The third in a series of articles comparing Central America’s two leading expat and retiree destinations. Costa Rica is the more established of the two, but Panama is the upstart new kid on the block with a full head of steam and a pocket full of dollars. Who will come out on top? Read more and find out.
Click here for Round 1: Retirement Benefits
Click here for Round 2: Climate
Click here for Round 4: Things To Do
Round 3: People and Culture
If you are going to relocate, either as an expat or retiree, its important to know what your neighbors will be like. Considering that most prospective expats and retirees don’t want to live in a country full of jerks, this article takes a look at the culture and people in both countries and determines a winner. Round 3, begin!
Note: These are generalizations and not meant to include every citizen. Also, food will be covered in another article.
Costa Rica
The oft-repeated generalization is that Costa Rica, in fact, has no culture. This is impossible; even a land of brain-eating zombies have a culture of, well, eating brains. The Ticos certainly do have a culture, albeit not as impressive as the Mayan-rich countries to the north. And if culture is defined by recent social and political instability, then I think most Costa Ricans would be more than happy to have little of it.
CR is definitely the whiter of the two countries, with 97% of the population classifying themselves as white or mestizo. Some Ticos will claim that there isn’t racism in the country, which is easy to say when you never really see Afro-Caribbeans or pure indigenous people. In fact, Afro-Caribbeans were not allowed to leave the Limón province until 1949 (however, the U.S. had some pretty draconian racial laws at this time as well). But alas it is the 21st century and for the most part all is well.
Ticos are generally conservative people who for the most part shun the weird and bizarre. Additionally, they shy away from debate in an almost offensive manner as to, ironically, not offend anyone. Perhaps that is the Central American key to political stability: don’t talk about politics, don’t stir the pot. They will, however, do whatever they can to impress their guests and are extremely amiable.
Religiously, Costa Rica is a dominantly Catholic country. However, the church does not have the kind of power or influence it does with CR’s neighbors; many Ticos claim to be Catholic but practice it more as a tradition than a lifestyle. A crucial part of the country’s culture is its strong middle class, something of an oddity in Latin America. It acts as a sort of homogenizing ease between the poor (yes, Costa Rica has poor people despite claims to the contrary) and the rich elite, smoothing over tensions by giving the poor an feasible economic ladder to climb. Thus, coupled by the fact that the country has no army and no military budget, is the reason why the school, medical, and road systems are developed.
Summing up, Ticos are smart, kind people who wish to leave a good impression on visitors. While this makes for a great vacation and you know your neighbors will be peaceful folks who invite you over for sunset dinners, the general disdain for healthy debate takes some of the spark out of conversation
Panama
Panamanians must be split up into two groups: those living in the capital, and everyone else. Just about every city-dweller in the world makes fun of, looks down on, or thinks less of the hicks, rednecks, countryfolk, farmboys, etc etc that live outside the metropolis’ limits. But the inhabitants of Panama City seem to have an indignation, nearly reaching hatred status, of everyone else in the country. Once, when telling a Panama City friend of mine that I was going to go to the rainforests to the west of the city, he became perplexed and responded simply with “Why would you want to go there?”. PCity is the place to be; if you don’t live there, then you haven’t made it to the top yet. Thus the snobbish attitude that many capital residents have and the reason why two groups must be made when looking at the people and culture of the country.
Whereas Costa Rica is very, very white, Panama is a melting pot of races and cultures. A healthy population of Afro-Panamanians, as well as several indigenous communities, inject a good deal of diversity into the country. Additionally, the canal project and subsequent international trade has brought sizable enclaves of Chinese, Koreans, and Indians to the capital. The diverse crowd, along with prosperous economic times, makes racism a mute point, although it does exist.
The Panamanian attitude, especially in the capital, is a combination of New Orleans’ “let the good times roll” and Las Vegas extravagance. The new found wealth that the canal and international banking have brought has fostered a forward-thinking capitalistic society that could care less about the past; in fact, I had a Panamanian history and culture professor in Panama City tell me that history is pretty much irrelevant and can even be a hindrance.Panamanians can be a bit more closed off than their Tico counterparts, but once the initial ice is broken they are as inviting as any culture. They love to talk about anything, which is perhaps a vestige from their Colombian roots. However, the wealthy elite, who are growing in number, can be a bit prudish and flashy.
Round 3 Winner: TIE. While their timidity and political disassociation can get a bit annoying at times, the Tico’s welcoming vibes are irresistible and definitely add to the charm of the country. Also, their predominately European heritage makes them unique in Central America. Panamanians love a good party and are cool people, but the initial closed circles and penchant for the uber-rich to flash money around is a turnoff. But the diverse racial mix of the country, including several indigenous groups and the Afro-Panamanians on the Caribbean coast, make up for any big-spending showboaters.


Hi there! I am from Panama and English is not my native language.
Panama the country really have to be divided in two defined parts:
The Interoceani Region (I mean, from coast to coast, north-south Pacific-Atlantic from Panama City to Colon City, including the forest around the Canal axis). The people is a genetic mixture. The culture is of rapid business, cool and pacific life, well business, looking for investors, the fashion, universities carreers and good business.
The rest of the country, west-to-east and viceversa. There (so, anywhere) people take things with a little more time to think than in Interoceanic Region. Very good people, friendly, who likes to work as well as to be in a party.
Panama is a multiracial country with a 20% of white people, 15% black and black-mestizo, 9% pure indigenous and the rest, a wonderful mestizo population plus ethnic minoriies. All of us live in peace.
I know Costa Rica and like them. Is a beautiful country. They have active volcanoes and has few service facilities as bank, ports, airports, etc. Panama have what CR haven’t, plus the Canal.
Enjoy!
Vladimir-
First of all your English is awesome. Thanks for posting. Panama definitely has a lot to offer, and the racial and cultural divirsity makes it a really special place.
I didn’t know that Costa Rica had active Volcanoes. I may have to holiday there sometime in my life.
Hi, I’m from Costa Rica, English is not my native language either.
I think you sum it up pretty well, we Ticos are exactly as you describe us. Most of us have that “laissez faire laissez passer” attitude you mentioned.
Something you forgot to mention is that there’s a stronger middle class down here in CR. I get the feeling Panama has its social classes more polarized.
As Vladirmir said, we have fewer banks, we are not a banking center and we have no canal. In exchange, I would say we have more universities, language schools, land based telephone lines and way more internet users. Internet-awareness seems important to me but that’s just my two cents.
Something I like about Panama is their pro-capitalistic attitude, sadly, lots of Ticos resent their richer neighbors, I wish we were more like Panamanians in that matter.
Great article by the way!
I really think that you make very good points in your article about both beutiful countries. Panama and Costa Rica have many thinks to offer, I really think that Costa Rica have manage to market their countries atributes, eco-tourism, environment, travel destination in a very effective and effective way. It is imperative for others Central American countries to learn about this success story, but everything have a cost. the cost of living in Costa Rica Tourist economy have its social problems. It is good to have a strong middle class but this also can change at any time, and crime can increase due to poverty and lack of oportunities for everyone. The Tourist needs to feel safe and on the other hand Panama have to learn form Costa Rica success and mistakes and do a better job in providing a most sophisticated and complete package to Tourist and visitors. Panama have to learn what Tourist from each country needs and wants every culture is different, and furthermore, create a more effective customer service Tourist experience is a fundation for success. It is simple teach the people from the Tourist industry and Hotels important Customer Service knowledge, please (IPAT) do something soon. I think Panamenians never have a need for a long time to open their country to Tourism and be competitive with other countries in Central America and the Caribean. Panama was our secret and it is no more. Both countries have unique cultures, but Panama is more diverse more upbeat more Caribean and that’s our advantage. I think by investing in ecotourism, the environment, plating beautiful tropical trees from other places and preventing deforestation and more National parks and more accessible facilities, internal and external Tourist attractions;making the hotels accessible to Panamenians with discounts is important. Also make every Panamenian part of this effort, Panama have the upper hand. Panamenians are fun loving people hands down and do not agree with the comment of hatred staus is not clear., thanks.
Oscar,
If you wanted to make Panama look good with your comment, you had dozens of things you could have mentioned but IMHO you chose the wrong ones.
You mention poverty possibly changing Costa Rica’s middle class. Last time I checked the poverty percentage was significantly higher in Panama.
For example, there’s about a million and a half internet users in CR, Panama has about one third of that. That’s what I was talking about when I mentioned a large well educated middle class. A different example: I live in a ninth floor in a condo and at least half the other floors are owned by ticos.
But I totally agree with your comment regarding Panamanian culture. I definitively see Panama being the next Cancun, something that could never happen in Costa Rica. Compared to Panamanians, Ticos don’t know how to party.
Hello Again! (since may 2009)
Hi there. Now I have understand a very important thing: all countries are beautiful, important, with culture, activities, nature splendor and many other things.
Costa Rica is rich and beautiful because is Costa Rica itself. Same occurs with us in Panama.
I don’t know if I can makes me understand at all: all countries have problems, have good things. Important is to visit each one and said: Wao!, that country is beautiful and I would like to come back again!. Each country need to learn from other countries.
Have a nice month!
Hi! I am from Panama and English is not my native language either.
This is so lame. Who is this guy? and why should he be the one to choose which country is best. Who died and gave him that right? If he likes CR so much, hey by all means stay there, but do not use the web to misinform people with your lies.
I am not going to respond to the comments made by Sebastian, but I also live in a condo and most of the building is owned by Panamanians. I am not saying that there are buildings in Panama own by people from other countries, but that too happens everywhere else, not only in Panama.
I do have a question to Sebastian: If Costa Rica is so much better than Panama in all those aspects that you mentioned why is it that there are so many Ticos and Centralamericans moving into Panama? I dont get it. Normally, people only moved to places where they can get a better life, or to a better country, not to a worse one. Logic 101.
Danny, last time I took a cab here in CR, the taxi driver was a panamanian. That doesn’t mean all panamanians are moving to CR to look for work.
It’s the same with the ticos you know in panama. Just because you know some ticos who moved there, doesn’t mean the vast majority is even considering moving to Panama.
I cannot imagine having a good quality of life without having internet at least, if Panama only has half a million internet users… and it has more than 3 million people, what does that tell you about quality of life? Logic 101 indeed.
I forgot to mention that, according to some friends who run companies there in Panama, finding skilled labor is not easy. For that reason they bring lots of foreigners into the country.
Actually, I have a friend who just moved to Panama because IBM-Panama “borrowed” him from IBM-CR. They already found a guy to replace him here.
I was brought up playing soccer bare foot in a muddy field with cows in northern Costa Rica. It was the time of my life. I’ve seen so many Arenal eruptions of all sizes because of all those afternoons playing ball.
Twenty years later the Arenal has grown a twin crater. From a certain angle it looks like a beast with two heads. It’s great to have a drink soaked to one’s chin in pool of hot springs and watch the beast breathe fire.
I’ve never been to Panama and I’m sure it is nice there, but Costa Rica cannot be equaled.
Having lived in both Panama and Costa Rica, I would not bother to make any comparisson amongst them, being both equally pleasant and welcoming. However, each individual -acording to its life plan- may find one more attractive over the other one, but again such assesment in entirely dependent on the individual’s requirements.
in 2008 I chose Panama to settle in because it was more akin to my trade (engineering) and the inmmigration proceeeds where simple and expeditious. Both economies are service oriented but with evident spaces for subtantial improvements, if benchmarked against other latinamerican emerging economies (Chile, Brasil, Mexico etc..). In both cases I have witnessed a growing trend of commercial competitiveness but outside the realm of bussiness of the established Who’s Who (economical and political status quo). If anyone in planning to settle in either Costa Rica or Panama, his business plan necessarily consider foreign markets as well.
I am a Panamanian who knows both Panama and Costa Rica very well. First of all, I must say that the journalist who wrote this article really knows what he is talking about. Interestingly enough, I have found that many foreigners prefer Panama over other Central American countries for business and living in spite of the snobbish attitude sometimes found in the Panamanian Capital. The fact is that money goes a longer way in Panama and Americans do like to shop. There are more brands to choose from and at a lower price in Panama. The nightlife and an overall busier more active prosperous city exist by far more in Panama than in Costa Rica. American expats probably will make an easier transition moving to Panama. However, Costa Rica is great place to live. I like the people, the weather, and the culture of Costa Rica. As a Panamanian, I must say that we couldn’t get better neighbors. Although the trend seems to be changing, there are still more American retirees in Costa Rica than in Panama. Poverty exists in both countries. I would say in similar amounts. Population is bigger in Costa Rica than in Panama, like over a million more people live in Costa Rica, which makes it difficult to argue numbers of internet users. Highly educated workers from Costa Rica and other countries are often hired and welcome in Panama. And Panamanian know how is sought after in Costa Rica, especially in the banking sector. Both countries are nice and have a lot to offer.
Hey Seba–don’t get too caught up with a single statistic and let it blind you from the reality
Take it from a third party between both countries–if you want national parks, cute ziplines, and communites for 60+ year old gringos …you go to CR. If you want the second largest international banking center, a modern and metropolitan city that actually has nightlife, as well as world class beaches…you’ll go to Panama. It’s that simple…with all those internet users you guys boast, it should be easy for you to figure out.