Panama
Cost of Living in Panama City
Air conditioning is the major variable. Heavy AC usage in this tropical climate can push electricity to $200-300+/month. The Metro ($0.35/ride) makes car-free living possible in central areas. Pensionado discounts provide 25% off utilities for eligible retirees. Imported groceries cost 50%+ more than local products—shopping at Super 99 versus Riba Smith makes a significant difference.
Monthly Total
$2,715
$47,513
Housing (1BR Mid-range)
$1,495
Daily Spend (ex. rent)
$41
Based on a typical expat lifestyle: 1BR furnished apartment, mix of cooking/eating out, rideshare transportation, moderate entertainment. Last updated: 1/14/2026.
Monthly Cost Breakdown
Housing (Rent)
1BR furnished apartment in mid-range neighborhood
$1,495
$26,163
Utilities
Electric, water, gas, and internet
$245
$4,288
Groceries
Groceries from supermarkets
$315
$5,513
Dining Out
Mix of casual restaurants, ~12 meals/month
$96
$1,680
Transportation
Rideshare (Uber/Didi), ~30 rides/month
$150
$2,625
Lifestyle & Entertainment
Entertainment, occasional cleaning service
$204
$3,570
Healthcare
Basic private health insurance
$150
$2,625
Phone & Subscriptions
Phone plan and streaming subscriptions
$60
$1,050
Monthly Total
$2,715
$47,513
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Living in Panama City
Panama City is the most expensive location in Panama but still offers significant savings compared to major U.S. cities. The U.S. dollar economy eliminates currency risk. Electricity costs vary dramatically based on AC usage—budget $150-300/month for comfortable cooling. Neighborhood choice significantly impacts rent: El Cangrejo offers excellent value at $800-1,200 for 1BR, while Punta Pacífica commands premium prices of $1,800-3,500 for 2BR with ocean views.
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