ONCE known as a gangsters’ paradise, this tropical getaway is now being dubbed the ‘new Dubai’, where sun-seeking Brits up sticks to enjoy pints for as little as 25p.
Having been named the best place in the world to live for expats for the second year running, those who have made the jump to this picturesque nation now tell The Sun why it is perfect for those eager to start life over – with excellent free healthcare and tax perks for young and old.
Boasting 30C heat all year round, affordable luxury housing and high-flying jobs in top multinational companies, Panama is now attracting Brits in their droves.
Internet searches for relocation to the Latin American country soared by 47.3 per cent last year, proving that expats are looking beyond the usual hotspots of Spain, Cyprus, Dubai and Australia.
And, of course, the biggest incentive is its famously favourable tax system, which means if they meet certain conditions, ‘digital nomads’ working remotely for a foreign business will not have to pay tax on foreign-earned income.
Oliver Lean, 35, from Malvern, Worcestershire, moved to Panama six years ago while working for Nestlé and says it is the best move he ever made.
He now runs three businesses there – including Panamigos, the country’s biggest expat network, estate agent Panamigos Realty and a new wealth management company.
He says: “Coming here has been the best decision of my life. I just fell in love with the country, it is unreal.
“There is a balance of life here where you can have a different weekend every week – you can go to the mountains in an hour, you can go to the beach in 20 minutes, the next you can be on a small island, the next you can be in a big vibrant city.
“The cost of living here is really good and there are people from all over the world here.
“You are in a warm climate where your money goes a lot further. You can live in a high-rise building looking over the ocean for the same price as you could live in a shed in London.
“I’m incredibly proud of what we’ve built here and genuinely love Panama – I usually joke that I’m half Panamanian, half English now… although I’ll still be supporting England in the World Cup.”
It is a far cry from decades past, where Panama was known as the go-to place for the rich and powerful to hide their wealth – and gangsters and crooks to flaunt it.
A decade ago, the nation made worldwide headlines thanks to the Panama Papers scandal, when leaked documents from a Panamanian law firm revealed how high-profile clients were able to launder money, dodge sanctions and avoid tax.
In the 80s, meanwhile, the country was under the rule of ruthless dictator Manuel Noriega, who made millions through drug trafficking operations – even striking a deal with Pablo Escobar’s Medellin Cartel allowing cocaine to be smuggled to the US through Panama’s airport.
When canoe man John Darwin faked his own death in 2002 to cash in his life insurance policy, it was in Panama where he was spotted alive and well five years later, viewing property in a bid to move there and escape the authorities for good.
‘Digital nomad era’
But Tedd Tennis, co-owner of Panama Sovereign realty, which helps people to relocate, insists those days are gone and the country has never been in a better position.
He says: “For the last 35 years it has been incredibly stable. Panama has cleaned up its act and we are being compliant as most places with regards to all the financial stuff.
“The digital nomad era is definitely a thing. I have a lot of friends here where one or both of them are working remotely and that has opened the door to a lot of younger people.
“They are making money in another economy but they are living in a place where they can spend well, and they won’t pay tax in Panama.”
In smaller towns in Panama, a three-bed, two-bathroom house on a 1,000m plot would cost in the region of £200,000-£300,000.
And the average cost of living for a couple is around £1,500 a month including rent, food and entertainment.
Not only that, there are high-level jobs on offer for the young, as well as discounts for pensioners who chose to retire there.
‘It’s the vibe spot’
Brit Oliver Lean, who is now expecting a baby with his Venezuelan girlfriend who he met in Panama, explains: “Panama is the vibe spot. It is the place to be.
“I just did $4.5million of real estate in January. That is the most I have ever done. People are packing up and moving here, their money goes further.
“It is for all ages as well. You can come here as a 20-year-old or as a 60-year-old and have a great time. There is no elitist sense in Panama – everyone chats to everyone.
“There are 200 multi-national companies here – Nestlé, Adidas, Nike, P&G – all have HQs here. They pay Europeans a lot to come here and they move here tax-free.
“You have more young people here than you do retirees, but you also have the pensionado programme, which encourages the retirees to come here too.
The digital nomad era is definitely a thing. They can spend well, and they won’t pay tax in Panama
Tedd Tennis
“So if people declare themselves as retirees, with a certain amount of funding per month, they get a pensionado visa so they become permanent residents and get discounts on everything.
“I took one of my clients for a meal the other day and she got a 35 per cent discount. So Panama is already cheap, but this makes it even cheaper.”
Jane, 62, from Buckinghamshire is currently out in Panama where she is looking to relocate.
She used to enjoy spending winter in the Canary Islands but says hit-and-miss weather in Europe made her look further afield.
And she believes Panama’s many qualities will make it as popular as Dubai.
“Dubai isn’t everyone’s cup of tea,” she says. “It is brash, it is bling, it is very much an Instagrammable place. I think it is a bubble waiting to explode.
“Panama has also been described as the Singapore of Latin America.
“It is stable, it is backed by the American dollar, you have got the canal, which brings in a stable income, you have a lot of American expats who have been here for several years.
“Panama is also a place of diversity. You have got every single religion here all living together harmoniously.”
‘Weather is a game changer’
Expat Jason Mattia was originally from Guildford, Surrey, but moved to Panama eight years ago from America where he owned a car dealership.
He set up his business AutosPanama in Pedasi and Playa Venao and hasn’t looked back – even meeting his Panamanian wife Karina there.
He says: “Life here in Panama is amazing. It is a very relaxed, beautiful country with very friendly people and a very easy life.
“Nothing is too regulated, managed by the government. It feels very safe, even in Panama City where more than 3.5million people live.”
In another boost, healthcare in Panama is either free or very, very cheap.
Tedd explains: “Panama has a socialised healthcare system like the UK so Panamanians pay almost nothing for healthcare.
“The cost of medical visits and procedures is practically free and anyone in the world coming here can get on those programmes and take advantage of that.
“A lot of the expats have that as a safety net, but they do prefer to have private medicine – they are willing to spend a little bit of extra money.”
He also says the weather is a game changer because of Panama’s unique climate.
“Some people don’t want to be where it is 30 degrees every day, it is too hot,” he says.
“We have mountains here, so if you are somewhere on the slopes you can kind of pick your ideal temperature.
“If your ideal temperature is 22 degrees during the day we have that for you. So we have year-round warm weather, we don’t have hurricanes, we don’t have a history of natural disasters.
“So a lot of people who would have bought in Florida or the Caribbean and then watch their assets and homes be destroyed every few years are now looking at places like Panama.”
And the cost of living is a huge bonus.
Tedd says: “If you go out into town a beer would be about £1-£1.50, maybe a bit more in Panama City.
“There is a bar called Las Vegas and it was a favourite of some friends of mine because it had 25p beers.”