Boquete in Panama is popular with expats

Where we were standing, he told us, the first residences would be built. And down below, to the left, would be condo buildings. To the right would be the hotel, restaurant and spa… all overlooking the golf course. There were also plans for an amphitheater and a wellness center…

He clearly had a vision, but at the time—standing knee-high in brush atop a steep tree-covered hill—it was tough for us to share.

In early 2001 we were on our first visit to Panama, our first research visit of any kind, in fact, on our journey to relocation outside the U.S.

Our guide that day was Sam Taliaferro. A former Coloradoan married to a Panamanian, he had picked the little mountain town of Boquete in Panama’s Chiriquí province in which to build his version of paradise. And what a pick it was…

Mostly a small supply-center village back then, Boquete was but a handful of hardware stores and local cafeterías. Not much to do but watch the flowers grow. Not many expats to speak of (or with).

But there was something special about that little valley on the edge of town where Sam planned to build an upscale, gated community… the first of its kind in Panama. Although it was hard to see what he saw in his mind’s eye, there was no arguing the beauty of the landscape.

From our perch on the hilltop that day, we gazed over a lush, green, coffee-growing, bowl-like valley. Running through it was a crystal-clear, boulder-strewn little river that defined the term “babbling brook.”

Boquete was one of Panama’s “best-kept” secrets—a sleepy little flower-filled village in the heart of an agricultural region populated by indigenous farm workers and the few longtime residents who owned the farms and/or supporting businesses. Wealthy Panamanians, who lived and did business in the capital city, had country homes here where they came to escape the city chaos, heat and humidity.

On the slopes of majestic and dormant Volcán Barú, at a comfortable elevation of 3,500 feet above sea level, Boquete enjoys perfect spring-like weather year-round—temperatures never fall much below 60 F or rise much above 80 F.

International Living had been writing about Boquete’s charms since 1998, but it was still a pretty unknown entity from a foreigner’s perspective—as was Panama itself—when we got there in 2001.

Fast forward to 2011. What a difference a decade makes. These days, little Panama is quite grown up and has become the region’s shining star of democracy and economic prosperity…

And what about Boquete? Soon-to-be retirees flocked here in search of low-cost real estate and a better quality of life. And that’s indeed what they found.

The utopian vision Sam shared with us in 2001 is now a reality. The babbling brook is still there, but the valley itself has been forever changed. He built the homes, condos, hotel, spa, golf course and more. The last condo buildings are going up now, with only a few three-bedroom units left for purchase with prices starting at $215,000. (For more information, email John Maesky .)

No one tracks the total number of foreign residents in Boquete, and the numbers moving there have slowed in recent years, thanks to the global recession. But it’s estimated that somewhere between 1,000 and 2,000 expats live full-time in the Boquete district, which has a total population of about 23,000. (The district encompasses a total area of about 190 square miles surrounding Boquete town, with its estimated population of about 8,000.)

There are now more than 10 gated communities—both small and large—in Boquete, with more than 1,000 home sites. (Prices range from $140,000 to $1,000,000—something for everyone. For more information, email real estate agent Magda Crespo.)

And there’s no dispute that growth has changed Boquete. Since our first visit there in 2001, the town center seems more congested, with more cars and definitely more shops. But it’s prettier, too, with a spruced-up plaza and municipal buildings.

Some believe the increased number of foreigners has caused prices across the board to rise—everything from real estate to the home-grown coffee—but that’s also an effect of time. In any case, signs of Boquete’s increased prosperity are everywhere. The biggest improvements have come in the form of health care facilities and food sources. And in the number of organized activities available to both tourists and residents.

Today, for instance, there are both public and private clinics in Boquete, as well as a 24-hour clinic and laboratory, and four pharmacies. Two excellent private hospitals and two public hospitals are in nearby David, 25 minutes away, along with the domestic airport.

There are three decent-sized supermarkets, and there’s now a Tuesday market where you can buy organic produce, artisan breads, natural health, beauty, and home-remedy products, and more. And it’s here that you can rub shoulders with fellow expats in a weekly meeting where local issues are discussed.

To keep you busy other days of the week, there’s a Bridge Club, art classes, dance classes, an English theater group… and if you like the outdoors, you can go zip-lining, whitewater rafting, horseback riding, or hiking in nearby Volcán Barú National Park.

As for restaurants, you’re spoiled for choice in Boquete, with everything from simple coffee shops where you can eat for a buck or two to upscale international fare.

Boquete fits the bill if you’re looking for a well-developed community with built-in neighbors and activities. If that’s not what you’re looking for, take a scenic drive around the mountain…

‘Round the Mountain: Volcán and Cerro Punta

Just last year, a highway was opened from Boquete around Volcán Barú to the village of Volcán. Previously, both towns were only accessible via separate roads emanating from different points along the Panamerican Highway at the base of the volcano.

Will this new highway bring to little Volcán more visitors in search of opportunities similar to those found in Boquete a decade ago? Yes. In fact, it’s already happening. But unless someone builds a community on the massive scale of Valle Escondido, it’s doubtful Volcán will ever become a “destination” as Boquete has.

As a local real estate agent explained, “Boquete is for people who want to be around other people and have lots of things to do. Volcán is for people who like being alone and doing their own thing.”

Like Boquete, Volcán is coffee-growing country. But Volcán is also home to Panama’s largest and most productive dairy farms. Drive away from town and into the “tropical Swiss” countryside and you may never want to leave. Fuchsia-colored bougainvilleas line the roadway, beside which vast green valleys drop precipitously; rolling pastures unfold in the distance, dotted with black-and-white Holsteins. “Bucolic” is the word that comes to mind.

But Volcán town itself is little more than a roadway lined with hardware and agricultural shops, a couple of small supermarkets and cafes, and banks—a couple of new bank branches have recently opened, testament to Volcán’s growing prosperity. Yes, more expats are bringing dollars here, but Volcán’s prosperity comes from its local agricultural sources. That’s why you won’t find inexpensive farmland here… the land is productive and provides good income.

But if you just want a small piece of land near town… where you can live peacefully, have a few chickens and fruit trees, and grow enough vegetables for your personal consumption, you’re in luck. While you won’t find many garden lots in Boquete, they’re plentiful in Volcán. You can buy a one-third acre (1,200 square meters) lot in the middle of town, for instance, for $24,000.

Serious gardeners may like Cerro Punta even more. Just a short drive from Volcán farther up the shanks of Volcán Barú, Cerro Punta lies at an elevation of about 6,500 feet. This makes for cool, often cloudy days prone to showers and nights that certainly require an extra blanket on the bed. The near-constant mist provides cost-free irrigation, and the volcanic soil is perfect for growing potatoes, lettuce, radishes, and strawberries.

I dare you to drive past the many roadside stands selling strawberries and cream, strawberries in chocolate, strawberries in syrup, even strawberries in wine. Wash them down with a cup of homegrown, fresh-roasted coffee or hot chocolate, and you know that these lush Panama mountains are that much closer to heaven (see video footage here).

Where to Retire or Relocate in Panama today?

Today more than ever, Panama makes sense for the would-be expat. Those who qualify for Panama’s top-ranked Pensionado (Retirement) Program can import household goods and vehicles duty-free and be eligible for a host of discounts… from 10% to 50% off everything from doctor’s visits and prescription medications to restaurants, travel, and more.

Panama City and the Chiriquí highlands (specifically the towns of Boquete and Volcán) remain the favorite destinations for foreigners relocating to Panama, closely followed by the Pacific Coast Arco Seco (dry arch) beach towns and the mountain villages of El Valle and Sorá to the west of the capital. The Caribbean province of Bocas del Toro also attracts interest, while up-and-coming destinations include the Azuero Peninsula and the Chiriquí coast near the small town of Boca Chica.

Editor’s Note: Learn more about Panama and other countries in our daily postcard e-letter. Sign up for IL’s free daily postcards here and we’ll send you a free report: FREE REPORT — Panama: First World Convenience at Third World Prices.