People ask all the time about Panama as the new Costa Rica. Both are popular expat locations and both have pros and cons. Panama is cheaper from a tax perspective since under the pensionado program there, property taxes are waived for at least 10 years but keep in mind that many who move there do not do so under the pensionado program, therefore they still pay property taxes. Candidly property taxes are low in both countries, so low that to base a consideration on where to live on that aspect makes no sense. Choose the place you like the best based on quality of life, health care, ease and cost of accessibility, activities available, infrastructure, friendliness, etc. Cost of living is candidly about the same in either country. Living in Panama City is similar to living in San Jose, lots of expats, more crime, like city living anywhere.