In 2025, more retirees are trading routine for adventure, noise for nature, and leaving the city for the beaches and mountains! And Retirees from around the globe are choosing Panama!

Some reasons for this are that Panama offers hassle-free residency options, affordable healthcare, and expat communities. 

The country’s strategic location means that it’s easy to travel to and from North America, allowing retirees to maintain close ties with family and friends. Local communities in Panama are very welcoming, and with many established expat networks, Panama is a place many people feel they can call home. 

These are just a few of the reasons so many people find Panama delivers when it comes to ease of transition, and a lifestyle rich in adventure and relaxation, modern conveniences, and breathtaking natural beauty.

As retirees increasingly prioritize experiences over possessions, Panama is becoming not just a place to retire, but a gateway to a fulfilling and enriched life. 

Panama Named #1 Country to Retire in 2025 as Global Retirees Seek Affordable Luxury and Stability

In 2025, International Living put Panama at the top of its Annual Global Retirement Index. 

The country’s standout appeal lies in its balance between affordability and high quality of life. Retirees can live comfortably on $2,400 per month and even enjoy luxury living for under $2,900. 

Panama’s tax benefits are attracting expatriates at an unprecedented rate. One of the most appealing aspects is that foreign-earned income is not subject to taxation, which allows U.S. retirees to collect pensions or Social Security benefits without concern about additional tax burdens. 

The country offers a friendly fiscal environment with property taxes set at a minimal rate of just 0.5% for primary residences. This is complemented by Panama’s Pensionado Program, which provides a range of discounts on services and goods for retirees, including reductions in utility bills, medical expenses, and entertainment activities.

Discounts That Stretch Your Dollars

Panama sweetens the deal with benefits under the country’s senior discount law. Retirees in Panama enjoy 25% off power bills, 50% off movie tickets, and 25% off meals at restaurants. These everyday savings make a tangible difference for those looking to stretch retirement funds while living well.

Local transportation, medical services, and even airline tickets come with generous discounts under Panama’s retirement benefit laws.

Beach & Mountain Lifestyle

Panama boasts a diverse range of environments within its compact borders. From mountain living to beachfront luxury, there is something for everyone here. Residents in Coronado, Panama, spend their days playing golf, tennis, and pickleball, or simply soaking in ocean views. Coronado, just an hour from Panama City, blends luxury resort living with everyday convenience. Oceanfront condos in upscale neighborhoods remain in the $300,000 range, and the expat community is growing!

A Safe and Stable Environment

Security and political stability are top priorities for retirees. Panama scores well on both fronts. It boasts strong economic growth, a U.S. dollar-based economy, and high-quality healthcare—elements that provide long-term peace of mind.

The country’s infrastructure, including highways, broadband access, and hospitals, is among the best in Latin America. International airports and direct flights to major cities make it easy for retirees to stay connected.

Local Tourism in Panama

No matter where you choose to retire in Panama, there is somewhere nearby to travel for a local adventure. Whether you’re dreaming of sun-drenched beaches, cloud-forest treks, or skyline views paired with world-class dining, there is a place for that in Panama. Here are the top places in Panama named by International Living’s Retirement Index in 2025.

Casco Viejo: The City’s Enchanting Old Quarter

Cobblestone streets, pastel buildings, and rooftop bars await in this UNESCO World Heritage Site. Wander through churches and plazas, then watch the sunset over the Pacific with a cocktail in hand.

Bocas del Toro: Laid-Back Caribbean Vibes

If island hopping, clear turquoise waters, and barefoot living are your thing, Bocas del Toro is for you. Located on the Caribbean coast, this colorful archipelago is all about chilled-out charm. Bocas Town, the main hub, is lively yet low-key, perfect for backpackers, surfers, and eco-tourists. From here, take a boat to Red Frog Beach, known for its golden sands and jungle backdrop, or dive into the crystal-clear waters of Zapatilla Cays—an uninhabited pair of islands that feel like paradise found. Snorkeling, surfing, and dolphin-watching are daily delights here, and the local Afro-Caribbean culture brings a rhythmic, reggae-infused beat to every evening.

Boquete: The Mountain Retreat You Didn’t Know You Needed

Nestled in the Chiriquí Highlands, Boquete is Panama’s answer to those seeking cool mountain air and dramatic natural beauty. This charming town is surrounded by cloud forests, coffee farms, and hiking trails that seem to stretch into the sky. The region’s crown jewel is Volcán Barú, Panama’s highest peak. Adventurous hikers wake before dawn to summit it in time for sunrise. On clear days, you can see both the Pacific and Atlantic oceans at once—a view you won’t forget.

San Blas Islands: Untouched Indigenous Paradise

For a truly off-grid experience, sail your way to the San Blas Islands, a string of over 360 islets owned and protected by the Guna Yala people. This autonomous indigenous group has fiercely preserved both their land and their traditions. There are no high-rise hotels or party cruises here. Instead, you’ll find pristine beaches, palm trees swaying in the breeze, and some of the clearest water in the world. Island-hop by wooden canoe, sleep in beachside cabins, and live simply, if only for a few magical days. It’s a rare experience in today’s travel world—authentic, sustainable, and humbling.

Santa Catalina: A Surfer’s Secret and a Gateway to Diving Heaven

Once a sleepy fishing village, Santa Catalina has become a favorite for surfers and ocean lovers without ever losing its quiet soul. With reliable waves and a friendly vibe, it’s a favorite among those looking to surf in peace. Beyond the breaks, Santa Catalina is your launch point to Coiba National Park, a UNESCO-protected marine reserve often dubbed “the Galápagos of Central America.” Scuba diving here is world-class, with whale sharks, sea turtles, and manta rays gliding through the waters. You won’t find chain hotels or nightlife here, but that’s exactly why so many come.

Pearl Islands: Luxury Meets Wild Beauty

A short flight or ferry ride from Panama City lands you in the Pearl Islands, a cluster of over 200 islands once home to Spanish treasure hunters and now dotted with luxurious resorts and private getaways. The most visited island, Contadora, offers white sand beaches and upscale comforts. However, nearby Isla Saboga and others remain more remote, ideal for nature walks, whale watching, and sailing in solitude. It’s the perfect blend of indulgence and escape.

El Valle de Antón: Crater-Living and Nature Trails

Just a couple of hours from Panama City, El Valle de Antón sits inside a massive extinct volcanic crater. This lush valley is home to waterfalls, hot springs, exotic wildlife, and a popular weekend market selling everything from handmade crafts to local fruits. Nature is the main attraction—hike to Cerro Gaital, swim beneath Chorro El Macho, or take a mud bath in thermal springs. It’s an ideal destination for eco-tourists and families alike.

Why Panama Should Top Your 2025 Travel List

Panama is more than a destination—it is your next step towards retirement! The country’s compact size makes it incredibly easy to explore, while its infrastructure, warm hospitality, and rich cultural diversity make you feel welcomed. 

The Playa Community Relocation team can help offer guidance on your retirement or relocation to Panama. We have a simple, straightforward approach, and always share all the information with you.