Cost of Living in Panama

Panama is truly known for being a budget-friendly place to retire. When you see the shiny skyscrapers in Panama City, you might think you’ve arrived in Miami instead. However, even with all the shine and luxury, Panama remains one of the best value spots in the world.

The average cost of living in Panama can be much lower than in other countries. What’s most impressive though, is what you get for your money.

Although prices for real estate are rising throughout Panama, housing is still relatively inexpensive compared to the United States and Canada. You can rent a nice apartment in Panama City from US$800 a month—and a really nice place with an amazing view is about US$2,100 a month.

You can find just about anything you want in grocery stores in Panama, but you’ll save big if you shop in the open markets: For instance, vendors compete in local market plazas, so prices for fruits and vegetables are extremely inexpensive.

As for utilities, water and gas are relatively cheap. Electricity, however, can be more expensive. Depending on the number of appliances, electronics, and use of air conditioning, you could pay up to US$250 a month.

Health care in Panama is generally less expensive, but still rivaling North American standards. You can hire both a full-time house cleaner and driver for under US$850 a month. A gardener can be hired for less than US$20 a day.

You can find good food for less than US$7 even in Panama City. Street food is decent and very inexpensive. Barbecued meat on a stick (carne en palito), meat-stuffed pastries (carimañolas and empanadas), and raspados (ice cones) are delicious.

Dinner out at a good restaurant, including wine and dessert, will cost you about US$35.

If you enjoy the cinema, Panama offers movies in theatre for around US$8, and popcorn and a drink are under US$11 too.

Cab rides throughout the city are anywhere from US$2.50 to US$6, although it is helpful to ask how much the ride costs before entering the taxi. And, Uber is also an option.

The nearest beach destination to Panama City has become an extension of the city itself. Every Panama City resident who can afford one has a weekend escape in what’s known as the City Beaches area.

Coronado, the best known of the points along this stretch of coastline, is not a luxury living option. Coronado is mid-market and overrun with tourists, foreign and domestic. That’s a good thing for the rental property investor… but doesn’t make for an ideal get-away-from-it-all beach escape.

Other City Beaches spots in Panama, though, offer both five-star comfort and privacy at a fraction the cost of a fully appointed coastal good life most anywhere else I can think of.