Article based on Panama’s rise to the top of the InterNations 2024 friendliness ranking, overtaking Mexico, which had long held the crown — is the result of years of deliberate choices: to welcome foreigners, to make integration easy, and to build a quality of life that people want to be part of.
For the third year in a row, InterNations — the world's largest expat network — has named Panama the #1 country in the world for expats, based on responses from nearly 8,000 people living abroad across 31 countries. It's not a fluke. It's a pattern.
There's a moment that happens to almost everyone who visits Panama for the first time: a stranger goes out of their way to help you find something, a neighbor waves you into a conversation, a cab driver insists on giving you his cousin's number for whatever you need next. It's not performative hospitality — it's just how things work here. And apparently, the rest of the world has noticed too.
Six Reasons It Actually Works
Start with the dollar. Panama has used the U.S. dollar as its official currency for over a century, which means no currency risk, no conversion math, no watching exchange rates before you buy groceries. Your money just works the way it already does at home.
Then there's the welcome mat the government rolls out for retirees. The Pensionado visa program is one of the most generous in the world, offering real discounts on healthcare, transportation, entertainment, and dining — not token perks, but meaningful savings built into daily life.
Healthcare here holds up too. Panama City is home to internationally accredited hospitals, many with U.S.-trained doctors, and costs run a fraction of what you'd pay north of the border for comparable care.
Your money also goes further across the board. Rent, food, transportation, everyday services — the cost of living stretches noticeably further than it does in the U.S., without the quality-of-life tradeoffs that sometimes come with "affordable."
Residency is refreshingly uncomplicated, too. Panama's visa pathways are straightforward and practical, without the bureaucratic maze that trips people up in other countries.
And you won't be figuring it out alone. Panama's expat community is well established — English-language services, active expat networks, and the kind of familiar amenities that make the first year abroad feel less like a leap and more like a soft landing.
A Country That Has Never Known Civil War
It's easy to overlook, but it's worth saying plainly: the Panama Republic has never experienced a civil war. Its democracy is functional, its institutions durable, and its national identity has long been shaped by openness rather than isolation. The Canal gave the country a cosmopolitan DNA that still shows up today in how locals treat outsiders — with curiosity and warmth, not suspicion.
Safety, in Context
While other popular destinations carry elevated U.S. State Department advisories, Panama continues to stand out as a stable, safe place to build a life. It's simply not a country the world's safety watchdogs have reason to flag.
Welcome to Panama. Welcome home.
Sources: InterNations 2024 Expat Ranking · TravelPulse · U.S. State Department travel advisories