Panama FAQ - Frequently Asked Questions

Where is Panama?

Panama is a relatively small strip of land in the shape of an “S” lying on its back 1100 miles south of Miami, Florida. It is sandwiched in between two large bodies of water, the Caribbean Sea to the north, the Pacific Ocean to the south. It is also bordered by two countries with Costa Rica to the west and Columbia to the east. To get some perspective of its relative size, it is a total of 29,157 square miles which is a bit smaller than the state of South Carolina with 30,109 square miles. It is about 400 miles long running west to east and generally 50-70 miles wide from north to south. It has several mountain ranges dissecting it in various places. The western most mountain range continuing from Costa Rica is the Talamanca Range in the State of Chiriqui. This range includes the countries tallest mountain, Volcan Baru which is 11400 feet high (3475 meters) and home to tropical rainforests. Panama is located between 7 to 9 degrees north latitude from the equator and between 77 to 83 degrees west longitude placing it solidly in the tropics. Panama is very small in comparison to the large land masses of continental North America and Europe. Its weather is more affected by the large water masses around it rather than by large land masses. In short, Panama is a little piece of land with highly varying terrain bathing in a large tub of water and basking in a whole lot of sun! Many thanks to BoqueteWeather.com for their extensive research and excellent description of Panama. The Panama Canal, considered the eighth wonder of the world, bisects this country of lush jungles, fauna filled rain forests, pine-clad mountains and rolling plains. Both north and south Panama boast hundreds of islands just off shore. Click here for a map.

How do I get to Panama?

Continental and American Airlines have direct (non-stop) service from Miami, Houston, Newark and Atlanta. Many international carriers offer flights to Panama from the Caribbean, South and Central America, and Europe. A new port has been built catering to cruise ships, Carnival being one of the major lines currently visiting this fascinating country. Cruise ship activity is on the upswing, additional companies are increasingly adding Panama to their itineraries.

Is the Panamanian government stable?

Yes, Panama has had a Constitutional Democracy since 1972. The government has three branches, the Executive, Legislative and Judicial. Elections are by popular vote, held every five years. Martin Torrios is currently the President, serving as both the chief of state and the head of government. Along with his chosen cabinet, he is also assisted by First and Second Vice Presidents. The legislature, made up of 72 members, is chosen by the people from nine political parties. There is a Supreme Court with nine judges who are appointed for ten year terms.

The Panamanian Constitution was amended in 1990 abolishing the armed forces.They were replaced by the Fuerza Publica (Public Force) made up of the National Police, Maritime Service, and Air Service. The large number of multinational companies doing business here testifies to the confidence the international community has in the stability of Panama, the “Hong Kong of the West."

What is the currency used?

Essentially the U.S. dollar is the money of choice throughout Panama. Panama still mints coinage, known as the Balboa however, the Panamanian and U.S. coins are of the same size and deoination and are interchangable. Businesses, resorts and hotels in metropolitan areas accept nearly every major credit card and bank debit machines, look for the 'Clave' symbol accept all debit cards. You may use travelers checks but, if cashing them at a bank, be prepared to pay a token fee. It’s always a good idea to carry a small amount of U.S. bills, in low denominations, for tips and spur of the moment purchases.

Do I need an adapter for electrical appliances?

Panama electric provides both 110 and 220 volt electricity just like in the U.S. and Canada. Urban centers always offer 110 volts with outlets accepting U.S. plugs. If you’re traveling with delicate electronics, e.g., laptop computer, you might want to include a surge protector.

What are the visa requirements to visit Panama?

U.S. citizens, as well as those of most European countries, do not need a visa. But you are required to purchase a tourist card, provided by your airline for a $5.00 fee. This tourist card allows you to stay in Panama for 30 days, with an option to extend for an additional 60 days. Should you be traveling alone with a child, be prepared to carry a notarized letter of consent from the absent parent.

Can a foreigner purchase property?

Absolutely. You have the choice of purchasing land with, or without, a house, or a business either in your own name or through a corporation. Most property in Panama is under freehold title, meaning you own your investment free and clear enjoying the same property rights as a Panamanian citizen.

There are some areas still being reviewed by the government for proper title to establish uncontested ownership, i.e., selected coastal parcels and, occasionally, native Indian acreage. As with all purchases in a foreign country, the importance of dealing with reputable brokers and lawyers can not be emphasized enough. Your lawyer will research your land document ensuring that you hold free and clear title. He will make certain that all necessary legal documents are properly registered with the local municipality. A reputable lawyer protects your interests, providing you with peace of mind.

What are the residency laws?

There are several programs available. The most popular is the Pensionado Residencia, or Retiree Resident. Under this plan, you are allowed to import a new car duty free every two years. Panama also enhances this program with discounts for movies, sporting events, restaurants, hotels and your home utilities, to name a few. To qualify as a Retiree, you must show a verifiable monthly income of at least $500 which increases an additional $100 per dependent, for instance husband, wife or child. You are required to present a health certificate, which must include proof you do not have AIDS, along with a criminal free record provided by your local police facility.

You may also apply for a small business, or investor’s, Residencia which involves a minimum investment of $100,000 and the hiring of 3 Panamanian employees. Should you be able to qualify as a tourist related business, forestry concern or restorer of national landmarks, you may be eligible for tax incentives, some as generous as 15 to 20 years exoneration on property, sales, vehicle, import, and business necessities taxes.

Some Visa & Residence Options

Visa   Basic Requirement   Benefits   Self Solvency   • $200K CD for 2 years; or • Buy $200K property; or • Buy $80K property plus $120K CD Permanent Residency, and the Right to apply for Panamanian Nationality & Passport after 5 years   Pensionado   Pension of $500/ month Permanent Residency & extensive discount program   Small Business Investor   $100K in Company & hire 3 Panamanian employees Permanent Residency and the Right to apply for Panamanian Nationality & Passport after 5 years   Agricultural Investor   Agricultural Business Permanent Residency and the Right to apply for Panamanian Nationality & Passport after 5 years   Second Passport   5 year CD with BNP producing a minimum of $750/month in interest Travel Passport, renewable every 5 years

If you desire a permanent Residencia immediately, you can deposit a minimum of $200,000 in a Panamanian bank. This money is treated like an annuity program, or interest bearing account, with annual payments made to you over a fixed period of time. Should you decide to leave Panama early, the balance is payable in full.

How are the medical facilities?

Expect top medical service on a par with the United States, where many of the doctors have been trained. The urban centers of Panama City and David offer excellent treatment, some even honoring selected U.S. insurance policies. But don’t expect to pay U.S. prices. An office visit to a doctor may be as low as $10. On the high side, a private hospital stay might run you only $800, and that includes everything. Expect the same level of professional care for dental needs, but pay only about one-third the U.S. cost. And if you require a major Medicaid treatment, remember Miami is only a three hour flight away. For smaller medical necessities, each province provides state health centers and hospitals, as well as private clinics.

Is crime a problem?

Panama is one of the safest countries in Central and South America. The most prevalent crime is petty theft, which sadly seems to be the case wherever you are in the world. However, capital crime rates are very low, far better than you might encounter in New York, Los Angeles or any large urban center. Just recently, AARP (the American Association for Retired People) ranked Boquete, in the northern highlands of Panama, as #4 on their 2001 worldwide retirement guide.

What if I don’t speak Spanish?

Even though Spanish is the official language, most Panamanians speak at least some English, many speaking it fluently. However, since this may well end up being your adopted country, showing respect for the Panamanian culture by learning some Spanish will be greatly appreciated by your new neighbors.

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