Realistic Cost of Living in Panama

The cost of living in Panama depends on where you live, how you live, and your lifestyle. It’s really not possible to tell you a flat fee for the cost of living.

Many live very well on less than $1,500 a month, but some people need $3,000, $5,000, or even $10,000 a month to live the lifestyle they want.

The good news is that you have many choices in Panama to control your cost of living.

Regardless of your budget, there is a place for you in Panama!

I suggest you take out a piece of paper and create your Panama budget based on the information below. Knowing what certain expenses are will help you determine how much you can afford to pay for rent. See the sample budget at the bottom of the page and adjust the numbers to fit your lifestyle.

The biggest line item in your budget will be rent. If you live in Panama City or Coronado, your cost of living will be higher. A nice rental will start at about $1000-$1800 in these cities, plus add in your electric bill. Some people are paying $2000 -$4000 just for rent in these areas.

If you live in a gated community in Boquete, your cost of living will be more than if you do not live in a gated community. Rents in gated communities in Boquete start at $1200 but can easily be $2000-$3000 depending on the property.

Don’t worry! There are many places where you can live in Panama for MUCH LESS! Even if you live on a limited budget, there will be an ideal place to live in Panama.

Volcan, in far western Panama, offers an economical lifestyle without sacrificing the amenities you need, such as a hospital, nice restaurants, great grocery stores, and more. You won’t need an air conditioner if you live in the highlands, so that significantly reduces your electric bill. Electricity may even be included in your rent. The furnished two-bedroom, two-bath house below rents for $700 per month, with all utilities included.

In Volcan, this furnished one-bedroom is only $350 a month, which includes utilities:

If you’d love to live by the beach but Coronado prices don’t fit your budget, you could live in the eastern Azuero between Chitre and Las Tablas in a furnished two-bedroom, two-bath house for about $600 a month (plus your electric bill)

There are many affordable rentals in the Caribbean side of Panama in Bocas del Toro. This amazing ocean view furnished one-bedroom is only $495 per month in Bocas.

You Have So Many Choices in Panama!

To help you come up with a realistic budget, I did a Livestream to discuss the costs of various things. Below the video, see the line items and prices to help you create your budget.

RENT will be your biggest expense in Panama. It’s always been advised that your rent should not exceed 1/3 of your budget. In Panama, some rentals include all utilities and a gardener, too, so you could pay a little more for that rental. Some areas are more expensive than others. You will need to pick a place to live that fits your budget.

ELECTRICITY In Panama, some rentals include all utilities and a gardener, too. In the highlands, your electric bill will be $25 – $50 a month. You could pay more for rent if all utilities are included. But if you live on the coast, your electric bill could be quite high. Estimate $100 to $300 for electricity, depending on your home’s size and how often you use air conditioning. If you live on the west side of a condo building, your home will be hot all the time, so you’ll need air conditioning more often. But if you live in a place that has a nice ocean breeze, you can reduce air conditioning use to keep your electric bill low

GROCERIES will probably be your second biggest expense. It’s another thing that depends on your lifestyle. Some people eat a lot of meat, cheese, and imported goods, so their grocery bills are higher. Others buy more locally grown fruits, veggies, and fresh-caught fish, which will keep your grocery bill low because they are so affordable in Panama. Even choosing a Panama-brand chip over a major brand can save $4 per bag. Only you can decide whether to adjust your lifestyle when you move to Panama to help keep your food bills low.

If you buy fresh fish from the local fishmonger, like Miguel, you will reduce your grocery bill. Fresh tuna is about $4 a pound. Sea bass is about $2 a pound.

The best and most affordable place to buy fruits and veggies is the local market (not the grocery store)

ALCOHOL can certainly increase your budget substantially. Some people do not drink alcohol, some buy a bottle of wine (Panama has great wine at great prices) or a 6-pack of beer every week, but others buy 10 bottles of wine and several cases of beer every week. What will really increase your budget is going to the daily “Happy Hours,” where you’re spending $4 to $5 per drink. (It adds up fast!) You get to decide how much you want to budget for alcohol. I know some people who spend about $100 a week or $400 a month on Happy Hours!

EATING OUT can really increase your budget unless you eat at the amazing tipico/fonda-type restaurants, where it’s $4-$5 per meal. There are plenty of restaurants that cost $8, $15, or $30 per person for a meal + drinks, too. At least in Panama, you have healthy and affordable choices when you eat out. Will you budget eating out 1, 2, or 3 times a week or daily?

WATER is usually included in your rent, but if you have to pay the bill, it’s about $100 a year for unlimited water.

TRASH COLLECTION is usually included in your rent, but if you have to pay the bill, it’s about $36 a year.

GARDENER is usually included in your rent. But if you need to hire a gardener, expect to pay $30-$40 a day. If you have a really big yard, as I do, you may need a gardener twice a week. When you hire a gardener, you are usually only hiring labor. You will need to supply the tools

HOUSEKEEPER is affordable in Panama and a luxury you can treat yourself to, costing only $30 – $40 per day. When you hire a housekeeper, you are only hiring labor; you will need to supply the broom, mop, cleaning supplies, etc. You may hire a housekeeper once a week, once a month, or just occasionally.

INTERNET/CABLE TV is often included in your rent, but if you have to pay the bill, it is about $50-$70 per month. If you live in an area with fiber optics, you will have faster internet speeds. But some coastal areas have very low internet speeds. If faster internet speeds and reliability are important to you, you will need to research the current availability of fiber-optic service in the area you plan to move to. Do not believe people who say fiber optics is coming soon… soon in Panama could be 5 years away or never.

CELL PHONE service in Panama is affordable and excellent. You can budget about $25-$35 a month, depending on which company and plan you pick. I prefer TIGO!

AMAZON/ONLINE ORDERS can significantly increase your budget. Ideally, you buy locally, so you do not need to shop on Amazon to get things shipped to you. Amazon Prime may be free for shipping to Miami, but you’ll need to use a mail-forwarding company to ship from Miami to Panama, and that costs about $4 per pound. It can add up fast, especially for heavy items. Will you buy 1-2 times a month from Amazon for an estimate, or $20 a month shipping fees? Or will you buy 1-2 times a week from Amazon, with an estimated $80 a month in shipping fees?

PERSONAL CARE includes haircuts, massages, gym memberships, and mani-pedis. A haircut can cost $5 to $20, depending on where you go. A deep tissue massage is about $50 for a one-hour massage. You can pay $2-$5 per visit to a gym or get a monthly membership for about $40-$50. A mani-pedi will cost about $25.

MEDICAL EXPENSES are super affordable in Panama. It’s about $15-$20 to see a doctor or $40 -$50 for specialists. If you go to the public hospital, it’s only $2 to see a doctor or $5 to see a specialist. These prices are not co-pays. Because the price is so low, many people self-insure rather than get health insurance. You may only need to budget for 1-2 doctor visits a year, or, if you have chronic health problems, a monthly doctor visit.

HEALTH INSURANCE is very affordable in Panama, but you may have a hard time getting coverage if you have pre-existing conditions or are not vaccinated. If you are 60-69 a Family Medical Plan is $117 per month. Click on the link for prices of other age groups. They will cover some pre-existing conditions, but only after the first two years. You can use the public hospital for a $0 monthly fee; you just pay as you go. Or you can get international health insurance, which will cost about $ 4,000- $ 5,000 a year and cover you anywhere in the world. You are not required to be vaccinated to get international health insurance.

DRUGS are sometimes more affordable in Panama, but sometimes they cost more. You can see a FREE REPORT with a list of the 50 Most Commonly Prescribed Drugs in the USA and what they cost in Panama. If your medication is not on that list, you can call pharmacies in Panama to see if they have your medications and what they cost, or you can hire Julie at Simplify Panama to do the research for you. Julie charges $20 an hour and can research 3-4 medications for that price. If you’d prefer to do your own research, the two biggest pharmacies in Panama are Arrocha and Revilla. Prices can vary greatly between pharmacies. Hospital pharmacies have the most affordable prices. Panamanian insurance usually does not cover medications. If you still have insurance in another country (an extra expense to budget for), you may be able to order medications from Amazon Pharmacy and have them shipped to Panama. Some people spend $10 a month on medications, and others spend $200 a month on medications. How much do you need to budget for medications?

MISC – CLOTHES AND TRAVEL should be added to your budget. Some people buy a lot of clothes, and some people don’t. Some people travel several times a year (in Panama or outside Panama), but others don’t. What do you estimate that you should budget for clothes and travel? If you love buying flowers to plant in your yard, you’ll need to budget for plants, too.

CAR – If you buy a car when you move to Panama, you’ll need to budget for gas and maintenance. Car insurance is $200- $700 a year, depending on the coverage. If you don’t buy a car, you’ll need to budget transportation expenses, such as a bus or taxi. You can estimate $3 to $5 per taxi/bus ride. Will you use the bus once a week or once a day? If you live closer to town, you can walk to restaurants, grocery stores, and social events to avoid extra transportation expenses.

EMERGENCIES hopefully never happen, but you need to plan for the “just in case” situations and set money aside to cover the costs. What if your doctor wants you to get a CT scan and you don’t have insurance – that’s a $400 bill! Or what if a family member has an emergency and you need to buy airfare to get to them, plus expenses, while you are away from Panama? Budget for emergencies too.

See this SAMPLE budget for living in the highlands, where an air conditioner is not needed. If you live in a coastal area, add $80-$150 a month for electricity. Most stoves and dryers in Panama use propane gas, which is $5.37 for a 25-pound tank. I have to replace my tank every 3 months. But if you cook a lot, you may need to refill your tank once a month. Depending on your lifestyle, you may need to increase your food & eating out budget. If you take medications, you will need to include them in the budget. And remember to budget for emergencies.

Of course, you’ll need to adjust rent and other items to fit your lifestyle. Add or delete line items you need or do not need.

The bottom line is that you LIVE BETTER for LESS in Panama. You can almost always have less living expenses, and you can certainly have LESS STRESS when you move to Panama!