Panama City: what to see and whether to move there

What the city lives on and who it suits

Panama City is the capital of Panama, with about 2 million people in the metropolitan area. The city stands at the entrance to the Panama Canal and lives on logistics, banking, trade, tourism and regional offices of international companies. Skyscrapers along the bay, the UNESCO-listed colonial quarter of Casco Viejo and rainforest within city limits sit within a few kilometres of each other.

Panama suits entrepreneurs and investors who value territorial taxation and the US dollar as currency, retirees and remote workers, and those seeking residence with a clear path to a passport. It suits less those who cope poorly with heat and humidity.

Districts

• Casco Viejo - the restored colonial quarter with restaurants, boutique hotels and flats, atmospheric and expensive.
• Punta Pacífica and Paitilla - seafront towers with bay views, hospitals and malls.
• Obarrio and Bella Vista - the business centre with offices, restaurants and flats for young professionals.
• San Francisco and El Cangrejo - residential districts with parks and cafés, easy to live in without a car.
• Costa del Este - a new eastern district with offices, international schools and family homes.
• Clayton and Albrook - green districts by the canal, the former American zone, popular with families.

Housing and prices

A one-bedroom flat in central districts - San Francisco, Punta Pacífica, El Cangrejo - costs about $900-1,500 a month, and from $600 outside the prestigious areas. A 2-3 bedroom family flat in a building with security and a pool costs about $1,500-2,500. The official currency is the balboa, pegged to the dollar, and US dollars circulate.

Taxes

Panama taxes only Panamanian-source income: foreign income is not taxed. Income tax ranges from 0% to 25%, corporate tax is 25%, VAT 7%, and employee and employer contributions are 9.75% and 13.25%. More on the page about taxes in Panama.

Practicalities

• Climate. Tropical: about 27-32 degrees all year, with a rainy season from May to December and a dry season from January to April.
• Transport. Two metro lines, taxis and ride-hailing; Tocumen International Airport is Central America's largest hub, with direct flights to Europe and across the continent.
• Language. Spanish; English is widely spoken in banks, business and among expatriates.
• Healthcare. Private hospitals are of good quality, and foreigners use them with private insurance.

Moving and legal status

Panama offers many routes to residence. The pensioner visa with a pension from $1,000 a month, or $750 with a home purchase from $100,000, gives permanent residence immediately. Investor residence comes through a new build from $300,000, or resale property or a deposit from $500,000, with a path to a passport after 5 years. The digital nomad visa requires income from $3,000 a month. More on the pages about Panamanian residence by investment, the pensioner visa and the digital nomad visa.

The canal, nature and leisure

The Panama Canal can be seen at the Miraflores locks, and on the Amador Causeway people walk and cycle with views of ships and the city. Within the city, Metropolitan Natural Park has rainforest, sloths and toucans. At weekends people go to the San Blas islands of the Guna people, Pacific beaches and the Boquete highlands with coffee plantations.

Is Panama worth considering for life

Pros: territorial taxation, the US dollar, a strong banking sector, a convenient airport, varied visas with a path to a passport and nature nearby. Cons: heat and humidity, traffic, expensive rents in prestigious areas and Spanish in government offices. Panama suits entrepreneurs, investors and retirees. Write in the chat and we will choose a residence permit for your budget.