What is it like to live in PANAMA?

I’ve lived in Panama all my life, and although it’s expensive, it’s worth living here. Today I’ll talk to you about the cost of living: food, transportation, electricity, water, internet, taxes, and services in general.

Electricity

The first thing you should know is that Panama is a very hot place. Right now, it’s 30°C | 86°F as I write this blog, so you may need a fan or air conditioner to stay cool. I’m used to this climate and a fan is enough for me.

Relying on an air conditioner poses a problem: the “electricity bill.” Electricity rates tend to be high and vary a lot depending on where you live, but it’s probably the biggest expense after rent.

My recommendation is that when renting a home, you ask for the last 6 electricity bills from the property to get a better idea of how much you’ll pay.

Housing

When choosing a property, the cost of electricity would be the most important factor. Some places come fully furnished and sometimes include utilities like water and electricity. But to give you a more complete idea: a one-bedroom furnished apartment with a pool and gym in Punta Pacifica, an exclusive area in Panama City, costs $1,350 per month.

If you’re looking for more rooms and something more spacious, the price could range between $2,000–$2,500 per month.

Now, if you live in a house and have pets, Panamanian laws allow only a maximum of two pets. It's important to keep that in mind if you're an animal lover.

Water service

Water service is probably the cheapest on this list and is usually bundled with garbage collection.

Panama’s water is 100% drinkable and can be consumed straight from the tap without any problem. Foreigners are always surprised by this.

The approximate cost for water and garbage collection is around $20.00 per month.

Food

Grocery shopping for a family of 4 adults costs around $250.00 per month, but it depends on the supermarket. The most popular options are:

• Super Extra
• Super 99
• Supermercado REY
• Riba Smith – The most complete and varied option but also the most expensive.

Shopping at Riba Smith for a family of four costs approximately $400.00.

Phone and gas

Cell phone service is also one of the cheapest on this list. In my case, I pay $20.00 per month for unlimited data, unlimited calls to the same carrier, and it works fine for me.

On the other hand, the gas cylinder is bought at the supermarket and costs approximately $5.00 because it is subsidized by the government.

Internet, phone, and cable TV

These are the packages offered by +móvil.

Internet, phone, and cable TV services are usually sold as a bundle, and there are two major providers: TIGO and +móvil. Prices vary depending on the plan but range from $37.00 for the most basic to $55.00 if you want a 1000 Mbps internet connection.

Transportation

Transportation service in Panama City is decent, and there are several alternatives such as:

• The metro for just $0.50
• Buses
• Uber and Taxis

But it’s more comfortable to have your own car as it gives you greater mobility.

Vehicle

The tax when buying a car in Panama is 7%, but you should know that every year you have to pay a circulation tax. It’s only $28 per year, and you must pick up a sticker from the municipality that your car must display. If you don’t have it, your car will be confiscated by the authorities.

Medicine and pharmacy

General medical consultations are not particularly expensive; the issue is with specialty medicine, exams, and treatments. The last time I went to the dermatologist, the consultation cost $75.00 plus the treatment costs. It is advisable to have good insurance for these situations.

Panama’s instability

Panama is a very beautiful place to live, but it’s politically unstable. At least once a year, you’ll likely encounter road closures due to protests.

Panamanians do not allow injustice and we exercise our right to protest. I myself was present at the protests against open-pit mining.

As Panamanians, we have the obligation to protect our home and not allow abuse from the government.

Conclusion

We’ve reached the end of the cost of living list in Panama. Let’s add it up:

• Electricity: $150.00
• Housing for 4 people: $2,100.00
• Water and garbage: $20.00
• Food for 4 people: $250.00
• Cell phone: $20.00
• Phone, internet, and cable TV: $55.00
• Additional expenses: $150.00

TOTAL: $2,520.00

To live in Panama City as a family of 4, you might need approximately $2,500.00 – $3,000.00. I hope this information helps you make the decision to retire in this beautiful country.

Regards,
Luis Guerrero

This article was written by Luis Gerardo Guerrero Iturralde for Traveossa. All rights reserved.
Visit his Instagram profile here: @lgiturralde.
No copying or publishing on other platforms is permitted without prior written permission.