How Much Does it Cost to Live in Panama in 2017?
Every year I write a post about our costs to live in Panama. This beautiful country is always ranked in the top 10 places in the world to retire. This means many people are looking for information.
There are normally two groups that I focus on. People on fixed incomes who are wondering if Panama is right for them and freedom seekers who want to live life by their own rules. If you are looking for a job in Panama forget about it! This country does not offer many well paying jobs so if you want to move here and still earn an income being an entrepreneur or digital nomad is a must.
Things I Recommend if You are Moving to Panama.
1. Live Outside of Panama City. - Panama City traffic is terrible and the housing costs are much higher. Cut your costs by more than 50% by moving to the outlying suburbs or interior of the country.
2. Choose a Gated Community. - Crime is not bad here but taking precautions never hurts. I have never had a problem in 7 years.
3. Do Not Buy a House Immediately. - Too often people come here and buy a house immediately. This is a terrible decision because it takes time to figure out what area of the country suits you.
4. If You Buy in the City Do Not Buy a Car. - This may seem odd but Panama City traffic is absolute mayhem. Uber is strong in Panama plus we have a brand new subway. If you live outside the city a vehicle is a must.
5. Hospitals. - If Health is a concern your best options are near Panama City or David which are the two largest cities.
6. Learn Spanish! - The basics are essential in Panama. It improves your quality of life.
Example of Our House in Panama.
We live in a neighborhood called Arboledas which is situated 40 minutes west of Panama City just off of the Pan-American Highway in Panama Oeste (Panama West). Panama Oeste is a newly created province and the capital of the province is La Chorrera.
Our rent is $650 a month but the rents start at around $450 for houses in Arboledas. Our house is one of the larger models.
The Ten Provinces of Panama.
The most common provinces for expats are Panama, Panama Oeste, Cocle, Chiriqui , Los Santos and Bocas del Toro. When you see the word Comarca on the the map that means regions set aside for indigenous tribes. The native people of Panama are highly respected. In the photo below you can see women representing their tribes at a march.
The Panama Cost of Living has Been Rising. Here is Why.
1. Inflation - The Panama Balboa is pegged to the US Dollar which is being debased. The inflation has slowed slightly but it really stressed the economy as housing costs have risen sharply over the last ten years.
2. Immigration - The Venezuela crisis has caused a huge spike of Venezuelan expats in Panama. This has put a burden on the housing and job markets. Sometimes when I visit Panama City I forget that I live in Panama. Panama is now making it much more difficult for Venezuelan expats to enter and stay in the country. I hope they can fix their countries economy soon.
3. Safe Haven - Big money flows into Panama. This money is used to buy up real estate and agricultural projects. The Panama government recently signed an agreement with the Peoples Republic of China which is sure to bring massive amounts of capital into this small country. The Chinese community in Panama is huge. Panama recently turned their backs on Taiwan and signed an agreement with the PRC.
4. Supply vs. Demand - Panama is a perfect example of the economic law of supply vs. demand. The supply of housing was very low and the demand was high. We have entered a buyers market as many projects are finishing up. This means rent and property costs are coming down slightly for the first time since 1999.
Our Monthly Cost of Living in Panama for 2017.
Housing - $650
Utilities - $50
Car Insurance - $50 per month for a 2013 VW Tiguan.
Food - $300
Two LTE Mobile Phones - Pre-Pay $50 for both.
Cable/Internet/Phone - $90
Health Insurance for two - $200
Gas for the Vehicle - $120
Total - $1550
Our Costs Jumped by almost $330!
Our cost of living in 2017 jumped so much because we have moved to a larger house. We bought a newer vehicle with Steem earned on Steemit and due to business we go to the city much more often.
I have not included our corporation taxes because it is personal information. Most people moving to Panama will not be operating a company. If you do run a business in Panama you have to pay taxes on the money earned within the country.
If You Want to Move to Panama and Apply for Residency I Do Not Refer People to Lawyers.
Lawyers in Panama have been my biggest disappointment. So much money and time wasted over the years. I am not the only one who feels this way. If you are interested in moving to Panama I recommend testing the waters for six months before making a decision.
When it is time to buy a house I recommend working with Kent Davis, he owns Panama Equity Real Estate.
We Live Off of Bitcoin.
Now this may seem odd to many of you but our personal economy is almost 100% reliant on the Bitcoin and Crypto Currency economy. When we factor this in our actual cost of living has dropped by 80% or more this year. We keep our money in Bitcoin and only take dollars out to pay our bills. As Bitcoin continues to rise our costs plummet.
This post is actually very useful by anyone who is evaluating the best country to live with bitcoins and other cryptocurrencies. Too bad I could not see him in time to repay him. I'll do it with another post from you!
It's a tad more expensive to live in Australia especially for housing (and that's not in a capital city) but some things are similar.
Prices in AU$ 1 : US$0.79
Monthly costs unless stated
Housing - $500pw
Utilities - $150 electricity is now almost $0.30/kw
Car Insurance - $100 depends on car insurance history
Food - $500 approx
Two iphones Mobile Phones - $150 for both.(can do cheaper on prepay with own handset)
Cable/Internet/Phone - $100
Health Insurance for two - $250
Gas for the Vehicle - $AU $1.30/l
Where I live is sub tropical near the ocean so not too hot rarely over 32c Ave max 29c / min 23c and not too cold winter max 21c/ min 10c
Downside for anyone looking for expat lifestyle is getting a residency Visa is very difficult and expensive. We have plenty of people who do live as expats here especially British, South African, Canadian and a few from USA.
I like this post a lot because I find cost of living data interesting (also helpful for travels) and because I lived in Boquete, Panama for about 6 months in 2011-2012. I'm new to SteemIt and when I saw in your profile the other day that you lived in Panama I decided to follow in case you wrote up any Panama specific posts. Glad to see one so soon.
Our move to Boquete was the first time my family had left our home country for more than a multi-day trip and despite the short stay it was a real move. We sold our car and our household goods were in storage. I hope I always remember the feeling of riding the bus from David into Boquete on the night we arrived and wondering if I'd made the right decision. It turned out to be a highlight of our lives to date.
In any case we saved significantly during our time there. Our monthly cost of living turned out to be about $1300 per month. We didn't get a vehicle so we just used taxis and buses (and walked a lot). The largest expense was our $500/month apartment.
Have you been to El Valle de Anton? If I needed to be near Panama City but wanted to avoid the sea-level heat I think I would try to live there.
I'm pretty curious to see the new improvement in public transport in PTY whenever I return. I think in 2012 they had just eliminated the old school buses for city bus use.
Enjoy some plantains for me!
Panama City has changed a ton since 2012. The public system is much better now but overwhelmed. El Valle is one of my favorite places in Panama but I could not live there because I don't do well with mold. Due to the moderate climate and constant rain the mold flourishes.
That makes sense about El Valle and mold. I remember it being quite wet.
A tip for any readers who are considering moving to Panama: If you search for information on the "Friendly Nations" residency option you might find some helpful information on gaining residency. I don't know the best resource to link to for that (perhaps @hilarski does or has more to say on that topic).
I don't help lawyers in any way. ; )
I love the Panama posts! I plan to move three within the next 18 months so the information you offer is really valuable to me.
Do you know where in Panama you plan to move to yet? I chose Boquete because I read of it's pleasant climate due to the elevation (I'd always thought of Panama as a hot, humid place prior to that. Hot and humid is quite true of Panama City, David and other sea level locales).
Glad to answer other questions if I can although my experience is not as extensive as Randy's.
We also live in Panama, but we live in Volcan and love it here. It's so quiet, but there is a great expat community here. I am new to steemit but plan to do some writing about things around here. :)
Wow, so cool that our Panama peeps are showing up!
I've been chatting with your mom on here some. Sounds like she enjoys when she gets to come visit! We live up in Volcan and love it here. The weather is nice! I'm sitting in a sweatshirt right now - chilly night! Have a good one! Hope we can meet up sometime. I've gotten 3 other people in Volcan into steemit. :)
well panama is the best place and you are really living the life of a lifetime :)
This is great information, thanks very much for sharing. I'm currently weighing options between Mexico and Panama. saludos!
Our Crypto community is amazing.
This post has been ranked within the top 80 most undervalued posts in the second half of Sep 01. We estimate that this post is undervalued by $14.83 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Sep 01 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
Do they have fast internet there? Yeah, that's my main concern 🤣
For sure, not as fast as you are used to but it will suffice. The mobile system is LTE so it comes in handy if the cable internet speed slows.
I might have to take a trip there in 2018 😎
The internet in Panama is better than the internet in Australia. Do it! Come on down @stackin!
I might have too @choogirl 😂💯
funny enough that's the first thing I thought about. But it can hardly be
as bad as in (rural) Ireland. Unless one is willing to spend more than $100,- for internet alone a month (satellite) it really sucks. Having a teen in the house with a phone and an 8 and a 9 year old who love their gaming, makes our connection sooooo slow.
Very frank and open account of living in Panama - thanks for the insight. Haven't been myself but know Costa Rica next door, which I love!
This is great and useful information, thx so much for sharing this with us all. I've always been curious about loving somewhere like this after reading the 4 hour workweek year ago. Maybe one day our small business will take off and it will be an option.
Great job Randy! How about you do another post on just the Panama City traffic? It would be great to see this mayhem on video. ;-)
Panama looks so beautiful!
Great article and you surely make one want to experience Panama. I live in an expensive part of the USA and everything just keeps going higher and higher cost wise not to mention taxes!
Smart guy, living with Bitcoin is safer than having most of the FIAT currencies.
Love this! I hope to live outside the U.S. at some point that is so awesome that you can afford to live there for cheaper.
My expenses plummeted when I made the move!
I have to work on my digital nomad skills. It's time to escape the US. Appreciate the expat advice.
recheck the math, you added the $500/yr car insurance as a monthly expense. Your monthly expenses are quite a bit less.
Thank you!!
Great! That's really cool if you guys can live off purely on cryptocurrency!
We have been for about a year now.
Yea, I read your posts often! Great stuff man!
Your posts are very interesting especially for me...
How long does it take to get Panamanian Citizenship? Do they tax income eraned outside Panama?
No tax on income earned outside of Panama. Citizenship through marriage or investment and it takes about 5 years.
You can get permanent residency in about 3 months. Costs about 5K including lawyer costs. Pretty straightforward process. Google Friendly Nations visa.
Thank you for the info Choogirl
Overall, sounds like a pretty great place to live. Thanks for sharing the cost of living info! :)
Panama always reminds me of Prison Break haha! Great post tho, really good information. I always wonder what it would cost to live somewhere else.
Great tutorial about Panama, As I know, there is amazing nature,I'd like to visit it for few weeks
if you review the system you tell me I think it's a bit difficult but if my country is easy any country has already own own character but good what you explain and have succeeded greetings from me Indonesia
Thank you for sharing this with us. I'm hoping to go from homeschooler to become a worldschooler soon, and Panama is definitely on our list. It's very helpful to get info from people who actually live there.
@misslasvegas - we homeschool and live in Panama! We moved here about 5 months ago to the town of Volcan and love it. You should definitely check into it.
Lovely! Thanks for the input. Panama just moved up on the list :) We're already on it: learning Spanish. Looking forward to reading your experiences.
I agree with you on the appalling traffic situation and cost of living in PTY v the country . However, living in PTY does give you more choice in gyms, shopping, places to go out etc. As a single person I'm not sure I would cope well in a smaller community or one that's full of retirees. So people shouldn't write off PTY. As a 1 year expat here, I think it's a great city most of the time, but like all cities you do have to pay more to live there.
@choogirl - we live in Volcan and love it here. Been here for 5 months - family of 7. There is a small gym here in Volcan, but I agree that there is much more to do in PTY than elsewhere. We were just recently there for visa paperwork and it is amazing how much stuff is available there - to do and buy! The malls are great and we loved all the American fast food options. We have to drive an hour to David to get Dominos or McDonald's, but sometimes, it's worth it!
Oh cool. Welcome to Panama and steemit! I am following you now. Looking forward to your first post.
Absolutely, if I was single I would be in the city as well probably sharing an apartment with a few other people.
That's exactly what I'm doing. Sharing with Venezuelans at the moment.
From your article it is immediately evident that in Panama you have spilled a long way and had time to rejoice and be upset. But your experience and advice are priceless for moving and living in this country. Thank you @hilarski
great post like it and upvoted!
really helpful, thanks! I was thinking about go out of my contry, i thought also at panama but as you say, it is "expensive". i would think also at indonesia, where you can easy live under 1000$/month.
Very informative post @hilarski sir, really detailed analysis of panama it really help me to improve my knowledge about panama. thanks for sharing
1960 per month it's relatively cheap, i mean you live in a good place you take good food and have another things with a low cost. Un saludo muy grande hilarski and thanks for talk about south america
I was told that we could live like a King and Queen in Colombia. I would move there but our family is all here.
Yes sir here in colombia with that $1960 you can live as a king because food is relatively cheap i mean in a grocery store no in restaurants, the public services as water,cable etc... are in a acceptable range and the rent is around 400 USD in a good place, the unique expensive could be the gas for cars. Regards
650 dollar a month still doesn't seem like that much compared to standard house prices, also considering that it gone up so much in the last 10 years. Though all in all it still seems pretty pricey at 2k a month.
It must be a big decision to move to another country, but it sounds like it has worked out for you. I expect your Steemit earnings go a long way there
They sure do. We can literally live 100% off of Steem. Moving was not scary for me because I was in the Navy which took me all over the world. It really broke down the fear of the unknown.
Great info. Thanks! I have to say that I am considering moving to some place warmer and less taxy
Come on down to Crypto heaven!
I'll probably pick your brain at SteemFest
Thanks for your great advice and info @hilarski Looks panama is out of range for minnows only whales can enjoy there.
Yes, I totally agree. The cost of living here as risen substantially. I would recommend a minimum of $2000 per month to live comfortably on your own.
Does the lack of job prospects include the health care industry? I can do what I do anywhere, but my wife would want to work, and she is a PA.
We would not need for her job to be necessarily high end, per se, but she's just not very good at being idle. I have always considered health care as being in pretty high demand just about anywhere you go.
No foreign medical professionals are allowed to work in Panama. It is the same for lawyers.
Ah, well that would explain some of those issues then. Shucks.
@hilarski,
That's a very useful information who wish to live in Panama! Than you very much for sharing with us!
Cheers~
this was super useful and interesting to read, thanks Randy! A looks so cute by the car too :)
Great post ! Perefect with amazing photos
thank you @hilarski
very interesting your post, thanks
650 a month! wow what a nice little place...great for you!!!
Wow, I didn't think Panama would be that much more expensive than Mexico. But I guess you can make it cheaper than that depending on your lifestyle.
Absolutely, we live very well. It is easy to go much more expensive as well. If we lived in the city our costs would rise by 30%.
Same here, but I like it like this because if you are a poor expat just getting started you can really have super low living costs until you get on your feet!
That is essentially what we did. We started out small and built our way up over five years.
Very useful info for those who plan to move in Panama. Lawyers are a big disappointment all over the world - not only in Panama. Thanks for the post @hilarski
Nice to about your living and life. I think you are great sir. Hope you earned more on steemit and buy more big vehicle. your car looks awesome. keep it up sir!
Great post Randy! Long time no talk...I just returned to steemit after recent disappointments with YouTube.
About your article. So, basically Panama lawyers are...well...lawyers. haha. Just a couple of questions because I've considered Panama.
What is the average price per gallon of fuel?
What kind of internet speed do you have there?
Do you find that the health care providers are more or less competent than those found in the states?
Before you moved there...did you test the waters? Thanks man!
Fuel is the same as the US but sold in liters. Internet is 10 mega down and 2 up. Health care is good especially for free market participants. The government system is severely broken.
I was stationed here in 1997. That is why I came back because I knew how awesome it was.
very interesting place for sure. thank you for the information. I travel most of the time and simply need a place to store my STUFF while i am on the road. following you and upvoting you as I can, my friend
Interesting read. And the follwing is true for many parts of the world and it concerns me a bit.
The same is happening in Africa and in Europe. Many big businesses are being swallowed by the Chinese. I mean, we don't know their long term plans but something looms.
They have been here over 100 years. The Chinese community is a vital part of our economy.
It's a lovely place. It's definitely one of the best choices for retirement.
Good to know info. I'm looking for an out for when the sh*t hits the fan here.
Thanks Randy for the neat summary, helps me a lot as I'm trying to decide where to relocate from social-heaven beaver land.