Benefits
Because of the strong retirement lobby by the old folks, Panama has one of the most generous retirement programs offered anywhere including the U.S. and like Rodney would say, it's nice to have respect. Any qualified foreign resident pensioner of any age (military, government and private sector) or any resident (Nacional or x-pat) 62 or older, (ladies 58), enjoy these benefits. Many have asked if there would be changes like what has happened in Costa Rica with the annulment of all benefits but we doubt it because one must remember that these liberal benefits were passed for the Panamanian elderly and we as a guest may enjoy them as well.

You may bring in your furniture and a new car every 2 years. Or so they say. Although the there is a limit on the furniture, no one seems to be counting and if you do bring in something new, remove it from the commercial shipping boxes and prices and most important to have them declared on you list. However, there are hassles with brining in a car (especially new) because like in many counties, one ministry says you can and the other ministry says you can't and of course, they don't communicate with each other. Even if this issue is resolved, due to low prices and availability of vehicles in Panama, it does not make sense to pay the high cost to ship one and pay $50 a day for storage while waiting for the documents to clear. Even if you're exempt from importation duties, you would still have to pay 5% sales tax and have to worry about warranty coverage and parts availability. Our recommendation is to purchase one here!

They have special "express lanes" in all public offices for retiree's. For an example, when we go the local bank and discover that there are 30 people in line, I hobble (simulated) over to the "Jubilado" (Pensioners) window and get served first unless it is a Panamanian retirement payday.

Recreational, movies and sports events 50%
Public buses 30%
Boat and ship 30% On all Panama national and international carriers including Continental Airlines.
Hotels Monday through Thursday 50% Hotels Fri-Sun 30%
Regular restaurants 25% Fast food 15%
Hospitals, w/no insurance 15% Drugs 10%
Doctor visits and surgery 20% Dental 15%
Optometrist 15% Property taxes. *
Electricity 25%
Telephone 25%
Water 25%.

• Sit down restaurants 25% only for the retired person.
• Fast food restaurants 15% off total bill if paid by the retiree.

* Your property tax remains frozen until you sell your home. This means, that unlike in the U.S., your taxes will not go up as the area develops. Also, on new homes, you can get a 15-year exoneration from taxes.

Cost of Living
Due to the impact of world economics and petroleum prices affecting us world wide, the days of cheap living are long gone. However, one can say that the basic amount needed for survival in the Panama highlands is still far less because we do not have to depend on air conditioning and heating. Electricity per kilowatt hour is higher but is offset with your retirement discount. Local beef, poultry, fruits and vegetables are about half the price as in the U.S.

Regardless, where else could you survive on $800-1000 a month (if you had your own home) and still maintain some resemblance of a quality of life? This includes direct TV and the finer things and still survive on you Social Security and yet have has some left over for travel, projects and fun.

The only negative aspect (like every where) is that premium gasoline runs about $2.40-$2.50 a gallon. However diesel is 40- 50 cents less per gallon. Forget that hard work keeping up your yard and home, as housekeepers, yard boys and caretakers are $7-8 a day! Stores are well stocked with imported goods but one has to remember that the prices are similar to the U.S because of the shipping cost but they are available. In both David and Panama City, the streets are lined with shops where you can buy clothes at bargain prices.

To assist in calculating you expenses, we are providing an estimate on the cost of living based on our cost for a family of two.

Volcan typical prices as of July 2005.

Item	Cost	Notes:
Property Tax	$000.00	No tax on land valued under $20,000. No tax on new construction first 15 years.
Hospital ins.	$68.00	Per month for a married couple
Car Insurance.	$200.00	Per Year.
Home Insurance	$110.00	Per year.
Telephone	$35.00	per mo. Prime plan for computer with 25% retirement discount.
Electricity	$50-90.00	Per mo, with 25% retirement discount.
Water	$2-6.00	Per mo. Depends on where you live.
Trash pickup	$3.00	Per mo. Pick up once a week.
Direct TV	$29.50	Basic 77 channels (35 in English) 30 music.
Internet server	$15.00	Per month (dail-up). 28.8
ADSL	$35.00	Still working out the kinks.
Wireless	$55.00	258K $350 for equipment.
Propane	$5.75	per 25lb tank.
Gas	$2.35	per U.S. gallon, 50 cents less for diesel.
Meat products	$2-2.50	Local grass fed beef, pork and poultry
Vegetable & fruits		Vary in season but generally half of the price in the U.S.
Dairy products		About the same in the U.S.
Restaurants		Less than half that of the U.S. A typical special of the day, $1.75.
Movies	$3.50	Per person, $1.75 for a retiree.
Gardener	$7-8.00	Per day.
House cleaner	$7-8.00	Per day.
Car Mechanic	$10.00	Per Hour.

Subsistence
Local markets are well stocked with imported and local products and produce. Visitors have told me that the prices they've seen in for imported items are higher than the states. Of course they are. American products just do not appear on the shelves. They have to come thousands of miles to get here and someone has to pay the shipping. We are fortunate that many are available. On the other hand, all kinds of fresh vegetables, fruits, baked items and national products are to be had at half the price. Baked goods have no preservatives added, and the beef no hormones or fed other dead animals. Although the grass fed beef may be a bit tough, it is much healthier than in the states. Even though the Volcan stores are well stocked, we do occasionally go to nearby David to shop at "99", Romero or Price Smart for a broader selection.

As for restaurants, prices are right out of the fifties. At the low end, you can still get a square meal (comida corriente) for $1.75 and they are good. They consist of rice, beans, plantain, a vegetable and choice of beef, chicken or pork. Throw in another 25 cents for a bowl of soup and another for a soda. Can you imagine a genuine cappuccino and a fresh baked pastry for 85 cents? As Volcan is growing fast, there are new restaurants serving international cosine. There are also good restaurants offering a delicious filet minion covered in mushroom sauce, accompanied with boiled buttered garlic potatoes and steamed veggies for $6.95. Although we may not have many fine restaurants, it is not far to David to take in a dinner, movie and stock up at Price Smart.

Even though the beef may be grass fed, it is delicious and you can buy 4-6 thick "T-bone" steaks for under $10. Some markets in David stock frozen U.S. Beef. There are imported apples, peaches, plums and grapes besides the many tropical fruits such as papaya, mangoes, bananas, watermelon, cantaloupe, musk melons, oranges, strawberries and grapefruit. Do you have a coffee fetish? We have some of the world's greatest highland coffee. No additives, just 100% pure delicious mountain grown coffee. It is of such great quality, it is exported to Europe and Star Bucks.

Entertainment
Besides enjoying good fellowship or direct TV to keep up with the latest, or keeping in touch with friends and the world on the inter-net, a wide variety of outdoor events can be found such as bird watching. Did you know that there are more species of birds in Panama than in all of North America? Nature hikes through the "Parque International de Amistad" (International Friendship Park) rain forest as well as trips to the top of Volcano Baru. Enjoy a tour of the Dracula Orchid farm known for their famous international award wining hybrid orchids.

Border passes for vehicles can be obtained in David and a drive to San Jose can be enjoyable. Perhaps a scenic drive across the continental divide to the Atlantic and up to Almirante, park your car and take the launch to Bocas Del Toro. Leave early and you can do it in a day. Tours coffee plantations, race horse farms and Indian villages can be arranged. How about horseback riding, beaches, bicycling, river, lake and deep sea fishing or perhaps white-water river rafting only to name a few. Think how neat it would to be to fish in the Pacific and also in the Atlantic.

The nearby five star hotel Bambito has both tennis and swimming clubs open for membership. On Sundays, between 12:00-15:00 they host an all you can eat buffet. With purchase, you can use their heated pool, Jacuzzi or sauna and they provide the towels.

Besides the main highway into Volcan, there are three other roads that head out to: Caizan passing the Barriles Archeology site and gardens. Rio Sereno, through the pass and down into tropical farming county and the Costa Rica Boarder and Cerro Punta with a many natural vistas.

Go to David for shopping and take in a dinner and movie. Most movies are the latest releases and are in English with Spanish sub-titles. There are two multi-cines, one at the Mal Chiriqui and the other at the hotel Nacional. Okay, not up to movies? Then maybe a dinner and dance at the Hotel Nacional. They have live music every Friday and Saturday night.

Hobbies
It is very important to have some kind of diversion. We cannot reiterate how important this is for a retiree living overseas. We have seen too many come here to drown in drink. Fortunately, with the advent of new technologies, we have many great projects and interesting hobbies to choose from. Besides the diversions listed under "entertainment", Chiriqui has many advantages for the serious hobbyist. A true hobbyist will always find a way to enjoy their favorite pastime no matter where they go. Because of the availability of local hard woods, woodworking is a excellent choice. Because of our elevation, Gardening is very popular and you do not have to replant every spring. It is not uncommon to produce three crops of vegetables each year. Those hard to grow Inpatients abound wild here.

The serene living conditions here enhance the creativity of a writer or painter or any "arts" hobbyist. Dry season clear skies provide a magnificent view of the southern skies including the "Southern Cross. There are hundreds of species of birds to watch, including the almost extinct Quetzal. Naturalist are fascinated by the incredible variety of flora and fauna in the nearby rain forest. Amateur Radio enthusiast gains an effective 20 dB just with a HP call. That, combined with a favored propagation path and elevation count for some great DX. Reciprocal licensing is offered with certain countries. Animal lovers can have their horses and pets. No restrictions on animals. Raise your own chickens, ducks or rabbits. Our team can assist you in bringing your pets. Because of the outbreak of many bird diseases in the states, it is next to impossible to bring your birds.

Diversion is basically "a state of mind". It is therapy that each of us need whether it be work or play. My lovely wife loves hiking knitting, sewing and gardening and our beautiful flower garden reflects her efforts. My gratification is working on my home, play with ham radio or the computer and explore the country side. What I am getting at, is that each of us need some form of similar relaxation beside an afternoon happy hour. A leisure pursuit is especially important to help offset the cultural and traumatic shock caused by recent retirement, let alone relocating to another country. There are those fortunate whom already have some great things going and that is the key to successful relocation. Believe it or not, retirement is a challenge and you're your winning transition will depend on keeping busy and a positive attitude

Guided Tours (bilingual) & Transportation
Tour capacity up to 4 persons.

For those visiting the area for very short periods, you may be interested in our arranging your transportation needs to keep the high cost of renting a car down. Visit some of the more scenic areas difficult to access in a street car. Restaurant stops are Dutch. Prices are for two persons. Additional persons, $12 each.

The advantage of providing you with transportation, you receive individual attention and not pinned down to a group scheduled tour. We can customize/split tours at $15 an hour. Chauffer service in your car is $10 an hour.

(For tours marked with *, the road is not recommended for a standard car.)

Communication
When driving into Panama from Costa Rica, the difference is remarkable as Panama has been blessed with very good highways throughout the country. Although semi-remote, Volcan is by no means at the "end of the road" yet sufficiently private to provide quiet and tranquility. The majority of the streets are dirt and more are paved each year as tax funds become available.

The main provider of telephone service is Cable and Wireless Ltd. that provides dial up, unlimited time and limited DSL service in Volcan. The reduced DSL service is because their optic lines only come within a quarter mile and then revert to wire. Two other companies offer direct access discounted international and national phone calls such as Claro-com (055) and Telecarrier (088).

For cheap international calls, Skype, a free internet messenger service offers a computer-to-phone service and calls from Panama to the U.S. are only 2 cents a minute and that combined with our wireless system provides an excellent method for making international calls.

There is a radio excellent wireless system being offered by a local company. This is the system we use and provides us with 256K or more depending on the plan. You must purchase the transceiver and be within "line-of-site" of the many repeaters. They are continuing to expand the system to cover ever broader area. Cost covers installation and connection. They also have two cyber cafes and offer international FAX service.

Both Cable and Wireless Ltd and Movistar provide reasonable nation wide cellular coverage. Most units sell for about $30-40 and you can prepay or buy telephone cards.

Besides five local Spanish TV stations (some with SAP) and several FM stations, there is direct TV providing over 70 channels of video (more than half in English), plus 30 music channels. If you're into ham radio, Panama has a reciprocal licensing agreement with the US.

There are a limited number of post office boxes available in Volcan. Mail can be accepted in c/o General Delivery (Entrega General) in your name indefinitely if you advise them you are a resident. Simple address:
Your name c/o Entrega General, Volcan, Chiriqui, Rep of Panama

Although mail service is slow, it is reliable. I have no problems with sending or receiving mail but it does put a new meaning on "snail mail". It normally takes 1-2 weeks. Apparently, small packages can be received. I was surprised the other day when I received a small package. Even after living here many years, this was something new to us.

There are companies providing express mail service through a Miami post office box were you can send your personal mail, packages and books. Delivery is generally 4-5 days.

Medical/Dental
The major concern we all face living overseas is receiving proper medical attention. Excellent medical service is available both in Panama City and David and some hospitals accept US insurance policies including Veterans Tri-care.

For those not covered under various overseas medical insurance policies, there is a first Chiriqui Hospital in David offering a very good health insurance policy for retiree's. Their rates are far less than in the US. Although coverage is low, one must remember that medical cost is a fraction of that in the U.S. For minor accidents and sickness, there is a 24 hour local clinic with a qualified staff of doctors and nurses. A doctor visit is only $5.00.

From Panama City, it is only a three hour flight to Miami, so it would be easy to return to the states for long term non-urgent ailments by Medicare or any medical insurance polices not covered in Panama. Anyone can use the Ministry of health hospitals and clinics around the country. We understand that the Mae Lewis Hospital in David is a contracted "tri-care facility".

Both minor and extensive dental work is available at one-third the cost. There are competent dental clinics in David. Although there are no dental insurance plans that we are aware of, the dental clinic we use, is an affiliate of the same medical plan and offers a special discount. For major reconstruction work, the money you save would pay for your trip to Panama and back.

Banking
Don't worry about changing your money, as the good old American buck is standard throughout the country. Around here, they call it the "Balboa" but it still has George's face on it. They are however, Balboa coins that are the same size, value and metal content as U.S. coins made by the U.S. Denver mint. They work in all US coin operated devices. ATM machines are available throughout the country and Volcan. It is wise to carry a bank debit card instead of traveler's checks. Travelers checks is a dying technology and since ATM's are readably available, one does not have to carry large sums of cash nor be bothered trying to find some one to cash the checks. An easy way to handle your pension is to deposit it in a U.S. bank and access it through the ATM.

Panama has a lot to offer for those with accounts here for several reasons.

1. All national currency is the US Dollar.
2. ATM machines all over Panama that you can withdraw cash from your US account.
3. Panama banks have their own debit card system called "Clave" (key) card and you can withdraw funds from your Panama account in the states.
4. Panama "Clave" debit cards work the same as in the U.S. in stores.
5. Panama does not report your account information to the US. It is up to you to declare the interest.
6. Interest is paid monthly.
7. Any visiting person can open a savings account but must be a resident to open a checking account and provide a letter of reference from a US bank.

The two banks in Volcan are Banistmo that has a web site offering internet account access and payment and Banco Nacional de Panama. Tax stamps for legal purposes are only available at BNP.

There many banks in David and several offer construction loans for homes if you own the property and a make a healthy down payment.

Off Shore and Legal Services
When trying to obtain any legal advice or services over seas, (especially in English), you're at the mercy of lawyers to obtain reasonably priced, reliable, legal consultation in a foreign country and it can be a demanding task. Because it is a law system and strange language, one is fully dependant on legal aid. Unscrupulous lawyers abound every where and it only takes one to make your dream a nightmare.

In the last 10 years, two legal associations have a proven track record and stand out above the pack for their honesty and fair dealings and have an English speaking staff. Either one may be solicited but it would be best to choose the one closet to where ever the service is required. They both offer the following services:

1. Immigration/visas
2. Real estate transactions/escrow.
3. Banking information and setting up accounts.
4. Taxation law and references.
5. Setting up off shore business and foundations.
6. Liability issues.
7. Translation.

David:

Panamá:

Security and Natural Disasters
Panama, is a Democratic Republic. After the removal of Manuel Noriega in 1989, Panama's growth has been a steady progression of investment and employment. As in Costa Rica, a national police has replaced the military. There is no political unrest apart from occasional anti-government student demonstrations in Panama City. There are no guerrilla or subversive activities except near the Colombian boarder. Since Panama is pursing international investment and eco-tourism, foreigners are readily welcome. In fact, many new laws creating incentives for the foreign investor and retiree have been passed.

Panama City and Colon suffer from many of the same criminal problems as larger U.S. cities. We do experience what we call "opportunity crime", in other words if you leave things lying around, it may grow little feet and run off in the night. Common sense goes a long way in crime prevention. The crime rate drops proportionally the further you are from the big cities. They have established "neighborhood watch" groups in both Volcan and Paso Ancho. There are homes with bars on the windows and tall fences but these are mostly vacation homes of people living in the big cities where this is a common practice.

Bars on windows provide a false sense of security besides being a fire hazard. We have large windows to enjoy the magnificent scenery and we are not about to ruin it with unsightly bars. We do not have a fence and we have motion lights detectors to discourage any prowlers and we have had no problems. A short fence to keep the stray animals out, your pet restrained and keep people from taking a short cut would be recommended.

With residing and working in Panama over 30 years, we have never personally experienced any "anti-American of "Yankee go home" confrontation or mugging. We have been warmly welcomed everywhere and the reason for this is that we try blend in and make that extra effort to make Panamanian friends and speak their language. Offer respect to any public official including the police and avoid shorts and sandals in public offices. Of course that rare "ugly American" can create his own set of consequences.

The stability of the country looks to remain favorable. The so called "Chinese threat" is a bunch of harp and they are an asset to our community as they have established businesses and services here that would not other wise have. Their goal, like us, is to live in a free country with opportunity.

Because the U.S. has had a presence in Panama for over and hundred years, the culture, music food and cloths are very "American" and most Panamanians want to enjoy the same style of life. One would probably suffer a worse case of cultural shock in most parts of Europe. Heck, I suffer a cultural shock every time I go back to the states. There have been thousands of Americans married to Panamanians, many more studying or living in the U.S. and it is hard to find anyone who does not have a family member who is not connected in some way to the U.S.

Sure, many thousands of Americans departed the Canal Zone when it was relinquished in but many choose to stay and more have immigrated to Panama than had left in the exodus of 99.

Panamanians realize that a retiree offers stable and badly needed revenue that tourism does not provide. That is one of the reasons why the government is bending over backwards trying to entice the retirement sector with generous benefits to come to Panama. The "trickle down effect" of tourism penetrates only the 2^nd or 3^rd level of the society and is then siphoned off to the rich folk's bank or over seas investors, while the retirement dollar penetrates the lowest level and bounces off the floor. An example, since 2000, the Hemingway Hideaway has directly or in-directly through this web site has encouraged more than a dozens families to retire in the highlands. The economic impact is estimated to be between 2-3 million dollars directly to the local communities where it is most needed.

It is unfortunate that many have a misconception about Panama, believing it is a jungle with hammocks strung between coconut trees. Panama City is a thriving modern metropolis where you can get most anything that you can in the states. Many of the same stores, franchises and restaurants, such as, Price Costco, Bennigans, TGIF, and others have branches here including large corporations such as Kansas City railroad and Bell South.

Why invest or build in an area fraught with floods, fire, earthquakes, hurricanes or tornadoes? Volcan has none of these. Volcano Baru is dormant. Although it is being monitored, there is no sign of serious activity. It has already done its "Mt. St. Helen's" thing 800-900 years ago. Even though we have frequent earthquakes (2.5-4.0), they have nothing to do with the volcano and with the so much activity, and there is no build up for a "Big One". Since Volcan is on a slight slope, there is no flooding. As common sense dictates, don't live near the river. Because of an occasional down poor, flooding can become a problem if you have a small stream in you're yard.

Tornadoes can not develop due to the high surrounding mountains and we are well below the normal hurricanes belt although we may experience the rain bands that are associated with such events. During the dry season, there are brush fires but since this happens almost yearly, there is not enough undergrowth to cause major forest fires. Keep your grass cut and it will not even burn the trees. Because of the elevation, we do not have the usual thunder storms and lightening associated with the lower levels.