A comfortable retirement works out cheaper in Mauritius — around £2,100/month for a couple, versus £2,300 in Panama (about 9% more).
Cost of living, side by side
| Mauritius | Panama | |
|---|---|---|
| Modest (couple/mo) | £1,400 | £1,600 |
| Comfortable (couple/mo) | £2,100 | £2,300 |
| Premium (couple/mo) | £3,300 | £3,800 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Mauritius: Non-citizens buy mainly through government-approved schemes such as the Property Development Scheme (PDS), IRS and RES, or in ground-plus-two apartment developments, where they can own freehold. A qualifying purchase above set price thresholds can also confer residence. Buying ordinary land outside these schemes generally requires special approval.
Panama: Foreigners can own property with essentially the same rights as locals in most areas.
Mauritius: Those aged 50+ can apply for a Retired Non-Citizen residence permit by undertaking to transfer around USD 2,000 a month into a local account; buying a qualifying scheme property can also grant residence for as long as it is held.
Panama: The Pensionado (pensioner) visa is famous for its discounts and low income requirement.
Mauritius: Free public hospitals exist but expats use private clinics, chiefly the C-Care group (with branches at Grand Baie, Tamarin and Wellkin in Moka) plus others, offering good care in English and French, with anything highly specialised sometimes handled abroad. Private insurance is widely used and relatively affordable.
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.
Mauritius: Mauritius has a flat 15% income tax and no capital-gains or inheritance tax, and a resident is taxed on foreign income only if it is remitted to Mauritius; the over-50s retirement permit needs about USD 24,000 a year of income. Take advice on remittance timing.
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.
Mauritius: Warm and tropical all year, with hot humid summers from December to March and pleasantly mild drier winters from June to September; cyclone season runs January to March. Winter is the most comfortable time. Very easy for British retirees, as English is an official language and driving is on the left as in the UK; the island is safe, stable and welcoming with a large established expat community.
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.
Mauritius: Foreign buyers purchase through approved schemes such as the PDS from a USD 375,000 minimum, and expect registration duty of around 5%, though from mid-2026 this is rising toward 10% for scheme purchases, so check the current rate; completion takes weeks to a few months.
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.
Mauritius: Grand Baie and the north for a lively expat hub, Tamarin and Black River on the west coast for a laid-back beach lifestyle, and Flic en Flac for lagoons and amenities.
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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