Panama: Undiscovered Retirement and Investor Paradise

I recently spent 8 days in Panama.  It was my first time traveling there, and I was very surprised to discover Panamanian quality of life.  Indeed, the New York Times rated it as the number one place to visit in the world.  Upon arrival at the airport, all tourists receive free health insurance.

In Panama, the Atlantic Ocean is north and the Pacific ocean is south.  The Darien Gap is only stretch of the Pan-American highway that is not connected. Some basic facts about Panama:

• Population: 3.571 million (2011)  (Population of Panama City is approximately 700,000)
• GDP: 26.78 billion USD (2011)
• In 2011, Panama had an unemployment rate of 2.7% (lowest in the region)
• Life Expectancy: 76.15 years (2011)
• Female Literacy: 91.2%
• Seats held by women in parliament: 8.5%

• In recent years, Panama's economy has experienced an economic boom, with growth in real gross domestic product (GDP) averaging over 10.4% from 2006–2008.
• The homicide rate fell in 2010 and 2011, which ended with a reported 704 homicides for the year – a rate of 19.3 per 100,000 inhabitants

One of the main novelties about Panama is its bold attempt to attract retirees and investors.  Panama has a number of incentives for potential retirees and investors including: being able to bring our possessions (up to $10,000) duty free, enormous discounts for retirees at restaurants, for entertainment, airfare, transportation and other activities, being able to live at very cheaply, access to very good healthcare, use of the American dollar as currency, and few worries about economic/political stability and crime, and last but not least a very accessible visa system. In 2013, it was listed as the second best place to retire according to International Living.

Here are some reasons why you might want to retire in Panama

• A 2012 poll found that Panama has the happiest people in the world.
• Panama City is the 5th cheapest city in the world for foreigners to live (Monthly total for a First-World lifestyle in the big city: approx. $1,700 to $2,500) 
• You can own a firearm in Panama legally (important for many Americans) 

If you are planning on visiting Panama, I have some recommendations.

• When visiting Panama,  Panama City will be your hub.  But, you should plan on spending at least 3 days there.  The best area to stay is Casco Viejo.  And, the best hotel to stay is Hotel Tantalo.  Compared to all the hotels where I have stayed in the world, it is the best.  The Hotel is affordable, at around $120 per night.  It provides free gourmet breakfast, free phone rentals, free bike rentals and much more.  Each room is uniquely designed by a Panamanian artist.  The customer service and staff are excellent.  When you leave early in the morning, they even pack you a to go breakfast.  And, it had one of the hippest rooftop bars in the city (but you can't hear it from your room). 
• In Casco Viejo, you can easily walk around for hours.  There are numerous shops, restaurants, cafes, coffee shops, ice cream bars, cars, historical buildings, and galleries to spend two days.  It is also very safe.  There are police located every block. (Really, I went at interviewed the police.)   I recommend eating ceviche at La Rana Dorada.  Definitely try the ice cream at Grand Clement.
• Off course, visiting the Panama Canal is a must do.  The canal (Miraflores Lock)  is located across from the City of Knowledge and can easily be reached via taxi or bus. You can also take a boat through the entire canal.  You have to book in advance and the trips are available on Thursday-Saturday only.  If you go through the canal, you can see the prison where former  Noriega is being held.  The Miraflores Lock has a museum, short video, and viewing deck.  You can also eat lunch/dinner there and watch the ships go by.  About 30 ships go through each day.  
• Panama Vieja (Old Panama) is also interesting. It is a small walk through the ruins of the old city that Captain Morgan destroyed.  (Yes, the rum is named after a British pirate).  It is a little far and not easy to get to, but any taxi will take you there for about $5. 
• Ancon Hill is a rainforest in the middle of the city.  You can walk to the top or take a taxi. It is better to walk, because you can see the wildlife of the rainforest, including sloths and toucans.
• Surprisingly, the fish market (Mercado de Mariscos) near Casco Viejo is off the tourist radar.  The fish market is open until about 4pm and you can see all the many different types of fish and seafood local to Panama.  It is also very cheap and houses the best ceviche in town. 
• Panama City is also very bike friendly.  You can ride a bike through Casco Viejo and then along the Cinta Costura, which is a very nice and safe 2 mile bike ride.  Along the way, you can stop for fresh popcorn and shaved ice. 

• Outside of Panama City, I only went to the San Blas Islands.  It is home to the Kuna Yala people and is rated the third best tropical paradise in the world.  The area is governed semi-autonomously.  You can either go there by car and camp or fly to one of the islands and stay in Kuna lodges.  I flew and stayed at Yandup Island Lodge.  The flights are on AirPanama (landing in Playon Chico), and they cost around $80 one way.  It is about a 45 minute flight and the plane is very small!  However, it is definitely worth the trip.  You should plan on spending between 2-3 nights here.  The lodge takes you to a private island beach every morning and has an afternoon activity (either a community visit, visit to cemetery, or boat ride through the mangroves).  All three meals and activities are included. The price is around $230 per night for a hut for two people.  The service at Yandup was good, but not as good as in Panama City.  Another way to visit the islands is to show up via airplane and have community members find a island hut for you and serve as guides.  There is plenty of fish to eat, so this option is not so far fetched!