I am often asked about the differences between Costa Rica and Panama and I always defer, knowing the answer depends entirely on individual taste. I try to ask questions so I’ll have a better idea of what is important individually, because some of the differences between the two neighboring countries are major and others, minor.
The sunny weather, beautiful beaches and magnificent rainforests, lower cost-of-living, modern amenities and good healthcare have been drawing expats to both countries for years. I think it is safe to say Costa Rica started attracting retirees and adventure seeking individuals before Panama became the newest darling of the relocation crowd.
So, let’s talk about the differences because there is a lot to consider.
The Weather
The weather is pretty close. Panama is the most southern country in Central America with Costa Rica just to its north, but that makes a difference. They both enjoy prime beach locations on the Pacific Ocean and the Caribbean Sea with miles and miles of beaches. The interiors of both countries have higher elevation, cooler temperatures and a different lifestyle than the beach communities.
Both countries tend to miss a blunt hurricane hit, but they both receive effects of storms riding out just to their north. In 2010 Tropical Storm Tomas incurred death and destruction in Costa Rica. There have been other strong storms lash Costa Rica but the only known tropical storm to make landfall in Panama was Martha in 1969. Because Martha was not strong, due to the rotational limitations of being so close to the Equator, the damage was mitigated.
Both countries are tropical and subtropical. Costa Rica has a dry season from December to April and a rainy season May to November. Panama has a prolonged rainy season May to January and a shorter dry season, January to May. The exception to that is the area in and around Coronado, Panama which is located in the “dry arch”. This section of Panama, from Chame to Playa Blanca, receives much less rain than the rest of Panama or Costa Rica but still enjoys beautiful beaches and modern amenities.
Geography
Panama is physically larger than Costa Rica with 75,420 square meters of land as opposed to Costa Rica’s 51,100 square meters, but they are both small countries. Costa Rica has more population with 4,755,234 people vs. Panama’s 3,608,431 which makes it a little more dense. Their main cities, San Jose in Costa Rica and Panama City in Panama, are close in population with 1.515 million residents in San Jose and 1.426 million in Panama City.
Panama City is the business center of Central America and is much more developed than the capital of Costa Rica. In Panama you will find gleaming skyscrapers and the proliferation of high profile offices for many European and North American companies. Streets are better marked in Panama City and infrastructure is much more developed including two recent major projects: the doubling of the Panama Canal at a cost of $5.3 billion and the metro system worth $1.2 billion.
Only Costa Rica has volcanos and two of those are currently active. In 2010, the same year as tropical storm Tomas, Arenal, one of the active volcanos, erupted and caused damage in San Jose and surrounding regions. In 1968 the volcano, Irazu erupted and destroyed the town of Tabacon, just east of San Jose. The volcanic ash has, however, developed beautiful black beaches along Costa Rica’s Pacific Ocean coast.
Healthcare and Happiness
In Costa Rica you can often hear Ticos (as the locals like to be called) saying “Pura Vida” or “Life Is Good” and the population is indeed happy. A recent Gallup poll reported that 81% of the Ticos were happy compared to only 79% of those living within the United States. It should be noted, that while Costa Ricans are happy, Panama ranked just ahead of them in that poll, coming in with 82% happy people.
Costa Rica also ranked high when it comes to healthcare. In 1949 they disbanded their military and they funneled the money toward other projects including healthcare and education. Costa Rica has a Universal Health System covering their entire population. The Caja Costarricense de Seguro (CCSS) is a system of hospitals and clinics that provide care to all Costa Ricans but it should be noted that expats and others cannot use the system unless in an emergency. Expats who gain residency, are able to purchase insurance and the right to access CCSS at approximately $100 a month. But, getting an appointment or surgery scheduled, is difficult because of professional limitations. There are only 1.2 hospital beds per 1,000 people in Costa Rica and 1.32 physicians as opposed to Panama which has double the hospital bed capacity at 2.4 and more physicians at 1.5 per 1,000 population.
Panama provides open access to everyone, accepts most foreign insurance plans and has modern facilities such as Hospital Punta Pacifica, a state-of-the-art facility affiliated with Johns Hopkins Health. The joint venture was developed by a partnership between local physicians and business leaders who wanted to raise the standard of health care in the region.
This attention to healthcare has driven the life expectancy for both Costa Ricans and Panamanians to rise significantly. Currently, females can expect to live to 81.01 years in Costa Rica and 81.22 years in Panama. In Canada that figure is 84.6 years and in the United States, 82.2.
Safety
One area where there is little comparison is safety. Panama is considerably safer than Costa Rica. The United States Department of State warns that:
“The incidence of crime in Costa Rica is high and has adversely affected the traveling public. US citizens have been victims of violent crimes including murder, sexual assaults, robberies and car jackings. Armed robberies can occur even in daylight and on busy streets.”
The US Department of State does warn that in Panama, “travel into the Darien region is not advisable” and that areas bordering Colombia “may be cause of concern due to drug trafficking.” I certainly would not suggest anyone go into the Darien, which is generally off limits to even the most adventurous, and both Panama and Costa Rica are caught in the drug traffic pattern from Colombia to Mexico. Nonetheless, Panama is generally more safe than most US cities.
Beach Living
Both countries have well developed beach towns that cater to their growing expat populations. Both offer a wide variety of housing options from high rise, ocean-front condominiums, to small beach houses with a single hammock. Both have large resorts, which bring in international visitors by the plane load each week to visit JW Marriott and Wyndham type facilities. Panama boasts a beautiful Waldorf Astoria and Costa Rica, a Four Seasons.
Costa Rica’s northern Pacific coast area, known as the Gold Coast, has less rain and more sun than the rest of the country and it has plenty of amenities, but is not as developed as some other regions in the country. Jaco, a community in the Central Pacific region of Costa Rica, is well developed but located one and a half hours to two hours driving from San Jose.
Panama has a long beach region loaded with everything needed for first-world living, such as highly developed medical care, good restaurants and 24-hour grocery stores. Located right on the Pacific Ocean is Coronado, a community just one hour’s drive from Panama City. That makes it a little more accessible when flying into an international airport from North America or Europe as opposed to Costa Rica whose closest beach area (Gold Coast) is a two and half hour drive from the capital city. The rest of the beach area in Panama is located just up the PanAmerican Highway and about 90 minutes drive from Panama City.
City Fix
I love living on the beach in Coronado, but every so often I need to have a “city fix” and, in my opinion, there is no better place to do that than Panama City. There are so many fine restaurants and cultural opportunities that it is hard for me to choose which ones I want to attend. Panama’s National Theatre, which is located in the old town of Casco Viejo, is a gem of a building and has a seating capacity of 853, so there are many top companies of theatre, opera and ballet that come to perform in addition to the local organizations.
In the heart of San Jose, the National Theatre is one of the capital city’s most popular tourist attractions with its ornate Neo-Classical building. Equally impressive productions can be seen there.
Both Costa Rica and Panama have National Symphony Orchestras and fortunately in Panama, many are offered for free.
Neither Costa Rica or Panama have the level of culture you will find in New York or London, but what is offered is much more accessible and affordable. These productions are a little more laid back, not as pretentious and simply more fun.
Economy
According to the American news magazine, Forbes:
“Panama’s dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of the GDP. Services include operating the Panama Canal, logistics, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. Additionally, economic growth will be bolstered by the Panama Canal expansion project.”
In contrast, Costa Rica has stumbled in the past few years. According to the same Forbes report, “Costa Rica’s economy contracted 1.3% in 2009 but resumed growth to 4.5% in 2012.” The bad news is that Costa Rica had begun to flourish as an importer of microchips, but computer giant Intel closed operations at the end of 2014 and moved 1,500 jobs to Malaysia, Vietnam and Cambodia. The microchip industry accounted for 20% of Costa Rica’s economy.
The American newspaper, USA Today, reported that:
“Panama’s government is extremely pro-business and pro-investor. Costa Rica, on the other hand, is much more bureaucratic, with slower processes and higher taxes and fees.”
Labor
You can easily hire a gardener, cleaner, or a person to cook your meals for less than $25 a day in either country. The difference is that you will find people tend to show up more often in Costa Rica than they do in Panama. There is a real Mañana attitude in Panama which can drive some North Americans to distraction.
Part of the reason the Ticos tend to show up is that there is somewhere between 300,000 and 500,000 Nicaraguans in the country illegally looking for work. This influx of people has put an incredible strain on the social programs offered by Costa Rica and it has driven the government to develop regulations which are aimed at the illegals, but which also negatively impact the expats such as access to healthcare.
Squatters
If you plan on purchasing property in Costa Rica you must be aware of the legal rights of the “precaristas” or squatters. According to the English language publication, The Costa Rica Star:
“Squatters of private property in Costa Rica, particularly those that trespass land owned by foreigners, are more than a just a nuisance. They are reminders of this country’s painful transition from an agricultural nation to an industrial and consumer society. Many foreign landowners have come to learn the hard way about Costa Rica’s murky agrarian court proceedings, and in some cases the squatting ends up being justified.”
While I am certainly not an expert on this topic, I did some information gathering from an attorney who practices in San Jose. He simply smiled and said “let me remind you of a recent decision where 425 hectares were expropriated from a group of Dutch entrepreneurs and given to squatters. It took 18 months of legal wrangling but the squatters won. That ruling came down December 12, 2013, so not that long ago.”
Because we don’t have anything like those laws in Panama, I had to ask him about the reasons behind such laws. “The locals feel that people who come in, purchase property and then don’t work the land, simply don’t deserve the right to hold the land when others need it to live. If the land is going to sit empty, then it is the right of the local people to take back the land,” he responded.
When purchasing property in Costa Rica make sure you know your rights and be aware that if you have squatters, within the first three months the owner has most of the rights, between three months and a year it takes a court order to remove the squatters and after a year, they can take legal assumption.
Roads
The US State Department warns against driving in Costa Rica:
“The road infrastructure—street conditions, bridges, road signage—is not very developed, so be patient.” The tourist guide book, Frommer’s, goes a little further: “Renting a car in Costa Rica is no idle proposition. The roads are riddled with potholes, most rural intersections are unmarked, and, for some reason, sitting behind the wheel of a car seems to turn peaceful Ticos into homicidal maniacs.”
Because the economy has been good in Panama for a prolonged period and the government stable, Panama has been able to develop a solid infrastructure in terms of roads and bridges. The US State Department reports:
“Panama’s roads, traffic and transportation systems are generally safe, but frequently traffic lights do not exist, even at busy intersections.”
Nonetheless, traffic in Panama City can be difficult because there are simply too many cars, but the new Metro System is helping to ease the situation.
Green Living
Both Panama and Costa Rica generally live in harmony with nature, but Costa Rica has gone a long way in developing eco-tourism, as well as tackling some serious environmental issues. On March 31, 2015 the Costa Rican government announced that 100% of their electricity comes from renewable energy sources. It is also well on its way to becoming the first carbon-free economy in the world.
Costa Rica has also gathered a great deal of support to clean up their waterways, mainly because they have had to—they lay claim to having the dirtiest river in Central America. The Tarcoles River has a mangrove that is valuable to the richness of Costa Rica’s biodiversity but it is also called the “wheel river” because of the enormous amount of tire waste that has been lying around and floating in the river. The river, and the area surrounding it, serves as a refugee for 300 species of birds including hawks and eagles, and terrestrial animals such as crocodiles, green crabs and monkeys.
Both Costa Rica and Panama are serious about living green and while Costa Rica has dedicated 25% of its total area to parkland, Panama has claimed 29% as parkland. With over 10,000 species of native plants, 1,500 types of trees, more than a thousand species of birds and miles of vulnerable coral reef habitats, wildlife conservation is taken extremely seriously in Panama.
Connectivity
I couldn’t live without the internet and I often long desperately for the rapid fire connection I learned to live with in Australia. I know Panama is growing rapidly and I have watched as the internet has improved greatly over just the last year. I am more than grateful that due to the long-standing US military presence, Panama is one of the most connected countries in Latin America. Broadband is available in most cities and there are lots of free Wi-Fi hotspots nationwide.
But, not everyone wants to be connected. Costa Rica gets 2.1 megabytes per second and for many, who just want to check email, that’s more than enough. It wouldn’t be for me. Costa Rica is working hard on improving their connectivity, but due in large part to its role as the financial center of Central America, Panama has been able to upgrade faster.
Window Of Opportunity
In many ways, Panama is twenty years behind Costa Rica when it comes to luring expats. According to USA Today:
“When North American retirees began to get tired of the overcrowded expat communities and rising costs of Mexico, they turned to Costa Rica. Now that Costa Rica has reached mega-expat status, people are looking to Panama. Costs are still lower and there is much more capacity for growth. In addition to those factors, the Panamanian government is and has been placing heavy emphasis on tourism investment, largely in the form of tax incentives. It’s also possible for foreign residents to obtain financing in Panama, something they can’t get in Costa Rica.”
A Personal Choice
The options are staggering and which country is better is a personal choice. My strongest suggestion is that you ask yourself what is important to you individually. Really think about things. Is it living green, internet connectivity, rain forest or beach, happy people or healthcare? Both Costa Rica and Panama offer an amazing array of possibilities.
[thrive_text_block color=”light” headline=””]In case you’re a hawk-eye and catch the dates in the comments section below. This article was originally published December ’13 and updated in its entirety June ’15. [/thrive_text_block]
Copyright 2024
Hi Liz. Thank you so much for the time and effort you expended to do the this comparison. We moved from Texas to Puerto Penasco, Mexico, after the 2016 election and will move to Panama, likely Coronado, if the 2020 election turns out the same as 2016. We have visited both Panama and Costa Rica so we would likely need only a 6 month stay to be sure about the commitment. I already found that Coronado has a couple of active Pickleball groups which is very important! Lol. I have two questions. We have two canine “family members”. Are there safe and reliable dog grooming and boarding facilities available? And are there beachfront or beach view rentals available that are pet friendly? Thanks again.
Albert and Angela Lewis.
Hi Albert and Angela! Yes, most condo buildings are pet friendly, although some have restrictions on certain breeds. Royal Palm has it’s own designated pickle ball court, FYI!
Thank you very much for the invitation :). Best wishes.
PS: How are you? I am from France 🙂
Yo he vivido en ambos países y sin la menor duda, me encanta Panama!
if you are from the U.S. how do you use medicare or do you have a VA office or hospitals for the veterans
Hi Linda,
My understanding is that whilst US citizens can’t access Medicare from here, there is access to VA coverage.
Liz
Where is this???address plz?
Unless things have changed recently, Panama is far more retirement friendly. If you do not qualify as a ‘pensionado’ (retiree) there is always a ‘Friendly Nations Visa’ in Panama which provides permanent residence and the right to work. Very low requirements and only about 3-6 months to qualify. Panama has far less bureaucracy than Costa Rica and since they only use US Dollars, the government cannot manipulate the currency as they do in Costa Rica. Not only can you import duty-free your household goods, but Panama also allows you to import (actually you can buy from a dealer there as cheap as you can in the USA) a new car every two years duty-free. Auto’s are outrageous in Costa Rica and with their poor roads take a hell of a beating. Roads and infrastructure are superb in Panama with practically no potholes
In Costa Rica, if you are an extranjero (foreigner) everything is more expensive than those granted Ticos (Park entry fees, hotels, etc). In Panama, it is the opposite. A retiree is afforded major discounts (20-25%) on everything from hotels, meals, taxis, concerts, doctors, Metro, etc. As a premium, you get a 25% discount on all airline passages to and from, the country! This makes Panama far less expensive to live for retirees than in Costa Rica.
PS. I have lived in both countries. Costa Rica may wish they were the Switzerland of Latin America, which they are not even close with their archaic banking system, but Panama is definitely the Dubai of Central America.
Thanks Liz. very informative discussion.
Is there a trip organizer, who can arrange for a week trip to show around in Panama. i prefer cooler spot to live but not cold.
can i communicate with a expediter who can process my residency papers in panama.
Greetings Liz
I’m in my late 40s and nowhere near retirement age, but your site popped up on a search re Panama. My husband and I are well travelled (like many Australians, the wanderlust is strong). We’ve been around Europe, Africa, SE Asia and other places, but not Central America. We are avid scuba divers, hikers and lovers of nature. Would there be any good diving areas in Panama? We like seeing the big stuff like sharks and manta rays. It will be hard to beat the Solomon Islands and parts of Indonesia for diving, but we are also interested in all the nature. Would you recommend Panama for this? Australians are able to retire in Panama too (if we are born in Australia, our govt will let us take our aged pension to several countries and Panama is just one). Have to wait until age 67 though!
So just enquiring about the reefs and beach areas of either country, in the first instance
Regards
Linda
Kind regards
Lynda
Hi Liz, great article and really useful. We are ( were! ) looking at relocating to Costa Rica and buying an existing business – B&B, yacht, tourism based business. We visited CR earlier this year and loved the beach lifestyle of the Pacific coast, Pura Vida ethos, wildlife.
The issue clouding my judgement at the moment is the increasing crime in CR – i really dont want to relocate to somewhere i dont feel safe, i could stay on the UK and get that!!
Do you have any links or contacts who we could initially contact about buying a business in Panama – just looking for a start point really.
Thanks for your help, Justin
Hi there Justin! Thanks for your message – the right referral would depend on whereabouts you were looking at basing the business…do you have any firm idea of what part of Panama you want to be based?
Hello Liz, this is a very good debate!
I have lived in Panama City around one year and I have visited Costa Rica, I can say that Panama have a better future than Costa Rica, in economic and tourist aspects… Like you said, the incidence of crime in Costa Rica is higheer than Panama, and this is a importan thing that peoples study before moving.
I prefer living un Panamá city or in bocas del Toro haha…
Liz, great information. I have a question that if you can answer that would be great or direct where to get the answer. I have a pension from a municipality in the US and want to know if I can transfer the monthly payment to Panama once I get Pension Status completely tax free from the company handling the distribution or do I still pay State and Federal taxes in the United States before it is transferred? Thank You!!
Hi Mark! Thanks for your question, it’s a bit of a curly one…for that I think you would need to consult your taxation agent in the US with knowledge of your particular state. Panama won’t tax you on foreign sourced income, like a pension, but as to what State or Federal taxes you should consult a local US expert. Cheers, Liz
Hi Liz, Thank you very much for the great information about Panama. We would like to come for retirement with my wife. Can you tell me please how to apply for pensionados visa, how to get permanent residency. Do we have to apply from here in Canada or obliged to apply in Panama? How long it will take time? How much costs the pensionados visa and permanent residency status? how long it will take to get the citizenship? Can a couple live on $2000 (CAD) per month?
Is there any 2 br condos or small houses for less than $100.000 to buy? Is there any opportunities to operate a small business as a coffee shop, gift-store, small grocery shop ?
We will be more than grateful to you to answer on these questions as soon as possible. Thanks a lot for your time and efforts, God bless you.
David
Quebec-Canada
Hi there David, and thanks so much for your message! To apply for a Panamanian residency visa, you do need to apply in person, and with the services of a solicitor. I would be happy to give you a referral to someone I know does good work if you would like, and they can walk you through the options and process. The costs will depend on the kind of visa you are applying for, either a pensioner visa or a Friendly Nations Visa, but you can have residency within around 6 months of applying if you have all your documents in order. Citizenship is available as an option after 5 years of residency.
On the budget you have stated, that would be fairly restrictive. yes there would be houses for under $100,000 to buy, but you would be living in a very local style, and possibly not with the amenities that you would like which many expats are accustomed to. There are opportunities for opening a small business, although certain businesses are restricted to Panamanian citizens only, not expat residents, and on the Pensionado visa there are restrictions on working to be mindful of.
The best advice I can give you is to make a trip here and visit areas to see what is available, and whether Panama is a good fit for you and your wife.
I hope these answers are useful to you, and have a great day! Liz.
Hi David
we are a Canadian couple looking to move to Panama
is it possible to keep in touch to get more info/
thks
Liz, I am a Costa Rican that enjoys travelling to Panama and have a lot of Panamanian friends. But I am confused as to where do you get the information you portray here. Panama is a Country with 38% poverty as compared to an 18% one. Panama is what a journalist called “Switzerland surrounded by Haiti”, to describe what looks like a First World city in an completely underdeveloped Country. Panama City’s weather is very hot and humid, compared to San Jose’s mild 70’s. Health, Costa Rica has the best social security system in the area which foriegners can register to, together with some of the best hospitals in all Latin America (which take American insurance). Law rights, I am an attorney and trust me, for you to lose your land to squatters is because you haven’t visited it in years (which would happen in Panama as well). You haven’t mentioned a very important fact, that Costa Rica’s Judiciary is among the best standards of transparency in the planet, where Panama doesn’t even come close. My direct opinion to all readers: Panama: difficult weather, no show employees, terrible road traffic but great food, cheaper, very nice people, more cosmopolitan life. Costa Rica: expensive, harder to do business, expensive, better beaches, expensive, more culture, expensive, much better weather, expensive, Latin America’s oldest most solid democracy, expensive, way more tourist destinations that Panama, expensive, Human Rights reference in Latin America. Oh, did I mention expensive? Please, do NOT underestimate this.
Liz, I would like to come to Panama in a couple of months for the first time to get a sense of whether or not I would enjoy retirement there. Can you give me any contacts to hire so that i can get a good taste/feel for the country during my weeks’ visit? I know that isn’t much, but it will give me a taste.
Hi Bill, Do you know what area you are planning on staying in, so I can connect with people in the right area? If you only have one week, you might want to split your time between the city and somewhere out at the beaches like Coronado or Gorgona.
Liz, your article is convincing enough for me to focus on Panama. Healthcare is important to me. Personally, finding the right health care specialist can be challenging, that said I would rather be in a country where health care professionals are not hard to find. For that reason, Panama is in.
As for the squatters, I don’t understand how one can buy land and then a local feel it is their right to build on it. For that reason, Costa Rica your are out.
Hi Alice! I would recommend that you make a visit to Panama to experience it for yourself! Liz
I was interested in your comments on Internet speed. Can you comment in more detail on the speeds available in Panama City as well as Coronado? Thanks.
Internet speed packages up to around 30MB are available, I’ve seen ads from Cable Onda for 60MB packages but I’m unsure if they are actually delivering that speed. Some of the areas outside of the CBD do not run quite that high. It seems from what people in the community are sharing that the streaming speeds in the last year or so have been on the increase.
Costa Rica
//
/
//
/
/
/
Vs
/
/
/
/
/
///
/
/
Panama/
/
/
/
/
//
//
Who will win
Thanks for taking the time to put together this article. Another Aussie here making a move to Central America. Panama is at the top of my list so far, and your article has helped to reinforce that opinion before getting there and having a look for myself.
Cheers!
Wonderful! We also need more Aussies here!!!!
Liz, I wanted to let you know that we were originally looking at retiring in Costa Rica, but have been considering other options in Central America. Panama more so than others, and have really found this information very informative. We are hoping to visit Panama in approx. 3 – 4 months, and are thinking of the Coco Beach development. Not sure if you have any more info on this location. But would love to hear your opinions if you do. Many thanks,
Heather
Hi there Heather! Thanks for your message, and great to hear that you are planning to come to Panama for a visit to check it out for yourself, that is always a great idea. I don’t have specific knowledge on the Coco Beach development, the beach does look beautiful there but it is a little further from amenities than other areas. Make sure to check out various parts of Panama – for a small country there is lots of diversity, between the city, mountains and beaches! Liz
I am considering 3 countries for my escape from Trumpism and continuing retirement in peace and tranquility. Costa Rica, Panama, and Colombia. It would be nice to see your article on Panama vs Costs Rica updated , perhaps adding Colombia and even Ecuador, two other popular places for us. I have owned a casita in Altos del Maria, and hold a lifetime pensions do. I have traveled Costa Rica, Panama, and will check out Colombia next month. Thanks for your thoughts. Chuck Griffiths
HI Chuck, from the enquiries I am getting lately I don’t think you are alone in that plans! Thanks for the article suggestions, I do have intentions of doing a Panama v Colombia article, but I did do one last year on Panama v Ecuador. Here’s the link! https://www.lizlarroquette.com/ecuador-really-need/ Enjoy your trip to Colombia next month 🙂 Liz
Liz,
Thanks for taking the time to write such an unbiased and well written article on the two countries.
I am a retired school administrator and him wanting to leave the U.S. due to the direction the new administration is taking.
I am leaning towards Panama and appreciate you sharing your knowledge and advice.
Thanks,
Ron
Hi Ron, thank you so much for your lovely comments, they have brightened my day! If you are looking at relocating out of the US, definitely come for a recon visit first to see which part of Panama might be right for you. Cheers, Liz
so crazy. I need to find an escape I think panama wins although I’ve never been there. I have visited Costa Rica. I am 54 and ready to invest in living. Where to go!??
Hi Jeff! If you have been to Costa Rica already, come and visit us here in Panama to see if it could be the place for you. There are plenty of investment opportunities to start planning your ‘escape hatch’ now, even if you aren’t quite ready to make the getaway quite yet 🙂 Liz
My husband @ I are in our 70s want to retire .have been to Costa Rica loved the people but found home rentals more expensive than we thought .also need to be no more than 1 or 1 1/2 hrs from retina specialists.so Healthcare costs important. We traveled around central Valley areas ,not too impresse.only there for 1 week and Realtors couldn’t show us much.love the mountains and beach areas as well.want something laid back. Considering panama or ecuardor .would like to rent small furnished dog friendly house maybe not too far from beach area looking for laid back area. Want to rent around $800 a month or less.and near other expats.what do you suggest.
Hi there Beverley, it sounds like the areas of Boquete and the Coronado beaches area would be a good fit for you in Panama. Coronado is just over an hour from the specialist health care in Panama City, and Boquete is around 40 minutes from the medical facilities in David, however Boquete is quite far from the beach. Both areas have a large expat community. In Coronado, $800 per month rent in a small house may be a challenge, but perhaps in some of the surrounding areas. Many of the condominiums here are also pet friendly, and you may be able to secure a 1 br for close to your budget. If you have a chance to come and visit I would suggest that you check both of these areas out! Liz
Excellent write up on Panama & Costa Rica. After reading everything carefully I like Panama better. But I need some advice. My wife and I are retired and wants to come for a visit to Panama to see things around. We are retired, but still have some energy to give it to the community. I am wondering if there is any voluntary work that is connected to a Church that we can do in Panama.
Can you give us some kind of connection or referral that we can go to and find out for ourselves. In return we will tell other people in Canada about your Real Estate ventures. I know most of the business works with word of mouth and referrals. We cannot afford to buy any property right now, but want to rent for a while and see how it works for us. I hope you can give us sosme advise and guide us and we will be ever grateful to you. Best of regards, Claudius.
Hi Claudius, thanks so much for your kind words! It is definitely a good idea for you and your wife to come and visit, and experience Panama for yourself to see if it is the right retirement destination for you, and where you want to live. In regards to volunteer work, there are a number of volunteer and charity efforts to help others less fortunate. I can put you in contact with someone involved in one of my local Churches if that would help to get an idea of what programs they have available, it would be my pleasure.
I think it should be noted that Jaco is 1.5 hours from SJ, not 5 as suggested. There is definitely a bias for Panama in this article. One needs to experience both places for themselves in order to make an informed decision.
Hi there…thanks for bringing that to my attention I have amended the information, although some blogs do indicate that travel time can be extensively delayed up to 3 or 4 hour depending on what type of transport and you use and the traffic. I absolutely agree that people need to go to a place to see (and experience) the differences for themselves to make the best choice based on their personal circumstances! Liz
What a great article truly informative have a girlfriend that’s going down to check out Panama I was wondering what you thought about 60 something single women in these areas and how comfortable and safe they can be
Hi Cathleen, thanks for much for the kind words! I know many mature single ladies who have made their homes here in Panama. There is a very active social scene here in Panama, particularly out at the beaches in the Coronado/Gorgona area, and most of the new residential buildings have 24 hour security on site. Nowhere in the world is crime free, but I would have no reservations about recommending Panama for someone like your friend! Glad to hear she is coming for a visit to check us out for herself 🙂 Liz
Enjoyed the reading. Interested in visiting Panama from Florida maybe next year.
Hi Maria, that’s fabulous. So glad you enjoyed the post, definitely come and see Panama for yourself! Liz
You forgot to mention vechical registration in Costa Rica. Dollar on a Dollar meaning what you pay for vechical is the same amount you pay for tag.
Very good article. One thing though, as a naturalized Tico..having visited Panama once or twice, I have noticed that in Panama the people seem decidedly unfriendly, whereas Ticos are gregarious, generous and social. I have heard this from other Ticos who have spent time in Panama, and although this may seem like a small thing, I realize that virtually all my friends in Costa Rica are ticos, not expats..It may be that after many years here I feel more of an affinity and speak the language, but I have to say, the coldness I felt in Panama would certainly influence my thoughts about moving there. I’m not sure if you have felt this or not..
It’s Colombia, not Columbia.
Big oops! Well spotted, I’ve fixed that typo now!
Great article, definitely helpful. I am a 30 year old male looking to escape the rat race of the Washington DC area, and I love the Hispanic culture a lot. I am interested mostly in Costa Rica, Panama and Colombia. From everything I hear, Panama seems like the best option for safety, jobs, and affordability. The thing is I like beaches; I need to work obviously, so I want to be close to a city and beach. I was thinking working in Panama City, and living in Coronado or something.
Hi Chris – Coronado and Gorgona are close to the city, and it’s an easy drive to the city (unless you hit the traffic peak hour!) Or other options like Casa Bonita at Playa Bonita is 15 minutes from the city, and still gives you ocean views and great amenities. The beaches at Coronado and Casa Bonita are a little different though – I recommend that you come to Panama for a visit and see what options might suit you best!
Liz thank you so very much for your informative articles,I ‘m thinking about spending a month or 2 in Panama to get the feel if this is the place that I would like to call home,a few questions: my monthly income is $ 1900 a month can I live comfortably on that,which beach town is affordable and safest.Oh one more thing can I get by with very little spanish,thanks Liz.
I’m always glad to hear people are enjoying them, thanks Robert! Getting by without much Spanish, it is possible in places along the beach where there is a concentration of expats, like Coronado or Gorgona. Or there are outlying communities like San Carlos, or El Palmar, which are smaller but not far away from As for your question about living comfortably on $1900 per month – technically it is possible to live on $1900 per month, but it depends what your definition of comfortable is, and what kind of lifestyle you envision. Around the beaches area, rent will be your biggest expense. Coming to spend a month or two is a good way to test the waters, talk to other expats about their experiences!
Just 2 things Costa Rica beats Panama in are A decent size metro area in a higher elevation and lower rent in that city ( San Jose. ) If Panama had a decent size city in the mountains ( 300,, 000 + ) I would be there already..
Glad I found this article! Tired of the US and looking into other (tropical) places. Need to find a job in Panama 🙂
Hi Monique, Thanks for your message – funnily enough I just posted a new article about people re-inventing their job opportunities here in Panama!
Panama offers infite amount if opportunities when it come to traveling,or simplymenjoying retirement . Tocumen intl airport offers a wide range of flights to Canada ,US and Europe
Theres a mountain comunity near Panama city it s name is Los altos de cerro azul ,it is located in chagres national park and it is only 45 mins from the city and 25 mins from tocumem intl airport it ismamreal cool place to live ,there is a good retirees comunity .
Google los altos de cerro .
In cact i am sadly selling my property up there in the mountain since i have been transfered out of the country . But if it was for me i will stay there for life ..
I find your information very helpful and will use to my benefit, however you made no mention of how expats fair in there New environment or are excepted by the people of Costa Rica or Panama; What social actives and/or communities groups should one considered becoming familiar with in these countries
Hi, glad you find the info useful. I’ll be covering social activities in future posts. I’ve been working on some travel log style content so people can get a feel for those types of activities.
Hi Liz!
Thanks for the great article, your hard work is very much appreciated!
My husband and I, along with our dog, have been taking a road trip across central america, currently in Costa Rica. Up until we read your article, we were having a hard time deciding where to set up shop, thank you for helping us decide to continue on to panama!
I have a couple of questions:
Do you see a lot of military/ police check points in panama?
Are there any elevated mountain towns where the air is a little cooler near Coronado?
We should be crossing into Panama at the end of September 2015, and we hope to meet you one day!!
Thanks again!
Mags and Rich
Thanks for the kind words Mags. Glad you’re coming to Panama. Yes, there are some checkpoints at the borders and near them. El Valle is about an hour’s drive from Coronado and fits the cooler mountain town bill. La Casa De Lourdes is my favorite place to visit up there on a weekend: http://lacasadelourdes.com/ (it’s beautiful). You can sometimes find a deal on https://ofertasimple.com/ (it’s like Groupon, but for Latin America — there are some great deals to be found). Feel free to drop me a line via email, if you have any specific questions. Happy to help! Safe travels.
We visited Coronado and love it. Can you recommend an agent for short-term rental in Coronado.
Sure thing. I’ll shoot you an email.
I’m particularly interested in tennis in Panama. I’m a certified pro who would like to supplement his social security by teaching and/or coaching.
It’s all here Kim. We’ve got tennis courts out in Coronado and in the city too. I don’t have much experience with topic of Tennis, but I’m sure the youth market would be great (both Expat and Panamanian).
Hi Liz,
thanks for sharing your knowledge with the world.I would like to visit Panama I will greatly appreciate your help for guidance,I’ve subscribe to the VIP list.
Thanks again
Paula
Welcome Paula. Feel free to email me anytime.
Hi Liz, this was probably the best and most comprehensive comparison of Panama vs Costa Rica – thank you so much!
My husband and I live in the US with our 5 year old daughter and we’re looking for a change in life and lifestyle. The one area we haven’t found enough information is on schooling/education in both these places. Would so appreciate your insight on it or direct me to where I can find this information please. Also, we are from India and was wondering if there is an Indian population and if there is racial discrimination in either of these places. I understand there is discrimination everywhere but I would like to understand the level of severity in Latin America.
Thank you again – Shalu
Hi Shalu,
I’m glad you enjoyed the article! It takes a great deal of time and research to create them (especially this one). And it makes my day when good folks like yourself take the time to reach out and let me know I’m on the right track. My children are just a little older yours. In Coronado, where I live there’s a few schools to choose from. There’s no discrimination that I’ve seen. The guy who manages my marketing is from Goa, India and says it’s a night and day difference here, as opposed to where he lived before in Sarasota, Florida. Expats are a friendly bunch (if anything a little too friendly). And the Panamanians, whether they speak English or not (or vice versa) are very friendly to foreigners. To put that in perspective, they have an annual street party here (Carnival) and thousands of people gather in the streets for several days and drink and get merry, no fights / no ruckus – just good times! Panama’s a laid back place, even though they beep there horns all the time… it’s the way they communicate on the road, ironically. Feel free to drop me an email and we can chat more. Have a great evening! And I’m looking forward to seeing you in Panama 🙂
Hi Shalu, there is an Indian community in Panamá both hindu and muslims and in fact they are a very important part of the economy of the country since many decades ago. There is one Hindu temple, in Panama City, and various mosques around the country.
Regarding the schooling, i recommend the private schools, there is a lot of different offers with prices accesible to everyone.
Please keep us in the loop for any and all to do with new Coronado projects.
Will do Bert.
Hi Liz,
Like your news letter. Your comparisons of Costa Rica & Panama are pretty dead on with one exception you should update, ie:
“Jaco, a community in the Central Pacific region of Costa Rica, is well developed but located five hours driving from San Jose.”
They finally finished the highway a few years ago and made the drive much easier & shorter, about 1 1/2 hours if I recall correctly. That has also increased beach traffic & Jaco upward property pricing as well.
We did experience petty thief in Costa Rica, which is very prevalent as well. I did have a serious fall in Costa Rica and the care and the low cost we exceptional.
Also I recall that we were giving at the airport a medical card when arriving in Panama for free health care for the 1st 30 days. Don’t know if that’s still going on. If it is it might be worth adding to your article.
For us it’s Panama for all the reasons stated in your article.
Looking forward to returning to Panama,
Mike & Maggie
Hi Mike,
I put a lot of time and effort in researching and verifying my sources, but it’s hard to catch everything. And comments like this are well received. Thank you kindly!
Hi Liz 🙂
Thank you for your super insightful newsletter! After spending some quality time with you in Panama a few years ago, I’m ready to make a part-time move to Panama…just need the wife to be on board? I think she needs a bit more time to be convinced to leave the kids and grandkids. Lol
Thanks again for the newsletter updates.
Kind regards, Cathy and Kevin (Alberta, Canada)
Cheers Kevin. Perhaps, a few short trips to Panama are in order. Increasing the amount of time away from home, gradually. Also, often when you tally-up the savings of living in Panama, tack on the cost of flying family out once per year (or flying home), you still come up with ample spare change.
Hi Kevin! I have close friends that are Canadians and have moved to Panama…currently live here and have their kids raised here and all. Let me know if you would like their contact info for some questions you might have.
Hi!!
I have been receiving the International Living magazine for a couple of years. We are nearing a time when we want to make a move and found your site…like it! Have seen negative reviews about info given out on IL. Confused what to believe! Help please…
Thanks,
Kerry and Ed
Nothing beats getting down here for a few days and seeing the place for yourself. Feel free to drop me an email or better shoot me a call as well (click on contact in the top right on the site).
Hi
My husband and I are starting to plan a trip for November to check out Panama and maybe Ecuador or St. Croix as possible places to go in the winter in the future. Can you help
me decide where to stay for a week in November. We would like to be near the ocean and not too far from an airport. We live in Oregon. Thanks. Stephanie
Hi Stephanie,
I’d come and check out Coronado. Send me an email, and I’ll do my best to help you plan your trip. My contact info can be found here.
Dear Liz,
I stumbled across your article while researching Panama as a potential place to relocate. I am intrigued and hope it will be for me. I am happy to join your list.
Hi Edward,
First comes Research and then a trip. Make sure to let me know when you’re coming to Panama.
Hi Liz. Thank you for the nice article regarding both countries.Any information that will help me learn and hopefully visit Panama will be greatly appreciated.
Roger that Charles. You’re my VIP list 🙂