Corruption in Panama - What to do about it

 

When we first moved to Puerto Armuelles, a neighbor explained to me that he always keeps a $5, $10, and a $20 dollar bill on hand in his glove compartment.

He keeps it there in case he is stopped for speeding on his trips between Puerto Armuelles and David.

Bribes

By this man’s reckoning, if he is really lucky, and the traffic cop who pulls him over is just looking for a free lunch, he might get away with paying as little as $5 to the patrolman.

He prefers this to waiting for the cop to write out a ticket.

And getting a ticket means my neighbor will then have to drive to the Chiriqui Mall in David to pay the ticket, waiting in what could be a long line, and then shelling out the $58 fine.


Learn how to pay a traffic ticket in David by clicking here


Paying this little “mordida” ( “Bribe” in English) to a cop might seem like a little thing.

After all, the whole #@!^%#!! country is corrupt anyway, right?

However, when we participate in corruption, at any level, we are not doing ourselves or others any favors.

Honesty Pays

1st of all, we are not being honest.

It is interesting, but being honest really is a means, as well as an end.

Paying your traffic ticket is its own gift. Life is simplified. You can relax and breathe easier.

The whole world feels like a safer, saner place. Panama is definitely more beautiful, when don't play the bribe game.

Think Twice About Old-Timer Expat Advice

When you move down to Panama, you are likely to run into fellow expats who have lived here for awhile, and want to “teach you the ropes” before you are "taken advantage of" by some "corrupt Panamanian."

There is lots of great advice out there, including learning ways not to be fooled as a “newbie”.

However, if some seasoned expat explains to you that “you are in a corrupt society, and you need to protect yourself by playing the game yourself”, you should take a moment.  Pause… Breathe.

Ask yourself if you are interested in keeping the cycle of corruption going, merely to save a few bucks.

In the long run, if you are a dishonest expat, you will wind up in far more trouble with the law, and with the society here, than if you are a dishonest Panamanian.

Corruption Is Not An Issue In Daily Life

Panama has massive corruption, but mostly at the political/legal level.

You can see evidence of this every day in the newspapers here.  For instance, ex-president Ricardo Martinelli trying to defend the vast corruption that permeated every fibre of his recent administration.

Meanwhile, in one’s personal dealings with “regular” Panamanians, there appears not to be too much corruption.

When you talk to your neighbor, he will tell you the truth, well at least as often as your neighbors "back home".  During the course of your normal and routine activities you will be untouched by corruption.

Corruption by Expats & Panamanians

Also beware a few fellow expats.

It is not only corruption by politicos you have to look out for, but by expat businessmen.

A few expats come to Panama to take advantage of its bureaucratic and judicial corruption. They use it as one of their business tools.

Let me emphasis, this is not the case for most expat business people, only for a few.

In many cases, these folks are pulling out of a failed investments "back home", and transferring their remaining funds to Panama in hopes of recovering their lost assets.

In our life, it had been these "corrupt" expat businessmen who purposely manipulate Panama's already corrupt legal and administrative system that have caused us grief.

What to do

Don't pay bribes.  To cops or others.

If you are stopped by a policeman, just take the ticket.

If you give the cop $10 so you can move on with your day, that cop is much more likely to stop more people in the hopes of scoring $10 or more from each one.

Don't try to manipulate the system.

Of course, you have to acknowledge that others may, you should protect yourself from that.  But by participating you are not helping yourself in the long run.

Once you start paying bribes, people start to know you will pay a bribe.

You are then a mark.  There will be start to be all sorts of "problems" in your life that you are told can be solved with a little monetary lubrication.

Your Influence

By moving to Panama, you find that you have much more free time.  And also much more influence upon others.

Historically, Panamanians have respected and trusted North Americans. Despite the brief, yet rough period of the “upheaval” years, and the burning of the American flag, as well as the coining of the expression “Gringo” to refer to north Americans soldiers, by extension, all US citizens.  By and large, Panamanians admire North Americans.

It is a little hard to handle just how much we are admired here.  It’s a bit like being a movie star. They respect our supposedly higher level of culture, education, experiences, and yes, our income.  It could be mostly our higher incomes.  This is particularly true in our town of Puerto Armuelles; since for most of its history it was an American-created company town.

Due to this intrinsic respect, Panamanians, particularly poor Panamanians, often look to us to lead, and to help them solve their problems.  Rather than let our new status here go to our heads, and ruin us, we can do something useful with our influence.

Panama is a tiny country, with a population of about 3 million. With the influence that the average expat here is capable of commanding, we can participate in shaping the future of this tiny, precious nation.  This means participating with Panamanians on a positive, daily basis. Above all, this demands that we not participate in, and thus contribute to, corruption in this young democracy.

In the end, it will help each of our lives down here in this “tropical paradise” be happier.  Isn't that one of the reasons we are here, to be happy?

We Took The Metro From the Iglesia de Carmen station. You can see the church (Iglesia) in this photo

Panama City boasts the very 1st metro system in Central America.

I enjoy traveling by subway, so I am happy that Panama City now has one.

My husband and I recently took the metro from the Iglesia de Carmen (Carmen Church) to the Albrook Mall.

You can see what the station looks like from the street in the photo to the left.

It was clean, cool, easy, and enjoyable.

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A metro employee helped us figure out how to get money on our Rapi>Pass card for the metro

The Rapi>Pass Card

You need this to use the Metro. Pick one up for $2, then add money to it

The Rapi>Pass card is a 3 in one public transportation card.

You use it in Panama City for

  1. Metrobuses
  2. Metro trains
  3. To enter the bus area of the Albrook bus terminal.

The card itself costs $2 and afterwards you recharge it with money and tap it to enter a bus or metro system. You can recharge it at many locations, including each metro station.

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How To Use The Rapi>Card

You can add money to your card using the machine seen in one of the photos below.  Then you tap it at turnstile in order to both enter or exit each station.

Here is a little photo essay of the journey.  Click on any photo to start slideshow.

I have information on where the metro goes after the photos below.

Small World Moment

In a small world moment, when exiting at the Albrook station I ran into someone from Puerto Armuelles. She didn't know how to use the card to exit and I helped her.

We spoke Spanish to each other for awhile and then realized we were both English speakers.  She is originally from England.   Her name is Jackie, or Miss Jackie, as many people call her since she worked for years at the Las Palmas school in Puerto Armuelles.  I had heard of her, but never met her before.

She was on her way to England and taking her grand daughter with her.  It was a fun meeting someone from Puerto like that.

Where The Metro Goes

Currently, there is only 1 metro line, Line 1

Panama plans to have 4 metro lines.   Right now it just has 1, Line 1.

The map of line 1 is on the left, and in the slideshow above.

Currently, Line 1 runs from Albrook Bus Terminal to Los Andes Commercial Center.  In the future it will be extended from Los Andes to San Isidro.

Line 1 is 13.7km long with 12 stations, including seven underground stations and five elevated stations.

Line 2 will also be built in two phases.  The first phase will go from San Migulieto to La Dorba and Phase 2 will include the route from Albrook to San Migulieto.

Line 3 will be 21km long, running from Albrook to La Chorrera. It will pass through a new bridge constructed on the Pacific side of the Panama Canal.

Line 4 will run from Albrook to Rana de Oro.

Is Panama City Too Big For You?

Panama City is growing by leaps and bounds.  It is becoming both nicer and bigger.

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If you are looking for a slower paced small town, you many want to check out our town of Puerto Armuelles.

Puerto Armuelles is the only true beach town in Panama.
Find out more about Puerto Armuelles here.

Source:

Railway-Technology.com

Its not drinking, but connecting with others that leads to happiness

Finding happiness in a tropical paradise sounds like it should be the easiest thing in the world.

Right?

However, to find true happiness in a sunny, warm, relaxing environment requires the exact same skill set that is required to be happy while shoveling snow in Toronto in January, or sitting in bumper-to-bumper traffic in L.A. during rush hour.

Here in Panama, you will find countless examples of this fact.

In short, the people who were happy and content in their lives in the north, are the same ones who tend to find happiness and peace here in Panama.

This is not meant to dash the hopes of those who are looking forward to a positive up-tic in their well-being, by quitting the rat race, letting go of their emotionally, or physically punishing work life, and moving south to practice a slower, simpler way of life.

Believe me, there are definite benefits of moving to the tropics.

Wherever You Go….

But, the old adage “wherever you go…there you are” clearly applies to retirement in the tropics.

If you were the kind of person who got into fits of "road rage” on your way to work in the morning, every time some “idiot” on the cell phone cut you off, then you will certainly find something to get upset about in Panama.

Most likely, that tense, angry disposition will find an easy target in the glacial bureaucracy in Panama, or the “relaxed” punctuality of your domestic worker. Rather than “flipping off” some absent-minded motorist in rush hour traffic, you might find yourself muttering under your breath about the “inconsideration, or ignorance of ‘these people’ here in Panama.

There is plenty to get upset about here, if you are looking to get upset.

Let Go Of Old Mental Habits

The secret to true happiness in Paradise is having a willingness to let go of old mental habits.

If you are angry, you need to let that go. If you are selfish, let that go too.

One of the greatest benefits of life in the tropics, and in a slow-paced culture such as in Panama, is that one has so much more time. This means that there is a lot more time to practice the healthy life habits that nurture a happy mental state.

If you are in a happy mental state, you are more likely to practice acts of kindness, and to smile at the people you meet. These acts will serve to reinforce your happy, peaceful state of mind.  Thus, the happiness that you feel in each moment can build on the happiness of the moment before. "Brick-by-brick", you can create a happy life.

Make Someone Happy

One of the surest ways to feel happy is by doing something nice for someone else. Ex-pats, upon moving to Panama, will notice that with the drop in their living costs, they are, in essence, elevated from the middle class that they once occupied in the north, to that of the “elite” here in Panama.

Now, some might see this as an opportunity to buy more “stuff”. You could own a bigger house, buy boats and cars. You could eat more, or drink more. However, by this time in our lives, hopefully, most of us have already figured out that having more “stuff” isn’t going to bring us any real happiness (Unless, of course, one was barely getting by, or really over-extended, during one’s work life).

Living In Panama Is Like Winning The Lottery

In effect, a move to Panama, is a lot like winning the lottery. You are suddenly richer, with more free time on your hands, and you are completely free of your old routine.

Numerous studies of lottery winners show, overwhelmingly, that lottery winners, six months after winning that huge payout, are actually “less happy” than they were before they won. They have everything material that they want, but they still don’t have that elusive prize; They don’t have happiness. In fact, studies show that the only lottery winners who consistently end up happier than they were before, are those who give their winnings away to someone else.

So, if coming to Panama can be equated to winning the lottery, and if “giving it all away” is the surest way to be a happy lottery winner, how can we be happy "lottery winners” in Panama?

How To Be A Happy Lottery Winner

I would suggest that we use our new-found "wealth" and influence to be of maximum benefit to other people in our new community in Panama.

We might figure out a way to help those around us.

  • Create work opportunities that pay better wages, or that teach new skills to our Panamanian neighbors and friends.
  • Assist in the education or health care of their children.
  • “Adopt” a Panamanian family and try to help them to navigate the rapidly changing landscape of their society, with the arrival of so many new ex-pat immmigrants, new demands for education, and technology.

There are those who move to Panama, to take advantage of the ignorance of Panamanians regarding the economics of the world “outside”. B ut, nothing will lead more certainly to unhappiness, than to come to Panama and to take advantage of the local people.  You will see ex-pats who buy the homes of Panamanians, without any regard to where these people are going to live after they sell. You will see ex-pats who have Panamanian employees, working for the same wages for 10 years ago. These types actually get upset at other expats who pay their employees a living wage. This kind of behavior will certainly not lead to happiness. In fact, it will most likely lead to unhappiness.

Community Involvement

Why is it that sociologists’ studies always show that woman are much happier than men? Its because most women are much more involved in both the family, and in the community.  In short, they have more meaningful relationships.

For expats, particularly men, moving to Panama, we have to work very hard to replace those social connections that we formed at work, and in the community, with relationships of equal value.

 How To Get Involved

  • Get out, and get involved in the community.
  • Make friends with your ex-pat and Panamanian neighbors.
  • Find out what you can do to participate in the community.
  • Join a sport, or
  • Start a hobby with others.
  • Put your best self forward.

Try to help someone else to be happy.  This is the best way to be happy yourself.

Can you be happy in Panama?

Take our "Should you move to Panama" Quiz

cartoon drawing of a fist full of green dollar bills and text about opening a bank account
Want to put your cash in a Panama Bank? You'll need lots of paperwork

How hard is it to open up a bank account in Panama?

It depends on which of these 3 groups you fall into:

  1. Permanent Panama resident status with a cedula (Panama ID card)
  2. Foreigner, Not American
  3. American (even with a cedula)

Group 1 is the easiest, Group 3 is the most difficult.

Americans Can Get Bank Accounts

Let me say upfront that Americans can get bank accounts in Panama.
But not at all Panama banks.

Bank Account Requirements

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.

Documents Required

Every bank is different, but typically you will need to provide

  • Passport
  • Driver's license, cedula or some other form of ID
  • 2 reference letters from either local or international banks - must be recent, within 30 to 60 days old.

Some banks also require 

  • Bank statements for last 3 months
  • Evidence of income (pay stubs, pension, etc)

Some proof that you have a link to Panama, for instance:

  • Proof you own titled property
  • Cedula
  • Letter from lawyer that you are going thru the immigration process
  • Utility bills

More Paperwork

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.



Consider These 3 Items When Setting Up Your Bank Account 

When you are filling out all that paperwork, make sure you set up your account right.

1) Joint Account Wording

If you are opening a joint account, make sure the names on the account are listed as:

  • You or your partner
  • NOT you and your partner

If one of you dies (god-forbid!), it can be a time consuming nightmare to access the money unless you have that critical, "or".

2) Beneficiary Forms & Wills

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.

3) Savings vs. Checking

Many Panama banks charge fees on checking accounts, but not on saving accounts.



Non-American Foreigners & Cedulas

What I described above is the process for foreigners, whether you have resident status or not.

Cedula holders

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.

Americans & Banks In Panama

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

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.

Read this post about paying taxes back home, tax exclusions, illusion of hiding behind corporations, and more.

Panama Banks Must Report To US Treasury

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?

Panama Banks Do Accept Americans

There are alot of Americans in Panama.  So many banks do accept Americans.

Source of "No Americans Accepted" Rumor

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.

Which Panama Banks Accept Americans

At this time, the following banks allow Americans to open a bank account:

  • Banistmo
  • Banesco
  • BAC  (you must be official Panama resident)
  • Unibank
  • Scotia
  • Banco Azteca
  • Citibank  (if you have an account at "home")
  • Banco National

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.

Warning:  When Yes, Means No

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.

Connections Speed It Up

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:

  • Chris of PanamaforReal.com.  He has a video in which he and a friend try to open a bank account in 6 different banks in Panama City. Chris is an American, His friend is a Canadian.  He has a cedula, his friend does not. All 6 banks allowed Americans & Canadians to open an account.  The banks:  Banistimo, Banesco, Banco General, BAC, Unibank, and Citibank.  But only those with Panama resident status can open accounts at BAC and Banco General.
  • Elizabeth of PanamaGringoGuide.com's post describing her experience with banking in Panama.
  • Helplinelaw.com explains the details of FATCA
  • Bestplacesintheworldtoretire.com's discussion about opening a bank account in Panama
  • ChiriquiChatter.com for sharing the insight on the importance of the word, "or".
  • My experience.
3 workers at a cement block house construction site
Follow The Tips In This Post To Hire A Good Panamanian Employee

Panama offers expats amazing buying power.

Housing is inexpensive compared with many places in the US and Canada.

Food costs are cheaper, especially if you shop at vegetable stands, fish and meat markets, or buy from local farmers.

Labor costs are similar to those paid 30 years, or more, ago in  the US.

  • For example, a gardener in Panama can earn $12 a day, which is $1.50/hr.
  • In 1976, I earned $2.65/hr at a fast food restaurant.  It was my first job, and I was only a high school student.

Hidden Labor Costs In Panama

Panama's cheap labor can make it seem smart to start a business here.
You'd simply find an unmet need, hire as many cheap Panamanian laborers as possible, and watch the profits roll in.  Right?

The truth is that there is a huge gap between the “apparent cost” of hiring Panamanian labor and the “true cost" of that labor.

Labor Expectations

First of all, there is a big difference between what an employer would expect of a worker in the States and what an employer is likely to  receive from a laborer in Panama.  It doesn't matter if you are hiring a gardener, a cleaning person, a fruit picker, or agricultural worker on a coffee estate, palm oil farm, etc…..

There is a clear link between the absolutely abysmal public education system and the kind of employee that one is likely to encounter in Panama.  Since there is no emphasis placed upon independent thinking and problem solving in many Panamanian schools, the average worker is totally unprepared to take on even the simplest responsibility.

I have seen painters wait all day for the boss to return to the job site to show them the paint brushes they should use. Meanwhile, there were perfectly good brushes on site, but under a few rags in a paint bucket.  No one even thought to look for them.  They just waited for the boss.

Hire the Right Worker

Those painters would demand to be paid for a full day, even though they didn't paint at all that day.  Which means, if a painter was being paid $15/day, the first day’s labor cost has just doubled, and the actual cost for the painter is now $30/day.

You, as the employer, now understands that if the paint brush is not placed directly into that painter’s hand (right hand, if he’s right handed; Left hand if he’s left handed), then it is safe to assume that no painting will be done, until this first step is accomplished. Okay, maybe I'm overstating the case, but you get the idea.

Of course, with experience, you will learn to vet prospective employees more carefully, talking to former employers (hopefully expats), to see if the laborer is capable of doing the required task to your satisfaction.

You need to master this first, and most important step, of hiring the right worker.  It is critical to your success, whether it is doing a small home remodeling project, or opening a hotel or restaurant.

Expat As Employer

Expats who wish to hire an employee, even for a simple domestic task such as house cleaning, cooking, or gardening, may talk to their Panamanian neighbors and find out that the neighbor has employed the same couple, the wife to cook and clean, and the husband to garden and do handyman tasks, for the past 25 years.  You may also discover that the couple, in all that time, has never had a pay raise, a paid holiday, or had any social security payments made on their behalf.

To the tender hearted, this sounds like slavery. To the unscrupulous, this sounds like a money making machine.  Imagine, laborers who work for peanuts, and demand nothing in return!   If this sounds too good to be true, that’s because it is.

The same innocent Panamanian couple who will work for slave wages for a wealthy Panamanian, will never, ever, give an expat that kind of a deal.  Don’t try to figure out why a poor Panamanian has no problem being taken advantage of by one of their own countrymen.  You will waste a lot of time.

Books have been written about the sense of inferiority which poor latinos, from all over the Americas, feel which causes them to feel powerless in their relationships with their wealthier compatriots.

Some hypothesize that it is a vestige of their conquered and colonized past.  Whatever the origins of this attitude of inferiority, rest assured that though an expat may receive some superficial respect, merely for being presumably wealthy, that is where the homage ends.

An expat has no access to the historical mandate that a Panamanian of wealth has over his less affluent countrymen.  If you make the mistake of thinking that you do wield this same power, this same historic right, you are in for a rude awakening.

How To Hire A Good Employee

The number one way to have a good working relationship with a Panamanian employee is the same as it is anywhere:  Choose the right person for that employment.

  • Take your time.
  • Talk to lots of other folks who’ve had employees.
  • Talk to at least a few who’ve hired the person you have in mind.

Panama is a tiny country.  With very little effort, you should be able to talk to former employers of your prospect.

Create A Good Relationship

Once you have a good employee, you need to treat him really well.

Since there are so many truly worthless prospective employees in the country, if you do your research and land yourself an outstanding employee, you should feel grateful.

Not just a little bit grateful.  But very grateful.

In Panama, as in other more traditional cultures, a good  employee,  one who thinks he has landed a good, long-lasting job is also very grateful.

As an expression of that gratitude, he would probably like to continue to be your employee for the rest of his life.

If this is what you want as well, then this is a match made in heaven.  You want a forever employee whom you like and trust. Your employee wants a lifetime job with a compassionate and appreciative employer.

What To Pay A Good Employee 

Probably the best way to show your appreciation for your employee, is to pay him more than other employees who do similar work in your area receive.  But be careful about creating expectations and a sense of entitlement.

If you have the best employee in your town, you should pay your employee the highest wages in your town.  It’s just that simple.

While there are those who say that if you “spoil” your employee by paying him too much.  His work output will fall off, and you will end up with an overpaid, underperforming employee.  No one wants that.  But it can happen.

It is my opinion, and personal experience, that you avoid this problem by successfully hiring the right employee.  If so, then paying an above average wage to that employee will not cause a problem.

However, you must also remember that workers in Panama are not motivated by money the same way as a worker is in the western world, especially in the States.

A person's pride is often just as important to them as their wage.  And people are not necessarily motivated by accumulating more money, just to have more money.  But they do want what they consider enough money.  The trick is finding out what that amount is.

Please look for my next article on hiring an employee in Panama, in which I will cover the topic of social security for employees, and hiring a contractor.


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Got A Traffic In Chiriqui? Pay it at this office (Now at a new location in David! Plaza Mas La Riviera)

UPDATE - 3/25/19 - Includes new location in David, online info options, and more.

Did you get a traffic ticket in Panama?

No worries.

It isn't hard to pay a ticket.

But it can be inconvenient since it must be paid in person.  

However, you can have someone pay it for you.  We have done that for people with no issues.  

This is a ticket for not wearing a seat belt. Fine: $75. On the back are phone numbers for each Province's transit office

Timeframe To Pay Your Ticket

For most traffic tickets, you have 30 days to pay it before you start accruing late fines.  Thankfully, the initial fines are pretty reasonable (10%). But they do continue to go up over time.

However, some traffic violations, such as using a cellular phone while driving, must be paid within 48 hours.  It should say on the ticket how long you have to pay.

Where in Panama To Pay Your Traffic Ticket

You pay all traffic tickets at one of Panama's ATTT or Sertracen offices.  Sometimes ATTT and Sertracen share the same location. (Sertracen is Panama's DMV and ATTT stands for Autoridad del Transito y Transporte Terrestre).  

You should pay the ticket in the province in which it was issued.

  • Payment locations for each province are printed on the back of the ticket you receive.
  • For Sertracen office locations, check their website here.
  • For ATTT locations, check their website.

Keep in mind, the websites are not always updated. For instance, the ATTT website still lists the Chiriqui Mall as David's ATTT location. But they are likely more up-to-date than the information on the back of the ticket.

The new location to pay your traffic ticket is in Plaza Mas La Riviera. Use WAZE (or other GPS app) for directions. The map above will give you a sense of what part of town it is located.

Where to Pay in David

To pay any traffic ticket you get in the Chiriqui Province,  go to the Plaza Mas La Riviera in David (see map).

Plaza Mas La Riviera is a new shopping complex.  It is home to a large Cochez building supply store (with it's bright yellow sign), a large Romeros supermarket, a Dominos pizza, an expansive parking lot, and more.

(NOTE:  David's ATTT office is no longer at Chiriqui Mall, you must go to the new location at Plaza Mas La Rivera)

Your best bet is to use WAZE (or other GPS app) to find your way to Plaza Mas La Riviera in David.

It is not located on one of the more commonly driven roads.  Although, I think with this and other developments on the way, it is sure to be more frequently traveled.

To give you a sense of where it is located in David, I have posted an annotated Google Map above.

I handed my ticket to the woman in pink.

How To Pay Your Ticket

Regardless of the location at which you pay your ticket, the procedures are basically the same.

What to Bring With You

  • Your ID (passport or cedula)
  • Traffic ticket
  • Cash to pay the ticket.

They won't always ask for your ID, but they might.  Plus they will require your passport or cedula if the citation number is illegible.

If you are paying someone's ticket for them, a photocopy or photo on your phone of the person's ID will suffice.

Once you are at the ATTT or Sertracen office, hand your ticket to one of the women behind the counter. (Yes, 99% of the time it is a woman).

(Note:  all photos in this post are of the former David location in Chiriqui Mall.)

She will stamp it and handed you a payment coupon.

Pay in cash. Reyn's ticket was $75 for driving without a seatbelt.

With this coupon in hand, go to the payment window (Caja). Pay the ticket in cash.

Now your ticket is paid! Congrats. 

Make sure you get a receipt showing your payment.

I recommend keeping your receipt for a while in case there is any problem with your payment being recorded.

Check on Ticket Status

If you have a Panamanian Driver's License, you can check online to see if you have an outstanding ticket.

You can also make sure any payment was correctly recorded.

To find out about your past and current tickets, go to ATTT's site at www.licencia.com.pa/historial/.

Once on that page, select your ID type (cedula or passporte), put in that ID's number, and finally your "Número de control " which is printed vertically on the right-hand edge of your driver's license.

Your ticket info, past and current, will come up immediately.  It also displays how many points, if any, your license currently has.

Protesting Your Ticket

You can protest your ticket.

A while ago, my husband got a speeding ticket, however, he was positive he had not been speeding.

He decided to protest it.

The long line to pay the ticket may have influenced his decision to protest it.

It must have been right after payday. Because it seemed like everyone and their brother was in the office paying tickets that day. (The photos on this page are NOT from that busy day)

My husband didn't have to leave the office to register his protest. He had to talk to a different person in the office and fill out some paperwork describing the incident.

It was supposed to take 1 month to get a resolution. However, he was told that it was his responsibility to check back. There was no guarantee the office would contact him.

He had to pay the ticket within, I think, 5 days once the decision was made.

My husband went back 2 months later to check on its status. No decision had been made.

My husband decided to pay the ticket while he was in the office. The ticket was $50.

He determined that it wasn't worth coming back to check on the status of his protest, especially since he would be fined if he didn't pay within 5 days a decision.  (Assuming, of course, that he would lose his protest.)

Something to consider before you decide to protest a ticket.  Of course, that was before you could check online about the status of your ticket. Being able to check online definitely makes it easier.

Summary & More Info

  • Tickets are reasonably priced. At this time, speeding tickets are $50 regardless of how much over the speed limit you were going. Tickets for not wearing a seatbelt are $75. (Note: only people in the front seat are required to wear a seatbelt).  However, if you get a drunk driving ticket your fine can be up to $2,400 and your car could be impounded.
  • Tickets must be paid in cash and in person (This may be changing)
  • Discover if you have unpaid tickets.  Go to licencia.com.pa/historial/

Find out more about driving in Panama


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Skylar Relishing Reunion with Friends, Dog & Beach In Puerto Armuelles, Panama

We recently spent an extended visit in Seattle, Washington.   Given all sorts of pressing reasons, we ended up staying in Seattle for almost 10 months.    

I recently asked my just-turned-13-year-old to write her pros and cons of both living in Panama and Seattle.  

It was a simply an assignment for her to continue practicing her writing and speech making skills. However, I decided to share it in this post.

FYI  We originally moved to Puerto Armuelles, Panama when my daughter Skylar was 5 years old.  

Since then, Skylar has spent almost a whole year in Seattle when she we 6 and again, most recently, when she was 12 years old.  We usually have only visited the States for 1-2 months each year.  

This is what Skylar wrote.

In a way Puerto Armuelles and Seattle hold the same place in my heart, though they have different appeals

Skylar with a new friend, about to ride the duck in Seattle

On the one hand Seattle as more prospects for me in the way of activities, schools, and new friends.

On the other hand Puerto is my home.  I 've even lived here long enough to pronounce the town name correctly.  Saying Pu-er-to seems to be an unfathomable accomplishment for most of the retirees here.

Very different things attach me to both places.

(I, Betsy, made the graphic using her bullet points)

I Love Both Places, But Maybe Panama A Bit More For Its Freedom, Time, Friends, & my dog, Ziggy

My conclusion from all this is that I like both places.  I know that I can't be confined to just one of the amazing worlds in which I live.

This is especially true if I can bring my dog Ziggy with us the next time we go to Seattle.

Back to me, Betsy

I will be sharing Reyn, Blaise's & my Panama vs USA perspective in the future.

 

President Varela & First Lady On Induction Day

A Few Personal Details

Juan Carlos Varela, 50, is from one of Panama's richest families. The family owns and operates the country's biggest liquor producer, Varela Hermanos S.A., which was established in 1908.

Varela graduated from Georgia Institute of Technology in 1985 with a BA in industrial engineering.

He is married to the journalist Lorena Castillo and has three children.

Varela has been on the board of the family business since 1985 and was executive vice president of the company until 2008.

Political Background

He started in politics in the 1990s. In 1994 he become chief of political campaigns for the Panama's 2nd largest party, the Panameñista Party. In 2006 he became the head of the party and then the Panameñista Party's 2009 presidential candidate.

In a bold move, Varela withdrew his 2009 presidential candidacy to throw his conservative Panamenista party's support behind Martinelli. He did this in exchange for becoming Martinelli's vice-presidential candidate. It was a successful move. On May 3, 2009, was sworn in as Vice-President of Panama.

As Vice President, Varela was the architect of the government’s popular “100 for 70″ program. The program gives $100 monthly to Panamanians over age 70 who do not receive any other pension or retirement benefits.

Foe of Martinelli

But the political marriage didn't last. In 2011, Martinelli stripped Varela of his role as foreign minister for refusing to back a plan for a referendum to allow president's to serve consecutive terms. (Note: Panama law requires that a president cannot run for president again until 2 terms (10 years) have passed since he or she last held office.)

Since that rupture, Martinelli and Varela have been fierce critics of the other. Varela has accused Martinelli of many corruption charges including taking kickbacks for a government radar system contract with Italy's Finmeccanica.

2014 Election & Martinelli's Fight To Retain Power

It was one of the toughest-fought contests since democracy was restored two decades ago.

Election day began with opinion polls indicating a tight race among the top 3 candidates. However, not one of the pollsters had Varela in the lead. Most gave a slight edge to Arias.

Martinelli was extremely eager for his protege and political newcomer, Jose Domingo Arias to win.

Many people think Martinelli's endorsement of Arias was really a badly disguised ploy to retain his political power.

Although, blood relatives of the president are banned from running for the top 2 offices, Martinelli's wife, Marta Linares, ran as Arias's vice presidential candidate. Technically legal, since Linares is not a blood relative; but not surprisingly, there were many cries of illegality.

In addition, sitting presidents are banned from campaigning for a presidential candidate. Martinelli defied this injunction and campaigned for Arias furiously throughout the country.

Varela was a surprise upset.

Varela won the presidency with 39 percent of the vote, compared to 32 percent for outgoing President Martinell's choice, Jose Arias. Juan Carlos Navarro, a former mayor of the capital, got 28 percent to finish third in the seven-candidate field.

The win is being interpreted as a rebuke to Martinelli.

Verela was sworn into office for a 5 year term on July 1, 2014.

Martinelli's initial reaction was, "May God help us". Since then he has calmed down and mouthed all the usual and expected political niceties.

While Varela won the presidency, his party did not win the legislature.

He takes office with a legislative minority. This will make it harder for him to pass free-market legislation. He will have to negotiate with the centrist and center-left politicians that currently dominate Panama's Congress.

Panama's Future With Varela

Varela promised upon taking office to take immediately steps to reduce violence and control the price of food.

He did both. On Induction Day, he signed into law price controls on 22 common food items such as rice, milk, and beef. The controls start today, July 7th, and last for 6 months.

He has also granted a one month amnesty for gang members to allow them to turn in their weapons.

During his campaign Varela has vowed to continue Martinelli's drive to improve Panama's infrastructure. Continual progress in improving infrastructure was the most cited reason for President Martinelli's 60 percent approval rating.

But he also vowed to boost transparency. It is a common perception that much of the $15 billion spent on infrastructure upgrades was lost to corruption and poor planning.

Of course he has also committed to maintaining the country's record-low unemployment rate and strong economic growth. Growth that has averaged over 8 percent in recent years.

His biggest theme is his pledge to govern with honesty and transparency.

I hope it is true and I wish him luck.

Updated July 4, 2017

Infographic on 4 tips on how to be healthy in Panama
Read this post for details on how to be healthy in the tropics

Read this post for details on how to be healthy in the tropics

It can be difficult to maintain a healthy lifestyle when you move to Panama.

The ubiquitous fried foods and the ever available sugary processed treats tend to add pounds to the waistline.

While there are health food stores and gyms in many locations, they are not available everywhere. Even when they are, they might not be up to the same standard as your gym at home.

And what you eat is only one factor. 

Maintaining a healthy lifestyle - with exercise - is also a challenge. 

Suddenly being in a totally new culture, and often hotter climate can sometimes change an energetic and engaged person into a sedentary and lazy person. But that is easily remedied.

4 Healthy Living Tips 

"We think longevity is probably about 70- 75% lifestyle."

- Angela Brooks-Wilson, PhD and geneticist at the Genome Sciences Centre in Vancouver BC

1) Don't Sit For Long Periods - Move and Keep Active.

Don't let the heat prevent you from keeping active. As the quote above indicates, you are the captain of how healthy and fit you are as you age. Your genes are not the prime reason for how you age.

You are in charge of 75% of how you will age. A key way to keep healthy and active is to keep moving. Even a regular morning jog cannot overcome the negative impact of sitting for long periods during the day.

The various studies show: no matter how "fit" subjects were, extended bouts of inactivity increased a subject's risk for:

  • Hypertension
  • Blood clots
  • Some types of cancer

Here are some ideas for integrating activity throughout your day.

  • Stretch
  • Take the stairs
  • Don't sit at the computer or watching TV for extended periods of time
  • Join the gym - and go on a regular basis
  • Get a walking or gym buddy
  • Get in the habit of regularly walking, swimming, running, etc.

One of the wonderful aspects of living in Panama is that nature is never far away. Go explore the tropical paradise around you, and make sure to move your body while you do it.  To avoid the heat, do your most strenuous exercising in the early morning or evening hours.

2) Eat Healthfully & Locally

You can grow your own food or buy from the many fruit and vegetable stands in Panama.

Buying your produce from street stalls is not only a great way to meet and greet people in the community, but you are supporting local business.  Also, the produce is usually much cheaper than in the grocery store.

You may want to read this post about buying local produce in Panama.

Finca Santa Marta in Chiriqui

In Chiriqui, we have a great resource in Finca Santa Marta. It is a 42-acre organic farm in Santa Marta, about 20 minutes west of David.  They offer a wide range of organic items:

  • Vegetables, fruits, herbs
  • Chicken and eggs
  • Supplements, grains & other items (not produced themselves)

How To Shop From The Farm

  • Visit the Tuesday Market & Meeting in Boquete from 9-12 am
  • Order online for delivery or pick up.

Pick up Orders.  You can pick up your order on Tuesdays.  That is, from the Boquete Market on Tuesday morning or in Dolega or David on Tuesday afternoons. Order deadline for a Tuesday pickup: Monday at 7:00 am.

Deliveries.  They offer deliveries of prepaid orders on Thursdays for any area served by Uno Express. For example, they deliver to: Bocas del Toro, Santiago, Las Tablas, Coronado, El Valle, Altos del Maria, Gorgona, La Chorrera, Panama City, Colon, and Puerto Armuelles.  They also offer deliveries to Volcan on Fridays afternoons.

To initially set up deliveries, you will need to contact Richard, the bi-lingual farm manager, at 6242-9308. He is available Monday - Saturday from 7am-7pm. You will also need to set up an account on their website.

Facebook page: They have a facebook page too.

Phone Finca Santa Marta at 6242-9308 or 777-9229 or 540-560-9680 (USA cell phone) for further information.

Grow Your Own Vegetables

Growing your own vegetables is also a good way to ensure you have a sufficient supply of basil, spinach, and other vegetables that you may love, but are not commonly grown or sold in Panama. You can also learn how to grow various indigenous fruits and vegetables. If you want to grow pineapples, we have a brief guide on how in this pineapple post.

Gardening is also a good way to keep active as well.

3) Make A Life In Panama - Don't Indulge As If On A Permanent Vacation.

You are living in the tropics. The palm trees, coconuts, and warm sunny weather inspire all of us with visions of hanging out in a hammock sipping margaritas.

Life near the equator is more relaxed and carefree. However, sometimes new expats treat themselves as if they are on an extended vacation. The cocktail hours begins earlier and earlier in the day. Hammock time and indulging in special treats will become the norm.

While feeling like you’re on a permanent vacation is great, developing a habit of unhealthy indulgence is far from ideal. Too many indulgences can make you feel sluggish and unmotivated. It is better to develop healthy indulgences. You can try to make daily yoga, beach walks, sunset gazing, and cooking a healthy meal your new indulgences.

For most of us, the point of retiring is not to create a life of doing nothing. The idea was to engage in activities that you enjoy, to learn new activities, and to relish life.

So whatever it is you wanted to do before you moved to the tropics, do it.

Also be on the lookout for new activities and learning opportunities you can engage in.

For the most part, the more active and engaged you are more motivated and energetic you become.

4) Plan Ahead & Prepare

Planning ahead can help you accomplish your goal of a healthy lifestyle.

Find out all the ways you can keep active. You are much more likely to keep active if you start by being active. Knowing that lapsing into a sedentary lifestyle is a danger, start scoping out your possibilities

  • Find out about local gyms and exercise class schedules
  • Talk to others about good walks and hikes in the area, and
  • Search out prospective exercise buddies early on
  • Discover the range of activities available in the area
  • Obtain any specialized gear you may need such as binoculars, surfboards, kayaks, paddle boards, or good shoes

Buy the seeds for your ideal garden. If you plan on gardening, arrange to have seeds of your favorite vegetable. Sometimes it takes a little searching to find seeds that thrive in tropical environments. Of course, you can also ask people in the area for the seeds from their produce. Ask people for tips on what grows best and how to grow those items.

Find out what organic produce is available in your area. Check out Finca Santa Marta's website and see how you can integrate their organic produce, meat, eggs, and more in your life.

Bring healthy cookbooks that have recipes featuring the produce that grows in your area. The best produce to use in your cooking is locally grown and organic.  Panama offers a number of fruits and vegetables that will be new to most expats. If you like to cook, it is fun to explore these new Panamanian foods and recipes.

Discover all the different things you can do in your area.

  • Book groups
  • Theater
  • Volunteer opportunities
  • Outdoor pursuits
  • Art
  • Whatever interest you

To discover some of the outdoor pursuits you can enjoy in the Puerto Armuelles, click here. I am sure other websites have also listed activities available in their areas.

Check out more ideas for happiness-enhancing hobbies to pursue in Panama

With some planning, it will be fairly easy to achieve the tropical lifestyle you have been dreaming about.


Find out more about our wonderful beach town of Puerto Armuelles.