Panama

Panama is one of the most established destinations for American expats and retirees in Latin America, combining a low cost of living, a dollarized economy (the US dollar circulates as legal tender alongside the balboa), and unusually accessible residency programs. Numbeo's May 2026 data puts Panama's Cost of Living Index at 45.5 (NYC=100) — roughly 33% cheaper than the United States overall and about 41% cheaper on rent. A one-bedroom apartment in central Panama City averages ~$1,270/month versus ~$913 outside the center, with basic utilities around $131 and 60+ Mbps internet about $47 (Numbeo, 14 May 2026). Expatistan's mid-2026 single-person estimate of roughly $2,100/month corroborates a comfortable but affordable urban budget. Safety is mixed but manageable. The U.S. State Department rates Panama Level 2 — Exercise Increased Caution (last updated 23 Sep 2024), with 'Do Not Travel' carve-outs only for the remote Darién region and the Mosquito Gulf; Panama City and expat hubs are not flagged. The 2025 Global Peace Index ranks Panama 84th of 163 countries (score 2.006), mid-tier globally, and Numbeo's perception-based Safety Index sits at 57.6 (Feb 2026). Healthcare is a recognized strength: private hospitals in Panama City (e.g., Hospital Punta Pacífica, affiliated historically with Johns Hopkins) draw medical tourists, and Numbeo's Health Care Index is 61.8. Local private insurance plans commonly run $50–$200/month per person depending on age (ExpatDen/Pacific Prime, 2026). English is widely used in Panama City business, banking, and the large expat communities, but it is not prevalent in the general population: Panama scored 488 on the EF EPI 2024 ('moderate proficiency', rank 71 of 116), so Spanish remains essential outside expat enclaves. Those enclaves are substantial and well-organized — Boquete (Chiriquí highlands) and the Coronado beach corridor are the best-known North American retiree communities, supported by Panama's famously generous Pensionado discount program and a territorial tax system that does not tax foreign-source income.