Easy Guide for Living in Panama in 2021 (and beyond)
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by Olga
- November 2, 2020
- Real Estate
- 0
As more years go by, Panama’s popularity and development continues moving forward, bringing a lot of diversity and value to many people looking to move in. Living in Panama is still for many expats the best choice because of its easy and fun lifestyle, as well as affordable prices.
The best thing about this beautiful country, is that not only Panama City brings you a lot of choices when it comes of living spaces, restaurants, hotels, parks and entertainment activities, but also many other towns in the interior can bring a lot of value in terms of lifestyle to many expatriates, such as Coronado, Boquete, Bocas del Toro or Pedasí, to name a few.
We know Panama has been already, for many years, a very popular topic for many foreigners when it comes to an international living lifestyle, if you still wonder what is the current situation in this great country and if it will maintain its value over the following years, here we bring you some answers that will help you be more informed, understanding why expats live in Panama and also make the decision of living, moving and even buying an apartment in here.
Table of Contents:
Is Moving to Panama Still a Good Idea?
Moving to Panama is definitely a good idea since it has a good political and economic stability, is great for investment, it is strategically located, and it is very comfortable to live in. Plus, the country offers great tax benefits when it comes to setting up business and making income.
Compared to other places in the region, Panama is a safe place to live and move around, people are usually not confrontational and polite, and there is no danger in most areas. However, as any other country, there are certain districts that you would prefer to avoid lowering the chances of having some issues.
But for certain, statistical data and other information researched shows that Panama is a much safer country than Mexico, for example, making it a much better choice not only for traveling, but for living long term as well.
Compared to its neighbor Costa Rica, Panama also has many natural parks, mountains and tropical beauties to discover and enjoy, and combining with great infrastructure, variety, quality of roads and good services, it makes Panama a greater place to enjoy and live.
Panama is still ranked first (by several sources) as the best destination to retire by far, since it offers easy immigration policies for many nationalities, special discounts for retirees, as well as affordable healthcare with first-class attention. These and other benefits make Panama a good country to live and retire.
See also:
Where is the Best Place to Live in Panama?
Living in Panama City is a great choice since you can enjoy a world-class urban lifestyle at affordable prices, with a lot of variety of condos, restaurants and entertainment, especially in city districts like San Francisco, Balboa Avenue and Costa del Este. Many expats live in Panama, but often choose Boquete due to its great weather and popularity, and Coronado due to its beach lifestyle and proximity to the city.
Pedasi is another beach town which is lately gaining popularity and growing its development. It is located on about four-hour drive from Panama City and it’s a popular touristic destination for enjoying amazing beaches, coral reefs and other tropical entertainment activities.
Cost of Living: Is It Expensive to Live in Panama?
While Panama City can be the most expensive place in the country, it is still much more affordable than living in a major city in US, Canada or Europe, since it has cheaper rent prices, food, healthcare and even lower transportation costs. It also depends of the lifestyle of each person, and also location, since life in Boquete or Coronado can have lower costs than in the capital.
While we have previously explained the cost of living in Panama, here is a summarized version of cost of living with low and high ranges depending of your lifestyle and family members (this is in Panama City):
Low range: Life for 1 person in a one-bedroom apartment.
High range: Life for a family of 4 in a three-bedroom apartment.
| Description | Cost (Low) | Cost (High) |
|---|---|---|
| Rent | $750.00 | $1,300.00 |
| Groceries | $200.00 | $700.00 |
| Electricity | $40.00 | $120.00 |
| Cable and Internet | $55.00 | $110.00 |
| Cellphone | $20.00 | $80.00 |
| Transportation | $200.00 | $400.00 |
| Health Insurance | $50.00 | $250.00 |
| Entertainment (Dining) | $150.00 | $400.00 |
| Other expenses | $50.00 | $50.00 |
| Monthly Expenses | $1,515.00 | $3,410.00 |
We briefly explain each one of these below:
As of 2019 till the present, and possibly for the foreseeable future, rent prices in Panama City are lower than usual, this is due to many economic factors, but mainly the supply of apartments for rent and for sale in the market have increased compared to the demand, so the average prices showed are, for low range a 1-bedroom apartment and high range is for a 3-bedroom apartment, both in good located areas.
Groceries costs in Panama really depends on you and your family lifestyle, but this is an overall budget that can allow you to shop both the usual products and some high end products that can provide you a comfortable life in the city, it ranges also from 1 to 4 persons. Entertainment expenses in the table are considered for one or two days out per week in Panama City, either for one person or four.
The cost of electricity in Panama really varies and it greatly depends of how long do you use your ACs, the price range showed goes from one person who only uses it at night to using it both day and night multiple times a week.
Cable and internet usually comes packaged together in Panama, and it depends of the speed you usually hire, and the channel packages you would like to get. The cellphone plans vary depending on your needs, but currently you can get high speed unlimited data with modest call minutes packages for about $40.
In transportation we are considering for low range either uber trips to move around or a cheap car payment with modest gas consumption for 1-person monthly needs. High range includes a bigger but affordable vehicle good for 4 persons with, of course, more gas consumption. Private healthcare is affordable in Panama comparing it to US, and there are several choices of health insurance for you and your family members.
This general scenario explained, and the summarized monthly expenses, can let you understand easily how much you need to earn if you plan to live in Panama City. As mentioned before, these prices showed on the table are based on a comfortable lifestyle in the capital, the cost of living in Coronado, Boquete or other towns in Panama are different and in fact much lower, in many cases you can consider an overall expenses variation from 25% to 40% lower when thinking on these towns.
If you plan to work in Panama, you can take as reference an average salary of $1200 for a mid-management or specialist position. But other people can earn less or more depending of the amount of work and the company they are working in.
A good salary in Panama starts from $1600 if working in a specialized position on a local company, but you can find management roles offering $2500 in local companies or even $3500 or $4000 in several multinational companies.
Renting a Property in Panama
You can find several options of apartments or condos in Panama City both empty and fully furnished, and there are no limitations to foreigners when it comes to renting a property.
Current rent prices in Panama City for a good located and furnished 2-bedroom condo can go from $900 to $1200 a month, and it usually requires paying a full month deposit while signing the contract. A 3-bedroom apartment average rent price can go from $1200 to $1500, depending on location and quality of the building.
The long-term rent prices in Coronado are different than in the capital, a beach front condo in Coronado can go from $1000 to $1400 depending on size, how close is to the beach or if is a beach front unit.
In Boquete, Panama, renting for long term a house can go from $900 to $1700 depending on its size and if you choose a condo instead, you can find rent rates for around $1200 fully furnished. If you look daily for properties or if you have a good realtor, you may find more affordable choices.
Buying a Property in Panama
It is safe to buy an apartment or a house in the country. Foreigners of any citizenship can buy a property in Panama without problems or restrictions, you will get the same ownership rights as any local Panamanian would get when purchasing a property.
The process of buying a home in Panama can be a little difficult for first-timers, especially if you do not speak the language, so working with a proper real estate agent will make the buying process easier and a more pleasant experience.
A property price in Panama City depends on where is located and if is new or not. Common prices in the current market go from $170.000 to $250.000 for a 2-bedroom condo, or $190.000 to $300.000 for a 3-bedroom one. Houses in Panama City usually have higher prices, starting from $350.000 or $400.000 depending of its location and quality.
Property prices in Coronado or Boquete and other towns in Panama really varies, you can find similar prices than in Panama City, but chances are that you will get more space, however, you might find good deals of houses or condos with lower prices than the capital as well.
Pros and Cons of Living in Panama
While Panama brings a lot of benefits in terms of quality of life, opportunities and entertainment compared to other countries in Latin America, it is important to note that there are some facts that can become reasons to not moving to this country, or it may take you longer to get used to them.
Here are some pros and cons of living in Panama:
Pros:
- Panama is a dollarized economy, making it more stable since it does not have a monetary inflation as well as it makes it easier for many while making international transactions, banking, and regional businesses.
- It has a lot to offer for much cheaper prices than other countries, like a a world-class city with fine restaurants and entertainment choices, as well as tropical beaches in less than an hour drive from the city.
- Panama’s great location makes it easy to travel home efficiently, Tocumen International Airport is a flight connection hub in the Americas, having direct fly to many destinations in the world.
- It is a safe country to live in, having lower crime rates than many other Latin American countries.
Cons:
- The weather can be a struggle for many, and it can vary very fast in a day, from sunny climate to heavy rains, which can be sometimes complicated for planning trips.
- If you live in the city, the traffic jam can be a hassle sometimes, making it hard to move around efficiently in peak hours.
- Some local services can take longer than the usual to be fulfilled, including services at public offices, which may test your patience skills.
Are you looking to buy real estate in Panama?
As real estate experts, we ensure that our clients get the best listing choices based on their budget and needs. Get in touch with us to help you find an apartment, house or any property in Panama.
