Why Foreigners Come to Panama
by Ives Brant
Ten percent of England's citizens live outside its borders, but Americans have been far more hesitant to venture abroad to live, with only about two percent living as expatriates. That's changing, and a lot of them are considering Panama. Here's why:
1. Baby Boomers. You've heard the statistic: 70 million Americans retiring in the next 15 years and seeking their place in the sun. If 1/10 of just one percent of them head for Panama, that's 70,000 folks with a Social Security and pension income.
2. Returning Military. Tens of thousands of US servicemen know Panama already, because they were stationed there. If they retire abroad, it's a likely destination for them. Already they are buying lots and building homes in Coronado, or snapping up condos in Panama City.
3. Cruise Ship Passengers Every year hundreds of thousands are treated to the sight on Panama City's skyline upon traversing the Canal. They tend to be near retirement age and their cruise leaves them with excellent impressions.
4. Panama is Inviting Them. With funding of documentaries and commercials on US and Canadian TV, the country is serious about promoting itself as a tourist and retiree destination.
5. The Internet. With a Vonage phone (so talking with friends and family back home is just a local call either way) and e-mail, it isn't so lonely or scary abroad. Chat groups like Yahoo's viviendo_en_panama help too.
6. Terrorism. The tragic events of 2001 triggered an outflow of Americans. Suddenly, the citadel of America did not feel as safe, and countries with warm climates, unlikely targets for terrorists, became attractive to many.
7. Panama's Housing. Suddenly, Panama City and the surrounding beach areas have extremely attractive housing options for any budget.
8. The Skyline. With hundred-story residential towers going up, Panama City conveys such dynamism that its attraction is felt immediately.
9. Retiree Benefits. For "pensionados" there is a long list of breaks on transportation, food, lodging, entertainment, and health care.
10. Stability and Infrastructure. Panama is now a solid country, and the United States will not let it be otherwise. Anything that could threaten the Canal guarantees immediate US intervention.
11. Red Frog and Vista Mar. Ambitious developments pave the way for more upscale developments and higher demand for land, just by showing how it's done.
12. High Costs at Home. For retirees, who need more personal services, including quality health care, but don't buy many imported goods, Costa Rica has been a fine haven. In Panama, they get all that plus extensive retiree benefits and it's a great place to buy almost anything.
13. Familes. Suddenly, suburbia has arrived around Panama City, with Balboa and Costa de l'Este, not to mention fine international schools. Employees of the US embassy, of multinationals with subsidiaries in Panama, and those who have found a way to make a living internationally are flocking into these areas.
Why Foreigners Come to Panama
by Ives Brant
Ten percent of England's citizens live outside its borders, but Americans have been far more hesitant to venture abroad to live, with only about two percent living as expatriates. That's changing, and a lot of them are considering Panama. Here's why:
1. Baby Boomers. You've heard the statistic: 70 million Americans retiring in the next 15 years and seeking their place in the sun. If 1/10 of just one percent of them head for Panama, that's 70,000 folks with a Social Security and pension income.
2. Returning Military. Tens of thousands of US servicemen know Panama already, because they were stationed there. If they retire abroad, it's a likely destination for them. Already they are buying lots and building homes in Coronado, or snapping up condos in Panama City.
3. Cruise Ship Passengers Every year hundreds of thousands are treated to the sight on Panama City's skyline upon traversing the Canal. They tend to be near retirement age and their cruise leaves them with excellent impressions.
4. Panama is Inviting Them. With funding of documentaries and commercials on US and Canadian TV, the country is serious about promoting itself as a tourist and retiree destination.
5. The Internet. With a Vonage phone (so talking with friends and family back home is just a local call either way) and e-mail, it isn't so lonely or scary abroad. Chat groups like Yahoo's viviendo_en_panama help too.
6. Terrorism. The tragic events of 2001 triggered an outflow of Americans. Suddenly, the citadel of America did not feel as safe, and countries with warm climates, unlikely targets for terrorists, became attractive to many.
7. Panama's Housing. Suddenly, Panama City and the surrounding beach areas have extremely attractive housing options for any budget.
8. The Skyline. With hundred-story residential towers going up, Panama City conveys such dynamism that its attraction is felt immediately.
9. Retiree Benefits. For "pensionados" there is a long list of breaks on transportation, food, lodging, entertainment, and health care.
10. Stability and Infrastructure. Panama is now a solid country, and the United States will not let it be otherwise. Anything that could threaten the Canal guarantees immediate US intervention.
11. Red Frog and Vista Mar. Ambitious developments pave the way for more upscale developments and higher demand for land, just by showing how it's done.
12. High Costs at Home. For retirees, who need more personal services, including quality health care, but don't buy many imported goods, Costa Rica has been a fine haven. In Panama, they get all that plus extensive retiree benefits and it's a great place to buy almost anything.
13. Familes. Suddenly, suburbia has arrived around Panama City, with Balboa and Costa de l'Este, not to mention fine international schools. Employees of the US embassy, of multinationals with subsidiaries in Panama, and those who have found a way to make a living internationally are flocking into these areas.
UPDATE to Why Foreigners Come to Panama
June 2009
by Ives Brant
The global recession makes Panama much more attractive as a retirement haven for Americans and Europeans. Tens of millions of North Americans have seen their net worth cut nearly in half with the collapse of the stock market and real estate prices.
To enjoy the kind of retirement and lifestyle they planned for, they have little choice but to consider alternatives like Panama.
Moreover, Panama has become an investment and relocation choice for South Americans, especially Venezuelans and Colombians worried about stability, currency controls, Hugo Chavez, and crime. While Colombia has been on the rebound the last several years, the unrest and fear in that country started an expatriation exodus of talented people and their capital which will continue. Panama is right next door for them.
Venezuelans face not only a wildly gyrating local currency, the Bolivar, but a wildly gyrating dictator as well. The intelligentsia, the upper middle class, and anyone with movable capital in Venezuela is considering alternatives. Increasingly, I find Venezuelans to be my main competition when buying land in Panama.
One of the benefits for Panama is that many of these emigres are people of high quality who will bring new energy and entrepeneurial spirit to Panama's already stoked economy.
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