Low costs, ease of obtaining legal residency, and a good climate were some of the qualities that consolidated Panama’s position as the best destination for retirement abroad—that is, a destination of attraction for the silver economy—according to International Living’s Annual Global Retirement Index.

The Index listed the 10 best countries to live abroad, based on scores from 1 to 100 in several categories: housing, cost of living, healthcare, visas, development, and governance.

Panama has consolidated its position as the preferred destination in the Americas for the silver economy, topping the list of the top 10 worldwide. Costa Rica and Mexico also appear in the top five, occupying third and fourth positions respectively. The global ranking is completed by Portugal (second), France (fifth), Spain (sixth), Malaysia (seventh), Greece (eighth), Italy (ninth), and Thailand (tenth).

Regarding Panama, it was highlighted that it’s a country located in the same hemisphere as the United States and Canada, completely outside the hurricane belt and with enviable environmental protection. It’s also safe and stable enough to live comfortably on $2,400 a month. And $2,900 a month if you want to live a truly luxurious life.

Another point highlighted is that the country does not tax foreign-earned income, with the property tax being just
0.5% for most primary residences.

And retired residents get discounts: 25% off their electricity bill, 50% off movie and event tickets, 20% off medical consultations and medications, and 25% off restaurant meals, to name a few.

The index also found that Panama is one of the most attractive places in the world to obtain legal residency, as someone with a pension of at least $1,000 can qualify for a pensioner visa in as little as six months.

However, if the person does not have a pension, they can obtain residency with a Friendly Nations visa and invest $200,000 in real estate.

If you don’t want a visa, he explained, you can buy a property, as there’s the option of depositing money in a three-year fixed-term deposit, without having to spend it.

Another option he highlighted is the temporary telework visa, which allows a person to live in Panama for up to 18 months with proof of health insurance and income from a foreign source. And if you’re from the United States or Canada, you don’t need a visa to spend up to six months in the country.

In terms of entertainment, the index highlights that Panama offers New York-style nightlife and every imaginable amenity, such as the metro line, the only one in Central America, as well as affordable Uber rides, excellent shopping, and a vibrant culinary scene.

He emphasized that temperatures in the country typically hover around 25°C at night, with highs of 30°C. In the most popular mountain villages, the temperature is 10 to 15°C lower, but never reaches freezing. This is taking into account that the rainy season occurs mainly between August and December.

“That’s the nature of an established expat destination: where you can live an active, social, and comfortable life without reinventing the wheel,” noted the Annual Global Retirement Index.

Like Panama, another country in the region that also stood out for its qualities was Costa Rica, which ranked third in the top ten.

Among its advantages is that people can live comfortably on $2,500 a month. The flexibility in spending means there’s a way to make it work for almost everyone, from thrifty retirees to those seeking a more luxurious lifestyle, the report explained.

While housing prices are stabilizing, the index noted that rental competition remains strong, with many retirees, for example, starting their housing search with Airbnb rentals, often securing lower monthly rates. To that end, it recommended building local connections as a key mechanism for finding affordable long-term housing.

Regarding healthcare, the document explained that Costa Rica’s healthcare system is high-quality and affordable. For convenience, expats turn to private healthcare, as doctor consultations cost around $48 and specialist consultations cost around $120. Procedures such as colonoscopies cost $350, while dermatological exams cost $50. Prescription medications and laboratory tests are also reasonably priced.

Although visa and residency procedures in Costa Rica can be lengthy, the index indicates that people can manage the process with patience. For example, U.S. and Canadian citizens can remain visa-free for up to 180 days, while temporary residency options include the pensionado visa (for retirees with a monthly income of $1,000) and the rentista visa (with a deposit of $60,000 or a monthly income of $2,500). Permanent residency is granted after three years of legal residence.

Mexico ranked fourth, thanks to its states’ ability to adapt to a person’s needs regardless of their climate, altitude, landscape, or lifestyle preferences.

For example, it was mentioned that on the Riviera Maya island—a region known as the jewel of Mexican tourism—it remains affordable, with a one-bedroom apartment just two blocks from the ocean costing only $500 a month. But if you prefer luxury, there are some mansions renting for $2,000 a week in Cozumel.

Health improvements are a common theme among expats. An emergency room visit, including X-rays and other care, can cost as little as $350.

While people don’t need to apply for visas or go through tedious paperwork, one reason digital nomads love to spend half the year here teleworking.