In a surprising twist shaking up global retirement trends, the Central American country Panama is now beating Spain, British Columbia, Portugal, Vietnam, and Thailand as the best nation to retire in 2025. This unexpected shift is turning heads among retirees from around the world, especially Americans and Canadians who are seeking more than just warm weather—they want value, safety, and a luxury lifestyle without the sky-high cost.
And that’s exactly what Panama delivers.
While Spain’s coastlines still call to sunseekers, and British Columbia remains a serene Canadian favorite, Panama is quietly outshining them all. Portugal’s cobblestone charm and Thailand’s exotic allure haven’t vanished—but they’ve met fierce competition from this Central American country that’s offering more for less. Even Vietnam, with its rising expat communities, can’t match Panama’s unbeatable blend of modern living, tax perks, and tropical beauty.
The real kicker? Americans and Canadians can move there with ease. With luxury homes at a fraction of the price seen in North America, and a streamlined visa program, relocating is simpler—and smarter—than ever before.
So what’s driving this massive migration toward Panama? Is it just the cost, or something deeper? Could the dream retirement now live not in Europe or Asia, but on the shores of Central America?
This isn’t just another retirement story. It’s a shift in global lifestyle. And if you’re planning your next chapter, what you need to know about Panama could change everything. Keep reading—because this is where your new life might begin.
Panama Named #1 Country to Retire in 2025 as Global Retirees Seek Affordable Luxury and Stability
In a surprising twist for 2025, Panama has claimed the coveted title of the world’s best place to retire, dethroning Europe’s long-favored expat destinations. A new report by International Living places the Central American nation at the top of its Annual Global Retirement Index, redefining how and where retirees can live out their golden years.
This isn’t just a list-topper. It’s a global shift.
For decades, retirees from the U.S., Canada and Europe have dreamed of escaping rising costs and healthcare burdens. Now, Panama offers them that escape—with unmatched value, modern comforts, and beachfront beauty. It’s the unexpected winner in a fiercely competitive market for retirement migration.
Why Panama Now Leads the Retirement Revolution
Panama isn’t just another tropical escape. It offers the full package—financial ease, urban sophistication, coastal serenity, and robust infrastructure.
The country’s standout appeal lies in its balance between affordability and high quality of life. Retirees can live comfortably on US$2,400 per month and even enjoy luxury living for under $2,900. That budget includes housing, healthcare, dining, and entertainment—all wrapped in year-round sunshine.
Meanwhile, tax advantages are pulling in expats at record speed. Panama does not tax foreign-earned income, meaning US retirees can receive pensions or Social Security without sacrificing a cent to the local government. Property taxes are also negligible—just 0.5% on primary residences.
Moreover, the country’s Pensionado Visa is among the most welcoming in the world. With a qualifying pension of just $1,000 per month, retirees can gain residency in as little as six months.
Discounts That Stretch Your Dollars
Panama sweetens the deal with benefits that go far beyond climate and cost. Under the country’s senior discount law, retirees 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.
And the perks don’t stop there. Local transportation, medical services, and even airline tickets come with generous discounts under Panama’s retirement benefit laws. For budget-savvy retirees, that translates into a more carefree lifestyle with less financial strain.
Panama’s warm temperatures and clear skies open doors to outdoor living year-round. Residents spend their days playing golf, tennis, and pickleball, or simply soaking in ocean views.
Popular expat enclaves like Coronado, -
Where we live. -
just an hour from Panama City, blend luxury resort living with everyday convenience. Oceanfront condos in upscale neighborhoods remain attainable, with prices still hovering around $155,000 for over 1,100 square feet.
The capital itself, Panama City, defies expectations. With a skyline that rivals Manhattan’s and a vibrant nightlife scene packed with casinos, restaurants, and shopping, retirees don’t need to give up modern luxuries to enjoy tropical ease.
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 with loved ones across the globe.
Panama beat out renowned expat hotspots like Spain, Portugal, Italy, and Thailand in this year’s ranking. While those nations remain popular, they come with steeper living costs, language barriers, and sometimes slower residency processes.
Panama, by contrast, offers ease, accessibility, and familiarity—especially for North American retirees. English is widely spoken, and local communities are welcoming to newcomers. The country’s established expat scene makes it easier to build connections without reinventing your lifestyle.
Panama’s tourism and real estate markets are already seeing the ripple effect. Airlines are adding routes. Developers are investing in expat-ready housing. Travel agents are packaging retirement recon tours, inviting potential retirees to explore neighborhoods and experience the culture before making the leap.
As global interest rises, Panama’s status as both a travel destination and a long-term living option is expected to skyrocket. This presents a unique opportunity for tourism boards, hospitality groups, and investors to align their offerings with retiree demands.