Note — All figures below are in USD (the daily currency in Panama, with the balboa pegged at parity and effectively absent in practice). Last updated May 2026 — prices move fast in Panama City; always cross-check on Numbeo and with 2-3 friends on the ground before any long-term commitment.
The wrong easy answer
“Panama is way cheaper than Paris.”
That’s what I was told before arriving. It’s both true and false. For an espresso at the counter, yes. For a 2-bedroom in Costa del Este, no — it’s aligned with Lyon or Lille. For edible French cheese, it’s pricier than Paris.
The real question isn’t “is it cheaper?” but “where does it cost less, where does it cost more, and what’s your consumption mix?”. This article breaks down the 8 line items that decide 90% of your monthly budget.
1. Housing — biggest line, biggest shock
Housing is 40-55% of an expat budget in Panama City. Three things to know before signing.
Expat neighborhoods and rent ranges
For a furnished 2-bedroom (the standard format for a couple or solo expat who hosts visitors):
| Neighborhood | Profile | Range May 2026 |
|---|---|---|
| Costa del Este | International families, clean, new, quiet | $1,800 – $2,800/month |
| Punta Pacífica | Recent towers, ocean view, premium | $1,600 – $2,600/month |
| Marbella | Business heart, walkable | $1,200 – $2,000/month |
| San Francisco | Lifestyle/cost balance, gentrifying fast | $1,100 – $1,800/month |
| El Cangrejo | Lively, bohemian, restaurants, noisy | $900 – $1,500/month |
| Casco Viejo | Touristy, colonial charm, impractical day-to-day | $1,400 – $2,600/month |
| Bella Vista / Obarrio | Mid-range, mixed Panamanian and expat | $800 – $1,400/month |
I personally paid $1,350/month for a furnished 2-bedroom in El Cangrejo (my first 6 months), then $2,100/month for a 2-bedroom in a recent Costa del Este tower (since April 2025). My floor-mates pay between $1,950 and $2,400 depending on floor and view.
The Airbnb monthly trap
It’s tempting to stay in a “monthly” Airbnb at $50/night for 6 months while you search. Don’t do it longer than 8 weeks. You’ll pay 30-50% more than a local lease, accumulate no rights, and can’t open a bank account (which requires proof of a lease in your name).
What’s included or not
In Panama, the listed rent almost always includes:
- Water (rarely metered separately)
- Building maintenance (gym, pool, 24h security)
- Internet only in some “smart” buildings
The rent almost never includes:
- Electricity ($35-150/month depending on AC use — that’s the big variable)
- Gas ($5-15/month)
- Private internet if the building doesn’t provide it ($35-55/month)
- Extra parking (usually 1 spot included, $50-80/month for a 2nd)
2. Groceries and food
Three supermarkets coexist with very different philosophies. Smart move: shop at the supermarket that matches your weekly budget, not just one all the time.
| Supermarket | Tier | Budget for 2 people/week |
|---|---|---|
| Riba Smith | Premium, imported goods | $130-180 |
| Super 99 | Mid-range, Panamanian, stable | $80-130 |
| PriceSmart (membership card) | American bulk, huge | $90-150 for 10+ days |
| Rey | Mainstream, the most widespread | $70-110 |
| Mercado de Abastos markets | Fresh, farmer prices | $30-50 for fruit/veg/eggs |
My typical mix: Rey for daily (~$85/week), PriceSmart every 2-3 weeks for bulk (sauces, paper towels, laundry), Mercado de Abastos on Saturday for fresh fruit and fish.
What costs more than at home (US/EU)
- European cheeses (camembert, comté, brie): ×2 to ×3
- Wines and spirits: heavy Panamanian taxes — expect $25 for a decent wine vs $8-10 at home
- Imported cosmetics (Sephora at Multiplaza): ×1.3 to ×1.8
- European brand clothing: ×1.3 to ×1.5
What costs less
- Tropical fruit (mango, pineapple, papaya, passionfruit): ×0.3
- Fresh market vegetables: ×0.5
- Excellent local coffee (Hacienda Esmeralda, Janson, Lerida): great quality/price
- Chicken, eggs, rice: aligned or cheaper
- Local beer (Balboa, Atlas, Soberana): ~$1.50 a can in supermarkets
3. Restaurants and going out
This is where Panama shines for expats. Three resto tiers depending on mood:
| Tier | Example | Per person (no alcohol) |
|---|---|---|
| Local “fonda” | Comida corriente, local plate | $4-7 |
| Neighborhood resto | World cuisine, ambiance | $12-22 |
| Premium resto | Casco Viejo, Costa del Este | $35-80 |
| Café-bakery (Athens, Sugar & Cream) | Brunch, coffee, dessert | $12-18 |
For a couple eating out 2x a week at neighborhood level + 1 premium per month: ~$350-450/month.
4. Transport
No car
That’s my current mode. Uber + metro covers 95% of intra-city trips.
| Mode | Typical price |
|---|---|
| Uber intra-city ride | $3-9 |
| Metro line 1 or 2 | $0.35/trip |
| Diablo Rojo / Metrobus | $0.25/trip |
| Taxi (avoid for newcomers — must negotiate) | $5-15 |
My monthly transport budget without a car: ~$180 (Uber + metro mix).
With a car
| Item | Cost |
|---|---|
| Used car 2017-2020 purchase | $8,000-$18,000 |
| Gas (95) | $4.20/gallon (~$1.11/liter) |
| Auto insurance | $600-$1,200/year |
| Residential parking | included or +$50-80/month |
| Office parking | $50-100/month |
| Maintenance + service | $400-800/year |
With a car: ~$350-500/month with average use + amortization.
5. Health and insurance
The Panamanian system has two tiers:
- Public (Caja del Seguro Social) — accessible to Panamanian employees and permanent residents. Slow, hospitals OK but saturated.
- Private — where 99% of expats go. Hospitals Punta Pacífica, Paitilla, Nacional, San Fernando. North-American standard.
Cost of common acts (private)
| Act | Private hospital |
|---|---|
| GP consultation | $50-90 |
| Specialist (cardio, gyno) | $80-160 |
| Full blood panel | $80-180 |
| X-ray | $50-120 |
| MRI | $350-700 |
| Night in private room | $250-450 |
| Uncomplicated childbirth (package) | $4,000-7,500 |
Health insurance — absolutely essential
Without health insurance, a serious medical event ruins you in 48 hours. Three options:
- Cigna Global or Bupa (worldwide, premium): $250-600/month based on age
- Pacífico Salud or Mapfre Panama (Panamanian, large local network): $80-160/month
- SafetyWing Nomad Insurance (transitional, max 90 days/year in Panama): $56/month
For long-term expat with family, I recommend Cigna Global or Bupa. More expensive, but covers medical evacuations, US/France care if needed, and maternity.
6. Internet, phone, electricity
Fiber internet
Four operators, all decent:
- Cable Onda (most stable in my experience) — 300 Mbps: $45/month
- +Movil Hogar — 300 Mbps: $35/month (launch promo)
- Tigo — 200 Mbps: $38/month
- Claro — varies by zone
Phone
All operators offer unlimited plans at $25-40/month. At launch, I went with +Movil prepaid ($15/month), enough for data + national calls. No commitment needed.
Electricity — the big variable
No AC (impossible 9 months of the year, let’s be real): $35-50/month.
AC running 8h/day in a well-insulated 2-bedroom: $80-130/month.
AC 24/7 + TV + computers: $150-220/month.
My trick: I set AC at 24°C (not 20°C like half of Panamanians) and turn it off when out. Result: $65-95/month electricity in a 65 sqm.
7. International schools (if family)
The most expensive line for families. The 3 schools most prized by expats:
| School | Level | Annual fees per child |
|---|---|---|
| International School of Panama (ISP) | K-12, IB, anglo | $17,000-$24,000 |
| Instituto Italiano | Pre-K to baccalaureate, Italian-Spanish-English | $9,000-$13,000 |
| Lycée français Paul Gauguin | Pre-K to baccalaureate, French program | $7,500-$12,500 |
| Crossroads Christian Academy | K-12, anglo, alternative to ISP | $11,000-$15,000 |
First-year enrollment fees often add $2,000-$5,000 non-refundable. Also factor uniforms, meals, field trips: ~$1,500/year/child.
8. Leisure, gym, services, misc
| Item | Typical monthly |
|---|---|
| Gym (Smart Fit, Sports Center) | $30-65 |
| Yoga / Pilates studio | $80-140 |
| Hairdresser (woman) | $30-80 |
| Hairdresser (man) | $12-25 |
| Beauty (manicure, facial) | $30-60 each |
| Movie ticket | $6-9 |
| Average concert / theater | $30-90 |
| Streaming (Netflix, Spotify, Disney+) | ~$25-40 combo |
Three reference budgets — full breakdown
I detailed each line; here are three summaries for common profiles.
Profile 1 — Solo expat, 32, remote worker, no car
| Item | Monthly |
|---|---|
| 1-bedroom Marbella | $1,100 |
| Utilities (elec, internet, phone) | $130 |
| Groceries | $360 |
| Eating out | $220 |
| Transport (Uber + metro) | $180 |
| Cigna insurance | $280 |
| Gym + services | $90 |
| Leisure / streaming | $90 |
| Total | $2,450 |
Profile 2 — Childless couple, 35-45, 1 car, expat-soon profile
| Item | Monthly |
|---|---|
| 2-bedroom Costa del Este | $2,100 |
| Utilities | $220 |
| Groceries | $600 |
| Restaurants 2x/week | $450 |
| Car (gas, insurance, parking) | $380 |
| Health insurance (×2) | $580 |
| Leisure / gym / services | $240 |
| Total | $4,570 |
Profile 3 — Family with 2 kids at French school, 1 car
| Item | Monthly |
|---|---|
| 3-bedroom Costa del Este | $3,200 |
| Utilities | $280 |
| Groceries | $950 |
| Family eating out | $350 |
| Car | $420 |
| Health insurance (×4) | $850 |
| Lycée français (×2 kids) | ~$1,700/month (12-month spread) |
| Kid activities (sport, English) | $350 |
| Adult leisure | $250 |
| Total | $8,350 |
Profile 4 — Retiree (Pensionado), 65, owner, no car
With Pensionado status (see the Pensionado guide), you get 25% off domestic flights, 15% off private hospitals, 20% off doctors, 50% off leisure.
| Item | Monthly |
|---|---|
| No rent (bought condo at $240,000) | 0 (but $220 condo fees) |
| Utilities + elec | $380 |
| Groceries | $420 |
| Eating out | $280 |
| Transport (Uber, metro, bus -25% with Pensionado card) | $110 |
| Bupa Senior insurance | $410 |
| Leisure (reduced with Pensionado card) | $90 |
| Total | $1,690 |
How to cut your budget by 25% without losing quality of life
Three levers I’ve tested:
- Rent in San Francisco instead of Costa del Este: -25% on rent, +10 min Uber to Punta Pacífica. Highly favorable trade-off.
- PriceSmart every 3 weeks instead of Riba Smith every Sunday: -30% on groceries.
- No car the first year. Field test: Uber is so cheap I never needed one. Only justified after a 2nd kid or weekly trips to Coronado.
How to estimate YOUR budget in 30 minutes
Before arriving:
- Pick 2 neighborhoods from the table above based on your profile.
- Go to Encuentra24.com (Panama’s Craigslist) → filter 2-bedroom furnished in your target neighborhoods. Note the first 5 listings, take the median.
- Plug your own habits into the line items above (eating out? car? private gym?).
- Add 15% margin for the first year. You’ll discover unexpected costs: sworn translation, the cédula provisional, lawyer meetings, first furniture purchases, that document you forgot to apostille from home.
Going further
- The Paris/Panama cost comparator tool — input your current expenses, see what they look like in Panama City USD.
- Banks in Panama compared — to optimize transfer fees and card commissions.
- Friendly Nations Visa: 2026 conditions — prerequisite to sign a long lease and to buy.
- Pensionado: retiree’s guide — if you’re heading toward retirement in Panama.
— Inside Panama editorial, from Costa del Este