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$800 a month. A gardener can be hired for less than US$19 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$2to US$6, although it is helpful to ask how much the ride costs before entering the taxi.