IL Postcard

Panama Remains in IL's Top Five

Date: 09/03/2007

International Living has just released its 2007 Global Retirement Index. As you may know, Panama has been at the top spot in this annual index for six years in a row. This year, however, Panama drops to the #4 spot.

Why? As IL Editor Laura Sheridan explains, "Panama still has the same great retiree benefits…this hasn't changed since last year." In fact, Panama still ranks #1 for retiree benefits. This is primarily because Panama's Pensionado (pensioner) visa program facilitates residency for pensioners and provides for a wide range of discounts, including 15% off hospital bills, 10% off prescription medicines, 20% off medical consultations and 15% off dental and eye exams (unless insurance applies).

But, Laura says, some things have changed-specifically those things we've been writing about in your Panama First Alerts (read past alerts in our archives, here). For example, since the government of Panama recently put a 30-day limit on tourist visas for U.S. and Canada citizens, it has become more difficult for visitors to scope out the country during extended stays. As for the so-called "snowbirds" looking to buy part-time homes here-they must migrate elsewhere or seek Panamanian residency.

For non-pensioners, one of the more popular options for residency is the Person of Means visa, which can be obtained via a property investment of $200,000-no small sum. And Panama's popularity over the past few years has driven up real estate prices. Not only that, but one of the big incentives to buy property in Panama-the country's 20-yearproperty tax exemption law-has now expired. (Although property exemptions of five to 15 years are still on the table.)

It is important to understand that the 20-year property tax exemption was never meant to last forever. This law was passed many years ago to enable the country to get on its feet and encourage economic growth. There is absolutely no doubt that this has happened-one has only to visit Panama to see proof that the economy is strong, the infrastructure is improving, and the building boom continues. As Laura says-and your editors here in Panama wholeheartedly concur-Panama still has much to offer. Whether you're enticed by the friendly people or the tropical climate, Panama still ranks among IL's top five retirement destinations on the planet.

Topping IL's Global Retirement Index this year is a country that's always been popular with the expat crowd, and also with a retiree incentive program that is rivaling Panama's: Mexico. Foreign residents of at least 60 years of age can now participate in Mexico's Personas Adultas Mayores benefits program, which offers discounts on a wide range of services. Plus, Mexico is close to home for U.S. and Canadians, offers rich cultural traditions and all the amenities they enjoyed at home.

How does IL determine its rankings? Its researchers and editors compile, weigh, and rate a series of criteria including cost of living, culture, infrastructure, healthcare, safety and stability, real estate, special benefits and immigration perks, etc. They rely on outside sources for much of this data as well as on input from those of us living abroad.

What are the other countries that top International Living's list as the world's top retirement havens? You can read the complete report and obtain a copy of the Global Retirement Index in the September issue of International Living magazine.

Best Regards,

Jessica Ramesch
Editor, Panama Insider
International Living

P.S. Despite rising prices in Panama, it is still possible to live here for less. In fact, we recently challenged our Panama-based staff to report on living in Panama with a budget of $1,000 a month. Can it be done? You can read the full report in the most recent issue of Panama Insider. Not a subscriber? You can become one quickly and easily.