Living In Panama: What You Need to Know

Una hermosa captura área de la cinta costera en la ciudad de Panamá.
Photo by Luis Aleman / Unsplash

Panama has become a popular destination for expats from the United States and around the world, offering a unique blend of natural beauty, affordable living, and a vibrant expat community. In this comprehensive guide, we will explore the most important aspects of living in Panama for expats, including the cost of living, food, quality of life, local expat communities, visa requirements, and more.

Cost of Living in Panama

One of the main reasons why many expats choose to move to Panama is the lower cost of living compared to the United States. Housing costs are generally lower in Panama, with options ranging from city apartments to countryside homes. Utilities, groceries, and transportation are also more affordable in Panama than in the United States. Healthcare is both high-quality and affordable, with many expats saving money on medical expenses.

While some imported goods may be more expensive, local products and services are often cheaper. Here is a breakdown of the major costs to consider.


Rent prices vary depending on location, but you can expect to pay less than in the US for similar accommodations. The average rent in Panama for a family is $944 per month while the same costs average out to be $2,331 per month in the United States.

Real estate prices, if you're looking to buy a house, are generally lower in Panama, making it an attractive option for those looking to invest or settle down permanently. The average house cost to buy per month in Panama is $1,232, which compares favorably to $3,344 in the States.

Food and Groceries

Local produce, seafood, and meat are abundant and inexpensive in Panama. Imported goods may be more expensive, but shopping at local markets and stores can help keep costs down. Dining out is also more affordable, with a wide variety of local and international cuisine available. The monthly costs of food are 35% more affordable in Panama. Overall, it's easy to find food you can enjoy for an affordable price.

Quality of Life in Panama

Panama offers a high quality of life for expats, with a warm climate, beautiful scenery, and a relaxed lifestyle. Some factors that contribute to the quality of life in Panama include:

  • Warm weather year-round, with a tropical climate and lush green landscapes.
  • A variety of outdoor activities, such as hiking, surfing, and birdwatching.  
  • Access to modern amenities and infrastructure, including reliable internet, healthcare, and transportation.
  • A slower pace of life, with an emphasis on enjoying the present moment and spending time with friends and family.


Panama has a well-developed healthcare system, with both public and private options available. Many doctors and medical professionals are bilingual, making it easier for expats to navigate the healthcare system. Health insurance is affordable, and many expats find that their healthcare costs are significantly lower in Panama compared to the US.

The Local Expat Community

Panama has a thriving expat community, with thousands of foreigners from around the world calling the country home. Some popular expat areas include:

  • Panama City: The bustling capital offers a cosmopolitan lifestyle, with a mix of modern amenities and historic charm.
  • Boquete: This mountain town is known for its cooler climate, beautiful scenery, and tight-knit expat community.
  • Coronado: A popular beach destination, Coronado offers a laid-back lifestyle and a growing expat population.

Networking and Socializing

Many towns and cities in Panama have established expat networking groups and community events, making it easy to meet new people and make friends. English is widely spoken in expat-heavy areas, making communication and socializing easier for US expats. Plus, there are numerous activities and clubs available for expats to join, catering to a wide range of interests and hobbies.

Visa and Citizenship Options for US Expats

Panama offers several visa options for US expats looking to live in the country. The right one for you will depend on your situation and how long you plan on living in the area. Your options may include:

  • Pensionado Visa: This visa is designed for retirees who can prove a minimum monthly income from a pension or Social Security.
  • Friendly Nations Visa: Aimed at citizens of specific countries, including the US, this visa requires proof of economic or professional ties to Panama.
  • Business Investor Visa: For those looking to invest in a Panamanian business or start their own company in the country.

Residency and Citizenship

Another option is to obtain permanent residency or even citizenship. Obtaining permanent residency in Panama is relatively straightforward, with many expats choosing to apply for one of the visa options mentioned above. After five years of continuous residency, expats can apply for Panamanian citizenship and a passport and get the ability to live in the country for the rest of their lives, if they desire.

Pros and Cons of Living in Panama

Panama Sundown
Photo by Miguel Bruna / Unsplash

As with any destination, there are both advantages and disadvantages to living in Panama. Some of the pros and cons include:


  • Lower cost of living compared to the US
  • Beautiful scenery and outdoor activities
  • Established expat communities and networking opportunities - High-quality, affordable healthcare


  • Adjusting to a new culture and way of life
  • Potential language barriers for those who do not speak Spanish
  • Some imported goods may be more expensive

Finding a Job in Panama

Not everyone wants to retire when they move to the country. Finding a job in Panama can be challenging but not impossible. It is recommended to start the job search online before making the move and secure a position in advance if income in Panama is crucial.

Most jobs require basic Spanish skills, but teaching English is a viable option due to the government's recent push to teach English in local schools. For those who need to fund their new life in Panama or want to earn extra money, creating your own income opportunity is a popular choice.

By being aware of the needs of the community, one can come up with entrepreneurial ideas for products or services that cater to the growing Panamanian market.

The Takeaway

panama city.
Photo by Kaja Reichardt / Unsplash

Panama has become an attractive destination for people looking to relocate due to its lower cost of living, stable political environment, and well-established expat communities. Many individuals move to Panama as they find themselves priced out of their home countries, with increasing costs of healthcare, taxes, and utilities. The total cost of living is 49% cheaper in Panama for a single person than living in the United States.

When considering a move to Panama, it is essential to research the country thoroughly and make informed decisions based on personal preferences and needs. Factors such as lifestyle, family situation, and reasons for moving abroad will affect the choices made. Panama offers a variety of options, from adventurous and cultural experiences to comfortable living at lower costs.