Panama sits in Central America, sharing borders with Costa Rica and Columbia. The country is a very narrow land bridge which joins North and South America. It’s a nature enthusiast’s dream, with around 12 million acres of unexplored rain forest and deserted, white sandy beaches most of which are only accessible by boat. Panama is extremely popular with American and Canadian retirees due to the great climate and easy and affordable lifestyle.
If you are considering moving to Panama, the various costs listed below will help you make an informed decision on what costs are involved when moving and living in this part of the world.
Quick Panama Facts:
- Population: 4,408,581 (2022 estimate)
- Official Language:The official language of Panama is Spanish, although English is also spoken by a large number of people. There are also various indigenous languages spoken in different parts of the country. French is also spoken by some people in Panama, particularly those who have Panamanian ancestry.
- GDP Per Capita:$14,862 (2022 estimate)
- Panama Canal: The Panama Canal was completed in 1914. It took 75,000 workers to build it and joins to Pacific and Atlantic oceans, enabling shipping to travel from one ocean to the other without having to circumnavigate South America.
- Currency: Panamanian balboa (B/, PAB, ฿). As of 2022, £1 = B/1.12, €1 = B/ 0.98, $1 CAD = B/0.723, $1 AUD = B/0.6548
1. Moving and Shipping Costs to Panama
Here are some container shipping rates to Panama from other countries around the world.
Also see: Best International Moving Companies in Panama
2. Panama Housing Costs
Housing costs vary significantly in Panama. Living in Panama City attracts the highest rents, but rural areas are much cheaper. There’s a wide variety of accommodation available for rent, from one bedroom apartments to upmarket villas and, compared with most countries in the world, housing is very affordable.
Monthly Rental Prices in Panama
- 1 bedroom apartment in City Centre: B/350 – B/1,200
- 1 bedroom apartment outside the City Centre: B/250 – B/700
- 3 bedroom apartment in City Centre: B/600 – B/2,400
- 3 bedroom apartment outside the City Centre: B/400 –B/1,500
- Price per square metre (10.7 square feet) to buy in City Centre: B/1,200 – B/3,000
- Price per square metre (10.7 square feet) to buy outside City: B/800 – B/2,000
Panama Housing Cost Comparison
This is how rents in Panama compare with other countries around the globe.
United Kingdom is 55.49% more expensive
United States is 137.76% more expensive
Canada is 67.01% more expensive
Australia is 81% more expensive
France is 27.04% more expensive
Germany is 30.70% more expensive
Spain is 7.48% more expensive
Italy is 2.46% more expensive
Source: Numbeo
How to Save on Housing Costs
- Share an apartment or house. Have a look at the following sites to find your perfect room or flat mate: Punta Pacifica Reality, Coliving, RoomLaLa, and Panama Realtor.
- Different areas – different prices. Arco Seco is popular with expats, particularly retirees. It’s only 90 minutes from Panama City and has many affordable apartments complexes. If you prefer a cooler climate, then head for Boquete and Volcan, where rents very low. Tobago island is perfect for people who enjoy the quiet life and, again, it’s very affordable.
3. Panama Food, Grocery and Restaurant Costs
Panama has a large expat population, and its restaurants and supermarkets try to cater for every nationality. Panamanian food is an exotic blend of indigenous and mestizo cuisine, with styles and favours added from around the globe. Seafood features highly on all restaurant menus and in the supermarkets.
- Inexpensive Restaurant: B/4 – B/15
- Takeout Coffee: B/1.5 – B/4.5
- Bottle of Coke: B/1 – B/2.5
- 1L of milk: B/1.35 – B/1.95
- Loaf of Bread: B/1 – B/3
- 12 Eggs: B/1.5 – B/2.5
- 1kg Chicken: B/3 – B/8.5
- 1kg Beef: B/3.5 – B/12
- 1kg Apples: B/1.44 – B/6.5
- 1kg White Rice: B/1 – B/4
This is how restaurants and food prices compare with other major cities in the world.
- UK restaurants are 67.40% more expensive and groceries are 4.15% more expensive than Panama.
- US restaurants are 71.29% more expensive and groceries are 53.34% more expensive than Panama.
- Canadian restaurants are 48.92% more expensive and groceries are 37.71% more expensive than Panama.
- Australian restaurants are 58.37% more expensive and groceries are 52.59% more expensive than Panama.
- France restaurants are 66.24% more expensive and groceries are 38.76% higher than Panama.
- Germany restaurants are 38.67% more expensive and groceries are 7.85% cheaper than Panama.
- Spain restaurants are 27.58% more expensive and groceries are 13.16% cheaper than Panama.
- Italy restaurants are 53.35% more expensive and groceries are 10.44% more expensive than Panama.
Source: Numbeo
Bonus Tips for Cheaper Food, Restaurants and Groceries
- Know your supermarkets: Panama has many independently owned grocery stores and ethnic stores as well as the usual supermarket chains. The farmers’ markets and fish markets are definitely worth a weekly visit. Popular supermarkets in Panama are Riba Smith, Rey, Super 99, and Pricesmart.
- Find Cheap Eats: You’ll find eating out in Panama is a lot more affordable than in most countries. Have a look at the following sites for suggestions – Pty Life, Ck Travels, Wanderlog, and My Guide Panama.
4. Panama Alcohol Costs
Drinking is a popular pastime in Panama. Alcohol is readily available and relatively inexpensive. A variety of local and imported brands are sold in supermarkets, liquor stores, and bars. Prices vary depending on the type and brand of alcohol purchased. Don’t forget to try seco, Panama’s national drink.
Here is the average cost of some popular alcoholic drinks in Panama:
- Pint (0.5L) domestic beer at a restaurant/pub: B/1 – B/3
- Bottle of imported beer at a restaurant/pub: B/2.5 – B/6
- Pint (0.5L) domestic beer at a supermarket: B/0.6 – B/1.52
- Bottle of imported beer at a supermarket: B/1.04 – B/2.5
- Mid-range bottle of wine at a supermarket: B/5 – B/12
How to drink for less in Panama
- Get on the internet and use Google. Keep an eye on the local papers and flyers for cheap drinks, either in supermarkets or in bars, clubs and restaurants.
- Late afternoon and early evening happy hours are common in Panama. You can enjoy half price drinks or 2 for 1 offers in many bars and restaurants.
- Buy in bulk. Supermarkets often have special offers on alcohol, especially around holidays. Buying larger quantities can save you money in the long run.
5. Panama Transportation Fares
Buses are the most popular and cheapest form of public transportation in Panama. They are fast, frequent and affordable. Panama City has an efficient metro rail system and you can purchase a RapiPass card which covers fares on both metro buses and rail. You just tap it as you get on and off and top up when necessary. Passenger ferries and boats are also used to get around the islands.
Here are some example ticket costs.
- One-way Ticket (Local Transport) – B/0.25 – B/1
- Monthly Pass (Regular Price) – B/15.22- B/45 (RapiPass)
- Taxi Start (Normal Tariff) – B/1.5 – B/ 3
How to save money on public transport
- Buy a monthly ticket at B/45 for 30 days of unlimited travel
- Buy a bike. Cycling is big in Panama. There are cycles lanes and lots of rides in and around major cities of the country.
- Many people walk to work and the shops in Panama.
6. Cost of Internet in Panama
The average price of a broadband package in Panama is B/46.36 per month for 60Mbps (unlimited data, cable/fibre). The most popular ISPs in Panama include:
- Ovnicom – Starts at B/43.87 per month for 10Mbps
- Cable Onda – Starts at B/64 per month for 100Mbps
7. Cost of Clothing, Personal Items, Gym and Leisure
Panama experiences a tropical climate. Its rainy season stretches from May to January and produces an annual average rainfall of 1900mm, with October being the wettest month. The amount of rain varies from region to region. The average monthly temperature varies from 27C to 31C depending on the area.
Here are some clothing prices, together with other useful prices.
- Pair of Jeans: B/25 – B/65
- Summer Dress: B/25 – B/60
- Running Shoes (Trainers): B/45 – B/100
- Business Shoes: B/50 – B/150
- Short Doctor’s visit (15 mins): B/15
- Deodorant: B/6
- Shampoo: B/7
- Toilet Paper (4 rolls): B/3.02
- Gym membership: B/18 – B/70 per month
- Movie (cinema) ticket: B/4- B/7
Source: Numbeo and Expatistan
8. Cost of Owning a Car and Driving a Car in Panama
Many people in Panama choose not to drive, especially retirees in the urban areas. Not only is the traffic exceptionally heavy, causing long delays but many of the roads are in a poor state. You can drive on your own country’s driving licence for 90 days, after which you’ll need to get a Panamanian Licence, which is a lengthy process.
Purchasing a new car is expensive as you’ll pay 25% duty but at least you know you’ve got a roadworthy vehicle. The second hand car market is a bit of a mine field, with cars that have never been serviced or just run into the ground. Take someone with you who knows about cars. Once you find a vehicle, you and the seller will need to visit City Hall and ATT to finalise the transfer.
Here are some sample costs of owning and operating a car in Panama:
- Volkswagen Golf:B/ 18,000 – B/ 25,000
- Toyota Corolla Sedan: B/ 17,000 – B/ 21,000
- 1 litre (¼ gallon) of gas (petrol):B/0.84 – B/ 1.38
- Other costs: the average monthly cost of owning a car in Panama is B/378.
Source: Expatistan
Ways to save money driving in Panama
- Car sharing or pooling is one way to save money. Try Car Pool World and Expat.
- Taxis can sometimes be a cheaper option, especially if you are going to have to park all day. Try Uberand alcartransport.
9. Taxes in Panama
Residents in Panama pay between 0% and 25% on their Panamanian income, depending on the amount earned. Non-residents pay a flat 15% on their local income only. Property tax ranges from 0% to 0.7%. Transfer tax of 2% is paid by the seller. Capital gains tax is a flat 10% of the gross profit.
Sales tax or VAT is at 7% for most goods and service. The rate for accommodation and alcohol is 10% and tobacco is 15%
10. Flight Costs from Panama
If you do make the move to Panama, here’s approximately how much it will cost to fly to other major world cities based on lowest, one-way fares from Skyscanner as of late 2022:
- London: B/428
- New York: B/251
- Los Angeles: B/305
- Toronto: B/276
- Vancouver: B/483
- Dubai: B/772
- Sydney: B/1,390
- Melbourne: B/1,460
- Cape Town: B/1,043
- Hong Kong: B/1,539
Other Panama Relocation Tips
The costs and pricing above should give you a good idea of the cost of living in Panama but perhaps the following extra tips will make your move go smoothly.
11. Relocating to Panama Alone
Moving to another country can be both an exciting and daunting prospect, especially if you’re doing it alone. If you are moving to Panama alone, there are many friendly people and plenty of resources to help you make the transition smoothly.
Here are a few tips about settling in Panama.
- Meetups:Panama has many Meetup groups covering a wide range of activities from yachting to bridge tournaments.
- Attend local events: There is always something going on in Panama and many of the activities are free. Have a look at the following sites for inspiration – EventBrite, TripAdvisor, and Sand Seeker Reality.
12. Moving to Panama with a Family
Panama is a good place to move with your family. The cost of living is relatively low, and there are many things to do. The climate is tropical, so it is warm all year round. There are beaches, rainforests, and mountains to explore. English is widely spoken, so you will not have trouble communicating with people.
- New parents (or parents to be):Check out Sweat Like a Mother, New Parent Suppport Programme, Viva Tropical, and Expatra for advice, courses for new parents.
- Live in a family friendly area:Coronado is very popular with families. It is located just a short drive from Panama City, making it easy to get to and from the city for work or play. There are plenty of things to do in Coronado, from enjoying the stunning beaches to exploring the nearby rainforest. And, with a variety of schools and medical facilities in the area, it’s easy to find everything you need to make your family comfortable.
- Find things to do with the kids:Panama has lots for children to do. Have a look at the following website for inspiration – International Relocation Firm, Family Destinations Guide, Culture Trip, and Trekaroo.
13. Moving to Panama for Work
Moving to a new country for work is one of the most common reasons people choose to move. While it is possible to move without a job, it makes sense to ensure there are jobs in your field before you make the move.
There are many employment opportunities in Panama for foreigners. Some of Panama’s most popular industries for foreigners to work in are tourism and hospitality, construction, banking and finance, IT, telecommunications, and environmental work.
Here are a few things to consider when moving for work:
- Salary:You should research the average salary for your desired position and industry. While salaries in Panama are generally lower than in developed countries, there are many opportunities to make a good living. You can also check salary ranges on sites such as Payscale, Glassdoor, and Paylab.
- How to find work: If you want to have a job lined up before you move to Panama, but aren’t sure where to begin, the following sites are good places to start: Glassdoor, Jobboard Finder, and indeed. You may also want to Google recruiters in your industry, as they can often help land you some initial interviews as well.
14. Moving to Panama from Australia
There is a small Aussie contingent living in Panama. If you are thinking of moving from Australia to Panama, here are a few things to consider.
- Size comparison:Panama is approximately 0.97% the size of Australia and has almost 23 million few people living there.
- Join expat groups:Internations and Meetup offer ways of meeting up with other Australians in Panama.
15. Moving to Panama from Canada
There are over 8,000 Canadians living in Panama. If you’re considering making the move from Canada, here are a few things to consider.
- Size: Canada is 132 times larger than Panama and has 30 million more people living there.
- Expat groups:Meeting up with fellow Canadians helps the moving process. Link up through sites such as Internations, Meetup and Facebook.
16. Moving to Panama from the United Kingdom
There are well over 1,000 Brits living in Panama. If you’re considering making the move yourself, there are a few things you should keep in mind.
- Size: Panama would fit into the UK 3.5 times over. Also, the UK has nearly 62 million more people living there.
- Expat groups:If you want to get together with others from the UK who are enjoying the weather, then go to Internations and Meetup.
Hopefully, the tips and costs above are helpful. If want to get started pricing out how much it will cost you to move to Panama you can start by comparing moving quotes here.
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