long-term contracts (or any contracts) required for service plans in Panama. They are all monthly plans that you can cancel at any time.
But you cannot cancel your plan online. At least not with Movistar. You will be told that you must visit the office, in person, to cancel your plan. However, most companies, also have the option to text in an order to stop. They will not volunteer this information usually, you must ask.
So make sure to ask what to text to cancel your service. This is a good thing to know if you will be leaving the country for a month or more. Otherwise, you will be paying for Internet even when you are not in the country. Of course, even that it a pretty reasonable cost, (mine is $17/m0, Reyn's is $7/mo), it isn't much of a hardship.
Some local providers & your "home" provider offer international calling plans. However, before you spring for one of those, keep in mind there are many free ways to call internationally using wifi or by putting data on your phone.
Below are 5 options easy ways to keep in touch with friends and family back "home".
You can even buy an international calling card, available at most of the same places that the prepaid cards are sold. You buy a specific number of minutes and follow the directions on the card to use it to call internationally.
I'd recommend setting up all 5 of them. They are each useful in different situations. Plus, various people in your life will prefer one over the other.
It is pretty easy to set up a cell phone in Panama. If your first provider doesn't work out, it is pretty easy to switch. A SIM card only costs about $3.
Your whole communication set up will work better if you have a smartphone.
At this point, if you have somehow avoided buying a smartphone, congratulations. That is quite the accomplishment. But you might want to make the leap before you move to Panama. Having a smartphone will make communicating both with people in Panama and back home much easier.
For instance, almost everyone in Panama uses Whatsapp to both call and text. It is a great app. If your friends and family back home don't have it yet, encourage them to get it. It will allow you to communicate with them for free, if you both have the app. It really is a wonderful app. Find out about Whatsapp here.
And there are just so many other apps you can get to improve your communication as well as your entertainment. I will discuss those in a future post.
In Puerto Armuelles and have a cell phone problem? Maybe you cannot download an app, get data on your phone, or it keeps freezing, or whatever. Check out Genius Place, a cell phone & technology store. They may be able to help you out.
