Is Panama A Good Place To Live In 2025?

Are you wondering if Panama is a good place to live in 2024? In this post, I’ll share my Panama experience and the pros and cons of calling this Central American country home.

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Is Panama A Good Place To Live?

The short answer is yes. According to Expat Insider, Panama ranked 1st out of 53 as the best place overall to live overseas. You can’t beat that!

Panama is affordable, welcoming, and offers a comfortable life away from the rat race. It has more of an American vibe than neighboring Costa Rica, with a vibrant culture, and beautiful landscapes.

Expats who move to Panama can choose their ideal place to live: mountains, beaches, volcanoes, islands, rural getaways, or city life. The stable economy, currency, and political environment make this country a great choice for singles, couples, and families alike.

Is It Expensive To Live In Panama?

Many people move to Panama for the low cost of living, but how cheap is it? The truth is, it depends. Rural areas tend to be cheaper than cities, and lifestyle choices have a big impact on budget.

According to International Living, a couple can live quite comfortably in Panama on an average of $2000 to $3000 a month.

Transportation, groceries, and healthcare are reasonable, while real estate can run the gamut. It’s possible to find affordable housing or splurge on properties that cost upwards of half a million dollars.

Pros and Cons of Living In Panama

Let’s take a look at some of the top pros and cons of living in Panama so you can decide whether it is a good place for you.

👍🏻 Pros

✔️ Reasonable Cost of Living

According to Expat Insider’s 2024 report, 74% of expats in Panama are happy with their financial situation. Over 88% say that their disposable income is either enough or more than enough to live comfortably. This makes Panama attractive for anyone looking for a relaxed lifestyle at a better price point than what is available in the United States. 

✔️ Plenty of Visa and Residency Options

Unlike some third-world countries, where the red tape is a nightmare and visa options are limited, Panama offers many opportunities for expats.

Retirees enjoy the benefits of the Pensionado visa, while digital nomads can take advantage of the short-term remote work visa. The Friendly Nations Visa offers excellent permanent residency options to citizens from select countries.

Learn more about Panama’s five best residency visas from Forbes.

It’s easy to enter the country and scope things out on a tourist visa before choosing the best longer-term residency option for you.

✔️ Good Medical Care

Medical care is easily available, affordable, and of good quality. Expats can opt into the public health care program or purchase international health insurance.

Hospitals in the public system sometimes suffer from supply shortages, though, so if you’re looking for the best possible care, private is the way to go. Panama City offers the top private hospitals in the country.

✔️ High Safety Rating

Safety is always a concern when moving abroad, but we have good news! Panama is quite safe and stable. According to Expat Insider, nine out of ten expats felt safe in Panama.

✔️ Great Climate

One of the perks of living in Panama is the fantastic climate. Temperatures are fairly consistent year-round, with a rainy season and a dry season. If you love tropical heat, choose to live at lower elevations, while those seeking cooler climes should opt for elevated regions.

✔️ Sociable Culture

Expats in Panama report feeling welcome and at home. The friendliness of the locals makes it easy to get to know one’s neighbors and make friends. You can also find people from similar situations or even your home country to connect with through expat community groups.

✔️ Delicious Cuisine

Amazing seafood, tacos, and tropical fruit make daily life in Panama a tasty treat. The food is delicious! Be sure to try Sancocho, as well as the myriad regional dishes that make living here a culinary feast.

✔️ The Great Outdoors

Panama has mountains, beaches, cities, striking coastlines, gorgeous islands, and eye-catching highlands. All of this diversity makes it a blast to live here. Hike, swim, explore the jungle, climb volcanoes, and more.

Living among the natural beauty of this Latin American country is a pleasure.

❌ Cons

As with any country, some things aren’t perfect or ideal. Let’s take a look at a few.

👎🏻 Infrastructure Issues

Roads in Panama are often poorly maintained, bumpy, and full of potholes. Power and water often go out, and the internet can be spotty.

Still, there are ways around these issues. Traveling is still possible, but distances may take longer to cover. Many expats purchase a backup water tank and a generator to offset the inconvenience. 

👎🏻 Language Barriers

Communicating can be a struggle if you don’t know Spanish because many locals speak it exclusively. Learning as much of the language as possible is a good idea so you feel comfortable dealing with daily life and can understand what is happening around you.

👎🏻 Bureaucracy

Panama has one of the highest power distance indexes in the world. With it comes layers of hierarchy, complex rules and procedures, and lumbering processes. Getting things done can take a lot of time and effort. If you have a business or lead a team, this is something to keep in mind. 

👎🏻 Slow Pace of Life

If you’re used to efficient, streamlined processes and a snappy pace of life, Panama will require a big adjustment. The pace of life here is easy-going and slow. Expect delays and complications, and for things to take longer than they would in North America.

Keep in mind that Panama’s slower pace of life can also be a benefit. You won’t have to rush around and be busy constantly. There’s time to pause and enjoy life and chat with your neighbors.

👎🏻 Cash Economy

Vendors primarily accept cash rather than credit and debit card payments. Having cash on hand all the time and paying bills in person can be inconvenient. It can also be harder to keep track of your funds this way, and you’ll have to be more aware of potential scammers.

Note: Panama accepts both the local currency (the Balboa) and U.S. dollars.

👎🏻 Local Job Market

If you’re hoping to find a job in Panama, you may be disappointed by the number and quality of local opportunities. According to an Expat Insider 2024 report, only 27% of respondents were happy with the Panamanian job market (versus 41% of expats globally).

Many expats find satisfactory work as digital nomads or remote workers. Others start their own businesses, while others seek work with international companies.

👎🏻 Cultural Adjustments

Culture shock—or culture stress—is an inevitable and normal part of moving abroad. It will take time to adjust to the differences in Panamanian life and culture. Some things may be confusing, annoying, and incomprehensible. You’ll encounter different laws, different worldviews, and different ways of doing things. 

👎🏻 Bugs, Dogs, and Noise Pollution

Even though parts of the country are Americanized thanks to the Canal era, Panama is less sanitized than many people from first-world countries are used to.

Locals love to party, and they may play music at such volumes that your windows rattle, and not even earplugs can ensure a good night’s sleep. Packs of stray dogs roam the streets and run around barking loudly at night. There are also lots of bugs that inevitably get inside the house.

Best Places To Live In Panama

Panama offers a wide variety of great places to live. Here’s a quick guide to the top expat-favored spots.

👉🏻 Panama City

If you love city life, there’s probably no better place to live than Panama City. This vibrant metropolis offers a unique combination of historic architecture, modern skyscrapers, and access to many of the country’s attractions.

Although the cost of living is higher than in other areas, the city offers a thriving arts and food scene, excellent healthcare, great international schools, and plenty of job opportunities.

Beaches, rainforests, and the Panama Canal are only a short drive away.

👉🏻 Pedasi

Is beach life calling your name? If so, consider making Pedasi your new home. This fishing town on the Pacific coast is laid-back, friendly, and charming. It offers all the essential amenities along with amazing marine life and a warm community.

Residents of Pedasi enjoy a peaceful lifestyle with access to natural wonders. It’s an excellent place to surf, snorkel, fish, and whale watch.

👉🏻 Boquete

Not everyone favors the heat and humidity of Panama’s coast. For a more temperate climate, consider living in the mountainous town of Boquete. It’s perfect for outdoor enthusiasts and retirees and is a fantastic place to enjoy rafting, hiking, bird-watching, and fresh mountain air.

Although residents of Boquete benefit from a peaceful lifestyle, the town isn’t a backwater. There are good healthcare and shopping opportunities here.

👉🏻 Coronado

Coronado is a beach town about 1.5 hours from Panama City. The weather is warm and humid, and the ocean is alluring. Enjoy swimming, sunbathing, surfing, biking, walking, and bonfires on the beach. It is a quiet and peaceful place. The roads have a bad rap, but the town has good amenities and a warm and welcoming community. It’s a favored spot among expats.

👉🏻 Volcan

Volcan is an excellent place to live if you’re looking for a small-town vibe in the shadow of a striking volcano. Despite its rural location and lower cost of living, residents enjoy access to healthcare, supermarkets, and varied dining options. Cooler weather, gorgeous landscapes, and fantastic outdoor activities abound. Enjoy hiking in search of waterfalls, bird-watching, and exploring coffee plantations and forests.

👉🏻 Chitre

If you’re seeking a more authentic local vibe, Chitre could be a great choice. The city is known for its rich culture and history, vibrant festivals, and traditional crafts.

Modern conveniences, a reasonable cost of living, friendly locals, and easy access to nearby forests, beaches, and charming villages make this a wonderful place to call home.

👉🏻 David

The city of David, in the Chiriquí province, is rapidly growing but has a small-town feel. It offers access to schools, shopping centers, restaurants, and hospitals. Local festivities are also a draw. Plus, it’s a perfect jumping-off point for exploring the nearby beaches, rainforests, and highlands of Boquete.

A warm climate, natural beauty, and a rich culture set David apart.

Frequently Asked Questions: Is Panama A Good Place to Live?

Conclusion: Is Panama a Good Place to Live?

Expats ranked Panama the best overall place to live overseas in 2024. It’s easy to settle in and live comfortably, the locals are friendly and welcoming, and there are plenty of great visa and residency options to streamline the red tape. Panama has beautiful landscapes, delicious food, and plenty of fun recreational activities to enjoy. What do you think? Are you going to start packing your bags?

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