One Friendly Tropical Country In Central America Offers Jaw-Dropping Perks And Discounts To Expat Retirees

Panama has ranked first place as the world's best retirement destination for 2025 by International Living's Annual Global Retirement Index. The country's geographical diversity is perfect for lovers of beaches, mountains, rainforests, or big cities, as these are all within a few hours of each other. However, the main draw for expat retirees is its financial advantages and quality of life.

Their "Pensionado Visa" is widely regarded as one of the most generous and accessible retirement programs in the world. To qualify, applicants must show a guaranteed lifetime pension of at least $1,000 per month (or $750 if you buy property worth at least $100,000). Plus, there's no upper or lower age limit. You just have to be over 18! On top of that, there's no tax on foreign-earned income, which includes U.S. Social Security, pensions, and investment withdrawals. Once approved, you'll receive permanent residency and several attractive discounts: 50% off entertainment (movies, concerts, and sporting events), 30% off public transportation, 25% off airline tickets, 30–50% off hotel stays, and even a 25% discount on utility bills. These perks can add up to thousands in annual savings. Other benefits include exemption from import duties on a vehicle and up to $10,000 in household goods.

Also, there's no need to give up comfort, security, or modern conveniences in your golden years. Many cities' infrastructure rivals that of wealthier countries. For instance, Panama City has a modern skyline with a luxurious waterfront enclave with man-made islands, international banks, and the only metro system in Central America. The country has reliable high-speed internet in urban and tourist-friendly areas.

A must for seniors is an excellent and affordable healthcare system, which Panama has. Many of its doctors have been trained in the U.S., and private hospitals in Panama City and David provide high-quality care at a fraction of U.S. prices. Modern hospitals and clinics, staffed by English-speaking professionals, offer significant savings. For example, the average cost for a dental crown is around $900, versus $3,000–$5,000 in the U.S. As if that weren't enough, there are also Pensionado discounts for healthcare: 20% off doctor visits, 10% off prescriptions, and 15% off hospital services and dental or eye exams. 

A real-life example is Kimberly Kelley, who shared on Business Insider how she moved from Arizona to Panama in 2023. She cites improved healthcare access, cost savings, and a supportive local community. Her fully-furnished condo features a balcony with an ocean view. $1,000 utilities included and pays a monthly average of $300 for groceries. Through expat groups on Facebook and WhatsApp, she made new friends. Similarly, Debbie Boyd, a former real estate broker, moved from Atlanta to Panama with her 97-year-old mother. She told Business Insider that her monthly rent for a four-bedroom house is $1,500, far more space at a lower cost than in the U.S.

Much like the various Caribbean islands that are the best for retirement, Panama offers many advantages beyond its stunning coast filled with pristine beaches. Your money will go further with its generous tax exemptions and substantial discounts. Convinced? Apply for a Pensionado visa here.