Why Consider Living in Panama?
Living in Panama offers a unique balance of tropical beauty, modern infrastructure, and international opportunity. With the U.S. dollar as currency, stable governance, and a wide range of residency and Panama Friendly Nations Visa options, the country remains one of the most attractive relocation destinations for foreigners.
Our Panama law firm has helped more than 1,000 individuals and families move to Panama with expert legal and relocation guidance. This 2025 guide shares our firsthand experience on what life here is truly like.
Panama at a Glance
- Population: ~4.5 million (INEC Panama)
- Currency: U.S. Dollar (USD)
- Language: Spanish (English widely spoken in major areas)
- Government: Democratic Republic
- Time Zone: UTC -5 (no daylight savings)
- Tax System: Territorial — foreign income is generally not taxed (World Bank)
Is Panama a Good Place to Live?
Panama is consistently ranked as one of the best countries for expats and retirees due to its lifestyle, infrastructure, and affordability. However, understanding the advantages and challenges ensures realistic expectations.
Advantages
- Lower cost of living than in the U.S. or Europe
- High-quality private healthcare and modern infrastructure in Panama City
- Easy access to beaches, mountains, and cosmopolitan life
- Stable economy, U.S. dollar currency
- Welcoming expat communities
Potential Drawbacks
- Spanish proficiency helps for bureaucracy and local interactions
- Infrastructure may vary in rural areas
- Slower pace in government services
- Tropical humidity can take adjustment
| Factor | Typical Experience | Notes |
|---|---|---|
| Rent | $600–$1,500/month (1BR) | City higher, rural lower |
| Healthcare | Modern private hospitals | Affordable local insurance |
| Currency | U.S. Dollar | Stable for Americans |
| Language | Spanish main language | English in business areas |
Climate and Weather in Panama
Panama’s tropical climate is warm year-round with temperatures averaging 24°C to 30°C (75°F–86°F). The dry season runs from December to April and the wet season from May to November.
- Panama City: Hot and humid; frequent afternoon rains in wet season.
- Boquete (Mountains): Cooler climate, 17°C–25°C (63°F–77°F), popular with retirees.
- Pacific Coast: Drier climate with sunshine year-round.
Cost of Living in Panama
| Expense Category | Average Monthly Cost (USD) |
|---|---|
| Rent (1–2 BR Apartment) | $600–$1,500 |
| Utilities | $80–$200 |
| Groceries | $300–$500 |
| Private Healthcare | $100–$300 |
| Dining & Entertainment | $150–$400 |
| Transportation | $50–$150 |
Visas, Residency, and Legal Pathways
Panama offers several residency options. The most popular include:
- Panama retirement visa (Pensionado Program) — requires $1,000/month pension.
- Panama Friendly Nations Visa — for citizens of over 50 approved countries.
- Panama citizenship by investment — available through qualifying real estate or economic contributions.
See detailed Panama residency requirements or consult a Panama immigration lawyer for assistance.
Best Places to Live in Panama
From modern city life to tranquil highlands, Panama offers something for everyone.
- Panama City: cosmopolitan, business hub, vibrant nightlife.
- Boquete: mountain retreat, popular for retirees.
- Coronado: beachside living with expat conveniences.
- Pedasí: small surf town with relaxed pace.
See more in our guide to expat neighborhoods in Panama City.
Transportation and Driving
Panama City has modern public transit, metro, taxis, and Uber. In other areas, owning a vehicle offers more flexibility. Visitors can drive with a foreign license for up to 90 days before requiring a local license.
Internet, Banking, and Daily Life
Panama offers reliable broadband with average speeds of ~100 Mbps (Source: Ookla, 2025). Banking is stable and uses USD. Opening a local account requires ID, income proof, and residency status. For remote professionals, see our article on how to open a bank account.
Safety and Healthcare
Panama is one of Latin America’s safest countries. According to the U.S. Embassy, major urban and expat areas are considered low-risk. Private hospitals like Punta Pacifica and Hospital Nacional provide U.S.-standard care. Learn more in our detailed post on healthcare in Panama.
Frequently Asked Questions About Living in Panama
- Is Panama a good place to live for expats?
- Yes, Panama offers excellent infrastructure, affordable living, and diverse residency options for foreigners.
- What is the cost of living in Panama?
- Expect $1,500–$2,500/month for moderate living and $3,000+ for luxury lifestyles.
- Do I need a visa to live in Panama?
- Yes. Common options include the Friendly Nations Visa, Pensionado Visa, or Investment Visa.
- Is Panama safe?
- Yes. It ranks among the safest countries in Latin America, especially in expat-friendly communities.
- Can I work remotely while living in Panama?
- Yes, the digital nomad visa allows remote professionals to live locally while earning income abroad.
Start Your Relocation Journey with Experts
International Relocation Firm has over 20 years of experience helping foreigners relocate to Panama. Our legal team provides visa, residency, and real estate assistance from start to finish. Contact us to make your move to Panama simple and secure.