Moving to Panama from Canada: the 2026 guide

Not sure Panama is right for you?

That is what the 10-Day Explorer Tour is for: the three regions, the immigration lawyer, an insurance agent, a hospital walk-through, and a decision made on evidence.

1. Decide whether you are becoming a CRA non-resident, and plan for departure tax

You are an emigrant for tax purposes when you leave to live elsewhere and sever your residential ties (home, spouse, dependants). On departure day you are deemed to have sold most capital property at fair market value, which can trigger capital gains; property over CA$25,000 goes on Form T1161, and the CRA asks you to report your departure date and notify Canadian payers and banks (CRA, Leaving Canada (emigrants)). Involve a cross-border accountant before you book a one-way ticket.

2. Check your OAS years

OAS is paid outside Canada only if you "resided in Canada for at least 20 years since the age of 18" (canada.ca, OAS eligibility). Immigrants who arrived in mid-life can fall short; get your residence count from Service Canada in writing first.

3. CPP keeps paying; both pensions get withheld

CPP continues wherever you live; CPP and OAS "can be deposited directly to your Canadian or local bank account outside of Canada" (canada.ca). As a non-resident, Canada applies Part XIII withholding to CPP, OAS, pensions, RRSP and RRIF payments at "25% unless a tax treaty between Canada and your home country reduces this rate" (CRA); Canada and Panama have a tax convention, so ask your accountant for the rate. Panama taxes only Panama-source income (Relofirm, Feb 2025).

4. Know the day your provincial health card stops working

See the table below. A permanent mover breaks every province's presence rule within the first year, and losing the card voids Canadian travel insurance too. Arrange Panama-based insurance before you go, and before 60 if you can.

5. Keep a Canadian bank account open

Pensions and refunds need somewhere to land, and Panamanian banks are slow to open accounts for newcomers. Tell your bank you are becoming a non-resident rather than quietly keeping a Canadian address.

6. Bring prescriptions, not just pills

Panamanian pharmacies do not accept foreign prescriptions; a local doctor must rewrite them. Insulin, benzodiazepines, stimulants, opioids and often antibiotics need a local script; Adderall, Ambien and Trazodone are not sold in Panama (ExpatDen, Oct 2026). Carry a supply in original packaging with a physician's letter.

Buying property without an independent Panamanian lawyer

Title defects and untitled rights-of-possession land are common outside the capital. The lawyer must be yours, not the seller's.

Choosing the region for the photos rather than the hospital

Panama City, Boquete and the beaches sit at very different distances from a full hospital. Drive the route to the ER before you pick the town.

Signing a long lease or buying before living there

Rent furnished for a few months first. Neighbourhoods sound different at night, and the rainy season changes how a house feels.

Waiting until after 60 to apply for insurance

Local insurers close enrolment from 60, and international plans price by age and load pre-existing conditions. Apply while you are still deciding.

Assuming OHIP, RAMQ or MSP travels with you

It does not, and when it lapses your Canadian travel policy lapses too. Arrange Panama-based cover before you leave.

Paying commissions you did not know about

Many "relocation services" are commissioned agents for developers, lawyers or insurers. We take no commissions from anyone we introduce you to.

Ready to stop wondering and start knowing?

Ten days on the ground with the lawyer, the insurer and the hospitals you have just read about. Dates and pricing are on the booking page; past clients are on our testimonials page.

Do Canadians need a visa to move to Panama?

Not to visit: Canadians enter visa-free for up to 180 days. To live there you apply for residency from inside Panama: Pensionado (lifetime pension of US$1,000 a month or more), Friendly Nations (employment or qualifying real estate) or Qualified Investor (from US$300,000 in real estate).

What happens to my taxes when I move to Panama from Canada?

If you sever residential ties, the CRA treats you as an emigrant: a deemed disposition of most capital property on departure, Form T1161 above CA$25,000, then 25% non-resident withholding on Canadian-source income unless a treaty lowers it. Panama taxes only Panama-source income.

Can I still get OAS and CPP if I live in Panama?

CPP is paid wherever you live. OAS is paid abroad only with at least 20 years of Canadian residence after age 18. Both can be deposited to a Canadian or, where supported, a local account, and both are subject to Canadian non-resident withholding.

Are there nonstop flights from Canada to Panama?

Yes. Copa flies Toronto–Panama City and Montreal–Panama City daily, with extra holiday frequencies in December 2026 and January 2027. Air Transat flies Quebec City–Rio Hato on Sundays from December 20, 2026 to April 25, 2027. None transit the United States.

When does my provincial health coverage end after moving to Panama?

When you fail your province's presence rule: Ontario 153 days in each of the prior two 12-month periods, Quebec 183 days absent in a calendar year, BC and Nova Scotia 6 months, Alberta 183 days in 12 months, Newfoundland and Labrador 8 months.

Can I fill my Canadian prescription in Panama?

No. A Panamanian doctor must write a local prescription. Insulin, benzodiazepines, stimulants, opioids and often antibiotics need a local script, and Adderall, Ambien and Trazodone are not available. Bring a supply in original packaging with a physician's letter.