Is it Cheap Living in Panama

Is it cheap living in Panama? I am often asked this question by people who are thinking of retiring in Panama or they are just plain curious about my life in Panama. People such as tourists I meet or else people back home ask the question.

So what’s my answer to the question of the cost of living in Panama? My answer is yes and no. It depends where you are, depends where you rent or buy. Panama City and probably Boquete I would have to warn you are expensive places (those quite pretty) for buying property in Panama. The prices are high for real estate but they have come down a bit due to the world wide recession. There are cheaper places to buy in besides Panama City and Boquete. For instance, you could try looking in the Azero peninsula, Las Tablas, Pedasi or Chitre. Look for property inland and Panama and you can still find some bargains. I mean, if you are looking for a cheap house, not in the expensive expat retirement areas, you can still find new houses with two bedrooms and bathrooms for about $50,000 to $60,000 US, if you look hard enough. It helps to have a good real estate agent in Panama and, of course, get yourself a lawyer. But with all the investment in Panama and people snatching up property, the prices will naturally rise and rise they have.

Basic necessities of life are quite cheap in Panama. Groceries cost me about $45 to $50 a week. Beer, a basic necessity in life is about 50 cents when you’re not drinking at the Ritz. Healthcare in Panama is reasonable and of a high quality. If you have health issues, best to have health insurance. For the retired person in Panama, the pensionade benefits from the government helps make things cheaper. Like cheaper public transportation, restaurant discounts, theater tickets and discounts like that. I wrote about the government benefits for retired people in Panama in that article.

Restaurants in Panama City are where you can get a good deal – prices, I’d say on average, for a meal is about $15. A dinner date with my girlfriend might cost me about $18 to $20. Do you tip here? Yes, definitely. These wonderful people all have a hard time making ends meet.

Furniture, clothes and electronics, in other words, stuff you need to buy are all had for lower prices because of the Panama Canal and low tariffs. So life is not that expensive but electricity is. Damn the power bill.

I live in an apartment in El Cangrejo Panama city. It’s not the Ritz, don’t get me wrong and I’m paying just under $500 a month. I’m satisfied. I don’t need all the luxuries. Eventually, I want to buy a small beach house in Panama. Location and price are important to me. I don’t own a car here but I use taxis all the time which is pretty cheap – about $2.00 to $5.00 to get around the city. Taxi drivers are mostly honest and sometimes they might pick up someone else at the same time to make some more money. Sometimes I rent a car for times when I need to go to the beach or travel around anywhere long distance.

Sometimes things don’t run as smoothly and as efficiently as you’d like them, like they were back home. There’s no rush, life is more relaxed here. Who needs the frantic life style anyway? I’m retired in Panama and I’m not rushing for anything. Well, maybe for a plane trip to somewhere, I’ll get to the airport as necessary.

The average wages of a Panamanian is about $250 - $300 a month. If you are a retiree in Panama, they don’t let you move down here unless you can prove you have $1,000 a month of income. That’s the last I heard of it. You can check this out with your local Panamanian Consulate if you are thinking of retiring in Panama. If you need to hire labour in Panama to do some work for you – it’s cheaper than back home. Just as efficient, as in turning up when required, well, not quite. You have to get used to life here. What's the rush?

How much do you need to survive a month to live in Panama city? Well, you can make it on $1000 a month, but just live like the locals and you might get by on less. Eat the local food, live like a native. Can you live cheap in Panama? Yes, would be my answer. Can you work here? I hate thinking about work, but I’ll answer the question. That’s for another article I’ll sit down and write some time.

Til next time. I’m heading out to the balcony with my beer to watch the traffic craziness at rush hour in Panama.