We recommend that anyone considering moving to Panama, or any country for that matter, first come here as a tourist. The longer you can stay the better. It is important that in addition to knowing the logistics of establishing residency and making the move, you get a little taste of what life will be like.

Depending on your country of origin, you can remain in Panama with a tourist visa for up to three months. With a driver's license from your home country and your passport, you can legally drive. During this time, try to get a feel for what day-to-day life will be like -- learn first-hand that a different culture means different responses to given situations. In the end, your ability to adapt and approach life with a relaxed attitude will probably govern your degree of happiness and satisfaction with Panamanian life.

What is it like to live here? Only your own experience can answer that, since it is different for every person. But some basic information may help you in your investigation. At the present time, if you own a house and car and have no debts, you can live well on US$1,000 per month, foreign residents or tourists can buy or rent homes, condos, and property in Panama without the legal hassles experienced in other Latin countries.

Property taxes are generally lower in Panama than in North America and many other countries. As a foreign resident, you will not pay income taxes on foreign pensions or income generated outside of Panama, but you may have to pay taxes on income generated in Panama. Businesses income, after expenses, is taxed, and there is a 3% sales tax on goods and services, including restaurants, hotels, entertainment, and so on.

As a US citizen and a resident of Panama, you are entitled to earn as much as $80,000.00 annually without paying taxes to the American government. ( Check with your accountant will be in order to verify this and determine how this law will affect you.) Because of internet capabilities, your office in any country is as close as your computer. Many Panamanian residents are foreign born, working in Panama with little or no taxes paid to either their home government or Panama. A number of solutions to this are available in Panamanian and home country laws. We will point you in the right direction for advice on these issues in Panama. Your own accountant would be helpful to you in this regard at your current home base. Contact Accountant@allpanama.com

Panama has a sophisticated capital city, incredible rain forests, some of the finest ecotourism, bird-watching, thousands of exotic beaches and islands, world-class adventure, snorkeling, diving, sport fishing, white water rafting, exploring, rock climbing, fine restaurants, and incredible historical sites, not to mention the "8th wonder of the world", the Panama Canal