Panama Named the Best Country to Live in for Expats in 2025

Good news! For the second consecutive year, Panama has been recognized as the best country to live in, according to the Expat Insider 2025 Report. With insights from over 10,000 expatriates representing 172 nationalities, Panama ranked #1 in every category: Quality of Life, Ease of Integration, Working Abroad, Personal Finances, and Essential Services. An impressive 94% of expats reported being satisfied with their life here.

This Central American country offers a winning combination of modern infrastructure, affordable cost of living, a pleasant tropical climate, and a welcoming culture that embraces newcomers with open arms.

What Is Life Like in Panama?

Living in Panama means accessing high-quality services at a fraction of what you’d pay in North America or Europe. The skyline of Panama City, with its modern skyscrapers, is home to world-class hospitals, international schools, reliable utilities, and high-speed internet.

Families, remote workers, and retirees are drawn to these amenities, along with the fact that daily expenses are 30–40% lower than in many Western capitals. From grocery shopping to dining out, expats enjoy a comfortable lifestyle without stretching their budget.

Easy Integration and Residency Options

Integrating into Panamanian life is remarkably simple. Locals are known for their warmth and hospitality. While Spanish is the official language, English is widely spoken in business and tourist areas.

For retirees, the famous Pensionado Visa—often compared to Panama’s Green Card—offers a streamlined residency process for those aged 55 and above. Beyond residency, it provides generous tax exemptions and discounts on services, travel, healthcare, and entertainment.

Opportunities for Working Professionals and Digital Nomads

What about younger or mid-career adults? Panama has you covered. The Digital Nomad Visa allows remote workers to live and work legally in the country.

With its strategic location and robust economic growth, Panama offers exciting career and business opportunities. The Panama Canal remains a global logistics hub, while banking, finance, tourism, and the growing tech sector provide fertile ground for professionals.

Government incentives and a favorable regulatory environment make Panama an attractive destination for entrepreneurs and foreign investors seeking to launch new ventures or join established multinationals.

Where Do Expats Live in Panama?

Beyond Panama City, vibrant expat communities thrive along the Pacific coast and in the highlands:

Coronado – Just 80 km from the capital, this beach enclave offers golf courses, a farmers’ market, English-speaking services, and an active social scene.
Buenaventura – A luxury seaside community with a Jack Nicklaus–designed golf course, marinas, and gated neighborhoods offering high-end amenities.
Playa Blanca & Santa Clara – Known for gated communities, country clubs, and modern clinics, ideal for vacation homes or permanent relocation.
Pedasí (Azuero Peninsula) – A laid-back surf town attracting a bohemian expat crowd with lower housing costs and a close-knit international community.
Boquete (Chiriquí Highlands) – Famous for coffee plantations, cool mountain air, and outdoor adventures, it’s a favorite among retirees seeking a slower pace.

Lifestyle, Nature, and Safety

From jungle hikes and zip-lining to surfing and bird watching, Panama is a paradise for nature lovers. In the city, expats enjoy fine dining, art galleries, and a vibrant nightlife scene.

Safety is another major advantage. Crime rates remain low in expat neighborhoods, and ongoing investment in infrastructure and social programs supports the country’s stability. In the 2025 Expat Insider report, expatriates praised Panama’s personal safety and freedom of expression—key reasons why it ranks so highly for quality of life.

Why Choose Panama for Retirement or Relocation?

Middle age often brings new goals—whether it’s early retirement, downsizing responsibilities, or launching a passion project. With its affordability, excellent healthcare, and welcoming expat communities, Panama is one of the best places to retire abroad.

With the Pensionado Visa available from age 55, and thriving expat hubs already established, there has never been a better time to consider moving here.

Why wait? Panama is ready to be your home, your office, and your playground—all at once.

Luz Graciela Porras
Real Estate Broker & Business Consultant
Expert in Panama City and Beachfront Properties