Best Places to Live in Panama for Expats: Full Guide
Last Updated on October 7, 2026 by Retire in Panama
Panama ranks at the top of the list of the world’s best places for expats to realize a comfortable and affordable retirement… It’s that whole living in paradise in a first-world setting, surrounded by tropical beauty. With new infrastructure, tax benefits, and everything from mountainous terrain to beachfront property to develop, Panama attracts retirees, remote workers, families, and adventurers from all over the map.
But one of the first questions new arrivals face is, where’s the best place to live in Panama? It all depends on your lifestyle, what you like, and what you spend! Whether you’re after cool mountain air, a creaky village inn, or a beachside bungalow, Panama has a destination for you.
Here’s a deep dive into six great places for expats to live in Panama—all special in their ways, depending on your expat “dream.”
Boquete, Chiriqui: The Highlands Haven
Why Expats Love It:
Nestled in the green mountains of western Panama, Boquete is widely considered one of the most expat-friendly spots in the country. Famous for its year-round spring-like climate, scenic beauty, and welcoming community spirit, Boquete offers a peaceful yet active way of life. Look for retirees drinking coffee in town squares, entrepreneurs working in businesses, and artists drawing inspiration as fast as a postcard from the dazzling countryside.
Lifestyle Highlights:
- Temperature: 60-75 (15-24).
- Lush paths, waterfalls, coffee plantations, and bird-watching paradises
- (There are lots of clubs and events for the large expat community)
- There is a wide range of homes – from gated developments to farmhouses and mountain villas.
Healthcare and Services:
Quality health care is easily accessible in Boquete at the clinics, and full-service hospitals are just 30 minutes away in David. The town is even home to international groceries, farm-to-table markets, and English-speaking service providers.
Who It’s Best For:
Retirees, remote workers, and outdoor enthusiasts who want a low-key but active life with modern amenities and a tight-knit community.
Other popular towns near Boquete include Volcan, Dolega, Palmira, and Potrerillos.
Panama City: The Manhattan of the Americas
Why Expats Love It:
It is the country’s largest city and capital, known as the nation’s top center for commerce and culture. It is modern and cosmopolitan, with high-speed internet, luxury apartments, and a skyline that could rival Miami’s.
Lifestyle Highlights:
- Penthouses with city and ocean views.
- Excellent restaurants, rooftop bars, shopping centers, and museums.
- Direct flights to the U.S., Europe, and Latin America in and out of Tocumen International Airport
- Top hospitals like those connected to John Hopkins
Housing and Cost of Living:
While housing is more expensive than in other parts of the country, it is among the cheapest of any major city in North America. Condos, colonial apartments in Casco Viejo, and family homes in suburbs like Clayton and Costa del Este have you covered.
Who It’s Best For:
Professionals, business owners, or expats seeking a real urban life centered on business, culture, and world travel.
Coronado: Panama’s Pacific Beach Escape
Why Expats Love It:
Coronado is one of the most developed beach towns on the Pacific Coast and has a relaxed, slightly upscale vibe. Expats who want to live in the ocean but also want comfort and access to modern conveniences call it home. It’s also one of the easiest places to move to in Panama because of the large English-speaking community and established North American infrastructure.
Lifestyle Highlights:
- Open sandy beaches with calm waters for swimming and paddleboarding
- Supermarkets, hardware stores, and international clinics with sufficient provisions
- Private golf, tennis, and beach clubs
- Friendly expat community that has frequent events, meetups, and charity projects
Proximity to the Capital:
Just 90 minutes from Panama City, Coronado offers the best of both worlds: beach life and proximity to the city. Some residents drive to the capital for special shopping or medical visits.
Who It’s Best For:
Retired part-time or full-time beach bums and families who prefer a condo/resort-type neighborhood with easy amenities.
Nearby expat beach communities are also Nuevo Gorgona, San Carlos, Buenaventura, and Rio Hato.
Pedasí & the Azuero Peninsula – Real Panama with a Twist
Why Expats Love It:
The Azuero Peninsula is known as “the soul of Panama.” Pedasí is the expat-favored place where the residents go to keep it real, live quietly, and feel deeply embedded in Panama’s authentic culture. It’s even less developed than Panama City or Coronado, which only adds to its appeal to people seeking an easygoing way of life.
Lifestyle Highlights:
- Folk Festivals, parades, and local culture are outstanding.
- Beaches without crowds, fabulous fishing, and sightings of whales
- Inexpensive housing, quiet streets
- Rise of the expats and eco-friendly developments
Community and Environment:
Pedasí is Rural but has the oh-so-right small-town feel of artists, yoga classes, boutique hotels, and organic markets. It’s great if you want to unplug and get unplugged, but it’s not entirely isolated.
Who It’s Best For:
Expats who wish to assimilate into local culture have people and places to bond with, and if they prefer to live life on the coast in quiet obscurity and enjoy the rustic old world plus modern amenities.
Nearby expat communities are Chitre, Las Tablas, and Playa Venao.
David, Chiriquí: City Comforts Without the Capital Cost
Why Expats Love It:
David is Panama’s mid-sized city and the capital of its Chiriqui Province. The country’s Pacific end is near the Costa Rican border. Perhaps there’s a lack of a big tourist draw like Boquete or Bocas. Still, its low prices, ease of access, and logistical appeal have indeed started to attract expats.
Lifestyle Highlights:
- Some facilities: Malls, banks, hospitals, and schools
- It’s a lot less expensive to live than in Panama City
- Near Boquete (30 to 40 minutes) and Pacific beaches like Las Olas.
- Border exit to Costa Rica, good shopping, and traveling opportunities.
Housing and Transportation:
The cost of living is affordable, housing is cheaper than in Panama City, and public transportation is easy to use. David also has an airport with several daily flights to Panama City and international destinations.
Healthcare in David
Apart from Panama City, there are more private Hospitals and specialists in David than in the rest of the country.
Who It’s Best For:
Budget-minded expats, families, and those who want a home base near mountains and beaches, as well as the amenities of a modern town.
Bocas del Toro: Life on the Caribbean Island
Why Expats Love It:
Bocas del Toro is a tropical archipelago on Panama’s Caribbean coast, a place that feels like another world. Stilted, colorful houses, boats instead of cars, and a reggae beat in the air make for a most chilled-out island lifestyle. It’s way under the radar compared to many of the destinations we’ve mentioned on the mainland, so it is ideal for expats of the more intrepid variety who seek beauty and the freedom to think, collaborate, and create.
Lifestyle Highlights:
- World-renowned scuba diving, snorkeling, and surfing
- Island towns that are alive, with restaurants, bars, music
- Sustainable living, fully 100% off-the-grid homesteads available
- A diverse crowd of expat artists, digital nomads, and young families.
While electricity and internet on the islands can be sporadic, other parts are becoming increasingly modernized. The main island, Isla Colón, is developed; the more remote outer islands appeal to those seeking exclusive solitude.
Who It’s Best For:
The adventurous expats, the eco-conscious, the digital nomads, the Caribbean dreamers (and those who’d like to live it, can’t afford it).
Final Thoughts: So, Which One Is the “Best”?
That is the magic of Panama: the country is so incredibly diverse, geographically and culturally. There is no one-size-fits-all expat destination. Here’s a short guide to help you decide:
✅ Boquete – Ideal for cool climates, nature, and a vibrant expat social life
✅ Panama City – Ideal for city slickers, quality living, and staying connected
✅ Coronado – Best for beachfront luxury, golf, and access to the capital
✅ Pedasí/Azuero – Top choice for authentic culture and slow beach life
✅ David – Great for value and close to both beaches and mountains
✅ Bocas del Toro – Perfect for island dreamers and alternative lifestyles
For many expats, renting in a few different areas or going on a scouting trip is essential before they make a permanent decision. Panama makes it easy thanks to great road systems, domestic flights, and diverse short- and long-term rentals.
Ready to start your life in Panama?
Panama’s diverse climate, culture, and cost of living mean there is something for everyone. Whether you’re lured by misty highlands, sun-drenched beaches, impressive city life, or something in between, you’ll discover that Panama not only looks lovely and costs less but also invites the free, connected, and purposeful life you’re searching for. So , how do we make such a transition?
Explore Panama with us on our Small Group Tours, 7-day Cross-Country Tour, or 3-day Chiriqui Highlands Tour. Don’t need a tour? Get our Panama Total Access Pass with Lifetime Membership to all the contacts you need, a Book to learn about Panama, and direct contact with Oscar, Megan, and Rod to make your dream of moving to Panama a Success. Let us Help You Call Panama home!
Oscar, Megan, & Rod
Retire in Panama Tours
Helping You Call Panama Home!
