Cost Of Living In Panama

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Reviewed by Kathleen Peddicord

Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.


Panama Offers a Luxury Lifestyle at a Low-Cost

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.

How Living Expenses In Panama Have Changed

Panama was a bargain for the U.S. expat 10 years ago. Prices have increased as much as 45% since then, but you can still live here for less than at home. And, depending on your lifestyle and priorities it can also be more expensive.

If you are planning to live in Panama in exactly the same way you did in the United States you could end up paying more.

The goal is to find the right balance between home comforts and produce from Panama.

For example, U.S. cereals are expensive here but you can get similar cereal from a generic brand cheaper. Imported steak is expensive but Panamanian beef is cheap and delicious.

Perhaps you used to eat lots of apples in the United States. In Panama they are expensive, but pineapples are exceptionally cheap. The closer your lifestyle matches local people, the cheaper it will be for you to live here.

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Average Salary In Panama

Senior man photographing a Panorama of Panama City.
Source: iStock/helovi

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