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 Seven Reasons Why Panama is The World's Top Retirement Haven
--Kathleen Peddicord, Panama City, Panama
Panama City is a complete surprise, especially the first time you see it. A skyline of skyscrapers...modern office buildings and hotels, all glass and steel, facing out over the water. Just like New York. Just like Miami.
That's the impression as you drive in from the airport. As you get closer, you notice upscale restaurants and shops on many streets, a bank on nearly every corner (there are more than 80 international banks in Panama...and all are physically present, as brass plate banking is not permitted)...and then you realize that the roads you're traveling on are well-paved and pothole-free. And that the people walking along are well-dressed.
If you spend time here, you'll realize that the city is virtually crime-free...and that there's no violent crime here whatsoever.
In Panama City, you can avail of any service or convenience you take for granted back home. Every major franchise is here. Most major retailers. And the infrastructure (yes, largely thanks to the extended U.S. presence) is First World, even if the country technically isn't.
Panama has switched successfully from military (a common denominator for typical Banana Republics) to elected rule. And it is stable not only politically, but also economically, thanks largely to the U.S. dollar, which it uses as its currency...and to its geographic position, at the 'crossroads of the Americas.'
Historically, Panama has been recognized as a bridge...literally and figuratively...and, today, this country is the largest trading zone in the Western Hemisphere and the second-largest in the world. Panama is the world's largest shipping registry. And the Colon free trade zone is the largest in the Americas, second in the world only to Hong Kong.
In short, Panama is on its way to becoming the world's top retirement haven. The next San Miguel de Allende, Lake Chapala, or San Jose, Costa Rica. Here's why.
First, Panama offers advantages over every other Central and South American destination. Tax advantages. Privacy advantages. Indeed, it is one of the world's best jurisdictions for offshore asset protection and banking. If you're looking for a private, offshore bank account, a tax-free corporation, a trust, or other offshore structures, Panama is one of the few places in the world worth considering right now.
Second, this country offers near-perfect weather, especially in the interior (mountainous) Chiriqui region.
Third, Panama offers what we consider to be the world's best incentive program for retirees, offering substantial savings on everything from mortgage rates to utility bills (this program is detailed in the September 2001 issue, which subscribers can read here.)
Fourth, Panama is a very affordable place to live. A full-time, live-in maid costs $120 a month...first-run movies cost $1.50. Groceries cost 20% to 30% less than in the United States.
Fifth, Panama is the safest place in Central or South America (the Pinkerton Global Intelligence Agency recently gave Panama its highest rating for tourist safety), boasting stable political and economic situations.
Sixth, it's the most developed country south of the United States, home to some of the top companies in the world (including 80 of the world's biggest banks, and other giants such as Federal Express, DHL, Sears, Price Costco, and Bell South)...and many top-drawer restaurants and hotels. You could even call Panama City 'sophisticated.' And, as I've mentioned, you'd certainly have to call its infrastructure First World.
Seventh, Panama uses the U.S. dollar as its currency (and here, by the way, it's not a case of 'dollarization' as a recent experiment as elsewhere in Latin America; the U.S. dollar has been Panama's official paper currency since 1904) and has virtually no inflation.
As The Economist recently reported, in Central America, 'Panama has stood apart, sustained by its Canal, its banks, and its free-trade zone.'
In short, Panama has its act together. Yet few foreigners, particularly Americans, consider Panama as a travel destination...and even fewer think of it as a 'retirement haven.'
In 1998, the most recent year for which the World Tourism Organization has tourist figures, the country's total overnight visitor count was 431,000...100,000 of whom came from the United States. To put this in perspective: Panama gets about as many American tourists in a year as Disneyland sees in three days.
In other words, there's plenty of room for you.
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