Searching for the cheapest cities to live in Panama before retiring or relocating there is a common and very valuable pursuit. After all, the low cost of living is one of the big motivations people have in moving to Panama. It’s a small country, but despite its size, has a lot of options when it comes to where to live, and why you should live there. Prices in Panama, much like anywhere else, can fluctuate. Where you live, and what lifestyle you choose to live can factor in heavily in terms of the cost of living overall. In general, however, there are distinctions between the cheapest cities to live in in Panama and the most expensive ones. Here’s how we break it down.
What is considered “cheap” by Panama standards?
Panama is a country of contrast when it comes to pricing, but one aspect of the Central American nation makes it easier to calculate costs than the rest: the US dollar. Panama uses the US dollar as currency, although technically referring to it as the “Balboa”, all paper currency is US tender, with certain coin currency minted domestically. Panama’s dollarized economy means that, unlike in its neighboring countries, inflation and market price changes are not drastic. The dollar keeps Panama’s prices relatively stable, though how “cheap” is defined becomes a bit more complicated.
The minimum wage in Panama is scaled monthly and is between $500-$650 per month depending on the industry. A middle-income wage could be considered anywhere between $800-$1,500 per month, while what would be called “good pay” can go from $1,500 per month on up. It’s important to understand these distinctions when looking at the cheapest cities to live in in Panama. Cheaper cities are often cheap because of the potential earnings power and spending power of the locals. Areas, where the cost to live, is low will not typically have many jobs above the monthly $1,000 income mark. Additionally, they may not have tourists or foreign-earned income spenders that live or visit there frequently.
For the sake of this breakdown, as it is geared towards people who have recurring foreign-earned income or have investments in Panama with high yields (compared to wages), we’ll just look at the raw price of things. Keep in mind, however, that if you’re looking to work and earn an income in the cheapest cities to live in in Panama, you must scale pricing to earnings power to get the same value. Here are our picks, and a bit about each city to describe what life I like in each one.
Santiago:
Santiago, Panama is a mid-sized city in the country’s geographical central west region, right on the Panamerican Highway. It is a hub for ground transportation and trade in the country’s interior, and a popular connection point between David and Panama City. It is also a popular connecting point to the Azuero Peninsula to the south. Santiago has a very low cost of living and is one of the cheapest cities in Panama for nearly everything. Monthly food costs are around $80-$120 per month, per household for basic necessities. Utility costs are standard, with electricity running around $25-$30 without A/C, and about 3x that with moderate A/C usage. Rent is very cheap, even in the city, with decent 1-bedrooms going for as low as $400-$500 per month.
Colon:
Though often referred to as Panama’s “2nd city” due to its historical significance and location at the northern mouth of the Panama Canal, Colon is one of the cheapest cities to live in Panama as well. This cheap cost of living, however, comes with a price, so to speak. Colon tends to have very poor infrastructure, floods a lot, and has higher crime than most other urban areas of the country. That’s not to say that there isn’t a good quality of life to be had in Colon, but rather that you need to do a bit of due diligence before deciding to live there. Rent prices in Colon are similar to Santiago with about $400-$600 covering pretty nice 1-bedroom housing in a reasonable part of town. Food prices are low, and utilities, though unreliable, are lower than the national average.
David:
For people looking at the cheapest cities in Panama who want to escape the hustle and bustle of the country’s center east, David is a great option. This is a city that is growing, has a very low cost of living, and very high quality of life. David is located about 40 minutes from the beautiful town of Boquete by car, and about 20 minutes from some very nice beaches. Rent prices in David are a bit higher than Colon or Santiago, however, the infrastructure is better in both cases, and the space you get for the price tends to be bigger. It is not abnormal to have a full front and back yard in David in a home that rents for under $1,000 a month and has multiple bedrooms.
La Chorrera:
Though not in Panama City proper, the city of La Chorrera is considered to be a part of the larger metro region and a popular suburb for workers in the capital. The location is roughly 15 miles west of Panama City, reachable by highway via car or about two dozen different bus lines. The main growth of La Chorrera has actually come from its proximity to Panama City, as well as its status as one of the cheapest cities to live in in Panama. People who work in Panama City can enjoy higher wages, yet live their home life in a place where the daily cost of living is nearly cut in half. Food is cheaper in La Chorrera, rent is about 40% cheaper, and services are cheaper as well.
The drawback is that despite its proximity to the capital, traffic in and out can be a nightmare. During peak rush hours and holidays, it could take between an hour and two hours to get from Panama City to La Chorrera each way.
Penonome:
The last in our list of the cheapest cities to live in Panama is Penonome. This is a small city, but a unique one, as it has a lot of folkloric history and tradition that represents it. Penonome is also in the center of the country, and it’s famous for its yearly Carnaval celebrations, parade, and culture. It’s about two hours from Panama City, and surrounded by a dense rural area. This feels like more of a town than a city, and the prices do too. Rent in Penonome is very cheap, except during Carnaval seasons, where daily rents can be as high as $200-$300 per house for tourists. That being said, a full-time life in Penonome is low-cost, and high quality of life. Goods and services cost very little, dining out is very cheap, and transportation is cheaper than in most cities in Panama.
Due to its unique situation as a Carnaval destination, Penonome presents a great investment opportunity for those who want to live in one of the cheapest cities in Panama and generate income. The income potential comes from both Carnaval tourism and interior tourism during the month or so preceding Carnaval. This means that Penonome can be used as a part-time home, part-time property investment opportunity if done right. It should be noted that properties for sale do not come up often, however, the pricing is fairly good when it does, and the cost of living there is very cheap.
How do you know if living in any of the cheapest cities in Panama is right for you?
Like anything in life, one must weigh the pros and the cons before making a decision that’s as big as relocating. This is especially the case when it comes to relocating to a new country. While living in one of the cheapest cities in Panama has a huge financial appeal, it may not have a full lifestyle or comfort appeal for some expats. You really need to think hard about what you’re giving up for the price. Are you OK with living in a city without many other expats? Do you require better access to an international airport? Will you be comfortable with less developed infrastructure, and simple housing? These are all things that one must ask themselves in consideration.
Living in any of the cheapest cities in Panama can be a tremendously rewarding experience, however, if you find the right fit. The financial benefits are clear, but the lifestyle benefits that go with it can also be very pleasant for the right people. We recommend that before you make any decision to commit to these cities, you visit first. Get a first-hand look at what these cities are like. Talk with locals in these communities, and outside of them, and get their take. Look at your budget carefully and see what you can afford, what you can’t, and where the value lies in your budget.
Panama has options that range from very cheap, to very expensive, and everything in between. If living in one of the cheapest cities in Panama doesn’t seem like a good fit, there are plenty of other options all over the country that will fit perfectly. You have to do some research and some soul searching to find out!
For more info, or to reach out with any questions, comments, or concerns, contact International Relocation Firm here.
FAQs
What is the best area to live in Panama? ›
- Boquete: Vibrant Community and Cool Mountain Climate. ...
- Panama, Panama, Panama: A Cosmopolitan City on the Sea. ...
- Coronado: Panama's Premier Pacific Beach. ...
- Pedasí: Rural, Beachy, Small-Town Living. ...
- Volcán: Panama's Shangri-La.
Another reason that many consider Panama: It's possible to live in Panama for as low as $1,000 per month. However, this is only in very specific cities. It's not a country of rock-bottom prices like living in Thailand or even the affordable costs of living in Mexico.
What is the safest place to live in Panama? ›- Panama City.
- Boquete.
- Coronado.
- Bocas del Toros.
- El Valle de Antón.
- Chitre/Las Tablas.
- Pedasi.
- Santa Fe.
Santiago has a very low cost of living and is one of the cheapest cities in Panama for nearly everything. Monthly food costs are around $80-$120 per month, per household for basic necessities.
How long can a US citizen stay in Panama? ›Immigration requirements vary depending on your nationality but most international visitors can stay in Panama for 90-180 days without applying for a visa.
Is moving to Panama a good idea? ›Panama is an excellent place to live if you're looking for a comfortable, convenient, and exciting lifestyle on a budget. For many expats, Panama provides the kind of lifestyle they can only dream of achieving in their home countries at a fraction of the cost.
Is it better to live in Costa Rica or Panama? ›So which expat destination is right for you? For those expats who require a large selection of goods at great prices, Panama will likely be a better fit. But if you value living a high-quality lifestyle in safe, peaceful, and ecologically beautiful communities, we highly recommend you choose Costa Rica.
Why are Americans moving to Panama? ›An estimated 20,000–30,000 Americans and 8,000 Canadians live in Panama. Some relocate to the country to conduct research, work remotely, make investments, or enjoy a comfortable retirement with a low cost of living.
How much is rent in Panama? ›| Expense | U.S. $ |
|---|---|
| Rent (two-bedroom apartment in a central area) | $1,000 to $1,500 |
| Transportation (taxi or fuel/maintenance on a compact car) | $75 to $200 |
| Electricity (depending on air conditioning use) | $60 to $150 |
| Water (bundled with trash pickup) | $0 to $25 |
The average basic salary in Panama is 25,400 PAB annually or 2,120 PAB per month. According to a leading salary and compensation assessor site, SalaryExplorer.com, a Panamanian employee earns an average minimum wage of 12 PAB per hour.
Where do Americans live in Panama? ›
Pedasi is a charming beach town in Panama that has become increasingly popular with expats. Compared to other areas of the country, the cost of living and housing is relatively low in Pedasi. This attracts many expats from North America, Europe, and Australia who want to enjoy a more relaxed lifestyle by the beach.
Can I collect Social Security and live in Panama? ›If you receive Social Security benefits and live in Panama, you may need to contact the Social Security Regional Office by sending an email to FBU.CostaRica@SSA.Gov to continue receiving benefits. The Social Security Administration (SSA) relies on beneficiaries to report events that may affect their benefits.
Does Panama have free healthcare? ›Panama does not have universal healthcare by definition. Its public system through CSS covers about 79% of the population, according to the BTI Transformation Index. The remainder has access to a low-cost government-run option through MINSA.
Where is the best place to retire in Panama? ›- Santiago. Monthly Budget: US$3,289. ...
- El Valle. Monthly Budget US$1,613. ...
- Casco Viejo. Monthly Budget: US$3,329. ...
- Volcán. Monthly Budget: US$1,567. ...
- Áreas Revertidas. Monthly Budget: US$3,289. ...
- Boquete. Monthly Budget: US$2,322. ...
- Avenida Balboa. Monthly Budget: US$3,289. ...
- El Cangrejo, Panama.
Renting real estate in Panama is big amongst expats, and the market is hot in practically all areas of the country. In fact, even if your plan is to buy real estate, we recommend renting first to get a feel for your area and the lifestyle of living in Panama as a whole.
Is it cheaper to live in Panama or Colombia? ›Cost of living in Panama City (Panama) is 93% more expensive than in Bogotá (Colombia)
Where is it cheaper to live Panama or Costa Rica? ›If you live in the countryside, you can save vs. the high cost of property and amenities in large urban cities like Panama City. Panama's imported goods are less expensive than Costa Rica's. Both Panama and Costa Rica have a lower cost of living than the US, UK, and other regions.
What can you not take into Panama? ›- Counterfeit coins or printed material that imitates currencies. ...
- Liquors, wines, beers, or medicines with labels that falsely describe contents or of any harmful preparation.
- Certain firearms or war materials.
- Foreign lottery or raffle tickets.
Documents Required – Passports valid for at least 6 months, police clearance report from last place of residence, marriage certificate, birth certificate for children dependents, medical clearance from Panama (we can refer), application forms, pictures, proof of investment contract etc.
What happens if you overstay in Panama? ›Overstaying your tourist permit in Panama comes with fines, detention, or deportation. The specific consequences will depend on the length of your overstay and the circumstances surrounding it. For starters, overstaying your visit results in a $50.00 fine per month.
What percentage of Panama is black? ›
According to official data, Panama has a population of nearly 4.4 million people. Blacks constitute 15% of the total population, but make up nearly 48% of the community of Isla Cólon. The history of Black people in Panama dates back to the 16th century, when the first enslaved Africans arrived in the country.
Is Panama friendly to the US? ›Because of our shared history, cultural ties between both countries are strong. U.S. assistance to Panama aims to ensure Panama remains a secure, prosperous, and democratic country that continues to work with the United States as its principal partner in the region.
Is it safe to drink tap water in Panama? ›In most places, the water in Panama is safe to drink. The Panama Canal Company had a high standard for hygiene, and as a result the water is clean in Panama City and much of the rest of the country. Bocas del Toro is one of the few places in Panama that does not have reliably safe water.
Is healthcare better in Panama or Costa Rica? ›Of all the Central American nations, Costa Rica has the best healthcare system, followed by Panama and Nicaragua. Costa Rica boasts a universal healthcare system known as Caja Costarricense de Seguro Social (CCSS), popularly referred to as the 'Caja'.
Is Panama cheaper then Costa Rica? ›Money-wise, both Panama and Costa Rica are more expensive than the surrounding countries and in some cases, even more expensive than travelling in Europe. Of the two, Panama is around 10-20% cheaper than Costa Rica, but with the range of luxury goods on offer, you might find yourself spending more!
Can a US citizen buy a house in Panama? ›A: Yes, it is legal for foreigners to own titled property in Panama in their personal names, although in some cases it may be convenient to hold property in the name of a Panamanian corporation, where there are multiple owners for example, or if the property is being used for a business such as a real estate ...
How much is a maid in Panama? ›Hiring a maid to do the housework is popular among capitalinos (Panamanian Panama City dwellers) and expats alike. A full-time live-in maid costs around $250 per month, whereas as-and-when visits for quick cleans or cooking meals are usually priced at around $15 apiece.
Do they speak English in Panama? ›About 14% of the Panamanian population is fluent in English, the second most common language in the country. Most professionals and business people speak English, and even rural populations have a reasonable degree of proficiency due to their interactions with tourists.
Do Panamanians like the US? ›The United States cooperates with the Panamanian government in promoting economic, political, security, and social development through U.S. and international agencies. Cultural ties between the two countries are strong and many Panamanians go to the United States for higher education and advanced training.
Is it hard to get a job in Panama? ›In Panama there is a shortage of skilled labor, but an oversupply of unskilled labor. As with many things here, finding a job in Panama can be easier once you have developed connections. This is very much a “who you know” country when it comes to getting a foot in the door.
Do you need a car to live in Panama? ›
If you've been living in Panama for some time, you've probably heard the old adage “you need a car to live here.” This, however, couldn't be further from the truth. Having a car is not just a convenience for most Panamanians, it's also a luxury.
How many Americans live in Panama? ›There are an estimated 25,000 Americans living in Panama.
There are many good reasons for living in Panama, including the climate, exotic landscapes, good healthcare, and the long-held close relationship with the US to name but a few.
...
Leading causes of death in Panama in 2019.
Panama Clothing Style
Summer in Panama means that you'll find most people, both locals and visitors, walking around in shorts, thin t-shirts and sandals. Popular and worthwhile accessories include hats and sunglasses.
Normal daytime workdays run 6 am to 6 pm. Sunday is usually the weekly day of rest. Most shops and shopping centers are open from 9 am to 6 pm daily. Some shops remain open until 10 pm.
Do you pay US taxes if you live in Panama? ›US Expat Taxes in Panama
When living abroad in Panama, you must file both a Panama tax return and a US tax return. The good news is the income tax rate in Panama is easy to figure out, especially since the Panamanian Balboa is equal to the US dollar.
Punta Pacifica is where many of Panama's wealthiest citizens choose to live and one of the most expensive areas in Panama City. There are gated communities and some amazing views across the bay.
What is the quality of life in Panama? ›Panama is a safe country to live in. Most Panamanians are friendly especially in the rural areas. Generally, Panamanians are not money orientated and not resentful of expats who are perceived as being wealthier. Armed policemen are a common sight in Panama City and tourist areas in particular, are very safe.
What happens to my Social Security if I leave the US? ›If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them. However, there are certain countries to which we are not allowed to send payments.
How long can you live outside the US and still collect Social Security? ›If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.
Does Panama suffer from hurricanes? ›
Hurricane/Rainy Season
The Atlantic hurricane season runs from June to November; although Panama is not directly impacted by hurricanes, this season frequently coincides with heavy rains, which may cause flash floods and landslides. October and November normally have the heaviest months of rainfall.
- Boquete: Vibrant Community and Cool Mountain Climate. ...
- Panama, Panama, Panama: A Cosmopolitan City on the Sea. ...
- Coronado: Panama's Premier Pacific Beach. ...
- Pedasí: Rural, Beachy, Small-Town Living. ...
- Volcán: Panama's Shangri-La.
You cannot use US Medicare insurance in Panama (or in any other country other than the US). However, you should not opt-out of Medicare. You never know when you may have to go back. You may also want to get Medicare prescription plan.
How much does it cost to see a doctor in Panama? ›Out-of-pocket care is still cheap in public hospitals in Panama, especially when compared to the USA, but it is becoming more expensive. Expats have quoted costs of US$20 to US$30 for a GP visit and of $US60 to US$65 to see a specialist.
Where do the rich live in Panama? ›Punta Pacifica is where many of Panama's wealthiest citizens choose to live and one of the most expensive areas in Panama City. There are gated communities and some amazing views across the bay.
Where is the best place in Panama to retire? ›- Santiago. Monthly Budget: US$3,289. ...
- El Valle. Monthly Budget US$1,613. ...
- Casco Viejo. Monthly Budget: US$3,329. ...
- Volcán. Monthly Budget: US$1,567. ...
- Áreas Revertidas. Monthly Budget: US$3,289. ...
- Boquete. Monthly Budget: US$2,322. ...
- Avenida Balboa. Monthly Budget: US$3,289. ...
- El Cangrejo, Panama.
An estimated 20,000–30,000 Americans and 8,000 Canadians live in Panama. Some relocate to the country to conduct research, work remotely, make investments, or enjoy a comfortable retirement with a low cost of living.
What are some problems in Panama? ›Human trafficking for sexual exploitation and forced labor remains a serious problem despite some government efforts to combat it. Both Panamanian and migrant workers in certain sectors—including the agricultural sector, where many workers are Indigenous people—are subject to exploitative working conditions.
What is it like for an American to live in Panama? ›Panama is a safe country to live in. Most Panamanians are friendly especially in the rural areas. Generally, Panamanians are not money orientated and not resentful of expats who are perceived as being wealthier. Armed policemen are a common sight in Panama City and tourist areas in particular, are very safe.
Can I collect Social Security if I move to Panama? ›If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them.
Which coast is better in Panama? ›
To recap: Most beach-seeking expats gravitate toward Panama's Pacific Coast for convenience. But Panama's Caribbean Coast boasts the best beaches. And if you're an intrepid sort, it may be well worth your time to check it out.