The 2025 Expat Guide to the Cost of Living in Panama
Last Updated on November 25, 2025 by Retire in Panama
The international community in Panama continues to attract people seeking cost efficiency, comfort, and tropical climate conditions. Moving to Panama requires knowledge of living expenses, as they affect the transition for people of all types relocating. This guide provides a detailed overview of living expenses for 2025.
🏠 Housing Costs
Housing costs vary depending on where people live and their personal lifestyles. Housing in highly populated expat areas is much more expensive than outside them.
People living in Panama City can find nice one- and two-bedroom apartments for rent starting at $800 to $1,500 per month.
Expats living in Boquete can find lovely 2-bedroom homes with yards just outside of town, starting at $800 a month. More luxurious homes or living in gated communities can cost $1500 – $2500.
In the Coronado/Nuevo Gorgona area, you can rent two-bedroom apartments with ocean views starting at $1000 a month.
Outside the expat bubble, prices can be 30%—50% lower in places like Penonome, Chitre, Las Tablas, Santiago, Dolega, and David.
Apartment for Rent in PH Metric Panama City Price: $1,300
Furnished
100m2
3 Bedrooms
2 Bathrooms
1 Parking Space
Bahia at Playa Serena, Nueva Gorgona, $1,200 Per Month
2 beds · 2 baths
1200 square feet
AC
In-unit laundry
Garage parking
A large, beautiful house for rent in Los Algarrobos – $500
Between Boquete & David
3 Bedrooms, 2 Bath
Alto Boquete Price: $950.00
Bedrooms: 3 Bedrooms
Bathrooms: 2 Bathrooms
Lot: Lot: 600m2
Construction: Const: 135m2
Buying property in Panama is currently all over the map. There are some great deals to be had, and some people ask way too much for their properties. The current real estate market is overpriced. You can see this by looking at the real estate site and seeing the word “Price Reduction” repeated.
Panama City and the Beaches area, 1.5 hours away, have some excellent deals with prices we haven’t seen since around 2015. In the Boquete market, the higher-end product seems overpriced but is still selling; it can take a long time to market. Boquete is finally seeing a developer trend pushing homes in the $100,000 – $250,000 price range, which has not been seen a lot before.
Here are some examples of what is currently on sale in Panama
Charming 3-Bedroom Villa for Sale – Las Lajas, Near Coronado! $ 135,000
3-bed, 2-bath villa
1,076 Sq. Ft. (100 m²) of airy living space
High ceilings & open layout
Gated community with pool access
2,313 Sq. Ft. (214.92 m²) lot
Surrounded by lush nature & mountain views
Fast internet & paved roads
Just 15 minutes from the beach!
2-Bedroom Beachfront Condo with Panoramic Side Ocean Views – Nueva Gorgona $ 240,000
1,257 sq ft (116.80 m²) of open-concept living
Stunning ocean views from BOTH bedrooms
Spacious primary suite with walk-in closet and private bathroom
Open kitchen with cross ventilation + mountain views
Large balcony/terrace overlooking the Pacific
Located in Volcancito, Boquete, prices start from $ 165,000.00
2 bedroom, 2.5 bathroom
Homes are 160. 34 mts2 1,700 sq/ft Construction.
Lots from 600.00 mts2
Pedasi New Built Home – $278,500
Total Lot: 2,183 m2 1.2 acre
Total construction: 155 m2 (1,668 sq ft)
Bedrooms: 2
Bathrooms: 2
🍽️ Food & Dining
Residents can buy affordable Panamanian produce while imported items remain more expensive.
Panama’s monthly grocery bill varies by region, but mostly by your eating and buying habits. Many people across the country have reported that the average grocery bill is $200-$400 per person.
The more you shop local and avoid imported products, the lower your cost of living will be in Panama.
A meal at a local Panamanian fonda costs $4–$8, while a three-course dinner at a mid-range restaurant will cost $25–$40 for a single person.
A good friend, Carter, from Las Tablas, gave us the grocery store price sheet from May 2025
💡 Utilities & Internet
Utility expenses depend on usage patterns and the specific location of residence—the most significant differences are in electricity and personal preference. If you live in the mountains, you will not need heat or air conditioning. You will need air conditioning if you live in the Cities or on the beaches. Some people use A/C sparingly, while others keep it on 24/7, so your electric bill can range from $50 to $500 per month.
In Boquete, a 2-bedroom bungalow can have an electricity bill of around $25 a month. On the beach, a 2-bedroom condo, oceanfront, it will be at least $100, maybe up to $250 if you use a lot of air conditioning.
Other household utility bills, such as gas, water/trash, cell phone, and high-speed internet, will range from $80 to $125, depending on where you live.
🏥 Healthcare
Panama provides its citizens with affordable access to healthcare and delivers quality care.
The public system allows people to access low-cost healthcare services, but may lack doctors and medicines, and may not meet the standards most expats are used to.
Expats seeking better quality and faster service have access to private healthcare services. Private local hospital insurance policies cost between $100 and $175 per month, while international plans range from $150 to $500 per month. Younger people will find very affordable international plans.
Depending on where you live, doctor’s appointments cost between $15 and $50.
🚗 Transportation
Panama offers a cost-effective option for its residents to travel throughout the country.
Public Transportation in the City: Bus and Metro fares range from $0.25 to $0.75, depending on the zone. Taxis offer basic fares starting at $2.00.
Uber, a ride-hailing service, is widely available in Panama City and David and typically offers better prices than traditional taxi services.
Public Transportation outside of Panama City is plentiful and very affordable. Some examples are Buses from Boquete to Davi, $1.75, and Buses from Panama City to David, $18. From Coronado to the City, $10. A local taxi to get into town for shopping could be from $1 – $5, depending on how far.
🎓 Education
Education expenses for families with children are a major priority.
International Schools operate within specific tuition bands ranging from $2,5000 to $20,000 annually based on school reputation, location, and curriculum.
🎉 Leisure & Lifestyle
Leisure activities in Panama are reasonably priced.
Gym membership typically costs between $30 and $60 per month.
The price for cinema tickets falls between $5 to $10.
Walk in the many Parks & Trails – $Free
Free or inexpensive outdoor activities include hiking and visiting the beach.
💰 Monthly Budget Estimates
Lifestyle Estimated Monthly Cost
Frugal Single $1,200 – $1,700
Comfortable Single $2,000 – $2,500
Frugal Couple $1,800 – $2,500
Comfortable Couple $2,500 – $3,500
Family with Children $3,000 – $5,000+
The estimated costs vary depending on the residents’ location, choice of residence, and personal way of life.
🌟 Final Thoughts
Panama offers an attractive combination of budget-friendly living, modern amenities, and picturesque surroundings. Proper financial planning enables expats to enjoy a premium lifestyle in Panama without incurring Western-nation-level expenses.
Helping You Call Panama Home!
