They say that Panama might lose its luster as a retirement destination for foreigners because of its increased real estate prices, but I think that it has a lot to offer and could still give its neighboring Central American countries a run for their money.

Some critics believe that the cost of real estate property would cause a slump in the viability of Panama as the retirement haven for foreigners but before the competitors jump for joy they should realize that this Spanish-speaking country has a whole lot more to offer.

For many observers, they believe that the tropical climate is an added advantage and would keep it in the running. Actually in some surveys, it is still within the top five best destinations for foreign retirees.

Panama offers tax exemption when importing household goods and even cars; no tax on incomes earned outside the country; and you would be entitled to a 10-20 discounts on prescription drugs and health care services including hospital and private clinic bills.

They would also be given discounts in different modes of transportation, whether it be on air, land or sea. Do you have to dine out and fear that you don't have enough cash to pay for your meal, well the Panamian government assures the foreign retirees that they have less reason to worry when they eat in restaurants and fast food chains because they would paying at a discounted rate.

The cutbacks also covers personal loans and mortgage interests and when paying for your utility bills such as water, phone lines and electricity.

It is a modern country that would keep you connected with the world. It has first class telecommunication service, broadband Internet and cable/satellite televisions are readily available.

Apart from the fact that the cost of living is lower here, a country that connects North America to South America, there is a sense of security here in this 29,157 sq mi nation. It is a safer place to live in than, let us say, the Big Apple or New York.

Living in Panama has also become more relaxing as it embarks on a Green Panama Tourism program.

It has thermal waters of Caldera that is located inside a private property that is about 2.5 kilometers from the main road. It has four water holes with varying temperature. This would be a good place for an elderly person to soak and soothe those aching bones.

One would also not grow tired of visiting the Boquete again and again. The flower-filled mountain valley located at the foot of a 10,500 feet extinct volcano called Volcan Baru. From there, you could have a magnificent mountain view, visit coffee farms and see breathtaking waterfalls.

It becomes easier to see why Panama is one of the top 5 countries to retire once you learn more about this beautiful country.