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Panama or Nicaragua, that is the question. With the sustained growth of expatriate communities in Panama and increased interest in Nicaragua in recent years, there is considerable interest in comparing the two. Here’s a quick look at the pros and cons of these popular retirement and second-home destinations.
Both countries enjoy warm weather throughout the year and both countries have highlands that provide relief from the tropical heat. In Panama, the dry season is wet and the wet season often brings periods of cloudy weather. In Nicaragua, it is common to have sun in the morning during the rainy season and the dry season can be quite pleasant. But believe it, they are both in the tropics and except for the mountainous regions, it is hot … period.
Medical care in Panama is superior and care that meets First World standards is easy to find. This is not true in Nicaragua unless the beach development of which it is a part has its own clinic. There are some private clinics in Granada, but be selective.
Nicaragua enjoys a lower cost of living than Panama and the cost of beach properties, a major attraction in both countries, is dramatically lower in Nicaragua, with some properties selling for just 20% of the cost of their Panamanian counterparts. . (A notable exception here is the relatively new development of Istana Plantations in Panama, which is priced very close to a Nicaraguan beach property … but is also more remote than most of the competition in Panama.)
But you got what you paid for. Most Panamanian beach developments can be reached by traveling on a well paved highway at high speed, directly to the property. Modern oceanfront projects start just 45 minutes outside of Panama City. In Nicaragua, most beach developments are at the end of a significant stretch of dirt road, which sometimes requires a 4×4 vehicle in the rainy season.
North Americans seem more “special” in Nicaragua and receive more attention from the community. In Panama, the presence of North Americans is routine and has been for more than 100 years since the construction of the Canal. Panama’s expat community is much larger than Nicaragua’s, whose expats are concentrated in Granada and the spas. (Unlike the rest of Nicaragua, beach developments generally have first-world amenities and the residents are mostly North American.)
English is widely spoken in Panama, while it is rare in much of Nicaragua.
Nicaragua is a poor country, while Panama is doing relatively well by Latin American standards. Stopping at an intersection in Panama City is a lot like being in any major city in the United States, while in Managua, your car will be surrounded by windshield wipers, street vendors, and other people looking to make a living; You can have a good time shopping through your car window at the traffic lights in Managua if you wish.
While politics is different in both countries, both are considered to be politically stable with respect to expatriate life. Both countries are encouraging withdrawal with long-term incentives through laws and financial agreements.
If proximity to sophisticated healthcare, a large expat community where English is widely spoken, and the infrastructure of the First World country are important to you and you want an easy transition from life to the United States or Canada, then you should look In Panama.
If the low cost of living and the low cost of real estate is your main concern, you enjoy being part of a foreign culture that is different from your own and you have at least a little Spanish, consider Nicaragua. If you like your beaches to be remote, natural and free of tall buildings and you don’t mind being part of the Third World, then again you should look to Nicaragua.