How Much Does it Cost to Live in Panama in 2016?
This has to be the most common question I get about life in Panama. How much does it cost to live there? The biggest misconception people have is that the cost of living in Panama is super low. The truth is that if you want to live like a North American then your costs are going to be around the same.
I am part of every major Panama Group on the social network that shall not be named. I watch with amusement as I see expats complaining about the cost of living here. They talk about the cost of having a maid, living in the expensive parts of Panama City, shopping at the most expensive grocery store and dining at the upscale restaurants.
Living the High Life in Punta Pacifica, Panama City.
The thing is these people move to Panama expecting that they can take their North American income and magically turn it into a lavish life here. Then they get upset that the life they desire costs the same as living North of the Mexican border.
How We Chose to Live.
Over the last three years Anabell and I gave up on the expensive tower life in Panama City and decided to move 30 minutes over the Panama Canal. We live in a gated community surrounded by other young middle class Panamanians. I like to joke that I am the only Gringo in my neighborhood.
Our house is a one year old 3 bedroom 2 Bathroom 100 square meters home. It is perfect for the two of us and our cats. The development is surrounded by jungle. We have plenty of animals around domesticated and wild, "Panama Critters". Things I don't have here that I had in my beautiful tower apartment are a balcony, pool and security.
10 minutes from our house we have one of the largest malls in Central America. We also have every major grocery store in the vicinity except the one super expensive one expats in Panama City complain about. All of life's necessities are within 10 minutes of our home.
Athanasiou Upscale Coffee Shop, Bakery and Chocolatier.
Our Monthly Cost of Living in Panama.
Rent- $450
Electric- $25
Gas- $5
Cable- $50
Internet- $20
Food- $300
Auto Insurance 98 RAV4- $10
Medical Insurance- $200 for Both
Mobile Phones PrePay- $40 for Both
Total $1100
Prior to Moving Out of the City $1150 was Just My Rent!!
$8 Worth of Veggies and Fruit From the Farmers Market.
The key to having a low cost of living in Panama is to live like the local middle class. My friends think Anabell and I live this life of luxury but the truth is we live like any other Panamanian that works a job. The difference is we work from home and get to enjoy the benefits of having the extra income to go out.
We are frugal people. We would rather spend money on travel and going out. We also don't think twice about spending money on our business or investments. In a few months we will be buying a newer vehicle, so our car insurance rates are sure to climb. We also want to buy our own home in a gated community. Due to not having Property taxes on new homes our monthly home costs should go down. The only way our housing costs will go up is if we have a mortgage over $100K.
Tips to Live Cheap in Panama.
1. Live Outside of Panama City.
2. Buy a Used Car for Cash.
3. Live Like The Panamanian Middle Class.
4. Shop at the Farmers Market.
5. Eat Food that is Local.
6. Work from Home.
7. If You are Retired Get Your Pensionado Visa
Watch the Video and Subscribe.
Randy Hilarski
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Happy Day from Panama!
I guess it's comparable to what I pay here in Guadalajara... I guess it's a bit more expensive there. My rent here is about $180 per month for a 3 bed 1 bath apartment, in a not-so-flashy part of town.
Markets are the best. I'm always surprised when Mexicans and foreigners want to go to the supermarket instead of the regular market. There's a place in my neighbourhood across the street from the market that sells fresh peanut butter and sesame paste by the kilo. You never know what you're going to find
Yes, I don't understand the supermarket addiction either. The farmers market is so much more fulfilling. Brotha, that is some cheap rent!!
funny typo ? :D
Got it Jajajaja!
Good catch!
I missed that too, but it is certainly funny.
It was corrected by the time I opened this up, but that is pretty funny given the context lol.
Maybe that's why I missed it!
Yup, I corrected it within 5 minutes of publishing. : )
Right, but funny initial mistake!
<3 Love <3
If you are loving like a middle class Panamanian, maybe $25 for half an hour :)
Wow! I heard the place was 'inexpensive', but are you kidding me?!
$1100 easy on rent alone, but for a month of awesomeness, I indeed will start looking into this. Thank you for the wonderful post! Steem ahead!
Yes, it is cheap but you do have to have an income of some kind because getting a job here is not easy.
Good work keep it up!
Thank you for the interesting information
Your medical insurance caught my eye...... how is the medical system there? or perhaps do an article.
I should do an article. There is Private health care which is good but the public system although cheap as hell is crappy.
The private insurance is that cheap though? Here in Virginia, it would cost me $1200 a month to insure my family of six.
great article / post. What is the population of Panama City these days?
I believe it is about 1.5 Million in and around the city. The whole country is about 3.5 Million.
Very interesting information.
Thank you.
What a great way to answer that question.
I appreciate you stopping by. Yup, I am not a paid shill of International Living ; )
lol, you mean you can't live like a king on half a social security check while the other half makes you millions investing in Ronan's next pick?
Bwahahaa, that is surely how they make it sound.
What surprised me the most was the rent.
I currently rent a basement in the middle of nowhere in the northern region of Norway, i currently pay: 1,350$ in rent.
I should move.
Oh My Goodness!! That is just crazy.
Socialistic country with the same banking system as anywhere else.
The young "middle" class living paycheck to paycheck with no way of saving up for a place of their own.
I know the feeling that is why I left the USA. I did have a house that I bought in NY but my family helped me pay cash for it. We remodeled it and resold 5 years later for a nice profit. Most folks want to pay retail. I bought a foreclosure paying about 30% of the retail price.
I was renting a 700 sqft condo off the Orange Line in Arlington once for $1950 a month. It was 3K a month for a two bedroom condo rental. You can imagine what a house there would have cost. It's outrageous!
In San Diego County the house the OP is renting now would be around $2250 to rent. If the building is well kept and "new" looking, it would be even more. Most rentals in that price range are pretty lackluster and need renovation IMO. That price includes not living in the downtown area or one of the beach areas here as well, so a long congested commute is in order. If you want to live in those places, you either need to stack roommates like cordwood or basically have a mid six figure income. Square footage is also very expensive here, and prices climb exponentially as floor area goes up like they do with proximity to the desired areas. From my gut perspective after living here for 10 years (moved from the cheapest real estate market in the US, Western NY, so I may be a little biased), I would say that to be considered solidly middle class (not lower middle or poor), you would need between double and triple the median income in SD, which is why most families here have two working parents just to stay afloat financially, and why single people rarely live alone. I think there are a lot of places like this in the US because they are some of the few where you can actually find gainful employment relatively easily. I left my original hometown because I couldn't find a decent job, which is a big part of why the rents and property values are so low (extremely high property taxes are part of that as well, but I repeat myself).
That is pure madness to me. Why do people submit to that? Sounds like it is time to uproot again.
You are from Buffalo.
Or Rochester.
I'm from Buffalo. I live in Hanoi.
So, what's your story?
I grew up near the Falls in a rural area.
Harsh!
Yeah, WNY is a life sentence, you know? When I read the news from home (these days always seems to be murders and overdoses) I wanna puke.
Yeah, it can be rough. It's a beautiful part of the world IMO though. Shame it's so hard to make a living there (or at least was when I left).
Great article! Your car insurance wont go up much. We have full coverage on our '08 Mitsubishi Endeavor for $15/month.
Wow, that brings a smile to my face.
I have a new Honda Pilot right now and cringe at the thought of vehicle costs there. I'll look into it further though. Thanks for this post. I searched Steemit for "Panama," and of course your posts were all over the top results!
Randy, this has got to be one of the most blue collar, down to earth, common sense and plainly spoken posts I have viewed in awhile. I was so excited to see the title of this post by you and it did not disappoint. None of your stuff does ever. THANK YOU for this post!!! I have been meaning to msg you about real estate things there, but I did not want to bug you. Esp. after that last email for Newb help a few days ago lol. (: Have a nice week with Ana
I appreciate it Barry. I believe in talking to the regular folks. That is my niche. There are plenty of bloggers who just focus on wealthy. My goal it to help people who are just like I was. The ones struggling to make it.
Nice post and extremely accurate. I have yet to read any Internet article about moving to Panama and the costs associated that doesn't paint a much rosier picture.
Yup, I don't subscribe to International Living or Live and Invest Overseas. ; )
Same in a lot of places, even the US. And I love going to good farmers' markets. Getting fresh produce once or twice a week provided a great time out, some exercise, good food and you get to meet nice people. No farmers' market where I live right now though. :(
You got that right! Plus it is a chance to be social with the locals. I also get to practice my Spanish.
That "super expensive" grocery story you don't have (yet) is under construction, so you'll have it soon as well. So pretty soon, you'll have it all.
Oh goodness, I forgot about that. They are building it in Costa Verde. I will be sure to stay away. I like my money. ; )
Great post. I thought Panama was comparable to Mexico in living costs! Just an fyi, I made an inquiry on the 200social and never got a reply! Would love to try out your services on my site, please send me an email to [email protected] or a message on FB/G+.
Saw it Brotha, I will get to it later today.
thank you, like a blog documentary. Enjoyed :)
I appreciate you stopping by!
Very nice explanation Randy, I know you and Anabell love your life in Panama. It is nice to see the minimalist lifestyle you have chosen. Awesome!
Absolutely Mom, I love the old saying, "things you own tend to own you".
Panama here I come. Very informative. Up voted and I would appreciate your up voting my blog.
Thank you for stopping by! Happily passed along an Upvote.
Very informative, thanks! i want move and experience this)
Thank you for sharing these impressions @hilarski!
Wow the cost of living there is great, especially as i'm in England so in pounds that works out fantastic. Great post!
Thank you for reading. If you ever have any questions feel free to ask.
Nice Article, Thanks for writing it and posting it on Facebook.
No problem, I appreciate you stopping by.
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Oh how beautyful is Panama !
Super Info. Thanks
I lived in Panama (I was in the Navy) in the early 90s and I'm moving back in 2017, though not to Panama City.
I can't believe how expensive rents are in the city. It's a shame, really. And the traffic seems much worse than it was.
I love this, I would love to live there as well. Being from Florida and stuck in Colorado, it is hard to not want to be near the ocean again. I hope you enjoy the beaches. Even with the weather I would love to be down there in the south on the sandy shores.