What Does It Cost to Move to Panama?

Relocating to Panama can be an exciting adventure, offering a lower cost of living and a more relaxed lifestyle. However, it’s important to prepare for some hidden costs that might not be immediately apparent. These expenses can add up and potentially affect your budget if not planned for. By understanding these costs in advance, you can make the transition to your new life in Panama smoother and less stressful.

A hidden expense to consider is the process of legalizing documents. To apply for residency in Panama, you must provide documents like income verification, marriage certificates, and national criminal reports, which must be authenticated or apostilled. The Panama Consulate charges $30 per document to authenticate your documents. This process can be costly if you need to mail documents for authentication or apostille. Pet Health certificates can cost hundreds of dollars and also need to be authenticated by the Panama Consulate or by the State Department

Similarly, attorney fees for obtaining your visa can vary widely, so it’s essential to research and find a reputable immigration lawyer or service with transparent pricing. For the best fees, see the recommended immigration lawyers in the Complete Panama Relocation Guide.

Don’t forget about the costs of setting up a home. Rental deposits, utility setup fees, and the cost of purchasing furniture or appliances for your new place can add up quickly. Even if you opt for a furnished rental, you might still need to buy household items to feel more comfortable.

Knowing these hidden costs can help you better prepare for your move to Panama and avoid unexpected financial stress. While Panama offers many economic advantages, accounting for these additional expenses will help ensure your relocation is as enjoyable and hassle-free as possible.

Though you can reduce your cost of living when you move to Panama, there will be significant upfront costs when you move to a different country. Fortunately, there are steps you can take to reduce these costs, which we’ll discuss later in the article.

The biggest upfront costs when moving to Panama are airfare, getting a residency Visa, and renting a place to live. See the chart below for estimated expenses for a couple moving to Panama, assuming they rent a house or apartment for $ 1,200.

The costs would be less for a single person, of course. If you rent a $ 1,200-a-month apartment or house, the estimated upfront costs for a single person would be about $ 5,000. If your rent is under $1200, your upfront costs would be lower.

As you can see, the upfront costs for a couple to move to Panama, obtain a visa, rent an apartment for $ 1,200, and bring their pet will be about $7,000.

These upfront costs assume you move to Panama with a few suitcases each.

WHAT COULD INCREASE YOUR COSTS TO MOVE TO PANAMA?

One of the most overlooked expenses is shipping and import taxes. If you plan to bring personal belongings, furniture, or a vehicle, you may incur significant shipping and customs costs. Panama imposes a 22% tax on imported goods, with rates varying by value. Additionally, storage fees at the port while customs clearance is in progress can quickly add up. Many expats find it more cost-effective to sell most of their belongings and purchase new or used items locally as they adapt to a simpler lifestyle.

If you already have a visa, you can ship up to $10,000 in household goods with no import tax, but there will still be substantial costs to ship the goods to Panama.

Shipping household goods to Panama can cost $3,000 to $20,000, depending on container size and the moving company you use.

If you need to bring some of your household goods, instead of shipping a 20′ or 40′ container with all your household goods for $10,000 to $20,000, you can ship a pallet for about $2000- $3000.

Many people move to Panama with just a few suitcases. (That’s what I did) You can buy everything you need in Panama, so there is no need to ship items there.

It’s easier to buy a car in Panama than to ship a vehicle and pay a 22% import tax. If you ship a car to Panama, you will incur an additional expense to register it as a Panama-registered vehicle within 30 days of arrival.

Buying a car could cost an additional $5,000 to $20,000, depending on the vehicle you select. Full-coverage insurance for a $20,000 car will cost about $650 per year, but you can pay monthly.

In many areas, especially Panama City, you can get around just fine using public transportation, so you won’t need to buy a car.

If you have not visited Panama to select a rental before your move, it is advisable to stay in an Airbnb or hotel for a few weeks to view a few options before signing a lease. That’s an extra expense. You should never rent a property without seeing it first.

Pick the Right Immigration Lawyer!

If you obtain any visa other than a Pensionado Visa, you can add $100,000 to $200,000 or more to your cost of moving to Panama. Unfortunately, any Visa other than the Pensionado Visa will require $200,000 in real estate, a deposit into a 3-year Panama bank CD, or a business in Panama. A reforestation visa requires an investment of about $100,000 in five hectares of teak or in products that qualify for the reforestation visa.

Another Friendly Nations Visa option is to set up a corporation that issues you a labor contract. This visa costs about $10,000.

If you have a criminal record, you may need a Visto Bueno, which can add $1000 to your visa fees. A Visto Bueno is special paperwork that must be submitted to immigration requesting permission to apply for a visa. Not only is there an additional fee, but it can take a month or longer for the Visto Bueno to be approved. Reminder: If you have a felony conviction, you cannot obtain a visa in Panama. Reminder, if you have a felony, you cannot get a visa in Panama.

If you choose the wrong immigration attorney or real estate company, your costs will increase substantially. Some lawyers and real estate companies pad the price a lot! The Complete Panama Relocation Guide offers reliable, affordable recommendations.

If you do not have pets, you can remove that expense from the chart above. But if you have more than one pet or a large pet that needs to go in cargo, the cost could be substantially more than $600. The $600 estimate covers veterinary visits for shots and an international health certificate, pet airfare for in-cabin travel, and assistance with getting your pet into Panama. If your pet is too large to fit in the cargo of a commercial plane, you may need to get a shared charter flight, which could add $7,000 to $25,000 to the upfront costs. See the chart below for the maximum sizes for Copa Airlines fees for various pet crate sizes.

If you decide to fly on a shared charter flight so your pets can be in the cabin with you, add $ 6,800 to $25,000 to your upfront expenses.

In the first month of your move to Panama, you’ll likely eat out more often to try different restaurants, so I added $200 or more for eating-out expenses.

THINGS YOU CAN DO TO REDUCE YOUR COSTS TO MOVE TO PANAMA

To reduce the cost of moving to Panama, you should wait to obtain your visa until after you move. If you get the Visa before you move to Panama, you’ll have the extra expense of airfare to Panama twice ($2800) plus hotel and meal expenses for about ten days ( $100/day x 10 – $1000) SAVE $3800 if you get your Visa after you move to Panama.

If you rent for less than $1200 per month, your upfront moving expenses will be lower; if you rent for more than $1200 per month, they will be higher. Ideally, you should find a furnished rental that includes all utilities, so you don’t have any additional upfront costs for electricity or internet. It is not customary to pay the first and last months’ rent in Panama; avoid agents who ask for it. Never push your budget to the limit.

Some areas of Panama are much more affordable than others. See our RENTALS page for samples of rentals across Panama.

We advise renting a furnished unit; otherwise, you’ll also have to purchase furniture, which could double your upfront expenses. See what a $ 700-per-month furnished rental looks like below.

In Panama, Conway is an affordable place to buy furniture, bedspreads, curtains, kitchen appliances, and more. It’s similar to a Target store. SEE FURNITURE PRICES ON THEIR WEBSITE HERE.

Health Insurance

Health insurance is another cost that can surprise newcomers. While Panama offers affordable public healthcare with no monthly fee, many expats prefer private healthcare for its convenience and quality. Private health insurance is often less expensive than in the U.S., but premiums vary depending on age, coverage, and pre-existing conditions. Some expats opt for international health insurance, which may be even pricier but provides coverage when traveling outside Panama.

If you are 60-69, buying Panama health insurance will cost an additional $117 per person. International Health insurance could cost an additional $250-$500 per person per month.

If you have Medicare Advantage, it covers urgent care and emergency care in Panama with no out-of-pocket costs at many private hospitals.

You can self-insure with no fixed monthly expenses. Self-insurance means you’ll pay for doctor visits as needed. Depending on where you go, it’s $2-$20 to see a doctor in Panama.

Get a Panama Cell Phone

You should get a Panama cell phone number when you move to Panama. You can swap the SIM card if your cell phone is unlocked. A SIM or eSIM will cost less than $10. Panamanian cell phone plans cost about $25 per month. There is a way to keep your current cell number without paying the high monthly fee. We have information about this in the Complete Panama Relocation Guide.

We recommend that you visit Panama before you decide to move there. As much as we love living in Panama, we know it’s not right for everyone. This will be an additional expense, but it’s necessary to ensure you’re comfortable with Panama before moving there.

Use our recommended immigration lawyers in the Complete Panama Relocation Guide to avoid paying too much for a Visa. Our affordable immigration lawyers charge about $ 2,000 for a couple to obtain a Pensionado Visa. Another attorney, whom we do NOT recommend, charges $7500 for the same visa!

You can SAVE MONEY and avoid costly mistakes with the Complete Panama Relocation Guide.