Panama Immigration & Residency Guide Research Your Relocation

Panama Immigration & Residency Guide

Research your relocation with confidence

Panama Immigration & Residency Guide

SECTION 1: PANAMA AT A GLANCE 4

1 PANAMA IN A NUTSHELL 4 2 PANAMA AT A GLANCE 4 3 NEED MORE DETAIL? 4 4 PANAMA MAP 5 5 PANAMA PROVINCES 6

SECTION 2: VISAS & RESIDENCY 7

1 TOURIST VISA 7 2 RESIDENCY VISAS 8 2.1 FRIENDLY NATIONS VISA 8 2.2 PENSIONER (PENSIONADO) VISA 11 2.3 OTHER RESIDENCY VISAS 16 3 CÉDULA 16 4 CITIZENSHIP 17

SECTION 3: PANAMA EVERYDAY LIFE 19

1 SAFETY 19 1.1 OPINION OF LOCALS 19 1.2 OPINION OF EXPATS LIVING IN PANAMA 20 1.3 BETTER LIFE INDEX 21 1.4 SOCIAL PROGRESS INDEX 22 1.5 GLOBAL PEACE INDEX 22 1.6 THE GANG-MURDER CONNECTION 22 1.7 CONCLUSION 23 2 HEALTHCARE 23 2.1 A FEW FACTS AND FIGURES 24 2.2 AN OVERVIEW OF MAJOR MEDICAL FACILITIES AND PHARMACIES 24 2.3 AVAILABILITY OF HEALTH INSURANCE 26 2.4 WHAT OTHER EXPATS SAY 26

3 OWNERSHIP 27 3.1 BUSINESS OWNERSHIP 27 3.2 REAL ESTATE OWNERSHIP 28 3.3 VEHICLE OWNERSHIP 30 4 COST OF LIVING 30 4.1 NUMBEO COST OF LIVING INDEX 31 4.2 EXPATISTAN COST OF LIVING RANKING 31 4.3 INTERNATIONS EXPAT INSIDER SURVEY 31 5 PANAMA BUDGET CALCULATOR 31

5.1 RENT 32 5.2 UTILITIES 33 5.3 HEALTH INSURANCE, HEALTHCARE 33 5.4 CONNECTIVITY, MOBILE SERVICE 34 5.5 INSURANCE (HOUSE CONTENT, CARS) 34 5.6 TRANSPORT (PUBLIC AND/OR OWN) 34 5.7 GROCERIES, HOUSEHOLD CLEANING 35 5.8 EDUCATION 36 5.9 CLOTHING & FOOTWEAR 36 5.10 SPORT, RECREATION, ENTERTAINMENT 37

Updated: 1/23/19 | January 23rd, 2019

The Panama Guide is divided into three sections:

At A Glance will give you a basic understanding of this unique Central American country by highlighting its most important features.

Visas & Residency will focus on the most important requirements to make Panama your home.

Everyday Life covers the topics of safety, healthcare, ownership and cost of living, including a budget calculator. The purpose is to concisely discuss the four most important aspects, as ranked by prospective expats, to give you an overall picture of everyday life.

Enjoy the read, but most of all, enjoy your journey!

SECTION 1: PANAMA AT A GLANCE

1 PANAMA IN A NUTSHELL

Panama is a country on the isthmus linking North and South America. The Panama Canal, a famous feat of human engineering, cuts through its center, linking the Atlantic and Pacific oceans to create an essential shipping route. In the capital, Panama City, modern skyscrapers and casinos contrast with colonial buildings in the Casco Antiguo district and the rainforest of Natural Metropolitan Park.

2 PANAMA AT A GLANCE

· Capital: Panama City · Population: 4,1 million · Largest ethnic groups: mestizo (65%), Native American (12%) · Official language: Spanish · Climate: Tropical maritime climate · Currency: US Dollar (USD), Panama balboa (PAB) · Neighbours: Two (Costa Rica, Colombia) · Ocean access: Pacific Ocean, Atlantic Ocean (Caribbean Sea) · Time zone: UTC -5 hours

3 NEED MORE DETAIL?

· Click here for CIA World Factbook detail on Panama · Check here for a list of Panama embassies/consulates

4 PANAMA MAP

Panama is located in Central America and is bordered by the Pacific Ocean and the Caribbean Sea, with Costa Rica to the west and Colombia to the east.

5 PANAMA PROVINCES

Panama has 10 provinces and three provincial-level indigenous regions (comarcas). Province Capital Bocas del Toro Bocas del Toro Chiriquí David Coclé Penonomé Colón Colón Darién La Palma Herrera Chitré Los Santos Las Tablas Panamá Panama City Panamá Oeste La Chorrera Veraguas Santiago de Veraguas

Comarca Capital Emberá Unión Chocó Guna Yala El Porvenir Ngäbe-Buglé Chichica

SECTION 2: VISAS & RESIDENCY

Visas & Residency will focus on the most important requirements to make Panama your home.

1 TOURIST VISA

When contemplating residency or immigration, most people visit a country as a tourist before making a decision. The citizens of most countries don’t require a visa to enter Panama; you can check here if you need a tourist visa.

Foreign citizens who qualify to enter Panama visa free, are granted a stay of 180 days. Other requirements include a return flight booking (checked at airport of departure) and a passport valid for at least six months after the date of entry plus blank pages.

For those that do require a visa, a stay of 90 days will be granted if your visa application is approved. For other requirements you should contact the Panama embassy or consulate in your country. You can find Panama’s embassies and consulates here, just click on the country and then the ‘Embassy’ tab.

Tourists who enter visa free and want to stay for a second (or subsequent) round of 180 days, need to leave Panama for 30 days before they can re-enter. However, if your current stay does not exceed five months, you will be allowed back after 72 hours.

The government has now added another restriction, which is the number of times a tourist visa can be renewed. That is now limited to three times.

These so-called perpetual tourists make use of a practice called the “border run” which is a trip to Costa Rica for the sole purpose of legal re-entry. If you consider doing this, make sure that you ask about the exact requirements for exit and re-entry at the time, because policies and regulations change from time to time. Note: for people travelling from a country where yellow fever occurs, it is a good idea to always travel with your vaccination certificate.

2 RESIDENCY VISAS

If you plan to stay for a longer term, or if you are considering immigration, then one of the 8 permanent residency visas can be considered.

2.1 FRIENDLY NATIONS VISA

This is a straightforward option where the citizens of 50 “friendly nations” can acquire immediate residency, with an option to apply for citizenship after 5 years. The 50 countries are listed below:

•Andorra •Argentina •Australia •Austria •Belgium •Brazil •Canada •Chile •Costa Rica •Croatia •Cyprus •Czech Republic •Denmark •Estonia •Finland •France •Germany •Greece •Hong Kong •Hungary •Ireland •Israel •Japan •Latvia •Liechtenstein •Lithuania •Luxembourg •Malta •Mexico •Monaco •Montenegro •Netherlands •New Zealand •Norway •Paraguay •Poland •Portugal •San Marino •Serbia •Singapore •Slovakia •South Africa •South Korea •Spain •Sweden •Switzerland •Taiwan •United Kingdom •Uruguay •USA

The spirit of the relevant law is that citizens of the 50 “friendly nations” must establish a professional or economic relationship with Panama. This can be accomplished by one of the following two options:

Option 1 – Economic activity: Setting up a new Panama corporation, or buying an existing Panama corporation which does business in the country, will show an economic relationship. Note that non- Panamanian citizens are prohibited from operating a retail business.

Owning a Panama corporation does not automatically allow you to work in that business – you still need to apply for a work permit.

Option 2 – Professional activity: Being employed by a bona fide Panama corporation will demonstrate a professional relationship. Once the employment contract is stamped by the authorities, the applicant must obtain a work permit and be registered with Panama’s Social Security system. There are other documents that must be submitted by the employer. Note that non-Panamanian citizens are prohibited from the following jobs:

•Dentist •Dental Assistant •Lawyer •Veterinarian •Chiropractor •Medical Doctor •Nurse •Medical Assistant •Medical Radiologist •Medical Laboratory Technician •Pharmacist •Nutritionist •Sociologist •Psychologist •Physiotherapist •Speech Therapist •Social Worker •Accountant •Hairdresser •Cosmetologist •Chemist •Engineer •Architect •Journalist •Economist •Public Relations jobs •Agricultural Sciences jobs

Further requirements for the Friendly Nations Visa: · Both the economic and professional options above must be supported by proof of economic solvency. This can be done by opening a Panama bank account and depositing a minimum of $5,000.

· Dependants include a spouse and children up to the age of 25, provided that children are unmarried.

Documents required for the Friendly Nations Visa (and Panama bank account): · Passport valid for at least 6 months from date of application, plus blank pages;

· Second identification such as identification card or drivers’ licence;

· Criminal history record (if you are resident in another country, that criminal record must be accompanied by proof of legal residency; if you have resided in Panama for the last 2 consecutive years, the criminal history record must be issued by the national police (DIJ) in Panama);

· Marriage certificate if a dependant is a spouse. If you are unmarried, confirmation of unmarried status by means of an official certificate from your country;

· Birth certificate if a dependant is a child. For children over 18, confirmation of unmarried status by means of an official certificate from their country;

· Original medical examination report from a certified Panama medical doctor (ask your lawyer about their service to supply a translator if required);

· Proof of solvency (letter from your Panama bank, addressed to “Servicio Nacional de Migracion”, confirming the required balance);

· Confirmation of economic or professional activity (the former by way of corporation records, the latter by way of a work contract by a Panama company registered with Social Security);

· The remaining documents will be prepared by your immigration lawyer;

· For the bank: most of the above plus a reference letter from your bank (some banks require that the letter be addressed to them) as well as at least one more letter of reference from a professional practitioner (for example your auditor/accountant).

Government fees: · Each adult (person older than 18 years) and child older than 12 years, two certified checks ($250 in favour of “Tesoro Nacional” for immigration fees, and $800 USD in favour of “Servicio Nacional de Migracion” for repatriation purposes). Each child younger than 12 years, one certified check ($250 in favour of “Tesoro Nacional” for immigration fees).

· A multi-entry visa fee of $50 per person. The immigration office will only accept denominations of $20 or smaller.

Note: Ask the immigration lawyer for a detailed quote. Then put your understanding of the quote in writing and ask him to confirm. Some lawyers have hidden fees and/or extra charges for some steps. It is your right to be fully informed upfront.

Other important notes: · Liaise with your immigration lawyer ahead of arrival, preferably 30 days or more, in order for them to schedule your visit and application.

· Your immigration lawyer will probably ask you to email scanned copies of the documents for review. If everything is in order, they will then probably ask you to courier the final (apostilled) documents at least 14 days ahead of your planned arrival.

· Arrange to be in Panama City for at least 2 weeks from date of arrival to collect your temporary residency card.

· Once complete and correct paperwork is filed with the immigration office, the applicant will receive a temporary residency card, valid for 6 months.

· Documents must have been issued within 90 days of the date of presentation to the immigration office.

· All documents originating outside of Panama, must be apostilled by the Panama embassy/consulate in your country. (An “apostille” is a form of specialized authentication, issued and attached to documents for use in countries that participate in the Hague Apostille Convention. Panama is a signatory to the convention, and require/use apostilles. To apostille documents, submit the document, together with a certified copy, to the Panama embassy/consulate in your country. A fee is charged for the service.)

· The immigration office requires a dress code that can be described as business casual: collared shirts, long pants/dress and shoes (no t-shirts, shorts, mini-skirts and/or sandals).

· Final approval of your application, before the issue of your permanent residency card, normally takes 3 months, but could be anything between 2 and 6 months. Plan to have a full day available to collect your card.

· After permanent residency is obtained, an application for a work permit can be submitted.

· Part of the process includes a multi-entry visa stamped in your passport, so after the temporary residency card is issued, you can travel without hassles.

· The granting of permanent residency requires you to be in Panama for at least 2 weeks per annum.

· Once you receive your temporary residency card, you can no longer use your home or international driver’s licence, you now have to have a Panama licence. As with the residency card, the driver’s licence will be temporary, and a permanent licence must be obtained after receipt of your permanent residency card. (You can obviously wait until your permanent residency card is issued, then do your driver’s licence, if you don’t plan to drive.)

2.2 PENSIONER (PENSIONADO) VISA

The Pensioner Visa is an easy and popular way to obtain residency in Panama. Although the name is “Pensioner” Visa, any person over the age of 18, with a lifetime annuity income, may apply.

The Pensioner Visa’s appeal includes the eligibility for discounts and exemption from certain duties:

Discount Item / Service

Once-off duty exemption for importing household goods to a value of $10,000

Bi-annual duty exemption for importing a new car

50% off entertainment anywhere in the country (movies, concerts, sports)

off hotel stays from Monday through Thursday

reduction in closing costs for home loans

30% off bus, boat, and train fares

off hotel stays from Friday through Sunday

25% off airline tickets

at restaurants

discounts on utility bills

20% off medical consultations

professional and technical services

15% off at fast-food restaurants

hospital bills (if no insurance applies)

off dental and eye exams

10% off prescription medicines

1% less on home mortgages for homes used for personal residence

Note: permanent residents and citizens of retirement age (55 for women and 60 for men) would qualify for most of these discounts anyway. Discounts are not necessarily given automatically, sometimes you have to ask for it, so learn this Spanish phrase in the meantime: “Por favor, deme mi descuento de pensionado"

The basis of the Pensionado Visa is a lifetime annuity income, but there are two different options to consider:

Option 1 – Annuity only: A lifetime monthly annuity income of at least $1,000 received by the main applicant, or in the case of a married couple, their combined income.

Option 2 – Annuity and real estate: A lifetime monthly annuity income of at least $750 plus the purchase of real estate of at least $100,000.

Further requirements for the Pensionado Visa: · Dependants include children below the age of 18, or below the age of 25 subject to proof that they are full-time students. Failure to prove enrolment will disqualify a child from the right to residency. Since a child cannot use a parent’s pensioner visa to obtain permanent residency, he or she will have to apply for another suitable visa.

· The required monthly annuity amount of $1,000 will increase by $250 for each dependent. This additional amount can be satisfied by interest earned on savings at a Panama bank.

· The real estate mentioned in Option 2 must be registered in the applicant’s personal name.

Documents required for the Pensioner Visa: · Passport valid for at least 6 months from date of application, plus blank pages;

· Criminal history record for at least the past 5 years (if you are resident in another country, that criminal record must be accompanied by proof of legal residency; if you have resided in Panama for the last 2 consecutive years, the criminal history record must be issued by the national police (DIJ) in Panama);

· Marriage certificate if a dependant is a spouse. If you are unmarried, confirmation of unmarried status by means of an official certificate from your country;

· Birth certificate if a dependant is a child. For children over 18, confirmation of unmarried status by means of an official certificate from their country;

· Original medical examination report from a certified Panama medical doctor (ask your lawyer about their service to supply a translator if required);

· If pension is paid by a government/government institution/social security: a letter from the respective institution which certifies that the applicant receives a pension for life of at least $1,000 per month (words underlined, in italic must appear in the letter);

· If pension is paid by a private institution: o A letter from the institution certifying that the applicant receives a pension for life of at least $1,000 per month (words underlined, in italic must appear in the letter); o Certification of the existence of the institution and that it is in good standing with the relevant government; o Proof of payment of the monthly pension (typically by way of bank statement).

· Certificate of Public Registration of the Panama real estate with title in the applicant’s name (if applicable);

· Proof of domicile in Panama by way of a utility bill, rental agreement or letter from a hotel;

· The remaining documents will be prepared by your immigration lawyer;

Note: Regarding an annuity income from personal investments: many people have substantial wealth by way of personal savings and/or investments, and earn enough to satisfy the $1,000 per month requirement. The problem that some may face is that the fund manager is either unwilling or unable to issue the required confirmation, or that immigration could reject the institution. In such cases, applicants generally apply for the Friendly Nations Visa instead. If you have any doubt about the letter of confirmation or whether the institution would qualify, liaise with your immigration lawyer well in advance.

Government fees: · No immigration or repatriation fees are payable.

· A multi-entry visa fee: $50 per person. The immigration office will only accept denominations of $20 or smaller.

Other important notes: · Liaise with your immigration lawyer ahead of arrival, preferably 30 days or more, in order for them to schedule your visit and application.

· Arrange to be in Panama City for at least 2 weeks from date of arrival to get your temporary residency card, then upon approval, another full day for the collection of your permanent residency card.

· Once complete and correct paperwork is filed with the immigration office, the applicant will receive a temporary residency card, valid for 6 months.

· Documents must have been issued within 90 days of the date of presentation to the immigration office.

· All documents originating outside of Panama, must be apostilled by the Panama embassy/consulate in your country. (An “apostille” is a form of specialized authentication, issued and attached to documents for use in countries that participate in the Hague Apostille Convention. Panama require/use apostilles. To apostille documents, submit the document, together with a certified copy, to the Panama embassy/consulate in your country. A fee is charged for the service.)

· The immigration office requires a dress code that can be described as business casual: collared shirts, long pants/dress and shoes (no t-shirts, shorts, mini-skirts and/or sandals).

· Final approval of your application, before the issue of your permanent residency card, normally takes 3 months, but could be anything between 2 and 6 months.

· Part of the process includes a multi-entry visa stamped in your passport, so after the temporary residency card is issued, you can travel without hassles.

· The granting of permanent residency requires you to be in Panama for at least 2 weeks per annum.

· After recent changes, this visa can now lead to citizenship.

· Residency in terms of this visa excludes the possibility to get a work permit.

2.3 OTHER RESIDENCY VISAS

Panama has six other visas that can be applied for to obtain residency or citizenship. Detail information about the most applicable ones will follow soon. You can stay up to date with new information by subscribing to our newsletter.

3 CÉDULA

A cédula is the national identity card issued by the Civil Registry of Panama. It is not directly linked to your permanent residency in that the application for the cédula is not a visa requirement. It is a voluntary application that can be done 60 days after the issue of your permanent residency card.

“Why bother with the time and cost to obtain a cédula?” you may ask. Because it demonstrates that you take your immigration status seriously, and it will make everyday life in Panama a little easier. Locals will instantly recognize the card for what it is, making you a little bit more Panamanian. Think of the cédula as more “senior” than your residency card.

The cédula fee payable to the Civil Registry office is $65 and the card can usually be collected within 10 days after successful application.

4 CITIZENSHIP

Citizenship can be obtained through 6 of the 8 permanent residency visas, summarised as follows:

Permanent Can it lead to Waiting period to Visa residency citizenship? apply for citizenship?

Friendly Nations Visa Immediate* Yes 5 years

Pensioner Visa Immediate* Yes 5 years

Reforestation Investor Visa 2 years Yes 5 years

Self-Economic Solvency Visa 2 years Yes 5 years

Married to a Panama Citizen Visa 2 years Yes 3 years

Parents of a Child Born in Panama 2 years Yes 3 years Visa

Business Investor Visa 2 years No N/A

Professional Employment Visa 2 years No N/A

*Immediate means that a temporary residency card is issued upon submission of correct and complete documentation, and a permanent card is issued upon final approval, normally within 2 to 6 months.

Although you become eligible to obtain citizenship, it does not happen automatically, you have to apply for it. And the Panamanian government has discretion on the naturalization process.

The first criteria for citizenship are common sense – be a good citizen, obey the law and follow the rules. It is also important to remain informed – governments change, policies change and the rules do change from time to time.

Two other criteria that must be considered are time spent in Panama and a meaningful economic relationship.

· Time spent in Panama: There does not seem to be a definitive answer, but from all the sources I have consulted it seems that a safe option is a minimum of two weeks per year.

Note: Some are of the opinion that you only need to be in Panama for one week every two years, some suggest you only need one day every two years. We do not recommend this.

· Meaningful economic relationship: If you chose the Friendly Nations Visa and the Economic Relationship option as your route to citizenship, make sure you understand both the law and its underlying intent. Registering a new corporation in Panama at the time of applying for residency, might suffice for that purpose. However, the intent of the visa is that this new corporation will start to do business in Panama.

Note: Some commentators openly suggest that once your permanent residency is approved, you can simply sell or dissolve the corporation that was registered as part of the application process. We do not recommend this. As stated earlier, understand both the letter and the spirit of the law.

Panama does not recognize dual citizenship and the law requires an oath of renunciation of your former citizenship. However, some countries (including the USA) consider this oath to be non-meaningful and as such, you would effectively keep your original citizenship.

SECTION 3: PANAMA EVERYDAY LIFE

Everyday Life covers the topics of safety, healthcare, ownership and cost of living. The purpose is to concisely discuss the four most important aspects, as ranked by prospective expats, to give you an overall picture of everyday life.

1 SAFETY

When asked about their reasons for considering immigration, or at least relocation, expats normally include personal safety under their top five reasons.

Personal security is at the essence of our well-being, and includes the risks of being physically assaulted or falling victim to other types of crime. Crime is not just about loss of property, more importantly, it can lead to loss of life as well as physical pain, post-traumatic stress and anxiety. Even a perceived threat can negatively affect our well-being through a feeling of vulnerability.

Personal safety in Panama is highly subjective and a hotly debated topic. Unfortunately, there is no clear or quantitative answer. The discussion below will try to shed light from different angles, and hopefully it will enable you to form an opinion or guide you towards more research of your own.

1.1 OPINION OF LOCALS

I have done extensive work-related travelling and was involved in establishing numerous international offices. One thing I have learnt is the value of local knowledge, so much so that the recruitment process focused on local talent (read knowledge) instead of expats. In short, ask the locals.

The first thing I did after arriving in Panama City was to talk to the taxi drivers, about crime. I spoke to young ones and old ones, on short trips and long ones. And I spoke to as many locals as possible, wherever the situation allowed. None took offense about my questions and all gave me very valuable information.

The single most important take-away? Don’t leave your common sense at home!

Apart from mentioning a few specific areas or neighborhoods to avoid, the general advice was as follows: · Try to blend in, tourists and expats are targets for opportunistic criminals; · Don’t flash, neither cash nor valuables; · Be careful who you befriend, and take your time about it; · Darkness is danger, especially visiting ATMs and walking in quiet/dark places; · For nightlife, ask about an area or venue before you go.

While travelling around Panama I noticed burglar bars of all shapes and sizes, on homes and businesses alike. When asked about it, locals simply shrugged and said “It’s just how it is, it’s part of our life”. Not many have experienced crime, but all take the precautions.

An older man that I spoke to offered another perspective. He said that at least part of what is visible today, is a hangover of the Manuel Noriega era, during which time the convicted drug trafficker used Panama as his personal criminal enterprise. Although arguable, it is something to ponder.

The tricky part about local opinion is that you will not find it in blog posts or on expat forums. You find it in Panama, by engaging the locals.

1.2 OPINION OF EXPATS LIVING IN PANAMA

A google search on the topic will deliver thousands of opinions. Many of these are lumped into groups or forums. A group that you can start with is “Expats in Panama”. Facebook groups have search functions and by searching for “crime” in this group, you will get the unedited version.

Note: from a person’s reaction or answer, try to establish whether he or she actually lives in Panama, or whether it’s an overzealous wisecrack who has a friend that knows where Panama is.

If you want to know more about crime in a specific area, search for Neighbourhood Watch groups or other groups in that area with a focus on crime.

From what I have read, the consensus opinion of expats is that Panama is safe, provided that you do your part to keep yourself safe, and use your common sense to stay aware of your environment.

Having said that, peoples’ opinions can sometimes be somewhere between pedantic and fickle. So let’s consider four other opinion pieces namely: · OECD Better Life Index · Social Progress Index · Global Peace Index · An article produced by InSight Crime

1.3 BETTER LIFE INDEX

The OECD Better Life Index is designed to let you visualize and compare some of the key factors – like education, housing, safety, and so on – that contribute to well-being in OECD countries.

Panama is not a member of the OECD, so why do I even mention this survey? Because it demonstrates a few points:

· The importance of safety in an overall assessment of a country; · How personal safety contributes towards our well-being; · Most importantly, our opinion is heavily influenced by where we come from.

To demonstrate my last point, below are the summaries on safety for Canada and South Africa, respectively:

In Canada, about 82% of people say that they feel safe walking alone at night, more than the OECD average of 68%.

The homicide rate (the number of murders per 100 000 inhabitants) is a more reliable measure of a country’s safety level because, unlike other crimes, murders are usually always reported to the police. According to the latest OECD data, Canada’s homicide rate is 1.5, lower than the OECD average of 4.1.

In South Africa, only 40% of people say that they feel safe walking alone at night, much less than the OECD average of 68%. According to the latest OECD data, South Africa’s homicide rate is 9.6, much higher than the OECD average of 4.1

So asking a Canadian expat and a South African expat whether Panama is safe, will probably produce very different answers, based on their different frames of reference.

1.4 SOCIAL PROGRESS INDEX

This is one of my favourite reports as it not only gives an overall ranking, it ranks 12 individual sections within the index. The 2018 Social Progress Index includes data from 146 countries.

Panama’s ranking has deteriorated over the last year. It achieves an overall rank of 51/146 (40/128 the previous year) and on Personal Safety the ranking is 72/146 (49/128 the previous year).

1.5 GLOBAL PEACE INDEX

The Global Peace Index is compiled by the global think tank, the Institute for Economics & Peace (IEP). It measures a wide range of indicators, 22 in all, the most relevant to this discussion include the following:

· Level of organised conflict (internal); · Level of perceived criminality in society; · Number of refugees and displaced persons as percentage of population; · Homicide rate; · Level of violent crime; · Number of internal security officers and police per 100,000 people.

The 2018 Global Peace Index ranks Panama at 50 out of 163 countries (49/163 the previous year). The interactive map is user friendly and has the functionality to search any one of the 23 individual indicators.

1.6 THE GANG-MURDER CONNECTION

InSight Crime is a foundation that studies the principal threat to national and citizen security in Latin America.

In an article “Mapped: Where Panama’s Gangs are Strongest, Homicides are Highest”, the author illustrates the link between gang activity and the local homicide rate.

As an expat I can certainly avoid gang activities and, to a meaningful degree, avoid areas where gangs are most active.

Another angle on this is the non-gang related homicide rate. Which could well be called the non-drug related homicide rate. Removing gang and/or drug related homicides from the total, significantly reduces the “everyday” homicide rate; the rate that I as an expat are concerned with.

1.7 CONCLUSION

Like any other country, Panama has crime, committed by a range of criminals from sociable scamsters, to opportunistic pickpockets and hardened gangsters. Some statistics and reports suggest that the long- term trend is positive (improving), but that does not mean anybody should lessen their awareness.

Safety as an expat is a function of 3 things: · Being informed; · By doing your part to safeguard yourself; · Of how well you interact with locals.

It’s also helpful to maintain a balanced perspective. When someone reports a purse snatching, don’t decry the entire country as “crime ridden”, rather use the incident as a reminder to sharpen your vigilance and warn friends, thereby contributing towards community-wide awareness.

When it comes to our health, we are quite happy to do whatever is necessary to remain healthy – we will even eat broccoli! Same thing with safety.

2 HEALTHCARE

This section investigates the level of healthcare available in Panama, not the cost thereof. The cost of healthcare and medical insurance is covered under Cost of Living.

Finding quantitative measures to define the quality of healthcare in Panama proved more difficult than I imagined. Some of the more comprehensive studies and comparisons (for example from the World Health Organisation) are simply too old for our use. The information following below should however enable you to form an opinion:

2.1 A FEW FACTS AND FIGURES

There are a few indicators we can use to get a rough idea about the healthcare system in Panama. Below are three key indicators with comparisons to the USA and Colombia (Information courtesy CIA World Factbook):

Density of physicians (total number per 1,000 people) (an indicator of availability) USA – 2.5 Panama – 1.5 Colombia – 1.8

Density of hospital beds (total number per 1,000 people) (an indicator of infrastructure) USA – 2.9 Panama – 2.3 Colombia – 1.5

Life expectancy (at birth) (an indicator of overall quality of healthcare, albeit marginal) USA – 80.1 Panama – 78.9 Colombia – 76.2

Panama has 6 universities offering medical programs, one of which with graduate entry only. Only Panama citizens can practice as physicians. (View the complete list of reserved jobs)

2.2 AN OVERVIEW OF MAJOR MEDICAL FACILITIES AND PHARMACIES

Panama is a small country and wherever you choose to live, you would be less than two hours away from good medical facilities. For example, Colón Island in the Bocas del Toro archipelago, is just one- hour flight time away from Panama City.

Major hospitals in Panama City:

· Clinica Hospital San Fernando. Located on the busy arterial Via España, the hospital has created a facility to assist expats who cannot speak Spanish.

· Hospital Punta Pacifica. The newest of the major hospitals and the only hospital in Latin America and the Caribbean to be affiliated with the world-class Johns Hopkins International. Located on Boulevard Pacifica.

· Centro Medico Paitilla. Boasting the best oncology unit in Panama, the hospital is located just off Avenue Balboa.

· Hospital Nacional. In operation since 1973; today it is well affiliated with US medical facilities as well as a US management company. Located on Avenida Justo Arosemena, across the Santo Tomás metro station.

Major hospital outside Panama City: Situated in the city of David, Hospital Chiriquí opened its doors in 1988, and has established a well-respected reputation for quality healthcare services.

There are many smaller or specialised hospitals and clinics in Panama City. Other noteworthy (expat noteworthy that is) cities and towns with small hospitals, satellite facilities and/or clinics include Coronado, Chitre, Las Tablas, Pedasí, Santiago, Boquete and Bocas.

Medical procedures Medical procedures available in Panama are not limited to general ails and illnesses, or reconstructive surgery. The country has firmly established itself as a medical tourist destination, with specific reference to cosmetic surgery and related treatments, including plastic-, orthopaedic- and obesity surgery.

Pharmacies As far as pharmacies go, there are no issues with availability; hospitals and many supermarkets have pharmacies. The two largest pharmacy groups are Arrocha and Metro, while the Rey supermarket group have pharmacies as well as 24-hour service.

Medicine The availability of medicine, including prescription drugs, is relatively good. Many drugs that would only be available on prescription in other countries, are available over the counter in Panama. Keep in mind that you might not find the exact brand name or registered name of the medicine you are looking for, so if it’s an issue for you, try to find its generic substitute before coming to Panama.

Limitations The only real limitation faced by some expats would be language. If you don’t speak Spanish, you might want to consider the service of a translator. Having said that, many doctors have trained in the US and many do speak English.

2.3 AVAILABILITY OF HEALTH INSURANCE

Although the government provides basic health services to citizens and permanent residents, at public hospitals and clinics, expats generally prefer to buy private health insurance. And it is readily available. Health insurance can be divided into 2 categories, namely local insurance and international insurance.

Local health insurance Companies offering local insurance include Blue Cross/Blue Shield, PALIG, ASSA, and ANCON. The maximum age at application varies between 60 and 64 years. All local insurance policies require a medical exam which will cost between $150 and $250 per person. All plans have a deductible amount; some are fixed while others allow you to choose an amount up-front. All plans have a Stop- Loss (out of pocket maximum) clause.

International health insurance Companies offering international insurance include WWMA, PALIG, Blue Cross/Blue Shield and BUPA. The maximum age at application generally varies between 64 and 74 years. Only a few companies require a full medical exam while all require at least a PSA test for male applicants over the age of 50, which will cost about $25. All plans have deductible amount options while only Blue Cross/Blue Shield offer a co-insurance option. All plans have a Stop-Loss (out of pocket maximum) clause.

2.4 WHAT OTHER EXPATS SAY

Expat opinions and answers can be found on various Facebook groups and expat forums, which are the best sources of the unedited version. Here is your shortcut to “Expats in Panama” after I entered “Healhcare” in the search function.

From what I have read, the consensus opinion is that both the availability and quality of healthcare in Panama is good.

If any blog, broker or person sells Panama’s healthcare as world-class, it might be stretching the truth just a bit. I think there are many pockets of excellence, with some sectors of the health tourist market as examples. The four major hospitals can certainly boast very good care services, some even exceptional, but to tag the national healthcare system as “world-class” might be a little way off.

3 OWNERSHIP

Ownership questions normally revolve around the limitations and risks in owning a business, real estate and a vehicle. The discussion to follow is not a detailed how-to manual, it is an overview to get a perspective of limitations and risks. It is a summary of salient features to enable further research, if the overall scenario satisfies your criteria.

3.1 BUSINESS OWNERSHIP

Anybody can own a business in Panama, either by way of a start-up or buying an existing business. Before we discuss the typical forms of business ownership in Panama, a few notes on the limitations:

· Owning a business in any form does not automatically give an expat a work permit;

· The following jobs are preserved for Panamanian citizens:

· Only Panamanian citizens can operate a retail business;

· Operating as a real estate or insurance broker can only be done after 10 years of legal residence in Panama;

· A corporation requires a minimum of 3 Officers/Directors, but this can be legal entities, or local nominee Directors.

A business in Panama can be owned in 3 forms, namely sole ownership, a partnership or by means of a corporation.

Sole ownership Typical of smaller or family lifestyle businesses, this form of ownership gives the person or family outright ownership of all the business assets.

Partnership Panama’s laws make provision for 3 types of partnership, mostly notably the Civil Partnership (Sociedad Civil), generally used for professional practices. Partnerships are an uncommon form of business ownership amongst expats.

Corporation The registration of a Panama corporation is quick and simple, with no limitations as to residency or citizenship requirements. It is a versatile business format that can be used to open an offshore bank account, conduct international trade or hold investments and assets of any kind.

A Panama corporation can offer very good corporate privacy, banking secrecy and overall asset protection – ask your immigration lawyer about a corporation with bearer shares. Panama is seen as a tax haven because corporations don’t pay tax on offshore profits (trade or investment, interest or capital gains).

3.2 REAL ESTATE OWNERSHIP

Panama has progressive property laws and apart from protection provided by the constitution, the government has enacted several laws to protect private property rights. Foreigners, residents and citizens enjoy equal protection. In two other words, no restrictions.

The property can be registered in your personal name or it can be acquired by a legal entity such as a corporation or private interest trust. A very important aspect of Panama property that need to be understood upfront, is that there are two “types” of property, namely Titled and Rights of Possession.

Titled property Most properties are “Titled” which is a title deed, the ownership of which is registered in the government’s Public Registry. The process of buying and selling titled real estate in Panama is similar in concept to that of the USA. The actual process would follow these steps: · Promise to Purchase Agreement (formal contract to allow due diligence process); · Title Search (due diligence to confirm ownership, encumbrances, etc); · Buy-Sell Agreement (final agreement upon positive title search); · Transfer of Title (recording the sale if the Public Registry).

A mortgage can be secured by registering a lien over the property. Titled property is subject to property taxes.

Rights of Possession (ROP) property A ROP is simply a document that certifies the right of possession of a government property. The difficulty in dealing with ROP property stems from the fact that ROP certifications can be issued by multiple authorities and these certifications are not recorded in the Public Registry or any central data base.

The process to buy a ROP property is very similar to that of titled properties, but with much more emphasis on the due diligence to ensure there are no conflicts of interest:

· Promise to Purchase Agreement (formal contract to allow due diligence process); · Certification Search (very detailed due diligence process); · Buy-Sell Agreement (final agreement upon positive due diligence outcome); · Conveying of ROP Certification (transfer of ownership).

Note: Two expats that I have spoken to, and who have bought ROP real estate without any problems, have mentioned that they use two different lawyers for the due diligence process. The cost involved could potentially be prohibitive, but it will certainly contribute towards risk mitigation in dealing with ROP properties.

A mortgage cannot be secured since the property belongs to the government. ROP property itself is not subject to property taxes but the improvements thereon may be. It is possible to convert ROP property into titled property.

Title insurance A title search is not always 100% accurate. There can be “hidden defects” which will not show up even with a most thorough title search. Hidden defects can include forgeries, fraud, defective deeds, an undisclosed spouse and clerical record errors.

Title insurance protects real estate owners against future loss if the state of the title changes from the date the insurance policy was purchased. There are no Panamanian title insurance companies.

However, there are licensed agents in Panama of several international insurance companies who offer property title insurance policies and title guarantees in Panama.

3.3 VEHICLE OWNERSHIP

There are no limitations as far as car ownership goes, so even a tourist can buy and insure a car.

The ownership of the vehicle must not be confused with the appropriate driver’s license.

International driver’s licenses are good for the first 90 days of your stay. For those that apply for residency: as soon as your temporary residency card is issued, your international driver’s license can no longer be used, you need a Panama driver’s license. Just to make it more interesting – if you do get a Panama license, it will be temporary, expiring on the same date as your temporary residency! So, after you receive your permanent residency card, it’s off to the authorities for your permanent license, which fortunately, is a much easier process than the initial application.

4 COST OF LIVING

It is fairly difficult to pinpoint the cost of living in any country, and Panama is no different. This is because the cost of living within a country can vary tremendously from one location to the next, and also because the audience for the discussion ranges from young adventurers to retired couples.

It is however possible to compare the cost of living amongst countries and to present indexes, country rankings and indicative price ranges of certain items. By considering both global perspectives and local figures, you should be able to form an idea of the cost of living. It should also serve as a guide to make further investigation easier.

4.1 NUMBEO COST OF LIVING INDEX

The Numbeo website is not only very comprehensive, it is user friendly and a pleasure to explore. It contains the Cost of Living Index for Country 2018 (Mid-Year) in which Panama is ranked at 47 out of 117 countries, compared to 47/115 a year ago, and 51/123 the year before that (the number 1 position representing the most expensive country).

4.2 EXPATISTAN COST OF LIVING RANKING

Expatistan is a no-frills website, used by both expats and HR managers. Its Cost of Living Ranking by Country ranks Panama at 41 out of the 109 countries in its index, compared to 39/107 the year before (the number 1 position representing the least expensive country).

4.3 INTERNATIONS EXPAT INSIDER SURVEY

The Expat Insider Survey started in 2014 and offers an interesting perspective about expat financial well- being. It produces two indexes, namely Personal Finance and Cost of Living. The 2017 Survey ranks Panama at 39 out of 65 countries featured (the number 1 position representing the least expensive country).

With this particular survey, I would strongly suggest that all the information on the website, or at least the page we have linked to, be read carefully. It would be imprudent to consider the Cost of Living index in isolation.

5 PANAMA BUDGET CALCULATOR

Amongst the many factors within a single country that influence the cost of living, your consumption behavior will contribute significantly. Your personal cost of living is influenced by your chosen standard of living, overall lifestyle and buying habits.

To help you construct a budget for living in Panama, we have researched the typical cost of 10 different categories. Where applicable, we have also included the price ranges of four different locations.

The table below each heading will give you a quick reference. Head to the website to use our budget calculator. This will give you a practical model to play with. By adjusting each of the 10 sliders, the total budget will respond accordingly: https://www.travelhippi.com/panama-everyday-life/#Budget

5.1 RENT

Place Lower end ($) Higher end ($)

Panama City 750 2500

Coronado 750 2000

Boquete 500 1500

Bocas 400 1250

There are a large number of variables that influence rent, including size, location, location within that location, furnished or not, type of construction, age of construction, quality of finishes, and many more.

In tourist hotspots such as Bocas, the rent is hugely influenced by the tourist season, in terms of both price and the term available. Here is an advertisement that recently appeared: “House for rent! 2bedroom/3bathroom house located in Hato Pintado in Panama City. Great location near Metro, Pharmacy, Grocery, and Hospital. Has been renovated with new kitchen, and bathrooms. Private gated driveway, and beautiful yard. $1,300 pm.” Given everything I have researched in terms of rent, I think this is a very well-priced option.

Another advertisement; this one is for an apartment in David: “Rent apartment with space for living room, kitchen, bathroom, a large room, laundry under roof and a parking lot. Located on the way to the airport after Radio Chiriqui. $250 pm.”

Lease agreements would normally require rent paid in advance, on top of a security deposit equal to at least one month’s rent.

Important: Make sure that your rental agreement is registered with the Ministerio de Vivienda (MIVI for short) and that they hold the deposit, otherwise you might have trouble getting your deposit back, in full and/or in good time.

5.2 UTILITIES

Place Lower end ($) Higher end ($)

Panama City 150 400

Coronado 100 300

Boquete 85 175

Bocas 70 200

*Based on two people at or near retirement age

Although the price of propane is fairly universal across the country, the price of electricity varies greatly, depending on your location. Smaller rental units, without an air conditioner, will sometimes advertise a rent including electricity. But the quoted rent of larger units, especially when one or more air conditioners are available, mostly exclude electricity.

Stating the obvious, but keep the tropical climate in mind – the use of air conditioners have a significant impact on your utility bill.

5.3 HEALTH INSURANCE, HEALTHCARE

Place Lower end ($) Higher end ($)

All cities 150 550

*Based on two adults aged between 50 and 55

The cost of health insurance is mostly influenced by the ages of the applicant and dependant; the health insurance companies quote premiums in 5-year age brackets. Thereafter, the premium is influenced by the choices in terms of: · Health insurance company; · Local or international insurance; · Level of deductible; · Level of co-insurance; · Frequency of premium payment.

Tip: see Healthcare for more detail.

Apart from health insurance, you could budget for a routine doctor’s visit of around $30 per person, per month. If chronic medication is required (for example high blood pressure medicine), add another $50 per individual, per month.

5.4 CONNECTIVITY, MOBILE SERVICE

Place Lower end ($) Higher end ($)

All cities 50 150

*Based on two people at or near retirement age, not requiring good connectivity for a mobile business

A pre-paid package deal of $15 with DigiCell, gives the user 2GB data, 10GB social media ‘data’, 150 minutes talk time and 50 SMSs, all valid for 30 days. Very good connectivity can be arranged for $100 pm, but it’s possible to get by on as little as $40 pm.

5.5 INSURANCE (HOUSE CONTENT, CARS)

Place Lower end ($) Higher end ($)

All cities 50 200

*Based on two people at or near retirement age

The three variables that will have the biggest effect on the monthly premium are the vehicle’s type, age and location.

5.6 TRANSPORT (PUBLIC AND/OR OWN)

Place Lower end ($) Higher end ($)

All cities 50 250

*Based on two people at or near retirement age

This obviously depends on whether you are living in Panama City and commuting to work every day, or living in Bocas and riding your bicycle to the shop!

The price of gasoline (that is fuel or petrol for non-Americans) is $0-81/ℓ in Panama, so you can do a quick estimate if you intend to use your own vehicle(s).

A rechargeable travel pass, for both the Metro and Metro Bus, will get you a one-way ride for $0-25, so with a recharge of $10 you can cover a lot of miles.

An average taxi ride in Panama City is $5 to $10; from Tocumen International Airport to the city center about $30. Both Uber and Lyft are available.

5.7 GROCERIES, HOUSEHOLD CLEANING

Place & Product Lower end ($) Higher end ($)

Panama City, buying international brands 350 800

Smaller towns, buying local products 300 750

*Based on two people at or near retirement age

Two major factors are at play here. The first is Panama City versus the smaller cities or towns further away, with Panama City as a general rule being more expensive. Having said that, some smaller towns (Boquete for example) are experiencing an inflow of expats (driving prices up) while Panama City offers a large variety of stores and supermarket options, which tend to keep prices competitive.

A typical small-town exception is Bocas, where groceries are more expensive than Panama City, since everything needs to be transported over long distances, including a sea passage.

The second factor at play is international brands versus local products. If you are bent on buying everything that you used to buy in the US or Canada, expect to adjust your budget upward, by a lot. Getting used to local brands, and adjusting to local buying habits, can keep your grocery bill manageable.

Tip: Although Panama is officially using the metric system, many prices are shown for pounds or gallons. Some items will show both. So be sure to check.

5.8 EDUCATION

Type of school Lower end ($) Higher end ($)

Panama City, good international school 400 1500

Smaller towns, good local schools 150 300

*Based on one child

Private international schools can cost anywhere between $400 and $1500 per month, per child. Good schools outside Panama City can cost about $150 pm per child, but depending on your desired level of tuition, you might have to invest in extra tuition or private classes in some subjects.

5.9 CLOTHING & FOOTWEAR

Place Lower end ($) Higher end ($)

All cities 50 300

*Based on two people at or near retirement age

Based on average prices available in the larger malls in Panama City, the following items might give you an idea: · Women’s full-body bathing suit $30 · Women’s shorts $25 · Women’s light summer dress $45 · Women’s casual sandals $25 · Women’s/Men’s branded jeans $65 · Men’s shorts $20 · Men’s flip-flops $20 · Men’s running shoes $85 · Large straw sun hat $35

5.10 SPORT, RECREATION, ENTERTAINMENT

Type of activity Lower end ($) Higher end ($)

Golf – monthly membership 250 350

Golf – play a round 50 120

Movie 10 20

Dinner 30 300

Golf club membership in the popular expat area of Coronado is in the region of $15,000, or if you buy a membership, the transfer cost is about $5,000.

Like anything else, the money spent on dining out is determined by personal preference. A couple can certainly enjoy a light meal for $30 or spend a small fortune on pre-dinner cocktails in one of the city’s rooftop restaurants.

Gym membership in Panama City can range between $50 and $75 per month.

Conclusion: For a long time, Panama was punted as a cheap destination, a retirement haven where low prices will enable the average couple to retire comfortably. Relatively speaking, it might still be the case, but to a lesser degree. In terms of cost of living, Panama is now on par with some US cities, and only slightly cheaper than the US overall.