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.

Retirement on the Beach in Panama

You must wonder what I do on a day to day basis during my retirement in Panama. As you know I’ve been looking for a small beach house, maybe one or two bedrooms on a nice beach. Do I have fun in Panama apart from beach house hunting. You can bet I do.

Besides improving my Spanish, meeting the friendly people of Panama, dining out and enjoying the cheap beer, my social life which includes eating in some great restaurants and sometime visiting some of the nightclubs of Panama where everyone is eating, drinking, laughing and having fun. It’s becoming a habit, to have fun. I only wish I could have retired here earlier. Besides this, I like to spend a lot of time on the beach.

One of my favourite beaches is the beach at Santa Clara, not far from Panama – about an hour and half drive away. I go here with my Panamanian girlfriend pretty much on the regular basis. There are miles and miles of white hot sand, shimmering blue water and hardly any people. Not too crowded, these are my favourite beaches to go to. The sunsets are magnificent and it’s excellent for swimming. The sun’s pounding down hot. I have my sunscreen, oh and I gotta tell you this, I actually have a Panama hat to protect the old head. Yeah, I bought one for a great price down here. I figured I ought to have one since I became retired and reborn as Panama Joe.

Spending a day at the Santa Clara beach is totally relaxing. We rent a little cabana also known as a palapa for three dollars for the day with hammocks included. There’s nothing like snoozing in a hammock or reading, the noise of the surf in the background. We swim, walk, snooze and buy a nice meal of grilled corvine and patacones which go down nicely with a cold beer. Sometimes, we eat a meal of fresh fish and fried yucca. It’s whatever we please. You can walk for miles on this beach and we do. Picking up the odd shell we might find here and there.

They’re building real estate here, beach front properties and condos around Santa Clara and you can’t blame people for wanting to purchase their own retirement property here. You’ve got the beach and then one is so close to Panama city if you are hankering for the fast life in the city and lots of people.

I’m looking for a small house on the beach in Panama. I’m still looking but don’t feel the rush. Out here on the beach at Santa Clara in my hammock, there’s no rush to do anything. The sun’s setting, a brilliant pink purple red sky over the ocean, am thinking, retirement in Panama, what could be better? If you are thinking of retiring in Panama and you haven't even been here for a vacation yet, you'd better get packing your bags, pronto! You won't wanna leave.

Questions about Retiring in Panama

What is so wonderful about Panama?

Unlike most places in North America, Panama is very affordable. The country is blessed with year round warm weather and it does not have a winter season- just hot summers sprinkled with a rainy season. The entire country is developed and all social and governmental services available in North America are readily available in most parts of the country. Panama City, the capital of the country, has often been compared to Paris. Panama is just like Europe, but with a North American landscape. On either side of the country are two large oceans connected by the world famous Panama Canal.

Should one stay in the city or countryside?

This is strictly a personal preference. While the city has more of everything, the country side also has its benefits. Most of the property in the Panama country side is large, cheap and exceptionally beautiful. By North American standards, one can have a mansion like house for $150,000. The country side is also peaceful, has beautiful surroundings, less traffic and lots more to see. Food is cheaper and there are plenty of agricultural products.

What is the average cost of living for those retiring in Panama?

Well, most Panamanians live under $1000 per month. However, you can do the same but will have to forego many luxuries. One can definitely live comfortably under $1,000 but like anywhere else, you will have to be careful how you spend your money. Besides cheap food; transport, energy and maid services are also quite cheap. If you have anywhere form $1500-$2000 a month, you can live like royalty here.

Can I work part time in Panama?

Unfortunately no. The rules on working in panama are strict and it is rare for a foreigner to get a working visa. With the downturn in the economy, this issue has been made even more complex. For those who would like to work in order to support themselves in Panama, this is not recommended. The average daily wage in Panama is about $10 - $15 a day.

Is the countryside safe?

Definitely. Crime is very low in this country. However, one should always use caution and have the home secure. One does not even have to worry about snakes. Even though poisonous snakes are found in panama, these are generally only found in the jungles. Just like a rattler is not seen in any American city, a Bushmaster is not seen in the towns and cities in Panama.
Is decent medical care available in Panama?

Yes, infact all retirees, irrespective of citizenship get government discounts for health care. Health care is on par with what is seen in America. Even prescription medications are much cheaper than what one pays for in America. Besides health benefits for the retirees, the government also has special services at banks, restaurants, dentists and air travel agencies.

Should I bring my car from North America to Panama?

This is not recommended. Panama has everything and things are a lot cheaper. Even though one can bring in a car and furniture duty free, in the long run this gets to be expensive. Buying or leasing a car in Panama is generally cheaper.

If you have more questions about retiring in Panama, please email me at PanamaJoe [@] ymail [dot] com and I'll answer your questions in another posting.

'til later, Panama Joe.