Panama vs. Costa Rica

Hey Folks,
  Wondering if anyone has some perspective on retiring in Panama vs. Costa Rica.  I've done a bunch of reading so far and have yet to set foot in either country.  Feet on the street will be part of the research, but interested in what people have to say.
  We are looking for somewhere to retire that has a lower cost of living (than Canada), temperate climate, political stability, good health care etc.
  Happy to answer any additional questions - just looking to tap into the vast amount of info and opinions out there.  Thanks in advance!

Sean.

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Hi, I will say Panama even I never live in Costa Rica but my wife best friend from Costa Rica have a plan to move to Panama because Costa Rica became to expensive to live,
sure it's cheaper than in Canada for sure! I'm from Canada Montreal and I know how it cost to live in a country where people are super taxed. Let me know if you have more questions!  Thanks.

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Merci Monsieur. J'apprécie la réponse.  Gracias Señor. Agradezco la respuesta.

We need to take some time and tour both countries.  See if any specific locations call out to us.  From what we've read so far - we are drawn to the San Isidro area in Costa Rica, and the higher elevations above David in Panama.  I see a trip in our future! :)

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David has low elevation and it's hot, I live in Boquete close to Baru volcan more than 3000ft elevation average 75 Degree very nice!

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Yes - sorry - I was referring to the areas above David - like Boquete, Volcan, etc.

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I know both, lived in CR

Costa rica

roads are awful and in  many places  4*4 needed
more laidback and quieter
natural parks are better and more numerous
english seldom spoken
cities like san jose, heredia awful, avoid to live there no interest

Panama

roads much better and asphalt (some potholes sometimes in emote provinces), highway from panama city to david
prices lower for electronics and appliances
almost all services available in panama city, banking...
english spoken in panama city
more modern, more of a consumer society (many malls in panama city)
beaches and islands (bastimentos, sanblas ..) are better and more numerous

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Thought I might revive an old thread. I have been researching both countries. I have been to CR but not Panama yet.
The big thing I have learned recently about Costa Rica is the "Caja". This is a mandatory tax or contribution to the public healthcare program. The amount depends on how much your pension or income is. This year Costa Rica changed the rules. Now all pensioners who retire in CR have to contribute to the CR national public pension program along with the public medical program. If your monthly income is $3000 usd or higher you will pay the maximum 19%. That's almost $600 per month to the social welfare program.

I wanted to ask the resident experts here if Panama has any extra charges for Pensionados who move to Panama? Both countries charge no income tax on income from outside each country. Does Panama have any hidden taxes like this?

The other thing I found a bit odd about Cr was the cost to drive and own cars. Each year you have to pay a registration fee which is based on the value of your vehicle. It can cost upwards of $1000 each year just to register the car. Then each year the vehicle has to go to a special garage to be inspected. Everything has to work, AC, emissions tests, 4WD etc.

Hopefully someone here can answer how Panama is with regards to these items. Thanks
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We have lived in David, Panama for almost 10 years and don't pay anything into the health system. There are two systems, private and public. Of course the country prefers that you pay your way in the private system, but if you go to the public system they will still take care of you.

I believe there is no tax on income earned outside the country. We are retired on social security from the US and pay no tax on that in Panama.

We have two cars. Every year you have to pay about $12 for an inspection, usually just check the lights, tires, basic stuff. Our 2006 Mitsubishi Montero costs around $50 a year to register, and the 2005 Hyundai Atos around $35/year. You also need insurance for each car which they check at inspection. Ours cost around $120/year each, liability only. You can't get full coverage on anything more than 10 years old. Back when the Atos was new enough I think full coverage was around $600/year.

We have never lived in CR. From what we have heard the cost of living is significantly higher, and crime is a bigger problem. You might be interested in a video by Bob Adams on YouTube called "Changes are Coming to Costa Rica" where he talks about the financial health of the country. https://youtu.be/yA-SPJyvsjw

I love Costa Rica. There is so much natural beauty there, and many good people. We're close enough to visit easily which I like. But, I'm confident that we made the right choice to live in Panama. No country is perfect but we've found so many things to like about this country and we give thanks every day for our lives here.

Best wishes on your future plans.
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I've owned property and lived in both CR and Panama
Panama is a country with consistently higher economic certainty and wealth than C R
Although there is corruption and dyfunction with respect to both countries, CR takes the prize for being the most dysfunctional in my opinion. I have therfore chosen Panama to retire in.
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I have lived in both Costa Rica and Panama.  In Costa Rica top salary was 1500 a month so with rent at 1200 to 1500 a month, it was extremely difficult to survive.  Cars are very difficult to acquire and the upkeep is expensive.  Bottom line, I wound up having to walk a mile to a bus stop, ride a bus to work and make so little I barely had enough to eat.  Costa Rica is beautiful but I was never able to fully enjoy the beauty just trying to survive. 

SS
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I lived in CR 1998-2001 for post grad school. It was expensive due to taxes, primarily the 300% import tax on everything. Want a box of Cheerios? 3x the cost. Also, quality of life in CR wasn't as low keyed as in Panama which I visited every 90 days for my visa. Personally….Panama hands down.
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@kristc99  Thanks, it might make sense to buy in Panama and take vacations in Costa Rica. Crossing the border with a vehicle seems a bit onerous but doable. The price of a used Hilux is very cheap in Panama vs CR.
How is the theft in Panama? It seems everyone talks about break and enters and people stealing everything out of your house in Costa Rica when you go back to Canada or the states for a visit.
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I believe you have to be a resident of Panama and owner of the car to take it over the border, but yes it's doable. It's much simpler to walk across the border and hop on a bus.

Panama isn't bad as far as theft. If you are going to be gone for a while you would want a neighbor or someone to keep an eye on your house. If you leave things outside and unattended they maybe wander off. But generally, of course depending on where you are, it isn't much of a problem.

We visited Golfito CR once and the owner told us stories of robbers sticking poles through his window security covers to snag stuff and drag it out.

Rent in Panama (and vacation in CR) until you are very sure life here is going to work out for you. It's very hard to sell if you change your mind, and it's worse than ever now because the market is saturated with places for sale. I know of many properties, a couple right here in my neighborhood, that have been on the market for years, since well before covid.
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I had a home in Costa Rica and anything I put in the front of the home 'walked away' even my wind chimes!  Here in Panama, I am one of those complexes with security guards.  Every hour, one gets on a scooter and drives around.  The locks on the doors consist of four side and bottom and an extra one for 'good luck'.  Not sure if that is because of the crime or to make sure there is no crime.  I have a 95 pound Shepherd that everyone is extremely afraid of so I am hoping to avoid any criminal activity here.  I still have friends in Costa Rica and have thought of driving north, however, even the main road is a bear to drive. 

Star
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@kristc99

I am surprised that houses are sitting that long for sale in Panama. In CR it seems things are selling fast and at crazy prices.

I have heard many stories of dogs being poisoned in CR and the next day or so the house is robbed. People have said they stole everything including tooth brushes and potted plants outside.
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I've heard that in Panama City especially, people were overly optimistic and overbuilt so now there are way too many properties on the market. In Boquete that's full of expats, People buy and then find they don't want to stay and want their money back, but if prices have fallen they can't sell at the price they expect. Here in David where I am, they have built tons of housing so maybe there is plenty for sale, and an older house isn't as desirable. I'm  no expert but Bob Adams (YouTube, guy I mentioned earlier) talks a lot about economic conditions and real estate in Panama.

I've heard about dogs being poisoned, but thankfully not here. I'd be much more upset about our dog than anything we have in the house. My husband reminded me of a experience I had. I was biking through CR and a couple offered to host me a night in Playa Hermosa. That night they discovered that their BBQ had been stolen. The next morning someone climbed in the kitchen window and stole their tablets, phones, and other small items. Thankfully I was upstairs with all my things with me, but that felt creepy. They moved back to the US a year or two after that.
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