One of the most important factors in deciding where you want to live and work is the cost of living. How much you have to spend factors into how much you have to make, what type of lifestyle you can afford to live, and where you’ll need to live. But as an outsider, it’s sometimes tough to gauge costs in a foreign country, or a town/city you’ve never lived in before. In Latin America, prices can change pretty quickly. Luckily for Panama, inflation is low and they use a strong currency (US Dollar), so prices move a bit slower, but that’s not to say that they don’t rise and fall from time to time. To help you get a better idea, here is an updated overview of the cost of living in Panama in 2015.
Housing
Both the rental and sales markets in Panama’s real estate sector are doing well these days, as demand is rising by the year. There are also an abundance of living options as real estate construction is even higher than the already high demand for it. So let’s cover the basics. The cost of rent, or purchase price, will entirely depend on where you live. Generally, in the central parts of the city, Rent will run you anywhere from $850 a month, to as high as $3,000 for a luxury apartment, with most places falling into the average of $1,200-$1,600.
If that sounds high to you, there is a caveat. Most apartments over $1,000 are in new buildings with lots of amenities (pool, gym, sauna, security, indoor parking). And if you pay on the higher end of the spectrum ($3,000+), you’ll have at least 4 bedrooms, 3,000 sq.ft. and ocean views that could compete with any major world capital city. Renting just a few minutes drive from downtown can cut your rent by 30-40%, but due to heavy traffic and access to amenities, it may not be the right fit for you. Take a look at the Panama real estate closed sales and pricing statistics chart from our friends at Panama Equity.
Buying a house or apartment
If you buy instead of rent, you can apply a similar price scheme, with the downtown apartments and houses asking a premium, and prices declining the further away you get from the city. A nice, new urban apartment will cost anywhere between $175,000-$450,000, with ultra luxury places going for $1,000,000 and up. Houses are on the same scale, although almost always offer more square footage. With that said, your probably better offer buying as an apartment that rents for $2,000/mo. might be sold for $280,000.
Basic Daily Goods/Services
The cost of basic goods and services in Panama tend to be cheaper than North America and Europe, but not by much, and often cheaper than many countries in Latin America. Local produce, grains, dairy and meat will run you about $300 per month to feed about 2 people if you buy domestic products, and $600 if you buy imported. Many expats tend to lean towards the higher amount, as Panama offers nearly all the grocery comforts of home, if you’re willing to pay for it. Pharmaceuticals are very cheap, even if you don’t have insurance, and cleaning/bathroom products are about on par with the US and Canada.
Utility expenses like electric, gas, and water are nominally cheaper than the US. However, if you’re planning to use a lot of air conditioning, prepare to have high wattage usage on your bill. A typical electric bill for a moderately air conditioned (average) apartment is about $80 per month. Gas is often included in you building expenses, but will run you $7 a tank if you have your own, and last about 2 months with moderate cooking. Water is about $5-$10 per month depending on where you live.
Transportation
Panama has many options for transportation, and all of them when compared to the US and Canada are very affordable. Public transportation costs less than $0.50 cents a ride, and is available in buses and a subway line. Both are new and clean, however getting schedules and exact destinations can be tough, so many people opt to take taxis. Taxis have no meters, so cost is negotiated based on distance, time of day, and traffic. This can get confusing, and frustrating, but if you learn the general fares from place to place, you’ll find it easier to get the right price. On average, a cab from any point in the city to another shouldn’t cost you more than $5. Often, it’s as low as $2-$3, but be prepared to share your ride with others, and allow extra time if you’re on a tight schedule.
If you’re willing to spend a little extra, there are also some great private car/cab services like Uber and TuChofer which run off apps, and tend to be newer cars, with highly professional drivers.
Driving in Panama
If you choose to buy a car, be prepared to spend a bit more than you would in the states. Used and new car prices are often 20-30% more expensive in Panama. Insurance, however, is much cheaper. A typical insurance plan will cost you about $300-$500 a year depending on the vehicle. Gas prices are comparable to the US, although that fluctuates, so it’s hard to gauge. As of when this article was written, gas costs about $3 and change for a gallon.
Medical
Medical insurance in Panama will cost around $120 per month for comprehensive coverage from an international provider, which can amount to huge savings compared to some U.S. health plans. If you opt for no insurance coverage, there is free medical care for Panamanian residents, yet the free hospitals are not on par with first world hospitals. Private hospitals in Panama can offer excellent care, for example, Punta Pacifica, which is a Johns Hopkins affiliate provides a very high level of service. If you plan to pay out of pocket at a high-end private hospital in the city, expect a doctors consultation to cost around $40, and a visit to a specialist will be about $70. ER visits can of course range in price due to duration and services rendered, but expect to pay a minimum of $100 to see a doctor in the ER, not including any tests. Dentists are also cheaper than in the U.S. with a typical teeth cleaning running around $50.
