Cost of living in Panama: a detailed guide with real prices
We analyze prices for rent, food, transportation, and leisure so you can plan your budget and live comfortably in Panama.
Cost of living guide
Overview: quality of life at a reasonable cost
One of the most important questions when considering a move is: how much does it cost to live in Panama? The answer is that Panama offers an exceptional balance between a high quality of life and an affordable cost, especially when compared to North America and Western Europe. With a dollarized economy that eliminates currency risk, you can plan your finances with complete certainty and enjoy a cosmopolitan lifestyle without sacrificing your purchasing power.
“The true luxury of Panama is not just its climate or its tax benefits, but the ability to live a full and modern life on a budget significantly lower than in your home country.”
Estimated monthly budgets
To give you a clear idea, we have created three monthly budget profiles for a single person living in Panama City. Costs may vary depending on your lifestyle and location.
🚶 Simple Style
$1,200+A budget that covers a comfortable apartment outside the city center, public transportation, shopping at local markets, and occasional leisure.
🛋️ Comfortable Style
$2,000+Allows for renting in a central area, dining out several times a week, using private transport, and enjoying more leisure activities and domestic travel.
🥂 Luxury Style
$3,500+Access to luxury apartments in the best areas, frequent dining in high-end restaurants, owning a vehicle, and a lifestyle without restrictions.
Estimate your personalized monthly budget
Your estimated monthly budget for living in Panama City is:
Detailed expense breakdown
Here is an estimate of prices for the most common expenses in Panama City. Prices are in USD and may vary.
| Category | Item | Estimated Cost (USD) |
|---|---|---|
| 🏠 Housing (Monthly Rent) | 1-bedroom apartment (city center) | $800 – $1,200 |
| 3-bedroom apartment (city center) | $1,500 – $2,500 | |
| 🛒 Food & Groceries | Dinner for two (mid-range restaurant) | $40 – $60 |
| Cappuccino | $3.50 | |
| Weekly groceries (1 person) | $70 – $100 | |
| 🚌 Transportation | Metro / Metro Bus Ticket | $0.25 – $0.35 |
| Uber ride (average trip) | $4 – $7 | |
| ⚡ Utilities (Monthly) | Electricity, water, gas (85m² apartment) | $100 – $150 |
| High-speed internet | $50 – $70 | |
| ⚕️ Healthcare | Specialist consultation (private) | $50 – $80 |
Estimated prices based on averages from Numbeo, Expatistan, and reports from our local network. Last updated: September 2025.
Cost of living: Panama vs. the world
To put prices in perspective, here is a comparison of the general cost of living index (excluding rent) where Panama City is the baseline.
Regional comparison: city, beach, and mountains
The cost of living varies significantly outside the capital. Here is a comparison of the three most popular destinations for expats.
🏙️ Panama City
The center of everything. It offers the most services, leisure, and business opportunities, but also has the highest cost of living, especially in housing.
🏖️ Coronado (Beaches)
An hour from the city, it is the most developed beach community. The cost of living can be 15-20% lower than in the capital, with a more relaxed lifestyle.
🏔️ Boquete (Mountains)
Famous for its spring-like climate, its coffee, and its large expat community. The cost of living here is up to 25% lower than in Panama City, ideal for retirees.
Practical tips to optimize your budget
Living in Panama is affordable, but living smart will allow you to save even more. Here are some tips from those of us who already live here.
🛒 Shop like a local
Avoid supermarkets focused on imported products for expats. Buy fruits, vegetables, and fresh produce at local markets like the Mercado de Abastos to reduce your food bill by up to 30%.
🍽️ Take advantage of executive lunches
At lunchtime, most local restaurants (“fondas”) offer an “executive menu” that includes soup, a main course, and a drink for $5-$7 USD. It’s the most economical way to eat out.
🚌 Use public transportation
The Panama Metro is modern, clean, and very efficient. Combined with the Metro Bus, you can get around the entire city for less than $1 USD, avoiding the costs of owning a car (gas, maintenance, and insurance).
Beyond the numbers: the value you get
The cost of living is not just a number. It’s what you receive in return. In Panama, your budget gives you access to exceptional value:
- Safety and Stability: You live in one of the most stable and secure economies in Latin America, with a currency pegged to the US dollar.
- First-Class Services: You have access to high-speed internet, potable water throughout the country, and an excellent quality private healthcare system at reasonable prices.
- A Unique Lifestyle: Your money allows you to enjoy a vibrant lifestyle, with access to Pacific and Caribbean beaches, tropical rainforests, and an international gastronomic scene.
- Tax Efficiency: The money you save on taxes thanks to the territorial system translates directly into greater purchasing power for your daily life.
Frequently asked questions about the cost of living
How much money do I need to live comfortably in Panama?
For a single person, a budget between $1,500 and $2,500 USD per month allows for a comfortable lifestyle in Panama City, including rent, food, transportation, and leisure. A couple can live very well on a budget of $2,500 to $3,500 USD.
Is it more expensive to live in Panama City than in other areas?
Yes, Panama City is the most expensive area in the country, especially regarding housing. Beach areas like Coronado or mountain towns like Boquete can offer a cost of living that is 15% to 25% lower.
Is the healthcare system affordable?
Panama has an excellent private healthcare system at a fraction of the cost of countries like the United States. A consultation with a specialist can cost between $50 and $80 USD, and private health insurance offers comprehensive coverage at very competitive prices.
Want a financial plan tailored to you?
Understanding the cost of living is the first step to planning your future. The next is to create a strategy that aligns with your income and goals. We can help you analyze your situation.
Request a Budget Evaluation