Living in Panama: Banking in Panama as an Expat

Last Updated on October 7, 2026 by Retire in Panama

If you are moving to Panama, learning about your banking options as an expat is essential. There are a couple of options available, each with its benefits and drawbacks.

This article from our Living in Panama series is designed for your personal money and money you will use to live here. It is intended for something other than those who are looking to transfer investments and more complicated financial matters. We will talk about that in our advanced banking and money section.

Opening a Bank Account in Panama

One popular Panama banking option is using a local bank in addition to your home bank. Many larger banks have branches throughout the country, making it easy to access your money when needed. Additionally, Panama’s banking system is relatively stable, so you can feel confident that your money will be safe.

If you have a local bank in Panama, you will not have any international banking fees; you can use it to pay your local utility bills, transfer money to people locally, maybe a maid or gardener, or pay your rent. There are no real disadvantages to having a bank account in Panama.

The requirements to open a Bank Account in Panama with most banks are close to the same.

• You must be a Panama resident or in the process of residency
• A bank reference letter from your current bank
• You may be asked for a rental lease agreement or home purchase contract to prove you reside in Panama.
• Proof of income; this can be your pension letter that your lawyer used for your pensionado visa, or it can be the last two years of your tax return from your home country.
• Passport and secondary ID
• A Cash deposit in the neighborhood of $500 – $5000 depending on the bank.
• Once you have this information, depending on the bank, the process can take a few days to a couple of weeks.

First, let’s step back for a month or two before you move to Panama and consider a few things. How are you going to get your money into the Panama bank account? International wire transfer is the only way. For those in the US, it is pretty simple, and the currency used in Panama is pegged to the US dollar so that you can send a US wire transfer without exchange rate fees.

For those who live outside of the US, you may want to sue a service like wise.com to do your wires, as they take a lot less commission than banks on foreign exchange. More on this is explained below.

Most people, who have never sent an International wire transfer, may not have that option in their online banking. You may need to visit your bank to turn this option on. Once you are all set up for international wire transfers, then you are good to go.

I recommend sending a test transfer before you leave for Panama to make sure everything works. Your Panama bank will give you the information you will need, like the SWIFT code of the bank and any intermediary banks if required. Most of the larger banks in Panama and the US will not need intermediary banks to make a transfer. For example, I can log in to my Bank of America banking and send a wire transfer directly to my Banco General account, which will arrive in two hours.

Sending wires is a costly undertaking. On your home bank side, rates for sending rates vary; sometimes, you can get monthly plans that cover a couple of wires; on the Panama side, it will cost you $25 – $50 per wire. So, sending small amounts is not advised. Many expats send three months of expenses at a time.

For non-US people, you will have to deal with currency exchanges. The best way to do this is to transfer the money through a currency exchange provider, like Wise, formerly Transfer Wise. You wire Wise the money; they send it to your Panama bank. You will usually find that the exchange rate is much better than directly from a foreign bank to Panama. This process will take a day or two for the transfer to happen.

Another option for US expats living in Panama, and using a Panama bank, is to deposit a personal check from their US bank into their Panama bank. Most banks charge $10 to $20 for this service, and some have limits like $3000 monthly for new customers. The only issue here is that it will take up to 21 days to clear.

Once you have received your permanent residency, there is an option for US expats to have their Social Security checks deposited directly into their Panama bank without any fees. This process is handled through the US Embassy in Panama City and can take some time to complete.

Canadians can get their CPP or OAS directly wired to them from the Canadian Government, but you will incur wire transfer fees here in Panama.

Recommended Banks

There are many banks in Panama, actually close to 100.  Over the years, we have worked with many, and below are the three we like most, especially for serving new expats.

BAC (Baccredomatic) – 2nd-largest bank network in Panama—English online banking and app, with English spoken in most branches.

Banco General – Largest private bank in Panama, but unfortunately no English online banking, and finding English support in branch is sometimes difficult.

Global Bank – Good bank with an English App and good customer service.

Living in Panama Without a Panama bank Account

Some expats choose not to open a bank account in Panama but live off their credit cards or debit cards back home. Before you do this option, you need to check with your bank what your foreign transaction fees will be. They can be pretty hefty. Also, to withdraw cash from ATMs in Panama, the maximum you can withdraw at a time is $250, up to the daily limit allowed by your bank. There is a fee of $5.25 at the Panama end for every withdrawal and usually a fee from your home bank.

So if you have a Panamanian landlord, who only wants cash or Panama bank to Panama bank transfer for rent, that can be very inconvenient.

You must be careful with the US banks claiming, “we refund all foreign transfer charges.” Sometimes this means when you are traveling, they expect you will be using your cards in your home country most of the time, so this may work for people living in Panama for a few months a year. Still, your bank may stop refunding you those foreign fees for full-time expats as they realize you are no longer a full-time resident in your home county. Read the terms and conditions on your bank accounts to determine the rules for getting foreign transaction fees refunded.

One Final Thing to Consider when banking in Panama

If you use OTPs (One Time passwords delivered by text to your cell phone) to access your online banking or investment accounts, you need to consider how you are going to handle that when you make the move to Panama. Check out the How to handle your Phone Numbers article.

Conclusion to Banking in Panama

This is one more little step to prepare for your move, but it is really an important one. Having access to your funds is crucial in your new life in Panama.  Another good read for you to understand banking more in Panama is this article: The Banking System of Panama, and the Currency of Panama.

 

 

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