10 Most Affordable Places to Live in Panama

Why Live There, What the Weather is Like, and Average Rental Costs

Panama is a top choice for expats and retirees looking for an affordable and fulfilling lifestyle. The country offers a range of climates, cultures, and costs to fit any budget. Here’s a guide to the 10 most affordable places to live in Panama, with insights into why they’re great options, what the weather is like, and how much you can expect to pay for rent.

1. David

• Why Live There: As the capital of Chiriquí Province, David is a bustling city with excellent infrastructure, including shopping malls, hospitals, and an airport. It’s ideal for those who want many amenities without the high costs of Panama City.
• Weather: David is warm and tropical year-round, with average temperatures between 75–90°F. The dry season (December to April) is sunny, while the rainy season offers cooler afternoons.
• Average Rent: A one-bedroom furnished apartment can cost $400–$500 per month. Just north of David are Los Algarrobos and Dolega, which are even more affordable.
• Video: See this video about living in David and surrounding areas.

2. Las Tablas

• Why Live There: This charming town on the Azuero Peninsula is known for its cultural festivals, friendly locals, and laid-back vibe. Las Tablas offers a taste of traditional Panama at an affordable price. It’s only a 15 minute drive to several beaches. There is plenty of shopping in Las Tablas and it has a public hospital.
• Weather: Warm and sunny most of the year, with average temperatures of 80–88°F. The dry season is ideal for outdoor activities.
• Average Rent: A one-bedroom apartment costs around $350–$500 per month.
• Video: See this video about living in Las Tablas

3. Chitré

• Why Live There: Known as the “City of the Future,” Chitré is a growing town with modern amenities, a vibrant expat community, and close proximity to beaches. It’s perfect for those who want both convenience and affordability. There is a small mall and an airport in Chitre. It’s a 15 minute drive to several beaches from Chitre.
• Weather: Similar to Las Tablas, with warm temperatures and a clear distinction between the dry and rainy seasons.
• Average Rent: One-bedroom apartments are available for $350–$500 per month. Near Chitre, El Rompio is a beach community with two-bedroom rentals for $600.
• Video: See this video about an 85 year old living in a $350 a month rental in Chitre.

4. Santiago

• Why Live There: Centrally located, Santiago is a great hub for exploring Panama. It offers a small-town feel with big-city amenities, including shopping centers, hospitals, and schools. There are only a few expats in Santiago so you’ll get a Spanish immersion.
• Weather: Hot and humid, with temperatures averaging 80–90°F. Rain is more common during the wet season.
• Average Rent: A one-bedroom apartment costs $300–$400 monthly.
• Video: new video coming soon.

5. Volcán

• Why Live There: This mountain town is perfect for nature lovers and those seeking a cooler climate. Volcán is surrounded by lush greenery, coffee farms, and scenic views of the Baru Volcano. Volcan has a 24/7 public hospital.
• Weather: Pleasantly cool year-round, with temperatures ranging from 60–75°F.
• Average Rent: Rentals for one-bedroom homes or apartments range from $400–$550.
• Video: See this video about a couple living in a 2600SF house for $600 just north of Volcan.

6. Pedasí

• Why Live There: A beach lover’s paradise, Pedasí is famous for its serene beaches, excellent fishing, and welcoming community. It’s ideal for retirees or digital nomads seeking a quiet life by the sea.
• Weather: Sunny and warm most of the year, with temperatures averaging 75–85°F.
• Average Rent: Expect to pay $500–$650 for a one-bedroom apartment or house.
• Video: See this video of a man living in Pedadi for $1000 a month, including rent.

7. Penonome

• Why Live There: This growing town offers affordable living without sacrificing amenities. It’s an excellent choice for retirees looking to stretch their budgets. There is a large public hospital and a new hospital under construction. There are many modern shopping and dining options. You’re only 30 minutes from a beach.
• Weather: Tropical and warm, with temperatures averaging 78–88°F.
• Average Rent: Furnished properties start at $400–$600 monthly.
• Video: See this video of a lady living in Penonome for $1000 a month, including rent.

8. Boquete

• Why Live There: While Boquete is more popular and slightly pricier than some other towns, it remains affordable compared to other international destinations. It’s known for its expat community, outdoor adventures, and cool weather. Boquete is known for it’s excellent restaurants and thriving expat community. If you search real estate websites, you will only see pricey rentals. But you can find affordable rentals when you are boots on the ground in Boquete.
• Weather: Mild and spring-like year-round, with temperatures from 65–75°F.
• Average Rent: A one-bedroom apartment or small house costs $500–$700.
• Video: See this video of a couple’s $ 550-a-month furnished rental.

9. San Carlos

• Why Live There: Located near Panama City, San Carlos combines the best of both worlds—beach and convenience. It’s ideal for those who want access to city amenities without the high price tag. Living in the downtown area, you can find affordable rentals. It’s a short drive to Coronado which has even more amenities. There is a public hospital in the downtown area of San Carlos.
• Weather: Hot and sunny, with temperatures averaging 80–90°F.
• Average Rent: Rentals start at $600–$8000 per month.
• Video: See this couple’s $550 a month furnished rental in San Carlos.

10. Nuevo Gorgona

• Why Live There: Another affordable beach town, Nuevo Gorgona is just an hour from Panama City, making it a favorite for retirees and expats who need occasional access to the capital. Gorgona is more affordable than other places on this list but if you avoid the high-rise condos, there are some affordable options in Gorgona.
• Weather: Warm and tropical, with plenty of sunshine year-round.
• Average Rent: A one-bedroom apartment or small house is $700–$900.
• Video: See this interview with a couple renting a oceanview rental for $850

Why Panama is a Great Choice

Panama’s low cost of living, excellent healthcare, friendly locals, and diverse options make it a haven for expats. Whether you prefer cool mountain towns, bustling cities, or tranquil beach communities, there’s an affordable spot in Panama that fits your lifestyle.

If you’re considering a move, start by visiting Panama to see which areas feels like home. With affordable rent and an unparalleled quality of life, Panama offers a fantastic alternative for anyone looking to live well on a budget. We have trusted agents in each area to help you find the perfect place to live!

Since 2010, Panama Relocation Tours has been helping people relocate to Panama the right way. We can help you too!

We offer Private Tours of popular places to live and some hidden gems. Private tours are about $250 a day (depending on the itinerary) for up to two people.

Check out the Online Panama Relocation Guide for everything you need to know for a smooth move to Panama and how to avoid costly mistakes. It includes attorney recommendations, honest real estate agents, insurance brokers, pet relocation, and much more. You’ll also get access to our private Facebook group so you can start connecting with people who live in Panama.