Panamá Rises to Top Position in Global Retirement Index for 2025
Panamá overtakes Costa Rica as the most favorable country for retirees, according to the Annual Global Retirement Index.
In a significant shift in the rankings, Panamá has displaced Costa Rica to become the best country in the world for retirement, according to the 2025 Annual Global Retirement Index published by International Living.
Last year, Costa Rica held the top position while Panamá was in the fourth spot.
This year, however, the situation has reversed, placing Panamá at the forefront for expatriate retirees.
The index evaluates various criteria, including cost of living, quality of the healthcare system, climate, infrastructure, migration processes, and benefits for retirees.
Panamá notably improved its performance across all categories.
Living comfortably in Panamá is estimated to require around $2,400 per month, while a more luxurious lifestyle could be maintained for $2,900.
Notably, Panamá does not levy taxes on foreign income, and property owners pay only 0.5% in taxes.
Retired residents in Panamá can also benefit from significant discounts, including 25% off medical services and electricity bills, 50% off entertainment, and 25% off restaurant checks, among other incentives.
Additionally, the pathway to obtaining legal residency is considered easier than in many other countries, enhancing its appeal to foreign nationals.
Moreover, Panamá has introduced a temporary teleworking visa that allows individuals to reside in the country for up to 18 months, provided they can demonstrate sufficient income and healthcare coverage.
In the latest ranking, Portugal emerged as the second-best country for retirement, while Costa Rica fell to third place.
Despite this drop, Costa Rica remains popular among retirees, primarily due to its biodiversity, tropical climate, and relaxed environment.
However, the country faces challenges, such as high costs in beach areas and more extensive migration processes.
In Costa Rica, American retirees are reported to live modestly on as little as $1,600 per month, while others spend up to $7,000.
The Central Valley is commonly recommended for those seeking affordability and good healthcare services.
Coastal regions tend to be more expensive and face greater competition for rental properties.
Costa Rica's healthcare system remains one of the strongest in the region; however, the public sector experiences waiting lists, and the costs associated with private services can pose difficulties for some retirees.
In contrast to Costa Rica, Panamá boasts a modern capital equipped with a subway system, high-speed internet, potable water nationwide, and convenient air connectivity.
The rankings were based on evaluations from expatriate retirees living in each selected country, who assessed factors such as medical services, lifestyle quality, integration ease, actual prices of goods and housing, and the residency application process.
The top ten countries for retirement in 2025, according to International Living, include:
- Panamá
- Portugal
- Costa Rica
- Mexico
- France
- Spain
- Malaysia
- Greece
- Italy
- Thailand
Last year, Costa Rica held the top position while Panamá was in the fourth spot.
This year, however, the situation has reversed, placing Panamá at the forefront for expatriate retirees.
The index evaluates various criteria, including cost of living, quality of the healthcare system, climate, infrastructure, migration processes, and benefits for retirees.
Panamá notably improved its performance across all categories.
Living comfortably in Panamá is estimated to require around $2,400 per month, while a more luxurious lifestyle could be maintained for $2,900.
Notably, Panamá does not levy taxes on foreign income, and property owners pay only 0.5% in taxes.
Retired residents in Panamá can also benefit from significant discounts, including 25% off medical services and electricity bills, 50% off entertainment, and 25% off restaurant checks, among other incentives.
Additionally, the pathway to obtaining legal residency is considered easier than in many other countries, enhancing its appeal to foreign nationals.
Moreover, Panamá has introduced a temporary teleworking visa that allows individuals to reside in the country for up to 18 months, provided they can demonstrate sufficient income and healthcare coverage.
In the latest ranking, Portugal emerged as the second-best country for retirement, while Costa Rica fell to third place.
Despite this drop, Costa Rica remains popular among retirees, primarily due to its biodiversity, tropical climate, and relaxed environment.
However, the country faces challenges, such as high costs in beach areas and more extensive migration processes.
In Costa Rica, American retirees are reported to live modestly on as little as $1,600 per month, while others spend up to $7,000.
The Central Valley is commonly recommended for those seeking affordability and good healthcare services.
Coastal regions tend to be more expensive and face greater competition for rental properties.
Costa Rica's healthcare system remains one of the strongest in the region; however, the public sector experiences waiting lists, and the costs associated with private services can pose difficulties for some retirees.
In contrast to Costa Rica, Panamá boasts a modern capital equipped with a subway system, high-speed internet, potable water nationwide, and convenient air connectivity.
The rankings were based on evaluations from expatriate retirees living in each selected country, who assessed factors such as medical services, lifestyle quality, integration ease, actual prices of goods and housing, and the residency application process.
The top ten countries for retirement in 2025, according to International Living, include:
- Panamá
- Portugal
- Costa Rica
- Mexico
- France
- Spain
- Malaysia
- Greece
- Italy
- Thailand