The Best Places to Retire in Panama

Find Your Dream Home in This Central American Tropical Paradise

Panama offers a wide variety of retirement destinations, from tropical beaches and busy cities to scenic highlands and rural villages, each with its own unique charm. Where you choose to live will depend on your lifestyle preferences and budget. This article highlights the best places to retire in Panama, covering key factors such as local amenities, healthcare access, and overall quality of life.

Is Panama a Good Place to Retire?

Panama is considered one of the best places in the world to retire, thanks to affordability, great weather, and the many benefits it offers through its expat retirement program.

Affordable Cost of Living

The cost of living is appealing to many retirees, with prices for healthcare, transport, groceries, utilities, and entertainment much lower than in many Western countries. In fact, Panama is generally 53% cheaper than the United States.

For retirees, savings can be even greater thanks to the Pensionado Program. This enables foreigners with a stable monthly pension income of at least $1,000 to relocate as permanent residents. They can also claim discounts on expenses such as healthcare, transport, utilities, and entertainment.

For those unsure about the dangers of living in the region, Panama is one of the safest and most politically stable countries in Central America.

It ranks 84th out of 163 countries on the 2025 Global Peace Index. Although there are neighborhoods to avoid, expat-populated areas are generally safe and have modern amenities.

High-Quality Healthcare

Panama’s healthcare system is high-quality and ranks 62nd worldwide for healthcare in the 2025 CEOWORLD Health Care Index.

While it is affordable and offers a mix of public and private services, many expats opt for private health insurance in Panama. This allows them to access the best facilities and English-speaking professionals at much cheaper rates than in the United States.

Attractive Climate

One of Panama’s biggest draws is its climate. It averages between 82–90ºF (28–32ºC) in the summer and 79–86ºF (26–30ºC) in the winter. You can choose between the warmer beaches and cities of the lowlands and the cooler and more rural highlands.

Panama is great for those looking for a relaxed pace of life. You can enjoy fine Central American cuisine and plenty of opportunities to explore the landscape and natural beauty in an international environment where locals mix with many expats.

Read more about retiring in Panama with our guide to visas, healthcare, housing, living costs, and tax rules.

Ready to plan your retirement in Panama? Speak with an insurance expert to find coverage that aligns with your retirement plans, budget, and long-term needs, so you can fully enjoy your golden years.

The Best Places to Live in Panama for Retirees

Like any country, the best place to retire in Panama depends on your personal preferences and needs. You’ll want to consider factors such as lifestyle options, cost of living, climate, and access to quality services.

Below is a selection of the best places to retire in Panama for expats, highlighting key benefits, typical lifestyles, and important considerations.

Boquete

Boquete is in the western highlands of Panama. Life there is low-cost and slow-paced. The higher mountain elevation allows for cooler temperatures and is the perfect place for nature-loving retirees and outdoor enthusiasts who do not want to deal with extreme heat.

It also helps reduce utility bills, as air conditioning is not necessary. However, it’s one of the more isolated parts of Panama with long rainy seasons and some infrastructure issues. For example, internet connectivity can be intermittent.

Healthcare services are available and adequate. For more comprehensive services, the bigger city of David is under an hour’s drive away. And you don’t need a car to get around the city; there are plenty of public buses.

Where Boquete really shines is its strong expat community, which makes it one of the best places in Panama to retire. Around 20% of the population is from overseas, making it one of the biggest Panama expat communities.

There are many American and Canadian retirees living in and around Boquete, and it is common to hear English on the street.

The town also has a well-established café culture, weekly markets, and organized social clubs that help newcomers integrate quickly.

Coronado

Coronado is one of the best places to retire in Panama by the sea. There are beautiful beaches, excellent golf courses, and numerous shops and restaurants.

Coronado is great for beach-lovers who enjoy water activities, but still appreciate modern conveniences. While the city has all the usual amenities, it’s just over an hour’s drive to Panama City.

This allows expats to enjoy the slower-paced beach lifestyle while still having easy access to top-notch hospitals, cultural attractions, and the amenities of the nearby capital. However, public transport is quite limited, so you’ll probably need a car to get around.

Coronado is one of the fastest-growing retirement communities in Panama. With a large number of Americans and Europeans, this city is another place where you can generally get by with English.

Additionally, Coronado sees lower-than-average rainfall and is arguably one of the best places to retire in Panama for warm weather.

The area also has a wide range of gated communities and condominium developments. This makes it especially appealing for retirees seeking security and low-maintenance living.

Panama City

Panama City is the national capital of Panama, a metropolitan city where foreigners can find all their usual modern amenities – from shopping centers to international restaurants to numerous entertainment options.

There’s even a rainforest within the city if you need a nature break from the busy streets. Panama City is also home to an international airport and boasts the top four hospitals in Panama, all offering high-quality care.

While Panama City is more expensive than other parts of the country, most retirees find it’s still cheaper than back home. It’s perfect for retirees who want an urban environment with modern comforts.

Additionally, Panama City is one of your safest bets in being able to communicate with locals in English if you don’t speak Spanish.

It also offers the country’s strongest public transport network, including a modern metro system, making it easier to live without a car.

Las Zablas

Las Tablas is a small agricultural town located on the Azuero Peninsula. It’s the national center of Panamanian folklore and one of the best places for retirees who want to immerse themselves in local culture and traditions.

While the immigrant community in Las Tablas is not large, it is said to be close-knit and continually growing. The town is located in the “Arco Seco” (Dry Arch), which means it has a drier, sunnier climate than many other places in Panama.

Retirees who prefer a warm and dry climate will find Las Tablas’ weather appealing. From the town, you’ll have easy access to beautiful Gulf beaches.

There are also numerous amenities, including restaurants, cafes, and shops. The town even has three hospitals, though for more advanced services you’ll need to visit the larger city of Chitre, just 30 minutes away.

Las Tablas is also especially lively during Carnival season, when it becomes one of the most culturally active towns in the country.

Bocas del Toro

Bocas del Toro is a Panamanian island resort in the Caribbean Sea, popular with tourists and also home to a growing, settled expat community.

It offers excellent outdoor water sports opportunities, such as snorkeling, as well as a vibrant nightlife where locals can revel in numerous beachfront bars.

As a tourist hotspot, it’s considered one of the country’s safest cities. Property prices are also still relatively affordable, so it’s one of the best places to buy houses in Panama.

However, its popularity with tourists is also a potential weakness, as it can feel too noisy and crowded for retirees during busy seasons.

It is also relatively car-light, with most transport by boat or on foot, which can be a lifestyle adjustment for some retirees.

El Valle de Anton

Commonly referred to as “El Valle”, the town is situated in the crater of an extinct volcano. As a highland valley, the temperatures will be cooler than in coastal areas but warmer than in mountain towns like Boquete.

The town is extremely popular with nature lovers who appreciate its proximity to both the mountains and the beach.

It is also known for its farmers’ markets and weekend tourism, which create a lively yet relaxed atmosphere compared to more isolated inland towns.

There is a small, close-knit expat community in El Valle with weekly events and volunteer opportunities. The town offers shops, restaurants, and all the usual city amenities. However, for more extensive medical care, you’ll need to travel to the capital.

Its central location also makes it a convenient base for exploring other parts of Panama, including nearby beaches and national parks within a few hours’ drive.

El Valle is also known for its hiking trails, waterfalls, and wildlife, making it especially appealing to retirees who enjoy an active, outdoor lifestyle without leaving town.

Santa Catalina

Santa Catalina is a small, relaxed coastal village on Panama’s Pacific coast, best known for surfing, access to Coiba National Park, and a quiet, nature-focused lifestyle. It appeals mainly to retirees who value peace, ocean living, and outdoor activities over urban convenience.

The expat community is small but growing, made up of retirees, surfers, and remote workers. While less developed than places like Coronado or Boquete, it offers a more authentic, low-key atmosphere with a handful of cafés, surf shops, and local restaurants acting as social hubs.

Living costs are generally affordable, especially housing, though imported goods and dining can be pricier due to its remote location.

Healthcare access is limited, with no major hospitals nearby. Most residents travel to Santiago or David for more advanced medical care, making private transport important. Infrastructure is basic but functional, with variable internet and road conditions, especially in the rainy season.

Santa Catalina suits retirees seeking a quiet, ocean-centered lifestyle. However, it may feel too remote for those who want easy access to healthcare, services, or a more active social scene.

Pedasí

Located on the southeastern coast of the Azuero Peninsula, Pedasí is a small fishing town that has developed a big expat community.

Although its beaches are renowned among surfers, and there are several annual festivals and cultural events here, it has retained a small-town vibe.

The town is more affordable than many other coastal parts of Panama, which may explain its attraction, and it’s also one of the safest places to live in Panama.

However, despite a nice downtown area with bars and restaurants, it may be a bit quiet for expat retirees seeking plenty of culture and entertainment.

Healthcare facilities are also quite limited, and you’ll need to travel to larger cities for many serious treatments.

Pedasí is also known for nearby Isla Iguana, a protected nature reserve popular for day trips, snorkeling, and wildlife viewing.

Volcan

Volcán, in Panama’s Chiriquí highlands, is an appealing option for foreign retirees seeking a quiet, affordable lifestyle.

The town offers a mild “eternal spring” climate, scenic surroundings near Volcán Barú, and a relaxed pace of life with friendly locals and a small but growing expat presence.

It’s one of the cheapest places to live in Panama, making it especially attractive to retirees on fixed incomes who prioritize value for money.

However, its rural nature is also its main drawback, with limited healthcare and services often requiring travel to nearby David for more comprehensive care and amenities.

Infrastructure can be inconsistent, particularly with internet reliability, road conditions, and public transport options, which may be inconvenient for some.

Overall, Volcán is suitable for retirees who value peace, nature, and low costs, but it may feel too isolated for those seeking convenience or a vibrant social scene.

The surrounding agricultural region is also popular for its fresh produce markets, which support a strong farm-to-table lifestyle.

Guide

Retiring in Panama

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How to Decide Where to Retire in Panama

Choosing where to settle in Panama for retirement comes down to your individual lifestyle, priorities, and financial situation.

As you might expect, living costs can vary widely by region. Urban hubs like Panama City tend to be pricier, while smaller towns, beach communities, and inland areas are often more budget-friendly.

Access to healthcare is another important factor. Panama offers a solid healthcare system with both public and private services.

Many retirees prefer private healthcare because it typically offers shorter wait times, greater flexibility in choosing doctors, and access to specialists. This becomes especially relevant if you’re considering living outside major metropolitan areas, where services may be less extensive.

Lifestyle preferences will also play a major role in your decision. Some people are drawn to the energy, amenities, and diversity of a large city, while others prefer the slower pace, natural beauty, and close-knit feel of coastal or rural communities.

Transportation and travel habits are worth thinking about, too. If you’re comfortable driving and don’t need frequent flights, a more remote location could work well. Otherwise, you may want to prioritize areas with reliable public transport or easy access to airports and main road networks.

Before committing, it’s wise to spend time exploring different neighborhoods. Look closely at what each area offers, including any unique advantages such as retiree incentives, tax benefits, or community features that align with your lifestyle.

Taking all of these elements into account will help you find the right place to enjoy retirement in Panama and make the most of this new chapter abroad.