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Living in Panama: Cost of Living, Healthcare and What to Know About Living in Panama | Expat Exchange
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Coronado, Panama

Living in Panama

By Joshua Wood, LPC

Last updated on Apr 26, 2024

Summary: People describe life in Panama as vibrant, diverse, and full of opportunity. Expats love the warm climate, the friendly people, the low cost of living, and the abundance of outdoor activities. The average cost of living for an expat is around $1,500 to $2,000 per month, depending on lifestyle. The population of Panama is estimated to be around 4.3 million people, and the largest cities are Panama City, San Miguelito, David, and Colón. The cons of living in Panama include the high cost of imported goods, the lack of public transportation, and the high crime rate in some areas. Additionally, the infrastructure is not as developed as in other countries, and the healthcare system is not as advanced.

Panama Legal Business (PANLEB)
Panama Legal Business (PANLEB)
Panama Legal Business (PANLEB)
Panama Legal Business (PANLEB)

What do I need to know about living in Panama?

When we asked people what advice they would give someone preparing to move to Panama, they said:

"I would echo what the person who did the review on Boquete. Embrace the local culture and ways of doing things. Don't come here wanting to change the way folks have done things for a long time or try to make it like the US. At the same time you can teach the locals what you know in a nice way as you make friends with them," remarked one expat who made the move to Bocas del Toro.

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Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama
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Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Click connect to have our partner contact you via e-mail and/or phone.

Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.
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Click connect to have our partner contact you via e-mail and/or phone.

How do I meet people in Panama?

When we asked people living in Panama about club and activities where newcomers can meet others, they responded:

"The public library in Bouquete is a wonderful place to relax and sponsors many programs for both expats and Panamanians. Amigos de los Animales is a good place to volunteer if you like dogs and cats. You can always find friendly expats at the weekly farmer's market. Many native people in Bouquete speak English fluently and if you make friends with someone your social circle will expand rapidly," wrote one member in Panama.

"At first I shunned the gringo/expat organized weekly meeting, the Tuesday Morning Informational and Networking Meeting. All the people were of retired age, I'm not. Then I started going, I found I had things to say and others had things to teach. they soon published a small book of the meetings minutes with recaps of many speakers. I learned many valuable things and shared opinions and even changed some opinions. We bonded, we drank local coffee, we bitched and moaned and rejoyced together. seek out such groups and see what you can learn or contribute to them," remarked one expat who made the move to Boquete.

"Meeting people in Santa Catalina is quite easy, given its highly touristic nature. You'll encounter expatriates from all over the world. Moreover, the local community is known for its hospitality and friendliness, making it even easier to strike up new friendships. Whether you're at the beach, in a local restaurant, or engaging in outdoor activities like surfing or diving, there are always opportunities to meet interesting individuals and share unforgettable experiences," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

View More Answers

Kovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Learn MoreConnect

Click connect to have our partner contact you via e-mail and/or phone.

Kovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Learn MoreConnect

Click connect to have our partner contact you via e-mail and/or phone.

What is life like in Panama?

When we asked people living in Panama what life is like and how people spend their time, they said:

"Definitely life revolves around family and work here. The Panamanians are very friendly and family oriented. They have many festivals and celebrate life in many ways many times a year," said one expat in Bocas del Toro.

"The locals work hard and have lots of festivals. They honor the old folks, thier heritage, and way of life. They take time for coffee, for conversation. They are more then willing to show you and teach you and help you to find your place in their society. If you even try to speak spanish they admire you for that and even try thier hand at English or apologize for their lack of. Everyone says hello, waves, nods, gives recognition, an old fashioned thing that I missed in the U.S," said one expat who made the move to Boquete.

"Living in Panama for expats and digital nomads can be an exciting and rewarding experience. Panama is known for its tropical climate, vibrant culture, gorgeous beaches and national parks, and its thriving expat community. With excellent infrastructure, a modern banking system, and a low cost of living, Panama is an attractive option for people looking to live and work abroad. The government also welcomes expat entrepreneurs, providing incentives to help them start and run businesses. Expats in Panama can look forward to making friends in the local international activities, making the most of their new home by exploring the many outdoor activities and attractions Panama has to offer. Finally, safety ranks among the highest in Latin America, making life in Panama even more attractive for expats and digital nomads," explained one expat living in Panama.

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Panama Legal Business (PANLEB)

Explore Panama Legal Business for a full suite of legal services tailored to your needs. From obtaining residency and visas to opening bank accounts, obtaining apostilles, conducting background checks, setting up businesses, and navigating real estate transactions, trust our experience and dedication to guide you through every step of the process in Panama.

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Panama Legal Business (PANLEB)

Explore Panama Legal Business for a full suite of legal services tailored to your needs. From obtaining residency and visas to opening bank accounts, obtaining apostilles, conducting background checks, setting up businesses, and navigating real estate transactions, trust our experience and dedication to guide you through every step of the process in Panama.

Learn MoreGet Quotes

Is there a lot of crime in Panama?

We asked people if there is a lot of crime. They answered:

"We occasionally hear of petty crime in the area, mostly theft but there is little violent crime. We feel very safe here," wrote one member in Nueva Gorgona.

"Occasionally however most is of a petty nature based on lax security on the part of the victim however there is a new threat slowly emerging with home invasion but still quite rare," remarked one expat who made the move to Potrerillos, Chiriqui.

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Is there a lot of diversity? Are people in Panama accepting of differences?

"Yes, Panama is highly diverse. Panama is home to many different ethnic and racial groups, including Mestizos, Mulattos, Whites, Blacks, and Amerindians, and is also home to a large Chinese community. Additionally, Panama is home to many different religious groups, including Christians, Muslims, Buddhists, Hindus, and others. This diversity is very visible in Panama, as different communities can be observed living and working side-by-side throughout the country. In general, people in Panama are very accepting and tolerant of differences, with many being proud of the nation's diversity," said one expat who made the move to Panama.

"Predominantly non practicing Catholics, multi/mixed racial component, with distinctly cultural diversity, but easily assimilating into a common citizen," explained one expat living in Panama City, Panama.

"Boquete has some diversity and I have found it to be a very open and welcoming culture. A variety of religions and also non religious people. There is a vast economic diversity in Panama in general," mentioned one in Boquete.

"Besides the multicultural Panamanians there are people from all over the world here and seven different Indian tribes. For the most part everyone gets along great. There are occasional clashes in any community and this is a tight knit one where people help their neighbors. Panama welcomes people from many countries with great expat laws and easy residency," explained one expat who made the move to Bocas del Toro.

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Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama
Connect

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Click connect to have our partner contact you via e-mail and/or phone.

Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.
Connect

Click connect to have our partner contact you via e-mail and/or phone.

What are the schools in Panama like?

"The Balboa Academy is an excellent English-language international school in Panama, founded in 1959. It educates students from pre-school up to 12th grade and offers the North American curriculum, including AP courses. The school also has a comprehensive extracurricular program with a variety of sports, clubs, and activities. The International School Nido de Aguilas is an accredited international school in Panama City. It is a part of the Nord Anglia Education Group, with a curriculum based on college-preparatory education. The school offers a wide range of extracurricular opportunities, including sports and music. The Oxford International School of Panama is a bilingual institution offering education in Spanish and English. The school focuses on teaching its students both academic excellence and life skills and offers a variety of extracurricular activities. The Bilingual International School of Panama is a private bilingual institution, which was founded in 1991. The school provides an English- and Spanish-language international curriculum for children from preschool to high school and offers a variety of extracurricular activities, such as sports and arts," remarked one expat living in with children attending .

"I would look into it if you want a Christian school OR a school that is high in moral teaching. Many of the parents and students are not Christian so it is not forced upon the students/families. Great school that I am very pleased with," said one expat in Panama City with children at Crossroads Christian Academy.

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Is the cost of living in Panama high?

We asked people how much they someone comfortably live on in Panama, they wrote:

"A couple (renting) can live in a condo and a very comfortable lifestyle, eating out a time or two a week, for $2-2.5K/ month in this area or less depending on where you live. We are pretty spoiled," wrote one member in Nueva Gorgona.

"We do fine with $2000/monthly for everything. But, no mortgage, car payment, credit card bills..," remarked one expat who made the move to Taboga Island.

"I suppose for normal people (unlike me) you'd best have a couple thousand dollars per month," explained one expat living in Las Tablas, Panama.

"Our situation on isla Solarte in Bocas is such that we can live comfortable spending $1500 a month. Renting an apartment in town and riding a bicycle can produce a similar situation. I have older, single friends who live in town who spend much less than we do," said one expat in Bocas del Toro.

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"Cost of living depend on what you buy at the grocery store. If you buy locally, it is cheaper but very limited products so you need to buy grocery products from the USA that are much more expensive here than in the USA. Again, it depends on how you feed yourself, we eat healthy with product variety that are missing locally. Pricesmart (same as Costco) is a good choice to buy at lower price. Buying other type of products (TV, computer, furniture, etc) is expensive in Panama as it's always full price (full MSRP) and rarely on sale. If you can find your product at Pricesmart, it will be your best place to buy as they have the lowest price. ," mentioned an expat living in Panama City.

"You an rent a home for under 500 a month. Utilities are cheap, food is also cheap. Maybe 50 every two, weeks maybe 100 for, 2 people to, eat well," said an expat in Panama.

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What type of recreational facilities are in Panama?

When we asked people living in Panama about recreational activities, they mentioned:

"Residents of Panama enjoy a variety of recreational facilities, including beaches, parks, and outdoor activities. Popular beaches include Playa Blanca, Santa Clara, and Coronado, which offer a variety of activities such as swimming, snorkeling, and sunbathing. There are also numerous parks throughout the country, such as Parque Natural Metropolitano, which offers a variety of activities such as hiking, biking, and bird watching. Other outdoor activities include fishing, kayaking, and horseback riding. Additionally, Panama City is home to a variety of cultural attractions, such as the Panama Canal, the Panama Viejo ruins, and the Biomuseo," commented one expat living in Panama.

"The beaches in Pedasi are a big draw for surfers, boogie boarders or just swimmers. One of the developments (Andromeda) has a restaurant and pool oceanside. People also do kite sailing. Fishing is a big draw as well. There are offerings of yoga classes and other activities of that sort," remarked one expat living in Pedasi.

What is the weather like in Panama?

"It is hot here. You do not want to be wandering about in the mid-day sun. Save your outdoor activities for the mornings and evenings. We do not get much rain compared to other parts of Panama. During the rainy season (typically April through December - the best time of year in the opinion of most residents) we typically get one or two short showers every day and then it clears up. This is unlike other parts of Panama where it can rain for days on end," said an expat in Panama City.

"The weather in Panama is generally warm and humid, with temperatures ranging from the mid-70s to the mid-90s Fahrenheit throughout the year. The rainy season typically runs from May to December, with the heaviest rainfall occurring in October and November. The dry season runs from January to April, with the hottest months being March and April," remarked one expat in Panama.

"No doubt it's humid but the best months are from December to around April with almost no rain and windy so it's refreshing. Buildings look dirty because of humidity, there should be a law where buildings needs to be cleaned once in a while," wrote one expat living in Panama City.

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Are there good restaurants in Panama?

"One of the most popular restaurants in Panama is La Posta, located in the heart of Panama City. This restaurant serves traditional Panamanian cuisine, such as sancocho, tamales, and ceviche. The atmosphere is casual and relaxed, and the staff is friendly and attentive. The restaurant also offers a wide selection of international dishes, such as Italian and Mexican. Another popular restaurant in Panama is El Trapiche, located in the city of El Valle. This restaurant specializes in traditional Panamanian dishes, such as carimañolas, tamales, and empanadas. The atmosphere is cozy and inviting, and the staff is friendly and helpful. The restaurant also offers a variety of international dishes, such as Italian and Mexican. Finally, La Casa de Lourdes is a popular restaurant located in the city of Boquete. This restaurant serves traditional Panamanian dishes, such as sancocho, tamales, and ceviche. The atmosphere is warm and inviting, and the staff is friendly and attentive. The restaurant also offers a variety of international dishes, such as Italian and Mexican," remarked one expat living in Panama.

"Absolutely! In David, there are plenty of great restaurants to explore and enjoy some delicious food," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

View More Answers

Where will I buy groceries and do other shopping in Panama?

"There is a Pricesmart like Costcos and the local chain Romeros has most anything you would need," commented one expat living in Panama.

"People living in Panama typically buy groceries and do other shopping at local supermarkets, convenience stores, and open-air markets. Many people also shop at larger chain stores, such as Walmart and PriceSmart, which offer a wide variety of products. Additionally, there are many small, independent stores and vendors throughout the country that offer unique items," remarked one expat living in Panama.

"There are 3 good food stores in Pedasi. However, for more international foods, most people drive into Chitre (1 hour) or Las Tablas (3/4 hour). For people wanting a taste of home, Riba Smith has lots of items that other stores don't carry," said one expat living in Pedasi.

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What are the visa & residency requirements in Panama?

"The process of applying for a visa in Panama depends on the type of visa and the duration of stay. To apply for a tourist visa, you must provide a valid passport, a completed application form, a processing fee, and adequate evidence of financial means to cover the costs of your stay. A work visa requires an employment offer from a Panamanian company with an approved government business license, a valid passport and a completed application form, processing fees, and adequate financial means to cover the proposed length of stay. The process of applying for residency in Panama includes submitting an application for residency, providing supporting documents such as a valid passport, proof of financial means to cover living expenses, evidence of health insurance, a police certificate from the country of residence, and a valid work permit, depending on the type of residency being applied for. The applicant may also be required to wait for a period of 6 months to a year before a decision is made, and may even need to attend an interview in Panama. Once granted, the residency will remain valid for two years and can be renewed as long as certain requirements are fulfilled," remarked one expat in Panama.

"The visa and residency requirements in Panama vary depending on the type of visa or residency you wish to obtain. Some common requirements include a valid passport, a police clearance certificate, financial documents demonstrating economic solvency, and completing application forms. It is advisable to consult with us for personalized advice depending on your case," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

"To just come to Panama for 3 months, no visa is required if you are coming from USA or Canada. You can actually stay for 6 months, but if you want to drive while here, you can only drive for 3 months. You need to leave the country for 72 hours to renew your time for driving. Pensionado visas are popular for retirees and allow you to stay longer. It is quite a bit of paperwork, and costs around $1500 if you use an attorney (recommended). You must prove income of at least $1000/month for this visa type)," commented one expat who moved to Pedasi.

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Are healthcare and health insurance expensive in Panama?

"Yes, healthcare and health insurance in Panama are generally more affordable compared to other developed countries. Costs may vary depending on the type of care and the medical center, but overall, they are more economical than in many Western countries," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

View More Answers

Kovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Learn MoreConnect

Click connect to have our partner contact you via e-mail and/or phone.

Kovalenko & Vera Attorneys at Law in Panama

Kovalenko & Vera is a Panamanian law firm that specializes in immigration law, corporate law, real estate law, banking, contract negotiation, taxes and flag registry. With more than 20 years of professional practice, Kovalenko & Vera builds lasting relationships with our clients to ensure your interests are safeguarded.

Learn MoreConnect

Click connect to have our partner contact you via e-mail and/or phone.

About the Author

Joshua Wood Joshua Wood, LPC joined Expat Exchange in 2000 and serves as one of its Co-Presidents. He is also one of the Founders of Digital Nomad Exchange. Prior to Expat Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.

Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.

Coronado, Panama
Kovalenko & Vera Attorneys at Law in Panama
Kovalenko & Vera Attorneys at Law in Panama

We've partnered with Kovalenko & Vera to help with your move.
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Kovalenko & Vera Attorneys at Law in PanamaKovalenko & Vera Attorneys at Law in Panama

We've partnered with Kovalenko & Vera to help with your move.
Learn More

Panama Legal Business (PANLEB)
Panama Legal Business (PANLEB)

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