Introduction
This article shows you how to move easily and quickly to Panama from another country.
Moving to Panama City from another country is a hard choice but could be an exciting adventure; it requires a good plan and careful preparation.
There are many reasons why people move to Panama: a stable economy, a high quality of life, tax benefits and and favorable retirement, the tropical climate conditions, and many more reasons. Panama’s unique location offers an experience of a lifetime.
Panama Bank Account
In Panama there are a lot of different banks, both local and international, in this article we will focus on personal bank accounts, for standard purposes. Having a bank account in Panama could be useful for receiving your salary from a local company, to make day by day payments, paying your rent and taxes, etc.
All important information for opening a bank account can be find on the article Panama Bank Account on the allaboutpanamacity website.
Local Banks
- Banco General, the first and largest Bank in Panama by market capitalization, with more than 1 million clients.
- Banco Nacional de Panama, is the second largest Bank in Panama and one of two Panamanian government-owned banks.
- Banistmo, part of a Latin American financial group, is one of the largest banks in Panama and Central America.
- BAC, BAC Credomatic is a financial entity from Central America, with operations in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Bahamas.
- Global Bank, a 100% Panamanian bank founded in 1994. It has 38 branches across Panama and more than 141 ATMs all over the country.
International Banks
- Citibank, one of the most important U.S. banks, with 4+ trillion dollars in financial flows globally.
- Scotiabank, a Canadian multinational banking and financial company, the third-largest Canadian bank by deposits and market capitalization.
To open a personal bank account you should meet some requirements regarding the initial deposit, proof of income documentation, and Anti Money Laundering AML.
Corporate Bank account
Having a corporate bank account in Panama may be a good strategy, especially concerning the banking and taxation systems of the country. The overall process is still unproblematic, but there are burdens that relate to paperwork and legal formalities. Below is the procedure for opening a corporate bank account in Panama.
Cost of Living in Panama
The living costs in Panama can be considered relatively low compared to developed countries in the West. New and used cars are fairly cheap as are other goods and services in the country.
The average expenditure for a family of four is around $2,500 per month, excluding rent, while a single person may spend approximately $700 per month. This makes Panama one of the best options for expats and retirees seeking a low-cost lifestyle.
Prices vary across regions in Panama, with higher costs in Panama City compared to areas like Boquete or David.
For a detailed breakdown, visit our guide on Cost of Living in Panama
Is Panama Expensive?
While Panama’s overall expenses are relatively low, individual peculiarities may be higher, especially if they are imported products. Most basic food items like milk (around $6.69 per gallon) and beef (around $6.00 per pound) are slightly more expensive compared to neighboring South American countries. Locally produced fresh fruits and vegetables are relatively cheap.
Meals can range from as low as $10 for fast food to $55 for a three-course meal at a mid-range restaurant. However, you should also consider Panama’s relatively low taxes, affordable healthcare services (compared to the United States), and incentives for retired people.
When discussing monthly expenses in Panama, Panama City serves as a useful benchmark, being one of the most expensive and developed regions in the country. However, it’s crucial to recognize that basic expenses can vary significantly in other areas, such as the mountains or coastal communities.
Exchanging Money in PanamaCurrency Exchange Services
If you come from the United States or manage US dollars you will not need exchange services. For other currencies instead, exchange services are available at banks, and airports, thanks to specialized currency exchange offices. The rates in these offices are equity high, especially the ones present at the airports.
ATMs
You can always withdraw USD directly from ATMs in Panama. There are many ATMs in urban areas and shopping centres. Be mindful of fees, both from the ATM provider and potentially your bank.
How to send money to PanamaOnline Money Transfer Services
Wise, Western Union, MoneyGram, and PayPal are some of the companies which allow you to send and receive money internationally. Such services are often faster and cost less than the traditional international bank transfers. They give you the possibility to transfer money to a bank account, or for cash withdrawal.
International Bank Wire
It is important to note that traditional bank transfers provide a very secure method of payment, to send or receive funds to this Central American nation; however, it is normally costly and accompanied by unfavourable exchange rates. Banks charge a fee whose average is between 3%- 5% of the actual amount; the payment can take between 1- 5 business days depending on the financial institution. This method is relatively slower and more expensive than the other methods, however, it’s a reliable and secure mode of sending money for bigger deals.
Cryptocurrency Transfers
Cryptocurrencies such as Bitcoin provide an alternative way of sending money internationally. This can work efficiently and cost-effectively, but it is crucial to consider the associated risks and the regulations involved in this kind of transfer.
Towerbank, is a Panamanian financial institution with more than 40 years of banking experience, and the only ”Bitcoin friendly” bank in the country. Towerbank permits you to transfer money from the most common crypto exchanges like Binance and Coinbase.
For a complete overview about transfer money to Panama check out our article How to Send Money to Panama: A Complete Guide
