Expat Adventure – Winter 2025 Edition
Feliz Ano Nuevo and greetings from sunny Panama City.
I trust you enjoyed a wonderful Christmas season with family and friends and that this new year brings you all you desire. It seems we just arrived back in Panama on October 4th and now it’s already 2025.
We were unsure of what to expect arriving in the “rainy season” but since Casco Viejo is located at the beginning of the “dry arch” we found fall here great. The dry arch lies along the Pacific coast, beginning just east of Panama City and runs west through beach resort towns of Coronado and Pedasi and around the most southernly portion of the country known as the Azuero Peninsula. The Azuero area is the driest, but Casco Viejo also benefits and we found it very comfortable here this fall. This is because the daytime temperatures were pleasant and a 30 – 60-minute heavy rainfall a few times per week cooled things off. You do learn to take an umbrella – just in case, however since we arrived, I cannot recall more than three at most where it rained all day. The majority are warm and sunny with a nice slight breeze.
Now, in July through September, we understand the rain is more frequent and intense but again is generally not all day. In the highlands (Boquete) where many US and Canadian expats live, there was a lot of rain. This fall brought flooding, road washouts and some crop damage. It’s cooler when you live at higher altitudes, about 10-15 degrees Celsius cooler than the coastal areas which is why agriculture and expats from up north do well there. Not being in the dry arch brings a true rainy season experience. This recent Travel and Leisure Magazine article speaks volumes of why Panama is popular for retirement.
https://www.travelandleisure.com/panama-best-place-to-retire-2025-by-international-living-8753862
For those of you who are like me and “hope for the best yet plan for the worst” – those who ponder where the extra lifejackets, rafts or escape hatch is located, I offer you some additional insight into second passports. Citizenship is different from residency and much has been written about this in recent years for a variety of reasons which I won’t get involved in here. However, I can provide first-hand experience in the process as I recently received my Irish citizenship and a second new passport. My congratulatory letter opened with “Welcome to the European Union”. This was possible through “Citizenship by Descent” and since my adoptive mother was born in Portadown Ireland, I qualified. The company I hired in summer 2023 handled this for me, including introductions to Irish Immigration lawyers. Since I was adopted, it created extra steps and delays while I hired an Ottawa based Canadian immigration lawyer to assist with proof of that process to meet the needs of the Irish government.
That alone extended the process by six months. However, the process was not expensive and since I now have direct access and connections to the Irish law firm, our son Adam can also qualify for a cost of about €2,800. A reasonable expense for a second citizenship and that extra lifeboat. Audrey and I also expect our St. Lucia Citizenship and passports any day now and that provides us Caribbean Community (CARICOM) membership. This is the right to live and be part of 15 Caribbean member countries should it be desired and additional visa free access to many other countries. Now certainly our Canadian passport does that and more, but we wanted a backup solution and the rights it brings. This includes additional tax and investment planning options, guaranteed freedom of movement, the right to live in the EU or Caribbean and other benefits. If anyone wishes to learn more, I can point you in the right direction and certainly help you navigate the process. The world is closing in and countries are becoming more restrictive. Golden Visa’s (residency only) are being shut down in previously accessible places like Spain and Portugal. Countries are tightening up, increasing the level of checks and balances and criteria to appease entry worries. If you have any inclination for a second passport, or even residency, I would personally investigate it sooner than later. Citizenship through descent is the least costly and most viable for most, although there are some other options.
We are in the process of making travel plans to Costa Rica. Last year I bought a villa at Playa Flamingo (north of Tamarindo on the Pacific coast). Within a gated community with amenities, it should be ready for winter 2027. We have been to Costa Rica a few times, but never to the Flamingo beach area. With beautiful beaches and a nearby marina area, it’s a growing destination and we hope to use it personally on occasion, but like the one in Spain, also selectively rent it out. I recently did the same thing here at Playa Caracol. This is a growing resort area in the district of Chame, about 1.5 hours west of Panama City. The beach is beautiful and about 7 km long offering many leisure choices.
There is also new upscale Margaritaville hotel being built there, which is a great draw and a host of resort amenities to attract tourists. There was the option to buy oceanfront villas and individual condos here for those who desire an easy weekend escape from the city. We recently stayed at the new Seashore Hotel to get a feel for the area. It’s very nice with light sand and clean, warm ocean waters. Since we had to divest ourselves of all Canadian real estate and liquid non-registered assets, we’ve reallocated some of those proceeds into properties across different regions. This approach helps us maintain a balance between real estate and stocks, while also keeping exposure to multiple asset classes and foreign currencies. Being non-residents of Canada makes holding real estate in various counites much more viable and tax efficient. Our RRSP and TFSA accounts remain under Adam’s good care at Mandeville.
In our new home country, we have been supporting several charities. Orphanages provide support for children, but only up to age 12 and that requires funding. We also fund after school programs for disadvantaged children so they can obtain extra education, meals and support. This program is called PROED and it has won awards for its work here in Panama. We provide food to some shelters and help out in other ways. The people are very nice and we like to give back, especially where children are involved.
We will be visiting the San Blas Islands (Caribbean side) and the Pearl Islands (Pacific side). These are easy to get to and a quick internet search will solve for why we have interest in these lovely Panamanian destinations. We are also planning to attend Cartagena Columbia this winter for 3-4 days. Another Caribbean destination next door and a short flight to see its walled historic city and enjoy the various sights and great dining. I was there with a friend in in the late 80’s but Audrey has never been. Should be fun!
We recently completed our full round of medical tests; from stress tests, numerous ultrasounds and everything in-between down here. All is great heath wise as we simply try to be proactive and exercise control over that which we have control over. Otherwise, I have no idea what else will befall us or you for that matter. A new president in America, an imminent election in Canada, economic and geo-political hardship befall many and markets hitting new highs. Our personal plan is to maintain personal and financial health, stay diversified within our desired asset classes (mostly stocks, some income-oriented assets and some real estate) being careful not become over-concentrated in assets that are overpriced. That way, even if the odd investment does not work out as expected, it does not impact materially.
We never spent more than we earned which allowed us to invest regularly and to take advantage of opportunity when markets fell. When that does occur, we will add to existing shares in high qualify businesses. We certainly won’t sellers. Do you recall the low point of the TSX index during COVID 19 almost five years ago? The index low was about 10,656 on March 16, 2020. It’s about 25,000 now as at the time of writing (https://tradingeconomics.com). Proof positive that declines are temporary and wealth is built over years, not months. Markets go on to set new highs for those wise enough to stay in them and rewards further those who invest during economic turmoil. By not allowing emotions to corrode the framework for investment success, a simple, proven process works, but is not an easy one to maintain for most. Properly funding your investments and working with a skilled portfolio manager, with access to the right investment choices, prudent tax planning and sound emotional control helps this all materialize. Studies show they can add up to 3% in average annual returns over time. Adam likely more😊
Best wishes to you over the months ahead. Reach out anytime to learn more about expat life and opportunities outside of Canada.
In the meantime, here are a few photos featuring Panama City during Adam’s visit with us this Christmas.
Cuidarse y Hasta luego.
Michael
