Panama is ranked as the best destination to retire in 2025, according to the Global Retirement Index by International Living and InterNations, a prestigious publication that has been searching for the best retirement destinations for over 40 years.
In 2023, Panama was in third place on the index, but in 2024 it regained the top spot. Countries are chosen by nomination of International Living editors, who conduct a qualitative assessment based on data collected in the various destinations according to criteria such as cost of living, health care, visas, access to housing, climate, and more.
In this evaluation, Panama stands out in key aspects such as its proximity to the United States, the use of the dollar as official currency, political stability, affordable health care and attractive tax benefits for retirees.
What do retirees say?
According to the publication, “Many of the expats living here cite Panama’s geographic diversity and location, with proximity to North America being a major factor in their choice of Panama as a retirement destination. In a country roughly the size of South Carolina, you’ll find mountains and beaches within easy reach no matter where you are in the country. Wake up in the Caribbean and have lunch overlooking the Pacific… they’re just a couple of hours away in the “thinner” sections of the isthmus. There really is something for everyone in Panama…”
According to a global survey, Panama leads the rankings in financial satisfaction among retired foreigners. 74% of respondents said they were satisfied with their economic situation, compared to a global average of 54%. In addition, 88% said their income was sufficient or more than sufficient to enjoy a comfortable life, compared to 70% worldwide.
Housing affordability also stands out as a key point: 62% of participants rated this aspect positively, compared to the global average of 34%. Panama is also positioned as the most accessible country to find quality accommodation options. In
addition to Panama, countries such as Thailand, Italy, Greece, Malaysia, Spain, France, Mexico, Costa Rica and Portugal complete the list of best destinations to retire in 2025.
Source: Promtur Panama.