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Panama City is a vibrant, modern capital that attracts people from all over the world. With its skyline of high-rise condos, bustling neighborhoods, excellent public services, and close proximity to both beaches and mountains, it’s no wonder so many expats choose to live here. But the cost of living in Panama City can vary widely depending on the neighborhood you select and your lifestyle choices.
In this article, I’ll break down the different costs of living in Panama City, highlight the advantages of city living, and share real-life expense reports from four Panama Relocation Tour clients who generously shared their monthly budgets and photos.
Why Live in Panama City?
Living in Panama City offers some unique advantages you won’t find in other parts of the country:
🚍 Excellent public transportation – Between the Metro subway system, inexpensive buses, and affordable Uber rides, you can get anywhere without the need to own a car.
🏥 Best healthcare in Panama – The city is home to the top hospitals in the country, including The Panama Clinic, Hospital Nacional, and MiniMed Hospital, with their 14 clinics, plus countless specialists in every medical field.
✈️ Close to Tocumen International Airport – You’re just minutes away from flights to North America, South America, and Europe.
🍽️ Dining & shopping – From street food to Michelin-quality restaurants, you’ll never run out of options. Add in world-class shopping malls like Multiplaza and Albrook Mall, and you’ll find everything you need close to home.
🏙️ Variety of neighborhoods – Whether you want a luxury oceanview condo, a modern apartment near the business district, or a more affordable spot in a traditional neighborhood, Panama City has something for every budget.
Different Neighborhoods, Different Costs
Panama City is comprised of dozens of distinct neighborhoods, each offering its own unique lifestyle, amenities, and price points. Popular upscale areas include Costa del Este, Punta Pacifica, Paitilla, and Santa Maria, known for their luxury condos and proximity to hospitals, shopping, and international schools. More central neighborhoods, such as San Francisco, Obarrio, and El Cangrejo, offer a lively mix of restaurants, shopping, and walkability. For a more traditional Panamanian feel, you’ll find affordable housing in areas such as El Carmen, Bethania, and Parque Lefevre.
Historic Casco Viejo draws those who love culture, colonial architecture, and nightlife, while Clayton and Albrook provide leafy, suburban-style living close to the Panama Canal and the U.S. Embassy. With so many options — from modern high-rises to quiet residential streets — Panama City truly has a neighborhood to fit every budget and lifestyle. Panama City isn’t one-size-fits-all. Each neighborhood has its own personality and price point:
Costa del Este – A high-end neighborhood with luxury condos, international schools, and top private hospitals. Rents here are among the highest in the city.
San Francisco – Centrally located, modern, and popular with professionals and expats. Offers easy access to shopping malls and the financial district.
Bella Vista & El Cangrejo – Vibrant areas close to restaurants, bars, and nightlife. More affordable than Costa del Este, with a mix of modern and older apartments.
El Carmen – Centrally located and walkable, with budget-friendly options for singles and couples.
Casco Viejo – The historic district with beautifully restored colonial buildings, but often higher prices due to its charm and popularity.
Renting Tips!
Many rentals in Panama come completely furnished, which makes relocating much easier. Typically, a furnished rental will include major appliances, comfortable furniture, dishes, pots and pans, and even linens. This means you can move into your new home right away without worrying about buying household items or going through the time-consuming and expensive process of shipping your belongings to Panama. For many expats, this convenience is one of the biggest advantages of renting in Panama, as it allows for a smooth and stress-free transition to life in a new country.
However, you can save money by renting an unfurnished apartment or home. Affordable furniture stores are readily available in Panama. To reduce your up-front costs, look for ads that say “Linea Blanca,” which means that appliances are included, like a stove, refrigerator, dishwasher, and washer/dryer.
NEVER rent any property without seeing it first! See this article about mistakes made when renting.
Be prepared to negotiate the price and things included with the rent! The longer the lease term, the lower the rent. When the lease is signed, you typically pay the first month’s rent plus a security deposit equal to one month’s rent. Proof of income is essential when renting in Panama. To be legal, the lease needs to be in Spanish. Get your attorney to review the lease before you sign it.
Real-Life Cost of Living in Panama City
Here are the 2025 real monthly budgets generously shared by five Panama Relocation Tours members who live in different parts of Panama City.
Costa del Este Monthly Budget
Rent: $2,500 (unfurnished). He paid $11,000 to ship his household goods to Panama.
Electricity: $200
Internet: $40
Phones: $50
Uber: $100
Dining out: $550
Groceries & household: $850
Total: $4,290 per month
➡️ Mr. J and his family pay for a luxury lifestyle in one of the city’s most exclusive neighborhoods, but they still find everyday costs like Uber and groceries very reasonable.
San Francisco Monthly Budget
Rent: $1,150 (unfurnished)
Groceries: $600
Electricity: $90
Internet & mobile: $90
International health insurance: $600
Dining out & cafés: $200
Total: $2,730 per month
➡️ Ms V enjoys city conveniences and modern living while keeping her rent far lower than luxury neighborhoods like Costa del Este.
Bella Vista Monthly Budget
Rent: $850 (unfurnished)
Water (estimated): $18
Electricity: $65
Internet (Starlink): $55
Groceries (supermarkets & markets): ~$340
Uber: ~$100
Phone: $35
Healthcare (MiniMed): ~$20
Total: $1,483 per month
➡️ Ms. S and her husband save money by shopping at local markets and using Uber instead of owning a car. Their choice of neighborhood makes city life affordable.
El Cangrejo Monthly Budget
Rent: $850 (furnished one bedroom)
Electricity: $50
Internet: $40
Eating out: $100 (mostly fondas)
Groceries/fruits/vegetables: $200
Phone: $35
Miscellaneous: $75 (Uber, Amazon, Netflix, and shopping)
MiniMed Expat Health Membership: $20
Total: $1,370 per month
➡️ Ms. J lives a very affordable lifestyle in Panama City, proving that it can be budget-friendly if you avoid luxury neighborhoods and take advantage of public transportation and eating at local fondas.
El Carmen Monthly Budget
Rent: $650 (furnished)
Electricity: $20
Meals at fondas: ~$330 (avg. $11/day)
Groceries/fruits/vegetables: ~$100
Gym membership: $52
Laundry: $20
Phone: $35
Miscellaneous: $75
MiniMed Expat Health Membership: $20
Medications $175
Total: $1,477 per month
➡️ Mr. R lives simply and very affordably, proving Panama City can be budget-friendly if you avoid luxury neighborhoods and eat at local fondas.
Quality of Life in Panama City
Beyond the numbers, living in Panama City offers an exceptional quality of life that draws people in and keeps them here:
🌎 International lifestyle with local charm – You can enjoy a cappuccino at a trendy café in the morning, explore a historic district like Casco Viejo in the afternoon, and have dinner at a world-class restaurant at night.
🏖️ Close to nature – Even in the city, you’re minutes away from the Cinta Costera waterfront park, the Amador Causeway, and weekend getaways to Pacific beaches.
👨👩👧👦 Expats & locals together – Panama City has a thriving international community, but it’s also easy to connect with locals. Many Panamanians speak English, making the transition smoother.
🎭 Culture & entertainment – Theaters, art galleries, concerts, and international festivals give you plenty to do beyond the usual dining and shopping.
📶 Modern conveniences – Reliable high-speed internet, international schools, major banks, and healthcare specialists make it easy to enjoy city life without missing the comforts of home.
The city blends convenience and culture in a way that few Latin American capitals can.
As you can see, the cost of living in Panama City varies greatly depending on your lifestyle and neighborhood.
A luxury lifestyle in Costa del Este or Santa Maria might cost $4,000–$5,000 per month, including rent.
A comfortable, modern lifestyle in San Francisco may cost around $2,500–$3,000 per month, including rent.
A mid-range lifestyle in Bella Vista or El Cangrejo averages $1,500–$2,000 per month, including rent.
A budget lifestyle in El Carmen or similar neighborhoods can be as low as $1,200 to $1400 per month, including rent.
The best part? Regardless of your budget, you’ll still have access to world-class healthcare, affordable public transportation, and all the conveniences of city living.
Ready to Explore Panama City for Yourself?
The best way to know if Panama City is right for you is to experience it firsthand. That’s why we offer Private Tours of Panama City.
During a Private Tour, you’ll:
🔵Visit different neighborhoods that match your budget and lifestyle preferences.
🔵See grocery stores, hospitals, and shopping areas.
🔵Get insider tips on renting or buying in Panama City.
🔵See rentals that match your budget and lifestyle
🔵Get the “insider scoop” on living in Panama City
🔵Meet trusted local contacts like immigration lawyers, insurance brokers, and real estate experts.
👉 Whether you want to compare luxury neighborhoods like Costa del Este, lively areas like El Cangrejo, or more affordable districts like El Carmen, our Private Tours give you the firsthand experience and knowledge you need to make the right decision.
Click here to learn more about Private Tours of Panama City and start planning your move today.
