cost of living in Panama Archives | Panama Relocation Tours

Last Updated Jan 10, 2019 - by Jackie Lange

7 Things I Love Most About Living In Panama

There are so many things that I love about living in Panama. Here’s my short list of the 7 things that I like best:

I appreciate that my cost of living in much less than it was Texas. In Texas my electric bill was $250 to $450 a month. In Panama, my electric bill is rarely over $25 a month. In Texas, my water bill was $80 a month. In Panama, I pay $100 for water for the whole year. My cell phone bill is only $15 a month It’s only $12 to see an excellent doctor. And my international health insurance is 80% less than I’d have to pay in the US. I especially love that I do not have any property taxes and my house and car insurance are less than $200 a year each. These all adds up to big savings!

I love that Panama is a small country. I can drive from my house in the mountains to the Pacific Ocean in about 1 hour. I can drive to the Caribbean Sea in 3 hours. If I ever get in the mood to go to Panama City, it is a short 35-minute flight. In Panama when you drive just 30-60 minutes the scenery will change and the weather will be different too.

Are you thinking about moving to Panama? Check out our guide to living in panama and learn more about our relocation tours.

I love how friendly and welcoming the Panamanian people are to foreigners and to each other. Because foreigners have been coming to Panama for hundreds of years, the Panamanian people feel comfortable being around foreigners. The Panamanian government puts out the red carpet for foreigners by making it super easy to get a residency Visa to live in Panama indefinitely. And with certain Visas, you can even get a work permit to legally work in Panama.

I love that living in Panama reminds me of what it was like when I lived in the United States in the 60s and 70s (but with high speed internet and cable TV added). It’s a simpler stress-free lifestyle. People are friendly. Neighbors talk to each other. Panamanians are extremely patriotic. Sure, there are inconveniences but they seem so minor compared to all the pluses.

I love that I can grow just about anything in the mountains of Panama. Flowers, vegetables, bananas, fruit trees all flourish in Panama. Anything that I cannot grow at my altitude (4500 feet), like pineapple or rice, grow easily at lower altitudes. Plus, there are fish from two oceans. There is a 365-day growing season which supplies food without importing anything.

I love the natural beauty in Panama. If you’re a beach person, you’ll love the long sandy beaches. There are 1500 miles of coast line in Panama and every beach is a little different. If you’re a mountain person, you’ll love the lush green mountains and miles of rolling vistas. You can walk through a rain forest. You’ll see thousands of unique flowers and trees. There are 1200 species of birds in Panama including many rare birds. I have hundreds of humming birds at my property every day.

The thing I love the most about living in Panama is the weather and the fresh air. One of the reasons I left Texas was because I was fed up with living in 100-degree summers and cold, icy winters. In Texas, I either had my air conditioner on or my heater on almost all year. But in Panama, living in the mountains, I don’t even need an air conditioner or heater. I have my widows open every day, so I can get fresh, clean air. Daytime temperatures are in the low to mid-70s. Evening temperatures are in the mid-60s. To me, this is perfect weather and the perfect place to live.

Last Updated Feb 12, 2019 - by Jackie Lange

2017 Cost of Living in Panama

What does it cost to live in Panama? That’s the question I get asked most often. The answer is… it depends on where you live and how you live.

Some areas of Panama are much more affordable than others. If you live near Coronado or Panama City, you’ll pay more. I live in Boquete, Panama which is not the most affordable place in Panama, but it is much more affordable than living in North America or Panama City.

I’ve been tracking my living expenses since I moved to Boquete so I thought I’d share them to give you a realistic picture of what it costs to live in Boquete in 2017. Keep in mind that I live a modest lifestyle. My house is small. I drive a 2008 car. I don’t try to keep up with the Joneses.

HOUSING

Housing is usually your biggest expense, but it does not have to be in Panama.

In Boquete, like all other places, your cost of living will depend on your lifestyle choices. If you want to live in Valle Escondido or any of the other gated community, your costs will be much higher than other areas.

You can rent a house for $400 a month or spend $4000 a month. A few months ago, I saw a studio apartment advertised for $250 per month.

Boquete has a huge variety of rental prices, like most areas in Panama. Only you can determine if the price you are willing to pay is in an area you like. You probably will not need to spend as much as you think for a house you really like.

During the tour, we visit with a couple who lives in a fantastic furnished 2 bedroom on one acre with the Pacific Ocean right out their front yard – all for only $400 a month. See it in the photo to the right.

Affordable living is available in Panama if you know where to look! (we show you where during a Panama Relocation Tour)

I recommend that you rent for at least 6-12 months before you buy anything. That’s the only way you can really get to know an area.

Many people make the decision to only rent when they move offshore. Renting gives you a lot more flexibility. Rent is so affordable, it really does not make a lot of sense to buy. In Panama, it is easy to buy but it could take many years to sell.

When I moved to Panama, I paid $600 per month rent for a fully furnished 2-bedroom, 1.5 bath house on an acre with 100 banana plants, coffee plants, exotic flowers and a spectacular view. I could pay more.. but why? I had everything I need at an affordable price.

After living in Panama a few years, I purchased the house for $120,000 so I don’t have a rent payment anymore. And I don’t have any property taxes – every! My house insurance is less than $200 a year.

Seven years later, that same furnished house would rent for $695 to $795 today including includes all utilities.

FOOD

You can eat at a Panamanian style restaurant for $4 – $5 per person. It’s hardly worth it to cook at home with those prices. Most high-end or expat-owned restaurants have prices similar to North America though.

I buy most produce at the Mercado (farmers market) or grow my own in my greenhouse. Produce prices are much cheaper than the United States and the quality is better too. For example, I recently bought 2 large sweet pineapples for $1.50. You can buy 4 Hass avocado for $2. I can buy 50 pounds of carrots for $6 or 100 oranges for $4.

Bananas are free… I get them on my property.

In 2017, I spent an average of $650 per month on food including eating out. Some of this expense is for cat food.

In 2018 I anticipate that my food costs will go down because I will be growing more of my own organic food in my greenhouse.

PHONE

I only use a cell phone in Panama. My data/talk plan is $16 a month. This is a huge savings over what I paid in Texas.

I use Skype to make calls to friends and family all over the world at $0 expense. I have a dedicated Skype number so anyone call dial that number and it rings at my house in Panama.

SHIPPING AND POSTAGE

Panama does not have mail delivery service to your house. I use Mail Boxes Etc to get mail delivered from the United States to Panama. It’s expensive at about $3 a pound to get Amazon orders delivered so I try to buy everything I need in Panama to save money. There are in-country courier services available too.

MEDICAL

It’s only $12 for a general doctor visit and about $30 – $40 for a specialist. With these kind of prices, some people decide to self-insure. But I have international health insurance.

In 2017, I switched to a different international health insurance company and reduced my costs from $2100 a year to only $1900 a year with a $500 deductible and no co-pay. My insurance also covers up to $750 a year in medications but I don’t take any medications. This insurance covers me at any hospital or doctor anywhere in the world.

I could cut my health insurance costs in HALF if I had Panama ONLY health insurance then purchased travel insurance when I go to the United States or other countries. I may do that when it comes time to renew my health insurance in 2018.

Health care costs and health insurance costs are a HUGE savings over what it would cost me in the United States.

In 2017, I traveled to the United States several times because my husband got sick there. But, I did not include those travel expenses in the budget because prior to 2017 I had not been back to the United States in over five years.

Other…

I do have a miscellaneous category in my budget for travel, buying furniture, clothes, plants for my yard or other expenses that come up. If you come on a Panama Relocation Tour, you’ll get to see all the flowers on my property.

I rarely watch TV so I plan to drop cable TV in 2018. If I want to watch the news or TV I can use www.USTVNow.com

These were my monthly expenses in 2017:

Rent($0) & House Insurance & Gardener	$145
Food & Eating Out	$450
CableTV & Netflix	$50
Internet & Cell Phone	$65
Electricity & Gas	$30
Water and Trash Collection	$5
Transportation (gas, insurance, maintenance)	$60
Medical	$160
Postage and Shipping	$50
Clothes, Travel, Flowers/Plants and Haircare, weekly massage, Mani-Pedi, Misc	$380
TOTAL	$1395 ($16,740 per year)

Yes, You Really Can Live for Less in Panama

If you were renting a house for $700 a month, your monthly costs would be less than $2,000 a month (keep in mind that your internet, electricity, gardener, water and cable TV are usually included in your rent!). My neighbor lives comfortably on $1500 a month Social Security which includes his rent. And I know people who pay $2400 a month just in rent for a large 3-bedroom house in a gated community. There are a lot of choices in all different price points.

Some places in Panama are more affordable than Boquete. And some places in Panama are much more expensive than Boquete.

During a Panama Relocation Tour, I’ll show you a variety of different areas in a variety of different price points. Plus, you’ll get to meet people who live in each of these areas. Panama has a perfect place for you regardless of what your monthly budget is.

Last Updated Apr 13, 2019 - by Panama Relocation Tours

Healthcare Costs Are One of the Reason People Move to Panama

In a recent report, the U.S. Department of Health and Human Services said that in 2017 insurers will raise the premiums for plans sold through HealthCare.gov by an average of 22 percent — about triple the 7.5 percent increase from 2015 to 2016. In some states, the premiums will go up as much as 30-100%.

Mauldin Economics recently reported The Affordable Care Act (ACA), which at this point should be renamed EECA (Excessively Expensive Care Act), is in its death throes.

Let me just recap some of the most vital facts for you:

A family of four making $60,000 per year could spend almost one-sixth of their pretax income on health costs (premium plus deductible) before receiving any insurance payment.
In 2017, insurance premiums in many states will rise by 30%-40%—further squeezing middle-class Americans who make too much to be eligible for a tax credit and too little to be able to afford the high premiums and deductibles.
More and more insurers throw in the towel because financial input vs. output just doesn’t add up for them. In 2016, 225 counties in the US had only one health insurance carrier in the ACA marketplace. In 2017, that number will rise to 650 counties.

With 10,000 people turning 65 every day in the United States, the share of the US population aged 65+ grows—from 47 million today to 72 million by 2030, a 60% increase—more money will be spent on healthcare, ultimately suffocating the already weakened US economy.

SO, WHAT’S THE SOLUTION?

With health care cost rising, more Americans than ever are choosing to move to Panama so they can significantly reduce their health care and health insurance costs.

In Panama, healthcare expenses are based on the local cost of living which is much less than the United States or Canada. In addition, frivolous lawsuits are non-existence in Panama so malpractice insurance is very low for doctors. For these reasons, Panama healthcare and health insurance cost a small fraction of what they would cost in the North America. Despite the lower costs, the quality of care is high.

A routine doctor visit is $15 to $25 in Panama. That’s not a co-pay. That is the total cost without insurance. A specialist is $40 to $50. If you need to go to the emergency room, it will set you back $25 an hour. These are the prices without insurance.

No monthly fee for the public hospitals & no age restrictions!

Many expats living in Panama self-insure because the costs are so low. They can take advantage of the public hospitals where it is only $2 to see a doctor, $5 for a specialist, and $10 a day if you are hospitalized. A friend was hospitalized with a heart attack a few years ago. After 10 days in the public hospital, his cost was less than $1000 including MRIs, Cat Scans, and medications.

Because health insurance is so affordable in Panama I think it is wise to get health insurance when you can afford to. With a higher deductible, you can reduce your monthly or annual premium. Health insurance prices will depend on your age.

You have several choices for health insurance. You can get insurance which only covers you in Panama. Or, you can get international health insurance which will cover you in Panama, the United States, or any other country. These plans usually require that you are under 74 on the day you sign up but then they cover you for as long as you pay the premium. Some insurance companies may exclude pre-existing conditions for the first year or two then cover the condition after that.

I have international health insurance with United Healthcare. At 64, I pay $2200 a year with a $500 deductible then I’m covered covered 100% up to $4,000,000 per year. International health insurance means I’m covered at any hospital or doctor in Panama or the United States or any other country

Before moving to Panama, I tripped on a blanket and fell down the stairs at my house in Dallas. I damaged my eyes and had to have two eye surgeries in Texas. I thought my eyes would be excluded from my insurance in Panama but it was not.

Since moving in Panama, I have had two more eye surgeries including a lens replacement. Insurance covered the cost of both surgeries in Panama. I can honestly say that the quality of the care I got in Panama was far superior to the care I got in Texas.

No age restrictions available too!

Another affordable option for health insurance in Panama, is a medical reimbursement plan through some of the private hospitals. With this insurance, there is no age restrictions, no deductible, and they cover pre-existing conditions after the first year. This plan covers 85% of your costs. But with costs so low for a doctor visit or a hospital stay, your out of pocket expense is still very low.

A 68 year old woman who came on my tour then moved to Boquete is paying $92 a month for the medical reimbursement plan through a hospital in David Panama. You can even get a discount if you pay for 3-6 months in advance.

Some Panama health insurance companies will not issue insurance until you are living in Panama. You’ll need to prove that you are renting in Panama or have bought a house. And they will have have restrictions about how long you can back in your home country to stay insured (usually 6 months maximum). So, you cannot buy insurance in Panama at the much lower price then move back to the United States full time.

Shop around for health insurance. And BEWARE that many insurance “brokers” or agents charge 30-40% more for health insurance. You’ll save money by buying your insurance directly from the company instead of using an insurance agent.

There are other savings when it comes to health care in Panama It cost about $50 to get your teeth cleaned. It is less than $1000 for a dental implant. A friend had an upper and lower eye lift in Panama City for only $2200. These low prices are attracting medical tourist to Panama.

You can go in to any lab to order your own lab work without a doctor prescription. I recently paid $42 for a complete lab workup. This price did reflect a 25% Pensionado discount.

This special Pensionado discount is valid for doctor visits, hospital stays, and prescription drugs. The Pensionado discount is for Panamanians, those with a Pensionado Visa or expat women who are over 55 or men who are over 60 who have a residency Visa.

Many Americans are moving to Panama for more affordable healthcare and health insurance.

It’s unfortunate that people in the United States don’t have an affordable solution for health insurance. My healthy 34-year-old daughter would have to pay $297 per month for insurance with a $6,000 deductible under Obamacare. She previously had to pay a $1200 a year penalty because she refused to pay those ridiculous prices for health insurance in Texas. With a deductible that high, it is doubtful that she would ever actually get to use her insurance so it just makes more sense to pay the penalty for not subscribing to Obamacare.

Many people in the U.S. don’t know how bad and how expensive health care is in the United States or that there are very affordable alternatives when they live in Panama.

Many of the doctors in Panama were educated in the United States and some are even Board Certified in the United States. You can find any specialist in Panama that you’d find in the US too.

Quality Hospitals too

Panama has quality hospitals too. Punta Pacifica Hospital, the Johns Hopkins International-affiliate, is known as one of the most technologically advanced medical centers in Latin America. Hospital Paitilla is affiliated with the prestigious Cleveland Clinic. San Fernando Hospital is affiliated with the well-known Tulane University Health Services Center and Hospital Clinic, Baptist Health International of Miami, and the Miami Children’s Hospital. Hospital National is run by the American Hospital Management Company, which is affiliated with the University of Nebraska Medical Center and the Kendall Medical Center in Florida.

Hospitals, medical centers, pharmacies, dental clinics and labs are readily available in cities throughout Panama.

Prices for prescription drugs in Panama can be very low as well. They are priced for the local market. Unless you are buying an antibiotic or a narcotic, you will not need a prescription so you can save money on unnecessary doctor visits.

WHAT ABOUT MEDICARE OR TRICARE?

Neither the U.S. Medicare program nor the Canadian Health System provides coverage for hospital or medical costs outside the United States and Canada. Some expats keep these plans then have an additional Panama only plan to keep their costs down. Others decide to just get international health insurance then opt-out of Medicare.

US military retired veterans and disabled veterans are eligible for free medical and prescriptions in Panama.

Como No? This is a popular phrase in Panama. It means WHY NOT.

With a more affordable cost for health care and health insurance plus the lower cost of living in Panama, COMO NO relocate to Panama?

It’s certainly worth checking out Panama to see how you can reduce your health care and health insurance costs. Plus you’ll discover how you can live BETTER for LESS.

Join us for a Panama Relocation Tour to discover what your life could be like living in Panama. During the tour, you’ll receive detailed information about various health insurance companies including their direct contact information. Plus, during a tour you get to visit many different areas in Panama and meet expats who live there. By the end of the 6-day 7-night all-inclusive Panama Relocation Tour, you’ll know if Panama is right for you and, if so, where you will want to live.

Our April 2019 Tour was our 100th Panama Relocation Tour with over 2,000 tour clients. We’re the Retire in Panama Experts!