8 Best Places to Live in Panama - 2026 Update

"Panama welcomes people from many countries with great expat laws and easy residency," said one expat in Panama. The temperatures vary greatly in Panama. If you can't stand the heat, you may benefit from one expat's advice that, "Panama is in the deep tropics so to be comfortable you need to have some elevation. I would say the comfort range starts at about 800 to 1000 meters and goes to about 1500 meters. Above that it starts to get too cold. You can drive to the beach and spend a couple of days there and then return to your home in the mountains."

That being said, job opportunities, international schools, retirement budgets, personal climate preferences and types of communities will drive an individual or family's decision of where to live. We have chosen 8 of the best places to live or retire in Panama based upon the opinions and advice of our members living in Panama.

Panama has one of the most accessible residency frameworks in Latin America, and the country's appeal to expats — particularly retirees — is anchored by several long-established visa programs. The Pensionado Visa is among the most generous retiree programs in the world, available to applicants with a guaranteed lifetime pension of at least $1,000 per month and offering a substantial discount package on everything from airfare (25-50% off), entertainment (50% off), medical services (15-20% off), restaurants (15-25% off), and prescription medications (10-20% off). The Friendly Nations Visa — significantly overhauled in 2021 — now requires substantial economic ties such as Panamanian employment, property ownership of at least $200,000, or a $200,000 fixed deposit, but remains one of the more accessible permanent residency pathways for citizens of qualifying countries. The Qualified Investor Visa provides a fast-track residency option for higher-investment applicants. Panama operates a territorial tax system, meaning foreign-source income is generally not subject to Panamanian taxation — a major advantage for remote workers and retirees with non-Panamanian income streams. For help navigating Panama's residency programs and immigration matters, our partners NDM Law Firm & Associates and Caballero Méndez & Candanedo are both Panama-based immigration law firms that assist expats with these processes.

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1. Panama City Population: approximately 880,000 Climate: Mid-80s to low 90s year round Location: Coastal City, Pacific entrance of Panama Canal

Panama City sits at the Pacific entrance of the Panama Canal and is the most cosmopolitan capital in Central America — a genuine financial hub with the modern high-rise skyline (the largest in the region), substantial international banking presence, and the U.S. dollar as legal tender alongside the Panamanian Balboa. The city pairs that modern financial-district character with Casco Viejo, the UNESCO-listed colonial old town that has become one of Latin America's most photogenic neighborhoods over the past decade. Tocumen International Airport handles direct flights to most major North American, South American, and European cities — by far the best international connectivity of any Central American destination. Expat life concentrates in distinct zones: Punta Pacífica and Punta Paitilla (upscale high-rise), El Cangrejo (more affordable, walkable, hip), Costa del Este (planned waterfront development on the eastern edge popular with retirees), and Clayton in the former Canal Zone (family-oriented, home to several international schools).

Many people who move to Panama are moving for job opportunities in Panama City. This bustling city is filled high rises, beautiful views of the Panama bay and lots to see and do. If you're moving with kids, there are several good international schools in the Panama City area. Plus, there are many places to visit and activities for kids in Panama City, such as Centro de Exhibiciones Marinas, Parque Metropolitano and many others.

"Realtors know where expats should live. They will probably steer you towards Punta Paitilla (Pie-TEE-ya) or Punta Pacifica, the upper class neighborhoods. El Cangrejo is a good choice too for "non-Corporate" budgets, and is a more "Soho-ish", hip part of town. High Rise Apartment and very typical. There was a real estate boom in the early Y2ks and high rises went up everywhere. Most of Paitilla and Punta Pacifica residents live in high rises. The views of the Panama bay are outstanding if you are lucky enough to live in an apartment that's not boxed in by other buildings.

I would say [prices are] similar to New York City prices, but much more value in Panama. I had a 3 bedroom, 4 bath, 15th floor apartment with a balcony directly on top of the bay for $1200. The price went up about 50% upon me moving. Average is betweem $900-$1500 for 2 bedrooms," advised one expat living in Panama City.

"Don't be fooled, Panama City is HOT. Now it's not Arizona hot, but it's sure close to Miami-in-July-when-nobody-visits hot. The good news is that it's very lovely during the evenings. The daytime is sweaty during the more humid months of May-November and can be unbearable. But, it isn't all that hard to bear during the drier months of December-April. Temperatures during those months range from 85 to 90 degrees Fahrenheit. Some people find it too hot, others don't. But then again, some people live in Las Vegas -- so who knows? There are days when I can't believe how nice the weather is and others when my armpit stains are approaching my waistline and I wish I was in cooler climes," says Casey Halloran in her article, An Honest Panama Weather Report.

If you're interested in living outside of central Panama City, Costa del Este (CdE) is one of the most upscale communities on the northern side of Panama City (on the coast) and popular among retirees. For families, Clayton, in the former Canal Zone (sometimes referred to as 'Reverted Areas'), is a great location and is home to a number of well-respected schools.

More about Panama City: Guide to Living in Panama City, Best Places to Live in Panama City, Healthcare in Panama City, Moving to Panama City, Pros & Cons of Living in Panama City, Retiring in Panama City, Real Estate in Panama City, International Schools and Cost of Living.

2. Coronado Population: approximately 5,000 Climate: Low to Mid-80s year round Location: Coastal, Arco Seco region, 1 hr 20 minutes from Panama City

Coronado is the most developed beach community in the Arco Seco — the 50-kilometer stretch of Pacific coast running west from Nueva Gorgona to Buenaventura — and is the destination most often chosen by expats who want beach access without sacrificing modern conveniences. Coronado is roughly 80 minutes from Panama City via the Pan-American Highway, putting major hospitals, the international airport, and a true urban center within practical reach for medical appointments or social trips. The community itself includes supermarkets, banks, a shopping mall, restaurants, gas stations, and an established expat social scene with monthly dinners and gatherings. The beach is the section's main caveat: like nearly all Pacific-side Panama beaches, the sand is volcanic gray rather than Caribbean white, and the surf works better for surfers than swimmers. Property values have appreciated substantially over the past decade as wealthy Panamanians from the capital have established weekend homes here.

"Coronado--which has supermarkets, gas stations, shopping mall, restaurants, beauty salons, banks, homes, and beach. If you are looking for an American style city, forget it! But it has everything you need for day to day. Many expats go to Panama City about once a month for night life or an American style mall (Albrook Mall). I agree that the beach at Coronado is not for swimming--more a surfer's water--but the sand is NATURALLY volcanic grey/black and not pretty like the beaches in the Caribbean or the Gulf Coast of Florida. None of the Pacific beaches in Panama are white sand--that is only on the Caribbean side (Bocas del Toro). However, the expats in Coronado have monthly dinner/parties and get togethers, too. The activities are there--but you just don't see them unless you look and ask around," explained one expat in Coronado.

"Coronado -- developed beach area near Panama City. Panama City is hot and steamy. Among Panamanians who reside in Panama City, the preferred beaches are those nearest by. Panamanians like to be able to leave work on Friday afternoon and reach their places on the water by dinnertime, and they are willing to pay a premium for that privilege. That's why property prices at these 'city beach areas' have appreciated in value dramatically over the past decade. Perhaps the most developed of these 'city beach' communities is Coronado. Development at Coronado began about 30 years ago, when this spot on the Pacific coast became a destination of focus among wealthy Panamanians from the capital. About two hours' drive from Panama City, Coronado is home to about 600 full-time residents, a mix of locals and expats," described another expat in Panama.

More about Coronado: Guide to Living in Coronado, Healthcare in Coronado, Moving to Coronado and Pros & Cons of Living in Coronado.

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3. El Valle Population: approximately 7,600 Climate: Mid-to-Upper 80s, A Few Months Low 90s Location: Inland, North of Coronado

El Valle (officially El Valle de Antón) sits at roughly 600 meters of elevation inside the caldera of one of the world's only inhabited volcanic craters — a distinctive geographic feature that gives the town its mild climate, surrounded mountain views, and protected microclimate. El Valle is roughly an hour inland from Coronado and about two hours from Panama City, and is widely regarded as the most integrated expat community in Panama: there are no gated developments, no "gringo ghettos," and expats and Panamanian residents share the same restaurants, markets, and community projects. The town is small, walkable, and flat with dedicated bike lanes, and offers genuine outdoor recreation — the Sunday handicraft market is one of the most popular in central Panama, and the surrounding hills offer hiking, hot springs, and waterfalls. The combination of cooler temperatures, community integration, and beach access within an hour has made El Valle a distinct alternative to the more commercial Coronado.

"If you want to be immersed and involved into the local population of Panamanians there is no place like El Valle. We respect and work with the Panamians like no where else and there is little to no animosity here amongst the populations. It's pretty amazing the level of acceptance that exists. For a small town, we have an amazing number of community projects. There are also no gated communities in the Valley," said one expat living in El Valle. Another said, "I agree... El Valle is a special place unlike anywhere else in Panama. It attracts good natured people both locals and expats. Although Boquete is larger with more amenities, El Valle offers enough to live there full time. There are no gringo ghettos in El Valle and less attitude as well. There is a sense of community where everyone gets along."

"El Valle is a very nice location. It has a little elevation for cooler temps. There is good hiking and ample outdoor activities. The town is small but well kept and seems to have some planning. The town itself is flat with bike lanes. It has sufficient grocery stores that would limit the need to have to head to Coronado except of specialty items. Ample restaurants. You can be at some pretty nice beaches in less than an hour," described another member.

More about El Valle: Guide to Living in El Valle

4. Boquete Population: approximately 22,000 Climate: Low to Mid-70s year round Location: Inland, 45 minute drive (north) from David in the Chiriqui Province

Boquete sits at roughly 1,200 meters (about 3,900 feet) of elevation in the Chiriquí Province highlands, 45 minutes north of the city of David and seven hours west of Panama City by road. This is Panama's most established highland expat destination — temperatures average in the low to mid-70s year-round, with cool evenings and a defined wet-and-dry-season rhythm — and the town has consistently ranked at the top of "best places to retire abroad" lists for over two decades. Boquete is also internationally recognized for its specialty coffee (the surrounding hills produce some of the highest-rated Geisha varietals in the world) and as a center for outdoor recreation: hiking the dormant Volcán Barú, whitewater rafting on the Río Chiriquí, and birdwatching in the cloud forests. The expat scene is mature, organized, and notably social — morning coffee groups, weekly lunches, theater, music, and an active charity community — but the town has grown enough in the past decade that some longtime residents flag rising costs and "gringo saturation" as legitimate trade-offs.

In his article, Exploring Boquete: The Other Face of Panama, Lee Harrison describes Boquete, "Boquete is a small town... in a lush, green valley that's situated at an altitude of around 3,200 feet in the province of Chiriqui. The area is noted for its dramatic hills, rushing mountain streams, lush green forests, and cooler weather. People come here to enjoy the peace and tranquility of this semi-rural setting, to fish and hike in beautiful mountains, to enjoy the relaxed pace of village life, and perhaps take advantage of the many entrepreneurial opportunities here."

"Boquete has plenty to do in the Gringo community, plays, good restaurants, music, markets, etc. It is cool with breezes all year, crime is low and the trash problem is much better than anywhere I have seen in Panama. It is also in the 'bread basket' of Panama and food is fresh and very cheap. We have been here 2 years and the only thing I have come up missing was my dog's collar which was returned to us the next day by a neighbor boy who I promptly gave a dollar to and said 'muchas gracias'. Of course we do treat our Panamanian neighbors with respect and I think that transfers back to us. For me IT IS the 'perfect place,'" wrote one expat living in Boquete.

"Boquete has some wonderful restaurants (Some 4 & 5 star.) Lots of places Expats meet for morning coffee or afternoon lunch or a fabulous dinner. If you are a coffee lover, you can get great coffee. Google restaurants in Boquete, Panama. They have small shopping areas, but no major malls. Traffic is not bad. We were from the Seattle area and we had no issues with Boquete traffic. In just a half hour you have major shopping malls and stores. Boquete has a grocery store that has a meat department and you can get anything you need. We always made the trip to David (45 minutes) for PriceSmart (Costco) to get items to stalk up on. You will have lots of places in Panama to make your decision. Do yourself a favor and visit several on your first trip. Our first trip we spent 3 weeks exploring Coronado, El Valle, bocas del toro, Santiago, Panama City, David, and Volcan. Our last stop was to Boquete and as soon as we arrived, we decided this is it. Good luck in your search as you have LOTS of cities to choose from," said one member in Boquete.

Another expat described the weather in Boquete: "Boquete is the perfect climate for me. I love the rain as it makes everything green, and the wind here keeps the temperature from rising too high as I don't like it hot. The average temperature is 70 which is what I set my thermostat at home in North America (I know some people set their thermostats at 80 so to each his own). I prefer cooler. We got 104 inches of rain last year, mostly in short torrential downpours as opposed to the days of drizzle I found in the Pacific Northwest. Lots of sunshine. Especially mornings. Today not a cloud in the sky, but it may cloud up a bit in the afternoon."

More about Boquete: 11 Expats Talk about Living in Boquete, Panama, Moving to Boquete, Pros & Cons of Living in Boquete, Retiring in Boquete and Living in Boquete.

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5. Volcan Population: approximately 11,000 Climate: Low to Mid-70s year round Location: Inland, North of David

Volcán sits at roughly 1,400 meters (4,600 feet) of elevation on the western slope of the dormant Volcán Barú — Panama's highest peak — and offers nearly identical climate to Boquete (which sits on the eastern slope of the same volcano) at meaningfully lower prices and with significantly fewer expats. This is Volcán's defining appeal: cool year-round temperatures, dramatic countryside, agricultural authenticity, and an expat community that's a fraction the size of Boquete's, which has kept property prices and cost-of-living from rising at the same pace. The surrounding region produces some of the country's best coffee, vegetables, and dairy products, and the nearby Parque Internacional La Amistad (jointly managed with Costa Rica) offers some of the most undeveloped wilderness in Central America. Practical trade-offs: services are more limited than Boquete (groceries, healthcare, restaurants), and the closest larger city — David — is roughly an hour south. Volcán often appeals to expats who specifically want what Boquete was 15-20 years ago.

"Volcan is around 80 degrees in the daytime and 60 overnight, averaging about 70, very much like Boquete. Boquete & Volcan are on the same Volcano, just on the opposite side. Boquete & Volcan can be too cool for some people to live. I set my thermostat at 70 at home all the time. Depends what you are used to. The temperatures are constant year round as well, no big dips down to 40 or highs of 100," reported one expat in Volcan. "You can rent a nice place in Volcan, Panama for between $300 and $400 a month. It is a small town at 1400 meters in elevation so it has a good climate. You can rent for a year and find out if you like it. I have lived in Panama for 14 years. Panama has become a lot more modern over the last few years," he added.

"If you are visiting Volcan there are some good places like NSF to hang out and meet other expats. Mana's, Daily's Diner, to name a few. Mana's does a Friday morning market that I like to go to when I visit. Jorge and Vicky are great hosts and the food at their restaurant is very good," advised one expat in Panama. "I would recommend Volcan over Boquette. It has the same climate as Boquette but less gringos so the prices have not gone so high. Also to me the countryside is much more more attractive in the Volcan area. You should at least visit Volcan before you decide," said another expat.

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6. Bocas del Toro Population: approximately 13,000 Climate: Year-round daily lows in mid-70s and daily highs in the mid-80s Location: Island, Archipelago of 6 islands, Isla Colon central hub and home to Bocas Town

Bocas del Toro is an archipelago of six main islands and dozens of smaller cays on Panama's Caribbean coast, anchored by Isla Colón and its main settlement, Bocas Town. This is the part of Panama with the white-sand beaches and clear Caribbean water that the Pacific coast lacks — the Bocas archipelago sits within an extensive coral reef system that has made it one of Central America's best diving and snorkeling destinations. The lifestyle is genuinely island-paced: transport within Bocas Town happens mostly on foot, bicycle, or skateboard; trips between islands run on small water taxis at $1-5 per ride; and the atmosphere skews bohemian, backpacker, and informal rather than polished or resort-driven. Bocas attracts a younger, more international expat crowd than Boquete or Coronado, with substantial American, European, and Canadian populations alongside Panamanian and indigenous Ngäbe-Buglé residents. Housing remains exceptionally affordable by Caribbean standards, with one-bedroom apartments commonly available between $275-$400 monthly. Petty crime (particularly bag-snatching aimed at tourists) is the section's most consistent caveat.

"Bocas del Toro is a back packers paradise and party town. Hostels & B&B's everywhere. Some nice hotels with pools as well. Transportation in downtown Isla Colon is by bicycle or skateboards. Bicycle rentals are everywhere. It is a group of islands that are a vacationer's paradise. Take boat tours and go out snorkeling or scuba diving. Whale and Dolphin watching in season. It has problems with petty crime, so keep an eye on your backpack. It is not clean and pristine, but rather rugged, rustic and relaxed," wrote one expat in Panama.

Another expat living in Bocas said, "Besides the bars and restaurants, there are fitness classes, Spanish classes, dive lessons, Catamaran tours, Live music venues, the beaches, volunteer opportunities and just meeting people walking down the street."

"I live in a small efficiency apartment one block from the ocean. My rent is $275.00 per month. I can walk to any point in Bocas Town in 15 Min. or less. The island is great, and trips to the other islands is very cheap. The closest costs only $1.00 each way," said another expat in Bocas del Toro.

And expat wrote, "We live in a spacious one bedroom apartment across from the ocean for $400 a month. There are people who live in smaller cheaper places more inland and folks who live out on the water in larger homes for more money."

More about Bocas del Toro: 5 Tips for Living in Bocas del Toro, Moving to Bocas del Toro, Real Estate in Bocas del Toro, Cost of Living in Bocas del Toro, Retiring in Bocas del Toro and Living in Bocas del Toro.

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7. Taboga Island Population: approximately 1,500 Climate: Low to Mid-80s year round Location: Island, 30 minute ferry ride from Panama City

Taboga Island sits about 20 kilometers off the Pacific coast in the Gulf of Panama and is the closest island getaway from Panama City — a 30-minute ferry ride from the capital makes it one of the most accessible "escape from the city" destinations in the country. Often called "Isla de las Flores" (Island of Flowers), Taboga is genuinely small: roughly 1,500 permanent residents, no buses or ambulances, no real nightlife, and a compact village core that's walkable in 15 minutes. The island's character is exactly what some expats are looking for and exactly what others would find too quiet — daily life rhythms around the ferry schedule, the ocean views (the Pacific entrance to the Panama Canal is visible from the island, with cargo ships continuously queuing for transit), and a small but tight-knit expat community. Property prices are notably lower than Panama City for comparable square footage, and the proximity to the capital means major hospitals, the airport, and city services remain practically accessible for periodic trips.

"Living on Taboga Island is much calmer as there are no buses, ambulances, or car alarms like Panama City. Our little island is pretty calm. No nightlife, which is one of the reasons we chose it. A constantly changing landscape with the ships waiting for the Panama Canal, whales and dolphins in the waters out front and views of the neighboring islands," reported one member on Taboga Island.

8. Pedasí Population: approximately 4,000 Climate: Mid-80s year round, drier than Pacific coast nearer Panama City Location: Southeastern tip of the Azuero Peninsula, 4-5 hours from Panama City

Pedasí sits at the southeastern tip of the Azuero Peninsula and is one of the most distinctive — and fastest-growing — expat destinations in Panama. This is a genuine small colonial town (whitewashed buildings, central plaza, working cattle ranches in the surrounding countryside) that has attracted a steady stream of American, European, and Canadian expats over the past 15 years without losing its Panamanian character. Pedasí is the country's most established surfing destination, particularly the nearby Playa Venao, which has hosted international surfing competitions. The Azuero's Pacific coast offers a string of largely undeveloped beaches — Playa El Toro, Playa Los Destiladeros, Isla Iguana wildlife refuge — and the regional climate is among the driest in Panama, with a clearly defined dry season from December through April. Trade-offs are real: Pedasí is genuinely remote (4-5 hours from Panama City via the Pan-American Highway and then south), services are limited compared to Coronado or Boquete, and reaching specialty healthcare or international flights requires planning. Expats who choose Pedasí tend to choose it specifically because it's not Coronado or Boquete.