Cost of Living in Panama
Panama delivers an exceptional quality of life at a fraction of North American costs. You can live very comfortably on $2,000-2,500/month in the capital, or $1,500-2,000 in smaller expat-friendly towns.
Monthly Budget Overview
| Expense | Panama City | Boquete/Coronado | David |
|---|---|---|---|
| Rent (1BR) | $800-1,500 | $750-1,200 | $600-900 |
| Rent (2BR) | $1,100-2,100 | $900-1,500 | $800-1,200 |
| Utilities | $100-150 | $50-100 | $50-80 |
| Groceries | $300-500 | $250-400 | $200-350 |
| Health Insurance | $100-200 | $100-200 | $100-200 |
| Transportation | $100-200 | $100-150 | $80-120 |
| Dining/Entertainment | $200-400 | $150-250 | $100-200 |
| Monthly Total | $1,600-3,000 | $1,500-2,300 | $1,200-2,000 |
Key Cost Advantages
Housing: Excellent value, especially outside Panama City. Modern apartments with amenities (pool, gym, security) cost $800-1,500 for 1BR in capital, $600-1,000 in Boquete or Coronado.
Healthcare: Dramatic savings - doctor visits $20-50 without insurance, $15 with. Procedures cost 25-50% of US prices. Health insurance under $200/month until age 64. Hospital stays $100-200/night vs $2,000+ in US.
Utilities: Air conditioning drives costs. Run AC constantly: $150-250/month electricity. Use sparingly: $50-100. Water and garbage: $10-25. Internet (fiber): $40-60/month for fast speeds.
Food: Local markets extremely cheap. Shopping at Super 99 or Riba Smith (local supermarkets): $300-400/month for couple. Imported goods expensive. Eating local keeps costs very low.
Transportation: Metro in Panama City is modern and cheap ($0.50 rides). Uber is widespread and affordable ($3-6 typical rides). If you buy a car: gas $3.50-4/gallon, insurance $500-800/year.
What Costs More Than Expected
- Air conditioning (humidity makes it tempting to run 24/7)
- Imported foods from US/Europe (2-3x local prices)
- Alcohol in restaurants (drinks $8-12)
- Private international schools ($800-1,500/month per child)
What Costs Less Than Expected
- Fresh tropical fruit and vegetables
- Domestic help (cleaning, gardening) - $12-15/day
- Restaurant meals (local places $4-8, mid-range $15-25)
- Dental care (cleanings $40-60, crown $350 vs $1,200 US)
- Public transportation and Uber
Pensionado Discount Benefits
With Pensionado visa, enjoy massive savings:
- 50% off entertainment (movies, sports, concerts)
- 25% off restaurant bills
- 20% off medical consultations
- 15% off hospital bills
- 30% off bus, boat, and train fares
- 25% off airline tickets
These discounts alone can save $200-500/month for active retirees.
Pro Tips
- •Use local supermarkets (Super 99, Riba Smith) instead of PriceSmart for daily shopping
- •Shop at fresh markets for incredible deals on produce
- •Pensionado discounts can save $200-500/month - apply if eligible
- •Use AC strategically - biggest expense surprise for new expats
- •Hire domestic help - incredibly affordable at $12-15/day
Have questions about cost of living in Panama?