The cost of living in Panama is considerably lower than it is in the United States, Canada or Europe.  Your lifestyle will determine whether you live in a high rise penthouse overlooking the harbor in Panama City, a beach bungalow on either the northern or southern coast, or a planned community with a golf course and major amenities in Boquete.  Whichever you choose, your daily and monthly costs will be less than you are used to.

A 1,100 square foot 3/2 unfurnished, freestanding house NOT in a planned community but in Boquete is available for $375US per month.  A 3/3 American style home of 2,200 square feet is available for $850US per month, furnished.  Moving to the luxury communities with new construction, swimming pools, golf courses and infrastructure is of course more expensive, with rents averaging $1200US per month. 

Thinking of living in Panama City?  Then the cost of renting an apartment will be much higher – probably in the $2,000 - $3,000US range per month.  But these are magnificent apartments and in the current economy there are many available. Panamanians are used to negotiating!

Prices for purchasing homes vary as well, with an average HOA-community -home running in the $250,000US range, with a pool.   

Aside from housing, the daily cost of living is what is amazing!  Want a full-time maid?  Think $200US a month – at the most, and you’ll have not only all your cleaning done, but the laundry and ironing, five days a week!  A great, full-course meal at a top restaurant?  $25US.  Movies?  $4US, and that’s without the “pensionado” discount.

Speaking of the “Pensionado Program”, the following is a list of some of the discounts available if you qualify:

• Import tax exemption for household goods
• Tax exemption to import a new car every two years
• 25% discounts on utility bills
• 25% discount on airline tickets and 30% on other transportation
• 15% discount on loans made in your name
• 1% reduction on home mortgages for homes used for personal residence
• 20% discount on doctor's bills
• 15% on hospital services if no insurance applies
• 15% off dental and eye exams
• 10% discount on medicines
• 20% discount on bills for professional and technical services
• 50% discount on entrance to movie theaters, cultural and sporting events
• 50% discount at hotels during Monday to Thursday, 30% on weekends