Utilities in Panama are generally affordable, but electricity costs can vary significantly depending on your province, building type, and air-conditioning usage. This guide explains what foreigners can expect to pay for electricity, water, gas, internet, and home services across Panama, how billing works, and how to reduce your monthly expenses. If you are still building your overall budget, you can also review our detailed guide to the cost of living in Panama for housing, food, transportation, and healthcare figures beyond utilities.
Electricity Costs in Panama
Electricity is typically the most expensive utility in Panama, especially in coastal and low-elevation areas where air conditioning is necessary. Your monthly bill depends primarily on:
- Where you live (Panama City and beach towns cost more than the highlands)
- How often you use air conditioning
- The age and efficiency of your building
- Which electrical zone regulates your rates (ASEP establishes regional tariffs)
Most households fall into these general monthly ranges:
- Low A/C usage (fans only): $25 – $45/month
- Moderate A/C usage: $45 – $90/month
- Heavy A/C usage (central air or mini-splits nightly): $120 – $250+/month
Electricity Rates by Region
Panama has different tariff regions regulated by ASEP (Autoridad Nacional de los Servicios Públicos). Rates differ depending on whether your utility provider is ENSA (East Panama) or Naturgy (West Panama).
In Boquete, Volcán, and other mountain towns, electricity bills are often 50–70% lower than coastal areas because air conditioning is rarely needed year-round.
Reasons Electricity Can Feel Expensive
- Panama uses a mix of hydro, thermal, and natural gas generation, and fuel-adjustment charges can increase bills.
- Many older buildings have inefficient appliances.
- Beach and city homes require continuous cooling.
How to Reduce Electricity Costs
- Choose housing with inverter A/C units and modern appliances.
- Use ceiling fans and limit A/C to bedrooms at night.
- Avoid older condos with central A/C systems that run inefficiently.
- Consider mountain areas like Boquete, where A/C is rarely needed.
Water, Sewer & Garbage Collection Costs
Water and garbage service in Panama is inexpensive. Bills typically include:
- Water usage: $5 – $15/month
- Sewer fee: Usually included in your water bill
- Garbage collection: $5 – $10/month
Most municipalities bill through IDAAN, the national water authority. In condos, these charges are often already included in your monthly maintenance fee.
Water Quality and Pressure
- Panama City and larger towns have treated, potable water.
- Rural areas occasionally experience service interruptions.
- Many expats purchase inexpensive countertop filters for convenience.
Gas (Propane) Costs in Panama
Most homes and apartments in Panama use propane tanks for cooking and sometimes for hot water.
- Standard 25-lb tank refill: $5 – $8
- Larger tanks for homes: $12 – $20
Refill trucks pass through neighborhoods daily, or you can swap tanks at supermarkets. Condo buildings often include a centralized gas line, which is charged in your HOA fee.
Internet, TV & Mobile Plans in Panama
Internet service in Panama is reliable and affordable, especially in major cities.
- Basic internet (100–200 Mbps): $30 – $45/month
- High-speed fiber (300–600 Mbps): $45 – $70/month
- Mobile phone plans: $15 – $30/month
- Prepaid SIM cards: $5 – $10/week depending on data
Major providers include Tigo, Más Móvil, and Claro. Fiber coverage is strongest in Panama City, Coronado, David, and Boquete.
Homeowners Association (HOA) Fees in Panama
In Panama City and many beach communities, condos charge a monthly building fee that typically includes:
- Water
- Garbage collection
- Security and concierge
- Pool and gym maintenance
- Common-area electricity
Typical HOA ranges:
- City condos: $150 – $350/month
- Luxury buildings: $300 – $500+
- Beach communities: $120 – $250/month
Comparison: City vs. Beach vs. Mountain Utility Costs
| Location | Electricity | Water/Garbage | Internet |
|---|---|---|---|
| Panama City | $60 – $200+ | $10 – $25 | $30 – $60 |
| Beach Towns (Coronado/Gorgona) | $80 – $250+ | $10 – $20 | $30 – $60 |
| Mountain Areas (Boquete/Volcán) | $25 – $70 | $8 – $15 | $30 – $50 |
Frequently Asked Questions
Are utilities included in rent in Panama?
Some rentals in Panama include water, gas, and garbage collection, but electricity is almost never included because air conditioning usage varies significantly by tenant. Always confirm in writing which utilities are covered in your lease.
Why do electricity bills spike in Panama?
Electricity bills in Panama can spike due to increased air conditioning use during the hotter months, the use of older or inefficient appliances, and fuel adjustment charges that are added to bills. Coastal and low-elevation areas where air conditioning is used heavily tend to have the highest electricity costs.
Is electricity cheaper in the mountains in Panama?
Yes. In Panama’s highland areas such as Boquete and Volcán, electricity bills are typically much lower because air conditioning is rarely needed year-round. Many residents rely on fans and natural ventilation, which significantly reduces monthly power usage and cost.
Do condos in Panama include water and garbage?
Most condos in Panama include water and garbage collection in the monthly homeowners association (HOA) fee. Electricity and internet are usually billed separately to each unit, so it is important to review the building’s administration rules or lease agreement to understand exactly what is covered.
What is the average utility bill for a couple in Panama?
A typical couple in Panama can expect to spend between $60 and $160 per month on utilities, depending mainly on how often they use air conditioning, the size and efficiency of their home, and whether they live in a coastal city, beach area, or cooler mountain town.
Residency, Legal Status, and Utility Setup
When you open local bank accounts, sign long-term leases, or set up utility accounts in your own name, companies may ask for Panamanian identification or proof of legal status. Understanding the Panama residency requirements before you arrive can make it easier to handle contracts and services without delays.
If you are planning to retire and want to combine lower utility bills with long-term legal status, the Panama retirement visa (Pensionado) is often the most advantageous option for qualifying retirees, offering a range of discounts on services and day-to-day expenses.
Relocating to Panama?
Our firm specializes in supporting foreigners moving to Panama. Our Panama immigration lawyers can guide you through the visa options that best match your budget, lifestyle, and long-term plans, while our relocation team helps you set up utilities and services in your new home. For a step-by-step overview of planning your move, including neighborhood selection, banking introductions, and practical logistics, visit our page on moving to Panama.
