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9 Cities In Central America That Are Becoming Retirement Hot Spots

Discover nine stunning and affordable Central American cities where you can enjoy a stress-free, budget-friendly retirement.

By Amanda Teague

Edited by Lauren Wellbank

Updated March 16, 2025

Are you dreaming of warm weather and a lower cost of living? You're not alone. More retirees than ever are choosing to become expatriates (or expats), moving abroad to enjoy their golden years in paradise.

Being an expat in retirement comes with some major perks, like affordable healthcare, a slower pace of life, and the chance to crush your tax debt while stretching your savings further.

Central America, in particular, has become a hot spot for retirees looking to get ahead financially while enjoying stunning beaches, unique culture, and year-round sunshine.

Many cities in the region offer residency programs with great benefits for retirees, including tax breaks and discounts on everything from travel to dining. Let's take a look at nine cities that are quickly becoming retirement favorites.

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Boquete, Panama

Boquete, Panama is a dream destination for retirees looking for a peaceful and affordable place to call home.

Unlike the country's famous beach towns, Boquete is a charming mountain retreat with a mild "eternal spring" climate, perfect for those who prefer cooler weather. The city is surrounded by incredible nature, particularly within the beautiful Barú National Park.

One of the biggest perks? The low cost of living. A one-bedroom apartment in the city center averages around $755, with monthly utilities around $53.75. Plus, Panama offers a generous Pensionado program, giving retirees discounts on everything from healthcare to entertainment.

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Grecia, Costa Rica

Grecia, Costa Rica is a small town in the heart of Costa Rica's Central Valley and was once named the "Cleanest Town in Latin America."

Just 16 miles from Juan Santamaria International Airport and 28 miles from the capital, San José, it offers easy access to modern amenities while maintaining a peaceful, small-town feel.

At just 2.9 square miles, Grecia is a close-knit farming community surrounded by rolling sugar cane fields and amazing mountain views from the slopes of Poás Volcano.

The town has excellent healthcare options and a comfortable lifestyle that won't break the bank. Americans can stay for up to 180 days on a tourist visa, but will need to apply for residency if they want to settle down long-term.

Belize City, Belize

Belize Cityscape with Lighthouse and Caribbean Sea

If you're craving an island lifestyle with warm weather and beautiful beaches, Belize City could be the perfect retirement spot. This lively port city offers easy access to the Caribbean Sea, offshore islands, and some of the best diving and fishing in the world.

Belize is also the only Central American country where English is the official language, making the transition easy for American retirees.

Belize's Qualified Retired Persons (QRP) Program is a major perk, offering residency and tax breaks to those over 45 with a minimum monthly income of $2,000. Buying property is straightforward, and property taxes are low — though expect to pay an 8% stamp transfer tax.

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Granada, Nicaragua

Granada, Nicaragua is a colonial city on the shores of Lake Nicaragua, the largest lake in Central America.

With a population of over 130,000, it has the feel of a busy city while still offering a relaxed and peaceful atmosphere. Its colorful architecture, charming cobblestone streets, and historic Granada Cathedral make it one of the most beautiful places to retire.

The Pensionado Visa requires only $600 in monthly income, one of the lowest thresholds in the world. This visa starts as a one-year temporary permit and can be renewed annually. The cost of living is incredibly affordable, with a comfortable lifestyle possible on as little as $1,500 monthly for a couple on a budget.

Coronado, Panama

The lively coastal city of Coronado, Panama, has a large expat community. English is widely spoken here, making the transition easy. With its gorgeous black sand beaches and great surf spots, Coronado is perfect for those who love the ocean.

Living here is affordable, and a one-bedroom apartment costs around $760 in the city center or $560 outside of it. Retirees can apply for Panama's Pensionado Program, which grants residency and discounts on healthcare, entertainment, and travel with just $1,000 in monthly income.

After five years, permanent residents can even apply for Panamanian citizenship.

Escazú, Costa Rica

If you're looking for a safe, upscale community with excellent amenities, then check out Escazú, Costa Rica.

Located just outside of San José, it offers modern shopping centers, fine dining, and a great healthcare system. The government-backed CAJA program provides low-cost medical care, covering everything from doctor visits to prescriptions with no copays. Plus, Hospital CIMA, one of the country's best hospitals, is right in town.

While Escazú is one of Costa Rica's wealthiest cities, it remains affordable compared to U.S. cities. The higher cost of living comes with great infrastructure, security, and access to top-tier healthcare.

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Antigua, Guatemala

Antigua, Guatemala is a colonial city surrounded by volcanoes and is known for its cobblestone streets and historic architecture.

Antigua is small and incredibly walkable, and you can cross the entire city in just 20 minutes. English is widely spoken, and the year-round spring-like climate keeps temperatures comfortably below 86ºF.

Living here is very affordable, with one-bedroom apartments ranging from $359 to $722 per month. Retirees can apply for Guatemala's retirement visa with just $1,000 in monthly income and a clean criminal record.

Panama City, Panama

Panama City, Panama is a modern capital with stunning ocean views and a thriving expat community.

The city offers a big-city lifestyle, with world-class dining, shopping, and sleek skyscrapers. Its JCI-accredited hospitals provide top-tier healthcare, making it a great choice for retirees seeking quality medical care.

Living here is still affordable compared to the U.S., with a comfortable budget ranging from $1,500 to $3,000 per month, depending on your lifestyle. With the Pensionado Program, you can enjoy perks like a 25% discount on airline tickets, a 20% discount on doctor's bills, and a 25% discount on utility bills.

Atenas, Costa Rica

Atenas, Costa Rica is a charming town in the Central Valley, offering a peaceful lifestyle without the hassle of big-city living.

Known for its fantastic weather, Atenas attracts retirees looking for a slower pace of life, with plenty of opportunities to enjoy coffee farms, nature retreats, and outdoor excursions. The town has a thriving expat community of around 1,500 foreigners, making it easy to connect with like-minded retirees.

To retire in Costa Rica, you'll need a Pensionado residency visa, which requires just $1,000 in monthly retirement income. Plus, foreign-sourced income like the U.S. Social Security and pensions are not taxed in Costa Rica.

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Bottom line

Whether you prefer the beaches of Belize, the mountains of Boquete, or the colonial charm of Antigua, there's a city that fits every retirement dream.

Before making the move, it's essential to prepare yourself financially by researching visa requirements, healthcare costs, and housing options.

Some retirees even find ways to make extra money on the side, such as renting out property, teaching English, or freelancing online. With the right planning, retiring in Central America can be the adventure of a lifetime.

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