Pros and Cons of Living in Panama
Last updated on Sep 27, 2025
Summary:
What are the pros and cons of living in Panama?
Expats, digital nomads and retirees living in Panama responded:
"Expats and digital nomads in Panama enjoy the country's low cost of living, its tropical climate, and its friendly people. They also appreciate the country's excellent infrastructure, which makes it easy to get around and stay connected. On the downside, expats and digital nomads may find the language barrier challenging, as Spanish is the official language. Additionally, Panama's healthcare system is not as advanced as some other countries, so expats may need to seek medical care abroad," said one in Panama.
"Traffic is bumper to bumper during rush hours, stop signs are useless since they don't stop and just slow down.....if you're lucky! If you drive on the highway from Panama City to Costa del Este, you feel like you are going thru a gigantic dumpster with so many garbage on the beaches. (refrigerators, tires, furnitures, etc, etc). Rivers connected to the Pacific ocean in Panana City on Balboa Street and in Coste del Este smell terrible (pee) and you can see garbage floating from these rivers to the Pacific ocean in low tide then back on the beaches (if you can call beaches) on high tide. I asked many questions about this situation as if it was a complete lack of education or lack of interest from the Panamians. Panama is carbon negative for the air so air is pure but the garbage and smell when you cross these rivers are terrible. Walking on the boardwalk of Balboa street crossing a river, you need to pinch or cover your nose, same by crossing a river in Costa del Este and any rivers," explained one expat in Panama City.
"People like the beauty of nature, the quiet, relaxed atmosphere, the small town feel, the relatively close proximity to Panama City (2-3 hours drive) and the weather (not as hot or humid as Coronado). Dislikes include the frequent power outages, lack of health care facilities, overpopulation of dogs that bark all night, and lack of stores (if want want to buy anything beyond basic necessities you have to drive the curvy, pot-holed mountain road to Coronado (35-45 minutes drive). I hope this is helpful," explained one member in El Valle de Anton.
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What do expats in Panama appreciate most about the local culture?
"I appreciate the dedication to family - it's refreshing to see entire extended families spending time together and enjoying life," said a person living in Boquete.
"The food. The appreciation for and enjoyment of everyday life and family. They are not as driven by the dollar as people in the USA. Their many celebrations and traditions and their enjoyment of them," explained one expat living in Nueva Gorgona.
"I appreciate the excellent and affordable health care -- that doctors think of themselves as regular human beings. I appreciate that family comes first. I very much appreciate the lack of consciousness for politically correct speech. I appreciate that calling me a gringa is not derogatory but descriptive and even endearing and that because people do not take offense with such nicknames, there is very little if any racial tension. I appreciate that if I am late for an appointment due to traffic, for example, I don't have to stress because no one expects anyone to be on time. I appreciate that privacy from the government is still valued. That people still dress up a little when they leave the house to run an errand, that traditional music, dance and dress are kept alive and taught in the schools," said one in Santiago.
"Expats in Panama appreciate the country's tropical beauty, sunny skies, and warm climate year-round. They also find Panamanian culture to be friendly, welcoming, and laidback. Locals often offer a great deal of hospitality and are excited to share their culture with visitors. Expats enjoy exploring Panama's unique cultural and historical sites, shopping at local markets, trying the diverse cuisine, and engaging with the many colorful festivals and holidays celebrated in the country. Additionally, the cost of living in Panama is relatively low, making it an especially attractive destination for foreign visitors," explained one expat who made the move to Panama.
"Expatriates appreciate Panama's rich local culture, embracing diversity and inclusion. They also value the ease of doing business in the country, as well as the accessibility to settle and obtain citizenship. Availability of housing, proximity to Panama's paradisiacal islands, and access to the financial market are also highlighted by expatriates," 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.
What do expats find most challenging?
"Expats in Panama often find it challenging to integrate into the local culture, as language can be a barrier and cultural practices can be unfamiliar. Another hurdle is the perception of time, since deadlines and schedules are often viewed more loosely in Panama than they are in other countries. Additionally, social norms may take expats a while to adjust to, as the culture typically has a more relaxed attitude towards punctuality, deadlines and other formalities. Lastly, status differences in Panama, such as class and gender, may not be immediately obvious to expats and can be a challenge to navigate," explained one expat.
"Culture....hhmmmm. Disinterested sales personnel who seem to resent being at their post. Bright colors are welcome and plentyful. Another challenge is the general physical size of the locals...as it relates to finding clothing that fits. If you are female and larger than a size 8, good luck finding undergarments. For my husband and his size 12 narrow foot, murder finding shoes," said one person in Altos del Maria.
About the Author
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.
Additional Information:
- Panama Guide
- Healthcare & Health Insurance in Panama
- Members Talk about Healthcare & Health Insurance in Panama
- Best Places to Live in Panama
- Guide to Real Estate in Panama
- Pros & Cons of Living in Panama
- Cost of Living in Panama
- Living in Panama Guide
- 10 Tips for Living in Panama
- Panama Visas & Residency
- Panama's Pensionado Visa
- 2026 Guide to Living in Panama
- Pros and Cons of Living in Panama 2026
- 2026 Guide to Moving to Panama
- More Advice about Retiring in Panama
- Members Talk about the Cost of Living in Panama



