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.
Showing posts with label Cost of Living in Panama. Show all posts
Showing posts with label Cost of Living in Panama. Show all posts
Sunday, June 14, 2009
Sunday, February 1, 2009
Benefits to Retiring in Panama
Many North Americans now have another place to retire. Besides Florida and New Mexico, Panama Central America is now one of the best places to retire. So what is the big deal with Panama?
Economy in Panama:
The North American economy has taken a big downturn and costs of living have risen drastically over the last decade. Not so in Panama. The country’s economy has proven rock stable and with more ships passing through the Panama Canal, foreign trade has never been better. Further, Panama has established a solid infrastructure in its backing and agriculture industries.
The American dollar is widely used all over the country. One does not have to worry about currency conversions and other charges.
Climate in Panama:
The climate of Panama is exceptionally beautiful. All year warm weather along the sea and nice cool air high in the mountains. Of course, there is no snow in this tropical country. For both young and old, Panama has a little of everything.
People in Panama:
The people in Panamaare very friendly and accustomed to foreigners. Having had an American presence in the country for many years has also resulted in the availability of many North American products.
Cost of Living in Panama:
The cost of living in Panama is much lower than most countries in Europe or America. The quality of life is high and the government offers many social services for retirees.
For the retiree in Panama, one can get discounts on shopping, air flights, prescription drugs, dental visits, electric bills, telephone and water bills. In addition, one can bring in all the household goods free of tax and import a new car every 2 years- as long as this is for private use.
Most of Panama is well developed and basic services like hospitals, banking, shopping and postal services can be found in all towns. For those who are interested in buying real estate in Panama, there are some rules and regulations that need to be followed. It is best to get a local lawyer before investing in any property in Panama. While it is not difficult to buy property, one should be well read and knowledgeable about the basics of real estate laws.
The qualifications for a retiree to come to Panama include that he or she be in relatively good health, have a valid passport and have an income of at least $1,000 US per month.
Foreigners who buy property in Panama enjoy the same rights and protection as native Panamanians. Panama has no income tax on whatever you bring from outside the country.
The best advice to all people who want to retire in Panama is to go and see the country first. Take a trip and visit the many towns and cities. Ask questions, go slow and be informed. Panama, unlike many other South American countries has a stable government, and is an inexpensive country and friendly. The best advice can be obtained from retires who already live in Panama. You will see only happy faces!
Economy in Panama:
The North American economy has taken a big downturn and costs of living have risen drastically over the last decade. Not so in Panama. The country’s economy has proven rock stable and with more ships passing through the Panama Canal, foreign trade has never been better. Further, Panama has established a solid infrastructure in its backing and agriculture industries.
The American dollar is widely used all over the country. One does not have to worry about currency conversions and other charges.
Climate in Panama:
The climate of Panama is exceptionally beautiful. All year warm weather along the sea and nice cool air high in the mountains. Of course, there is no snow in this tropical country. For both young and old, Panama has a little of everything.
People in Panama:
The people in Panamaare very friendly and accustomed to foreigners. Having had an American presence in the country for many years has also resulted in the availability of many North American products.
Cost of Living in Panama:
The cost of living in Panama is much lower than most countries in Europe or America. The quality of life is high and the government offers many social services for retirees.
For the retiree in Panama, one can get discounts on shopping, air flights, prescription drugs, dental visits, electric bills, telephone and water bills. In addition, one can bring in all the household goods free of tax and import a new car every 2 years- as long as this is for private use.
Most of Panama is well developed and basic services like hospitals, banking, shopping and postal services can be found in all towns. For those who are interested in buying real estate in Panama, there are some rules and regulations that need to be followed. It is best to get a local lawyer before investing in any property in Panama. While it is not difficult to buy property, one should be well read and knowledgeable about the basics of real estate laws.
The qualifications for a retiree to come to Panama include that he or she be in relatively good health, have a valid passport and have an income of at least $1,000 US per month.
Foreigners who buy property in Panama enjoy the same rights and protection as native Panamanians. Panama has no income tax on whatever you bring from outside the country.
The best advice to all people who want to retire in Panama is to go and see the country first. Take a trip and visit the many towns and cities. Ask questions, go slow and be informed. Panama, unlike many other South American countries has a stable government, and is an inexpensive country and friendly. The best advice can be obtained from retires who already live in Panama. You will see only happy faces!
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