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Panama (PA)

Panama is one of the most popular expat countries in the Americas in 2026, especially for retirees, remote-income households, investors, entrepreneurs and families who want US-dollar living, strong air connectivity, private healthcare and established expat communities.

Capital: Panama City
Region: Americas
Language: Spanish
Currency: USD ($)
Cost of living: Affordable (index 55)
Emergency: 911

Country Profile

Everything you need to know before you arrive.

Panama is one of the most popular expat countries in the Americas in 2026, especially for retirees, remote-income households, investors, entrepreneurs and families who want US-dollar living, strong air connectivity, private healthcare and established expat communities. Panama City, Boquete, David, Coronado, Bocas del Toro, Pedasi, Santa Fe, El Valle and the Canal corridor all attract different profiles. Long-term residents should plan around Servicio Nacional de Migracion permits, DGI tax residence, CSS payroll rules, Panamanian banking KYC, private medical coverage, leases, property title, driving, Spanish-language paperwork and the practical need for a trusted lawyer or contador.

Capital
Panama City
Population
4.6M
Government
Presidential constitutional republic
Calling Code
+507
Drives On
Right side
Currency
United States dollar and Panamanian balboa ($)
Languages
Spanish
Timezones
America/Panama

Climate

Spring

March-May: late dry season into the start of rains. Panama City is hot and humid; Boquete and highland Chiriqui are cooler. Wildfire smoke and water pressure issues can appear near the end of the dry season.

Summer

June-September: rainy season with heavy afternoon storms, flooding risk, landslides on mountain roads and high humidity. The Caribbean side can be wet even when the Pacific side is drier.

Autumn

October-November: often the wettest period, with stronger flooding and road-disruption risk. Independence holidays in November create closures, parades and travel demand.

Winter

December-February: dry season returns, with strong sun, trade winds and peak tourism in many beach and highland areas.

Packing tip: Pack breathable clothing, rain protection, sun protection, sandals plus serious walking shoes, copies of prescriptions, power-bank/backup internet gear, and a light layer for Boquete or air-conditioned offices.

Demographics

Mestizo and mixed heritage communities 65%
Afro-Panamanian and Afro-Caribbean communities 12%
Indigenous peoples including Ngabe-Bugle, Guna, Embera and Wounaan 12%
European, Asian, Middle Eastern and other ancestry 6%
Foreign residents, regional migrants and expat communities 5%

Religion

Roman Catholic 63%
Protestant / evangelical and other Christian 25%
Unaffiliated 7%
Other including Jewish, Muslim, Buddhist and Indigenous traditions 5%

Social Culture & Etiquette

👋 Greetings

Warm greetings, buenos dias, handshakes and polite small talk matter. Use usted in formal settings, especially with officials, older people and service providers.

⏰ Punctuality

Government, medical, school, notary and professional appointments should be treated as strict. Social timing can be more flexible, and traffic or rain can change plans quickly.

👔 Dress Code

Dress neatly for Migracion, DGI, banks, notaries, lawyers, schools and business meetings. Panama City offices can be more formal than beach-town newcomers expect.

🚫 Taboos
  • Do not assume Panama is just a cheaper version of the United States; local law, labour culture and bureaucracy are different.
  • Avoid heated arguments with officials, police, landlords or building staff; calm persistence and written proof work better.
  • Do not make casual jokes about the Canal, corruption, security, US intervention history or local politics with people you do not know well.
  • Do not photograph police, immigration desks, banks, ports, Canal facilities or sensitive infrastructure without permission.
✅ Social Norms
  • Spanish is essential outside high-end expat, banking, tourism and multinational circles.
  • WhatsApp is the default communication channel for landlords, doctors, schools, lawyers, drivers, trades and neighbours.
  • Building administration matters in Panama City condos: security desks, parking rules, pet rules, noise and elevator reservations can shape daily life.
  • Tipping is common in restaurants, delivery, tour services, movers, building help and private drivers.
  • Keep copies of passport, resident card, cedula, RUC/NIT, lease, utility bill and insurance card ready for administration.

🍽️ Traditional Food & Drink

Sancocho

Chicken soup with culantro and root vegetables, often treated as comfort food.

Ropa vieja

Shredded beef in tomato-based sauce, usually served with rice and beans.

Arroz con pollo

Seasoned rice with chicken, vegetables and olives, common at family gatherings.

Carimanolas

Fried yuca rolls stuffed with meat or cheese.

Patacones

Twice-fried green plantains served with fish, meat or dips.

Ceviche panameno

Citrus-cured seafood, especially corvina, sold in seafood markets and restaurants.

Chicheme

Sweet corn-and-milk drink associated with La Chorrera and roadside stops.

Seco herrerano

Sugarcane spirit used neat or mixed in cocktails.

Geisha coffee

High-end specialty coffee from Boquete and Volcan, famous worldwide.

📍 Tourist Highlights

Panama Canal and Miraflores Locks
Panama City / Canal Zone

Canal viewing, museum exhibits and the country-defining logistics corridor.

Casco Antiguo
Panama City

Historic quarter with restored colonial buildings, restaurants, nightlife and boutique hotels.

Boquete and Volcan highlands
Chiriqui

Cooler climate, coffee farms, hiking, birding and one of Panama's best-known retiree expat communities.

Bocas del Toro
Bocas del Toro

Caribbean islands with beaches, surf, Afro-Caribbean culture and a strong expat scene.

Coronado and Pacific beach towns
Panama Oeste

Beach condos, gated communities, golf, clinics and weekend access from Panama City.

Azuero Peninsula
Los Santos / Herrera

Pedasi, Las Tablas, festivals, surf, fishing and a slower dry-forest coastal lifestyle.

📖 Brief History

Panama connects Indigenous history, Spanish colonial routes, independence from Spain, separation from Colombia in 1903, the Panama Canal, US military presence until the Canal transfer and a modern service economy built around logistics, banking, trade, aviation, tourism and multinational headquarters. For expats, that history matters because the country is small but globally connected: Panama City can feel like an international financial hub, while highland and coastal communities run on slower local relationships.