In a significant shift that underscores growing confidence in Panama’s long-term appeal, International Living’s Annual Global Retirement Index has named Panama the #1 retirement destination for 2025, surpassing former favorite Costa Rica. This prestigious recognition is based on performance across seven critical categories, including cost of living, healthcare, infrastructure, and retiree benefits—all of which have become increasingly favorable for both expats and investors.
Why Panama Took the Top Spot
Panama’s strong showing in the 2025 index stems from improvements across the board. Among the most praised features is the Pensionado Visa, which remains one of the world’s most accessible and rewarding residency programs for retirees. For as little as $1,000/month in verifiable income ($1,250 for couples), applicants can gain permanent residency and access to extensive discounts on medical care, utilities, entertainment, and travel.
The affordability factor was another key driver. Retirees can live comfortably in Panama for $2,400–$2,900/month, depending on their lifestyle preferences. Importantly, foreign-earned income is not taxed, and the country’s 0.5% property tax rate on most properties makes ownership particularly attractive for overseas buyers.
A Real Estate Perspective: Boquete and Coronado in the Spotlight
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For those looking to settle in cooler climates with stunning natural views, Boquete in Panama’s Chiriquí Province continues to be a premier choice. With its mountain air, expat-friendly community, and access to excellent healthcare, Boquete combines comfort with charm.
Meanwhile, Coronado on the Pacific Coast offers a modern beach lifestyle just 90 minutes from Panama City. Its gated communities, golf courses, and proximity to shopping and medical services make it ideal for retirees wanting amenities without sacrificing ocean views.
Both areas saw an uptick in demand following this latest ranking, and for good reason: each offers lifestyle advantages that align perfectly with what today’s retirees are looking for—access, safety, community, and climate variety.
Quick Comparison: Panama’s Private Healthcare System Is Hard to Beat
Here’s what’s true about Panama:
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Private hospitals in Panama City and David (like Hospital Punta Pacífica, affiliated with Johns Hopkins) are often praised for their modern facilities, short wait times, and affordability.
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English-speaking doctors are widely available in major cities.
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Out-of-pocket costs for private care are typically lower than in the U.S., even without insurance.
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Expats often report great experiences with elective procedures, specialists, and emergency care in private clinics.
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However, public hospitals and rural clinics—especially in less developed areas—can lack resources, technology, and consistency.
And what’s true about Costa Rica:
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Costa Rica’s public healthcare system (Caja) is universal and affordable, and is often lauded in global rankings for its accessibility and outcomes.
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The World Health Organization and other global health rankings regularly place Costa Rica above Panama in terms of healthcare system performance.
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The private system is excellent too, with top-tier hospitals like CIMA and Clinica Biblica, though these are mostly concentrated around San José.
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Downsides include long wait times in the public system, especially for non-emergency procedures or specialist visits.
So, which is better?
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If you’re looking for quicker access to care and are planning to use private hospitals, Panama may feel more efficient, especially in its two largest cities.
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If you’re okay with navigating a public system that may require patience—but is very cost-effective—Costa Rica might have the edge.
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Infrastructure-wise, Panama wins. Its roads, transportation (e.g., metro), and water/electric systems are generally more modern.
How Will This Affect Property Trends?
We anticipate increased interest in turnkey properties and pre-construction deals in retirement hotspots like Boquete, Coronado, and even emerging areas in the Azuero Peninsula. As the global retirement community sets its sights on Panama, properties with strong infrastructure, internet, and healthcare access are likely to command higher premiums.
Expect to see price appreciation, particularly in communities with robust expat networks and access to recreational or healthcare facilities. For property investors, this moment offers a strategic opportunity to enter or expand their portfolio before demand pushes prices further.
Costa Rica Still a Contender—But Not #1
Costa Rica, now ranked third, remains a beloved destination, particularly for nature lovers drawn to its lush landscapes and biodiversity. Its appeal is especially strong in towns like Atenas and Grecia, where U.S. expats form strong community bonds. However, rising costs, long public healthcare wait times, and lengthier residency processes have made Panama more attractive for those seeking convenience and affordability.
VIEW ALL OUR COSTA RICA PROPERTIES HERE.
Conclusion
Panama’s combination of financial benefits, modern infrastructure, healthcare access, and cultural openness has solidified its status as the best place to retire in 2025. Whether you’re seeking a vibrant city life in Panama City, a tranquil beach home in Coronado, or mountain living in Boquete, this is the ideal moment to explore opportunities in Panama’s dynamic real estate market.
Ready to explore property options in Panama?
At Casa Solution Real Estate, we specialize in guiding retirees and investors through Panama’s most promising locations—from Boquete’s scenic highlands to Coronado’s beachside convenience.
Contact us today and discover how easy and rewarding your move to Panama can be.
