A comfortable retirement works out cheaper in Bulgaria — around £1,200/month for a couple, versus £2,300 in Panama (about 48% more).
Cost of living, side by side
| Bulgaria | Panama | |
|---|---|---|
| Modest (couple/mo) | £780 | £1,600 |
| Comfortable (couple/mo) | £1,200 | £2,300 |
| Premium (couple/mo) | £1,900 | £3,800 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Bulgaria: Foreigners can freely buy apartments and buildings in their own name, but under the constitution non-nationals cannot directly own the underlying land — a house with a garden is usually held via a Bulgarian company, or the building is bought separately from its plot. (EU citizens face fewer limits.)
Panama: Foreigners can own property with essentially the same rights as locals in most areas.
Bulgaria: Retirees typically apply for a long-stay (type D) visa and a renewable residence permit, showing a stable pension, adequate savings and Bulgarian health cover; buying property alone does not confer residency.
Panama: The Pensionado (pensioner) visa is famous for its discounts and low income requirement.
Bulgaria: Public healthcare is basic but very cheap, so most expats rely on affordable private clinics or insurance for quality and speed; UK state pensioners can register an S1 for public cover. Sofia and the larger cities have the best facilities.
Panama: Private healthcare is good and affordable, centred on Panama City's modern hospitals (one affiliated with Johns Hopkins) with English-speaking doctors; private insurance runs roughly US$50-150 a month at younger ages, rising with age. Care is more limited in rural and highland areas.
Bulgaria: Bulgaria has a flat 10% income tax, the EU's lowest, applied to pensions and other income of residents, which makes it very simple and light for a retiree. It adopted the euro on 1 January 2026, replacing the lev.
Panama: Panama uses a territorial tax system, so foreign pensions, Social Security and other overseas income are not taxed at all, and only Panama-source income is. This makes it one of the simplest places for a retiree living on a foreign pension.
Bulgaria: Four distinct seasons, with hot summers, cold snowy winters ideal for the ski resorts, and pleasant spring and autumn. The Black Sea coast is noticeably milder. Bulgaria is generally safe and inexpensive; they drive on the right, English is spoken by younger people and in tourist areas but less so among older locals, and the Cyrillic alphabet takes a little getting used to.
Panama: Tropical and warm all year, with a dry season (December-April) that is the most pleasant and a green rainy season (May-November). The Boquete highlands stay noticeably cooler and fresher. Panama is among Central America's safer countries and uses the US dollar; they drive on the right, English is widely spoken in the capital and expat areas, and daily life is straightforward for British retirees.
Bulgaria: Total buying costs are usually around 5-6% (nearer 8-10% with a buyer's agent): a 3% municipal transfer tax, notary fees of about 0.4-1.5%, and a 0.1% registration fee. Foreigners buy buildings freely but hold the underlying land via a company; completion takes a few weeks.
Panama: The buyer's one-off costs are low, typically about 2.5-4.5% covering their own lawyer (around 0.5-2%), notary and registry fees; the 2% transfer tax is normally the seller's. Titled property completes in a few weeks to a couple of months.
Bulgaria: Bansko for mountain and ski living at low cost; the Black Sea coast around Varna and Burgas for summer sun; historic Veliko Tarnovo for character; and Sofia for city amenities and healthcare.
Panama: Boquete for cool, green highlands popular with retirees; Coronado for a beach town within reach of the capital; Panama City for cosmopolitan amenities and healthcare; and Pedasi or Bocas del Toro for quieter coastal life.
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