Nearly 19,000 Americans now collect Social Security checks in Central America and the Caribbean. This is partly because a fixed income that barely covers rent in Florida can fund a full life in, say, Boquete, Panama or Atenas, Costa Rica.
International Living ranked Panama as the second best place to retire in 2026, right behind Greece. The rankings weigh healthcare, housing costs, climate, and visa options. Costa Rica was third.
In this article, we’ll walk you through five affordable Central American towns that offer numerous advantages for retirees.
Boquete, Panama
Live and Invest Overseas calls Boquete, Panama, a charming mountain town, the world’s best retirement spot in 2026. For a single person living modestly, a budget of about $800 to $1,500 per month is “realistic,” according to one source.
To retire in Panama, you need to demonstrate that you have at least $1,000 per month in income, such as a pension. Benefits include a 25% discount on utility bills, 25% discount on airline tickets, a 30% discount on other transportation, and a 50% discount on entrance to movie theaters, cultural events, and sporting events.
Granada, Nicaragua
Founded in 1524, Granada is the oldest city in the Americas. The streets feature stunning colonial architecture and unmistakeable charm. A two-bedroom furnished apartment costs about $620 per month. A couple can live well on under $1,500 per month, according to Live and Invest Overseas.
Nicaragua’s retirement visa requires just $600 monthly income, as long as you’re age 45 or older.
Antigua, Guatemala
Named a UNESCO World Heritage site, Antigua offers stately examples of Spanish colonial architecture. The average rent for a furnished 900-square-foot apartment ranges from about $590 to $890 per month. The town is over an hour from Guatemala City’s hospitals. Guatemala’s path to permanent residency program requires you to bring in $1,250 per month in outside income, such as 401(k) withdrawals or pensions.
San Juan del Sur, Nicaragua
With warm ocean breezes, this colorful coastal town offers a life at the beach for a modest amount of money per month. Rent can vary widely based on your preferences, from $350 to $500 per month for an apartment with no air conditioning or hot water to $1,200 to $1,800 per month for a luxury home with an ocean view and a private pool. $1,800 per month is significant, of course—the average rent in the U.S. is $1,995 per month—but your money goes much further here.
Atenas, Costa Rica
Boasting one of the best climates in the world, according to National Geographic, Atenas, Costa Rica offers year-round temperatures of 75°F to 85°F (24–29°C) with breezes from the Pacific Ocean.
Depending on the level of amenities you’re looking for, a rent or mortgage can run between $700 to $2,500, with the latter getting you a slice of paradise. Modest countryside homes cost between $150,000 and $250,000, modern villas with views run $300,000 to $600,000, and luxury estates or gated homes cost $650,000 on up.
Costa Rica’s Pensionado program requires you to have at least $1,000 in income per month and includes access to the public healthcare system. Private doctor visits cost between $60 and $75.
Before Committing
It’s worth remembering that it will take time to become a resident. Panama’s Pensionado process, for example, can take three months or longer. Costa Rica’s process takes between six to 18 months.
Knowing a bit of Spanish will help you, though you’ll hear a lot of English in areas that are popular with expats, like Boquete, Panama. It’s important to consider medical evacuation insurance, as some conditions may need treatment in the U.S.
Also, it’s a good idea to rent first. A six-month trial run shows whether the climate, the expat community, and the daily logistics will actually work for you. A home that looks like paradise online might flood every rainy season or sit too far from decent grocery stores.
