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Vol I   Issue 15       July 10, 2006

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Boquete, Panama is an Expatriate Retiree's Dream Come True

Cost of Living:  Below the U.S. National Average

Panama is a very appealing retirement choice for many reasons, not the least being The Pensioners Program (Visa Pensionado), the government's way of enticing older foreigners to settle here (although one only need to be 18 or older to apply).   This program allows foreigners to obtain legal residency in Panama under the condition that they are retired or pensioned.  The only requirements to becoming a "pensioner" are being in good health and having a guaranteed, "provable" income of $500 per month ($600 for a couple), which must be a company or government agency pension (e.g. Social Security, disability, military pay, etc.).  

 

After one becomes a Panamanian pensioner, he or she is  immediately eligible for the most comprehensive program of expatriate benefits in the world, including 50% off entertainment anywhere in the country, 50% off closing costs for home mortgages, 30% off public transportation (bus, boat, and train fares), 25% off restaurant meals, 20% off doctor’s visits, 15% off hospital bills (for those without  insurance coverage) and 10% off prescriptions.   In addition, pensioners who buy or build a home are not subject to property tax for 20 years (land is excluded) and pay no taxes on foreign-earned income (including business proceeds, Social Security or pensions).   Newcomers can also bring in a car and up to $10,000 in belongings tax-free.  Interest from deposits in Panama banks is also exempt.

 

While real estate prices are comparable to many areas of the United States, the general cost of everyday living is less, making the overall cost-of-living, particularly when pensioner discounts are factored in, much less.  For example, water bills run roughly $20 a year.  A haircut and a shave at a local barber are $1.25.  Lunch in a restaurant is $1.50.  A full-time live in maid is $120 a month.    Homes do not have heat or air conditioning, so those bills are non-existent.

The closest city to Boquete is David (population 120,000), the provincial capital, about an hour away by bus (fare is $1.20) or 30 minutes by car.   Here are two hospitals (Hospital Mae Lewis and Hospital Chiriqui) and many convenience of modern-day life.   Boquete does not have a hospital but does have a medical clinic (Centro Médico San Juan Bautista at 507.720.1881) and enough doctors to service a town of its size.  Medicare is not accepted outside of the U.S., but expatriate pensioners can obtain government health insurance for $50 a month.  Health care overall is quite good.

For anyone with a love of the outdoors, this area cannot be beat.  Waterfalls, hiking trails and botanical gardens are all just outside of town.   Nearby Baru Volcano rises to 14,000 feet, and trekking to the top is not at all easy (the trail starts out paved from town and then turns into a muddy mess), but the reward at the top is a breathtaking view of both the Atlantic and Pacific Oceans (this climb is only for the well-conditioned and best undertaken during the dry season so views are not clouded over).  Unfortunately, there is also an unattractive telecom building at the top of the volcano.   Two hundred foot tall San Ramon Waterfall is worth a trek, too, and is much easier to reach.   River rafting and hot springs are not far away.  There are also two new golf courses, two new museums and several new restaurants and pubs around town.

Boquete has two seasons, dry and wet.  The dry season stems from December to April, and the rainy season from May to November.   This area of Panama has mostly Spring-like temperatures, ranging from 60 degrees to 90 degrees, year-round, but it can get hot and muggy in the summer, and winter evenings may require a sweater.

Panama City, roughly an hour away from David by air, has direct daily flights to several U.S. cities, including Miami, Los Angeles and Dallas.

As for drawbacks, some tours are seriously overpriced, and traffic on the main road can be harrowing at times.  And it is important to be aware that as in many foreign lands seeing an influx of "rich gringos," there is a disparity in economic levels.  Here, many of the indigenous people (the Guaymies), who primarily work on the coffee plantations, live at near-poverty levels.  A prerequisite for relocating here, as with any foreign destination, is to have a respect for the locals and their way of life. 

While Boguete is still tranquil, money is moving in, and retirees who have tired of Costa Rica and Mexico are considering Panama and Boquete as their next home.    It is inevitable that this area will change and probably not for the better as more developers stake their claim.   Local coffee growers have been selling their farms for huge amounts of money, especially by Panamanian standards, and homes will eventually take the place of lush farm land, which may disrupt the local economy.    For now, though, Boquete is a tropical haven without the stresses of the modern-day world.   Relocating here may mean giving up some conveniences (internet access is, however, available at several locations around town, including the Professional Center where they charge $2 per hour), but those who have made the move seem content, relaxed and convinced that they have found a little slice of heaven.

For more information, contact Boquete's tourism office. They can be reached at 011-507-720-4060 or 011-507- 775-4120 from the U.S.

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Great Retirement Spots Newsletter is published four times a month by Webwerxx, Inc.  2770 S. Elmira St., #152, Denver, CO  80231. (303) 358-0512.  Copyright © 2006.  All rights reserved.  No part of this electronic publication may be reproduced without the express written consent of Webwerxx, Inc.  All attempts were made to verify the accuracy of the information contained in this bulletin, but some information may have changed since publication. Webwerxx, Inc. cannot be held responsible for information that has changed since this publication appeared online.  Please contact us at staff@greatretirementspots.com if you have questions or comments.  To unsubscribe or change your subscription information, click here.


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