Our 2025 Overseas Retirement Index has just been released. It ranks and rates 14 locations around the world ideal for a retirement adventure abroad.
Representing Panama is Veraguas Province, an emerging haven for expats and retirees who seek an affordable, culturally rich lifestyle that’s mostly tranquil but offers a hint of adventure.
This is the heart of Panama, and it’s full of incredible landscapes, from secluded beaches to virgin rain forests to verdant highlands. It’s the only province in the country with coastlines on both the Pacific Ocean and the Caribbean Sea, so it’s not surprising that some of Panama’s most beautiful beaches are found here.
Veraguas is ideal for expats who want to escape the hustle and bustle of urban living and just get away from it all, surrounded by the best of nature. Here, the troubles of the rest of the world feel far away and unimportant.
There are a scattering of towns and villages across the province that offer different lifestyles. Los Islotes, at the southwestern tip of the Azuero Peninsula, is a one-of-a-kind option. It’s a private residential community spread out over 215 acres of undulating terrain, multiple beaches, far-reaching views, and five-star amenities.
This is Kathleen Peddicord and Lief Simon’s passion project, and they’re layering amenities and conveniences of 21st-century living over the best that Mother Nature can offer. Los Islotes will be the preeminent private residential community not only on this coast but in all of Panama.
Another place to settle on Veraguas’ Pacific Coast is Santa Catalina, an expat town that features colorful houses, golden-sand beaches with surfable waves, and a friendly community made up of people from all over the world. Santa Catalina is the base for explorations of Coiba National Park, a UNESCO World Heritage Site that’s home to remarkable flora and fauna.
The economic and cultural center of Veraguas is Santiago, the capital and biggest city. If you settle in Veraguas, you’ll inevitably visit Santiago often—any time you need to achieve an administrative task or run an errand. Santiago has amenities like hospitals, supermarkets, malls, and more. It’s convenient and charming in some sections, but not many expats opt to settle here.
Regardless of where in Veraguas you settle, you can take advantage of Panama’s practical attractions as an expat haven. It’s one of the most tax-friendly countries in the world, with no local tax burden for retirees whose income is sourced from outside Panama. It uses the U.S. dollar as its currency, and it offers the gold standard of retirement visas, the Pensionado Visa, with special perks and benefits.
You’ll need to speak Spanish to live in Veraguas Province. You might encounter the odd local who speaks a smattering of English, but for most day-to-day things, you’ll need to take the initiative language-wise. Veraguas offers a real-deal authentic Panamanian experience, which means that Spanish is a must.
There’s a rural, small-town feel here. Locals are friendly and look out for one another. Climate wise, generally, you can expect warm weather and high humidity year-round.
When it comes to health care, public health care is affordable, but facilities and equipment are basic, and wait times are often long. Private clinics provide care for everyday ailments and offer faster access to care, plus better facilities and a higher probability of English-speaking doctors.
Costs of living in Veraguas Province vary wildly depending on the size of your house and your lifestyle. The most common type of rental you’ll find is small, Panamanian-style homes, which rent for $500 to $1,000 per month. You won’t find apartments or condos here.
To cool your home using air conditioning (something you’ll definitely want), you’ll pay anywhere from $200 to $450 per month, depending on the size of your home and how often you run it.
For internet, you’ll pay $55 per month for Starlink, which recently arrived in the province and provides super-fast and reliable connections.
Entertainment options are limited to local and expat-run restaurants and bars, which helps keep this expense low… there’s not a lot to spend money on entertainment-wise.
Groceries can be expensive, depending on where you shop. At open-air markets, you can buy bags of fresh produce for next to nothing. At Costco-style superstores that sell imported products, your grocery bill could easily be $1,000 per month.
In Veraguas, you’ll find some of life’s expenses to be much lower than they were back home and others to be much higher. You can adjust your lifestyle and spending habits to the budget that suits you best.
Sincerely,
Sophia Titley
Editor, Overseas Living Letter
