Forbes' International Living proclaimed Panama as one of the best places to retire several years ago, leading to a mini-stampede among the North American and European baby boomer community for several good reasons. Of course, the inexpensive cost of living was important albeit not paramount in every retiree's eyes.

No longer considered a developing nation, Panama, as the 60th country (out of 180) rated by the UN on the Human Development Index, fulfills a satisfactory infrastructure with a sound, basic education system for its citizens. In addition to easy and low-cost access to English-speaking doctors in private hospitals and along with a low crime rate (especially that of the violent bent), Panama uses the American dollar, making transactions easier for many ex-pats.

Forget any vision you may have about Panama being a banana republic led by shady Noriega types-while corruption relative to Western standards is high, current El Presidente Martinelli is cleaning up the government. As is the custom in Central America, the president's position is legislatively limited to one go-round; it appears unquestionably President Martinelli will test that legislation. Two kidnapping attempts this year prove he's on the right track; racketeers are rated by the new rule.

Like Costa Rica, the Panamanian government actively courts retirees for good reason. Retirees are generally law-abiding, spend money not only on essentials such as gas and groceries but also in the service industry beyond the means of most locals and, because of the low cost of labor, many will have household help. It's a win-win for both parties; many retirees could not afford the amenities they enjoy here while local economies benefit from the economic stimulus.

To that end, it is reliably easy for a person to obtain his cedulla (card providing residency status which must be carried at all times by all citizens) in Panama. Proof of a guaranteed income (such as a pension), police clearance from native country and medical checkup are all that is needed. Fees including lawyer's (not obligatory but recommended) will range from $ 300 and up; the average is in the $ 900 range.

Retirees are not taxed on their income earned in another country. The downside to the easy cedulla track? You can not vote or work in Panama. If you still have the work bug, though, you may set up a business with some restrictions. For example, retail businesses are verboten to foreigners. The internet has afforded many the chance to continue working via telecommute; by charging your home country's company, you are not technically working in Panama.

Further incentives include a generous one-shot turn at importing household goods free of tax and breaks such as 25% off airfare and restaurant meals and 50% off weekday hotel stays; there are many more discounts. As well, a 20-year moratorium on property tax is in place for cedulla bearers.

Panama may be small but offers up a diverse geography to fit any temperament except that of a skier. From the western volcanic highlands at altitudes of over 10,000 'with a surprising coolness (yes, Panama looks as if it lays north-south but is positioned west-east) to the barely-above sea level east and mid-country lowlands with tropical year -round temperature, you will find your fit. While Panama does not have a lot of great swimming beachfront, there is plenty of sand and surf for the sunbathers and beachcombers.

By turns cosmopolitan and quaint, the lifestyle you most enjoy is reasonably attainable in a Panamanian retirement.