Published on and written by Cyril Jarnias
Settling in Panama is not just about buying a plane ticket and booking an Airbnb. From choosing the right neighborhood, navigating residency procedures, understanding the healthcare system, schooling for children, taxes, and importing your belongings, there are many topics to clarify. This 25-point checklist allows you to review everything concretely before the big move.
1. Clarify Your Real Cost of Living in Panama
Before anything else, you need to know how much life will actually cost you. International comparisons show that the general level of prices in Panama is significantly lower than in the United States and, more broadly, major North American cities.
On average, daily living expenses (excluding rent) are about one-third cheaper than in the US. When including housing, the gap often exceeds 35 to 40%. Rents overall are roughly 40 to 50% less than in comparable American cities, for a similar level of comfort.
To give you an idea:
This monthly budget in dollars allows a single person to live in Panama City with a car and modern comfort.
In the provinces, savings can be even greater. In cities like Boquete or Coronado, a comfortable retired couple often spends $2,000 to $3,000 per month, while the same standard of living would cost $4,500 to over $6,000 in an average US city—easily translating into tens of thousands of dollars saved per year.
To visualize some ballpark figures, here’s a summary:
| Profile / Location | Estimated Monthly Budget (excluding excessive luxury) |
|---|---|
| Single – Panama City (moderate) | ~ $2,180 (including $860 excluding rent) |
| Family of 4 – Panama City | ~ $3,000 excluding rent |
| Retired couple – Boquete | $2,000 – $3,000 |
| Equivalent couple – US city | $4,500 – $6,500 |
This first point is crucial: without a clear vision of your target budget, you won’t be able to choose your neighborhood, housing level, or even your tax strategy correctly.
2. Choose the Right Neighborhood in and Around Panama City
If you’re aiming for the capital, your choice of neighborhood will significantly impact your daily life and costs. Panama City concentrates the vast majority of modern services, top-tier private hospitals, shopping malls, restaurants, and of course international schools.
Several neighborhoods are particularly popular among expats:
– Costa del Este
– Punta Pacifica
– San Francisco
– El Cangrejo
– Clayton (Ciudad del Saber)
– Obarrio
– Some parts of Bella Vista (Avenida Balboa corridor)
– Marbella, Altos del Golf, the Cocolí area
Costa del Este and Clayton are especially popular with families due to the presence of international schools, ample green spaces, and newer, spacious housing, while El Cangrejo or Bella Vista offer more mix between locals and expats, with sometimes older buildings but more affordable rents.
Before signing anything, the ideal is to visit two or three neighborhoods in person, taking time to walk at different times of day—morning, evening, night—step into cafes, small shops, and chat with locals and expats already living there. This is the only way to truly feel the vibe, noise level, perceived safety, and quality of life.
3. Understand Rental Prices by Area
One classic trap is relying on a national “average rent.” In practice, the price of the same type of apartment can vary by a factor of three depending on the neighborhood.
Latest data shows, for example:
Price ranges by neighborhood and type of housing
A 1–2 bedroom in San Francisco, El Cangrejo, or Bella Vista rents between $800 and $1,700 per month, with most comfortable units ranging from $900 to $1,600.
In waterfront towers or upscale neighborhoods (Punta Pacifica, Costa del Este, Avenida Balboa), a 2- or 3-bedroom with ocean view negotiates between $1,500 and over $3,000.
Simpler apartments on the outskirts can be found between $600 and $1,000 per month.
Here’s a summary of some typical ranges:
| Type of housing / Area | Typical monthly rent |
|---|---|
| 1–2 bedroom central non-luxury (San Francisco, Cangrejo) | $800 – $1,700 |
| 2–3 bedroom waterfront (Punta Pacifica, Costa del Este, Balboa) | $1,500 – $3,000+ |
| 1 bedroom central Panama City (overall average) | ~ $1,050 – $1,300 |
| 3 bedroom central Panama City | ~ $2,150 |
| 3 bedroom outskirts Panama City | ~ $1,650 |
| 1 bedroom Cangrejo (entry level) | ~ $600 |
| 1 bedroom Punta Pacifica ultra high-end | > $3,000 |
A key point: within the same building, rents are negotiable. Most expats who stay for a year or more manage to get a discount, especially if they are flexible on furnishings or lease duration.
4. Evaluate Real Estate Purchase: Price per Square Meter
If you’re considering buying rather than renting, keep in mind the values per square meter. In Panama City, the average listed price is around $1,900 per square meter (about €1,600), but this hides wide disparities:
In El Cangrejo and some parts of Bella Vista, older buildings have prices below the average. Modern towers in Costa del Este and Punta Pacifica residences far exceed this average, while the luxury segment ranges between $2,500 and $3,500 per square meter.
For comparison, equivalent luxury properties often sell for over $8,000/sq m in San Diego and over $10,000/sq m in Miami. In other words, even the upper segments of the Panamanian market remain, in absolute terms, significantly more affordable than those in some North American metropolises.
5. Anticipate Your Recurring Expenses and Food Budget
Everyday expenses—water, electricity, Internet, groceries, dining out—make up a significant part of your budget.
Data compiled from various comparisons indicate, in particular:
Basic food items can cost nearly 50% less than in the United States.
Concretely, in Panama City:
– Monthly groceries for a single person often run around $200 to $350.
– A couple typically spends between $350 and $550.
– A simple lunch at a local restaurant usually costs between $6 and $12 per person.
– Dinner for two at a mid-range restaurant ranges from $30 to $60.
– A gourmet evening with wine can easily run between $80 and $150 or more for two.
Basic utilities (electricity, water, Internet) for a standard apartment, with reasonable use of air conditioning, often come to around $150–$160 per month.
6. Understand the Healthcare System and Choose Your Coverage
One of the country’s major assets is the quality of its healthcare system, especially private. It consists of two main public components—MINSA (Ministry of Health) and CSS (Social Security)—and a highly developed private sector, mainly in Panama City and David.
In the public system, fees are very low: a consultation at a MINSA health center can cost $1.50 to $5, a visit to a specialist $5 to $10. However, expect long wait times, limited resources, and an almost exclusively Spanish-speaking environment.
The private system functions like in North America or Europe but at much lower costs. Panama City is home to several top-tier hospitals with modern equipment, doctors trained in the US, Canada, or Europe, often English-speaking. Among them are Punta Pacifica, Nacional, and Centro Médico Paitilla.
Prices, without insurance, are generally in this range:
| Procedure/Service | Typical price range |
|---|---|
| General practitioner consultation | $20 – $80 |
| Specialist consultation | $40 – $130 (up to ~$175) |
| Dental cleaning | $40 – $80 |
| Simple blood tests | $15 – $80 |
| Simple X-ray | $18 – $50 |
| MRI | $200 – $900 |
| CT scan | $300 – $600 |
| Ultrasound | $80 – $200 |
| Hospital overnight – average clinic | $200 – $300 |
| Hospital overnight – high-end hospital | $800 – $1,200 |
| Childbirth in private clinic | $3,500 – $7,000 |
For expats, the most common recommendation is to take out private health insurance. Premiums depend on age and chosen coverage level, but the following ballpark figures frequently come up:
Here’s an estimate of monthly insurance costs: an adult in their 30s often pays between $80 and $180; in their 50s, more like $180 to $350; from age 60 and up, $350 or more depending on coverage. For a couple in their 50s, the cost is commonly $300 to $600 per month for both.
Local insurers like ASSA, MAPFRE, or Internacional de Seguros offer plans tailored to nearly exclusive Panamanian coverage, while “expat” insurers (Cigna Global, Worldwide Healthcare, etc.) provide more international plans.
Before leaving, it is essential to:
– Decide whether you will rely on the public system as a “safety net” or want stress-free access to private care.
– Compare several quotes for private insurance, both local and international.
– Clarify how direct billing (third-party payment) works at the hospitals you plan to use.
7. Prepare a Health and Emergency Backup Plan
Living in Panama does not mean a “free” system. Routine care remains affordable, but a major surgery or prolonged hospitalization can quickly cost several thousand or even tens of thousands of dollars without insurance.
Before leaving, make it a habit to:
Before you go, prepare a one-page medical summary in English and Spanish (allergies, medications, surgical history). Note the contact details of public and private hospitals near your future home. Save 911 for general emergencies and SINAPROC (civil protection) contacts if you are in a climate-risk area.
This preparation may seem excessive before departure, but it makes a significant difference the day an unexpected event occurs.
8. Choose Your Residency Strategy: Pensionado, Friendly Nations, Investor…
The country offers a range of permanent or temporary residence visas, with very different conditions and benefits. Before buying a one-way ticket, it is imperative to know which status you will rely on.
Among the major permanent residence schemes:
The Pensionado Visa is for people receiving a lifetime pension or annuity of at least $1,000 per month ($750 with a $100,000 real estate purchase). No minimum age, it allows including a spouse and dependent children with additional income ($250 per person). This status is very popular for its tax benefits and discounts.
In addition, there are many more targeted visas: local contract workers, students, international officials, professionals in free trade zones, etc.
Regardless of the program, several key documents will need to be gathered.
– Criminal record from your country of residence, duly apostilled or legalized.
– Health certificate issued by a local doctor after your arrival.
– Proof of source of funds for investments (bank statements, bank letters, tax returns).
– Civil status documents, often apostilled and translated into Spanish (birth certificate, marriage certificate, etc.).
In practice, working with a Panamanian immigration lawyer is almost indispensable for preparing the file, submitting the application, and following up on the procedure.
9. Understand Territorial Taxation and Your Tax Status
A feature that attracts many expats: the country applies a so-called “territorial” tax system. Simply put, only income considered to have its source within the country is taxable locally. Income generated abroad (dividends from foreign companies, rents from real estate outside Panama, capital gains on foreign stocks, retirement pensions, salaries paid by a foreign employer for work performed abroad) is not subject to local income tax, even if you are a tax resident.
Conversely, anything earned for activities actually performed in the country—salaries from a Panamanian employer, profits from a local business, rents from properties located in the country—is taxable. The brackets are progressive:
| Annual Panamanian-source income | Tax rate |
|---|---|
| Up to $11,000 | 0% |
| $11,001 – $50,000 | 15% on the portion exceeding $11,000 |
| Above $50,000 | $5,850 + 25% on the portion > $50,000 |
These brackets apply to both residents and non-residents for their local-source income. In practice, the key question is not so much “Am I a tax resident?” but “Is my income local or foreign source?”
US citizens remain taxable by the US on their worldwide income, even if they obtain residency or tax residency abroad. However, they may be eligible, under conditions, for partial exclusions such as the Foreign Earned Income Exclusion and the housing exclusion.
Before leaving, it is highly recommended to:
– Consult with a tax professional in your home country about the consequences of leaving.
– Check for the existence of a bilateral tax treaty (there is none with the United States).
– Clarify your sources of income: pensions, dividends, salaries, etc., to determine what might be taxable locally or not.
10. Schooling: Identify Your Options if You Have Children
If you are moving with family, the schooling issue must be resolved well before the move. Educational offerings are concentrated in the capital, which has a significant number of international and bilingual schools.
Broadly speaking, there are three main types of private schools:
International schools follow a foreign curriculum (American, British, French, IB) with English as the primary language and prepare for globally recognized diplomas (French Baccalaureate, IB, A-levels, US diplomas + AP). Bilingual private schools follow the national curriculum with a high proportion of English instruction, facilitating local integration. Local public schools are free but taught in Spanish and are poorly suited to expat children who do not speak Spanish or are used to different teaching standards.
Secondary cities like Boquete or Coronado have a few international or bilingual schools, but the range is much more limited than in Panama City.
Tuition fees are a major expense. Annual ballpark figures generally fall between:
Annual tuition costs can exceed $25,000 at the most prestigious international schools.
Before leaving, it is wise to:
– List schools compatible with your children’s ages and levels.
– Check the school calendar (some follow a North American schedule from August to June, others a local calendar from March to December).
– Submit enrollment applications 6 to 12 months in advance, as waiting lists are common.
– Visit at least a few schools during an exploratory trip, if possible.
11. Clarify Your Work or Retirement Plan
Your profile—retiree, expat employee, remote worker, local entrepreneur—will condition almost everything else.
For retirees, the Pensionado visa is ideal and foreign pensions are generally not taxed. If you work for a local employer, anticipate a work visa and Social Security contributions. For a 100% online activity abroad, the income is often considered foreign-source and exempt from local tax, but a personalized analysis is recommended. If starting a business or investing, plan for profit tax (25% on local-source profits) and VAT (7%).
Clarifying your employment or retirement situation before departure will save you from unpleasant surprises both in immigration and tax matters.
12. Open a Bank Account: Requirements and Timelines
For daily operations—rent payments, bills, domestic staff salaries, local health insurance—a local bank account is almost essential. It is possible for residents and, under conditions, for some non-residents, but it is not automatic.
Banks generally require:
To open a bank account in Panama, you will need: a valid passport and often a second form of ID (driver’s license or national ID), a cédula if you already have one, one or two bank reference letters less than 30 to 60 days old from institutions where you have been a client for at least two years, proof of income and source of funds (3–6 months of bank statements, employment contracts, pension statements, tax returns, sometimes a letter from a CPA), proof of address (utility bill, lease, residence registration), KYC forms to complete, and an initial deposit of $500 to $5,000 or more depending on the account type.
Banks also increasingly require a “tie” to the country: started residency procedure, employment contract, property ownership, long-term lease, etc. Physical presence at a branch is almost always required to finalize the opening, sometimes preceded by an interview with a compliance officer.
Complete timelines—from booking an appointment to activation—often range from two weeks to one to two months. So it is best to plan a dedicated stay, ideally coordinated with your immigration lawyer.
13. Decide What to Import and What to Buy Locally
Shipping a container is not for everyone. The law provides partial exemptions for certain categories:
Panamanian expats who have been abroad for at least 2 years can import up to $25,000 worth of used goods duty-free within 6 months. Holders of specific visas (work, pensionado, investor) can also import used personal effects exempt or at reduced rates, but new items (e.g., electronics) are taxed at ~20% of CIF value. Tourists pay duties beyond a $100 allowance.
Rates vary greatly by product category: electronics and appliances often have duties of 5 to 15%, clothing around 10–15%, processed food 5 to 15%, etc., plus 7% local VAT (ITBMS) applied on CIF value + duties.
The cost of an international move for a four-bedroom house can exceed $8,000, including sea freight, customs clearance, and door-to-door delivery.
Before deciding, you need to: think about the different options, evaluate the consequences of each choice, and possibly seek outside opinions.
– Estimate the real value and age of your belongings (truly “used” items are more favorable than recent purchases).
– Get several quotes from international moving companies, including an estimate of possible duties and taxes.
– Compare with the cost of buying new or used furniture locally.
14. Prepare for Climate Risks and Seasons
The country is tropical, with a very pronounced rainy season from May to November, and exposed to various natural hazards: torrential rains, floods, landslides, heavy swells on both Pacific and Caribbean coasts, as well as earthquakes and volcanic activity in some regions.
Rainfall accumulations can reach several hundred millimeters in a few days during the Atlantic hurricane season.
In practice, before buying or renting:
– Check if the chosen neighborhood is known for flood or landslide issues.
– Inquire about construction quality, roof condition, and drainage systems.
– Ask your future landlord or real estate agent how the property fared during recent rainy seasons.
And for personal preparation:
– Prepare an emergency kit (water, food, medicine, flashlights, batteries, radio, some cash).
– Download the SINAPROC app and follow official recommendations.
– Identify evacuation routes and high points near your home.
15. Understand Traffic Rules, Road Safety, and Transportation
If you plan to drive, several things to know from the start. The country drives on the right, with varying speed limits (usually 25–40 km/h in town, 60–80 km/h on rural roads, around 100 km/h on major highways). Seat belts are mandatory for all passengers, and children under 5 must be in an appropriate car seat in the back.
Regulations on drinking and driving are strict, with some interpretations approaching zero tolerance: any detectable trace can lead to an offense, with risk of a fine and vehicle impoundment.
Visitors can drive with their foreign license for a limited time (often three months, depending on entry stamp validity). Beyond that, a local driver’s license is required; plan for this once you obtain residency.
In the capital, many expats forgo owning a car, combining the metro, buses, and app-based ride-hailing services. A recent decree strictly regulates these Uber-type platforms, classifying them as luxury taxis: drivers must be Panamanian, affiliated with an authorized transport company, with recent, insured, air-conditioned vehicles.
Before departure, decide whether you plan to:
– Have a personal vehicle, factoring in insurance, parking, and traffic jams.
– Rely mainly on public transport (metro, buses) and ride-hailing apps, which work very well in dense urban areas.
16. Check Your Overall Insurance Coverage
Beyond health, several insurances deserve consideration:
It is recommended to take out home insurance covering fire, theft, and natural disasters. Car insurance with liability is mandatory but often overlooked, while personal liability insurance is advised if you employ domestic staff. A supplementary travel insurance policy is also useful for regular trips back and forth.
Compare local policies with those from international insurers specializing in expats. In some cases, a combination of both is the best solution.
17. Honestly Assess Your Spanish Level
The country is officially Spanish-speaking. While English is common in certain circles (private healthcare professionals, staff at top international schools, some segments of finance and real estate), daily life—government offices, small shops, repairmen, neighbors—will be conducted in Spanish.
Before leaving, ask yourself honestly:
– Can you carry out a basic conversation to handle a medical appointment, a bank visit, or a call to a tradesperson?
– If not, are you willing to actively take intensive classes upon arrival?
Even minimum Spanish will transform your experience there, reduce your costs (less need for translators or English-speaking “premium” services) and make integration easier.
18. Clarify Your Expectations Regarding Safety
Safety is a natural concern. Big Latin American cities have varying crime rates, and the Panamanian capital is no exception. But reality varies enormously by neighborhood and time of day.
Residential areas like Costa del Este, Punta Pacifica, San Francisco, El Cangrejo, Clayton, or parts of Bella Vista and Marbella offer greater security thanks to private surveillance systems and guarded buildings, while peripheral or disadvantaged neighborhoods are best avoided, especially at night.
Before renting or buying:
– Visit the neighborhood at different times (day, evening, weekend).
– Talk to residents there, ask directly about safety.
– Check for guards, access control, cameras, street lighting.
An important point: petty crime (pickpocketing, theft) can occur on public transport or in tourist areas. Basic precautions—not flaunting jewelry or valuables, securing your bag, staying alert—are often enough to reduce risk.
19. Plan for Children’s Education and Activities Outside School
Beyond school, think about what your children will do in the afternoons, on weekends, and during breaks. Panama City offers a range of sports, arts, and cultural activities: sports clubs, swimming, tennis, soccer, music, theater, science centers, etc.
Before moving, research the varied after-school programs offered by international schools and some bilingual schools.
– List the activities that really matter to your children (sports, arts, clubs).
– Check if these options exist in or near your chosen neighborhood.
– Anticipate extra costs (fees, equipment, transportation).
20. Verify Your Financial Capacity for an “Upscale” Lifestyle
A segment of expats aims for a very comfortable standard of living: large apartment or penthouse with ocean view, domestic staff, regular fine dining, premium insurance. A monthly budget of $3,200 for a couple already allows a luxurious lifestyle compared to many US cities: rent for an ocean-view condo around $1,500, top-tier health insurance, generous food and restaurant budget, weekly housekeeping, etc.
Achieving a modest standard of living in a major US city like Seattle, New York, or Austin requires a monthly budget of $4,000 to $6,000.
Before leaving, sketch your ideal budget (housing, health, food, leisure, transport, schooling, travel) and compare it with local price ranges. This will help you confirm whether the lifestyle you envision is sustainable.
21. Plan Your Minimum Physical Presence and Travel Back and Forth
Different residence statuses come with minimum presence requirements: some require visiting the country at least one day every two years to maintain residency, others demand more continuous presence if you apply for a tax residence certificate.
Before departure, think about:
– Do you wish to keep your tax residence elsewhere?
– Do you plan to travel regularly back to your home country?
– Do you have obligations (family, business) that will force you to make frequent trips back and forth?
These factors influence both your choice of visa type, the decision to apply for tax residency, and how you organize your finances (bank accounts, taxes, etc.).
22. Anticipate Your Interactions with the Bureaucracy
Administrative procedures are largely conducted in Spanish, with sometimes cumbersome processes: immigration, tax registration, driver’s license, declaration of imported goods. Each important foreign document (criminal record, civil status document, pension letter, etc.) generally must be apostilled or legalized and often officially translated into Spanish.
Before leaving, remember to:
Gather your documents in your home country with the required apostilles. Have those not in Spanish officially translated, or plan to do so upon arrival via a certified translator. Scan and store digital copies of all your papers.
Working with a local lawyer or specialized firm greatly eases navigating these procedures.
23. Organize Your Phone, Internet, and Payment Methods
The capital and main cities have good fixed Internet coverage (fiber or cable) and mobile service. Prepaid mobile plans are inexpensive, and many expats use cash for daily expenses, with cash withdrawals easy from a local or foreign account.
Before finalizing your move, it is useful to test the solution in advance.
– Check availability of fiber or at least good DSL at your future home, especially if you work remotely.
– Have an unlocked phone to insert a local SIM card upon arrival.
– Clarify with your current bank the fees for payments and withdrawals abroad, while you wait for a local account to become active.
24. Clarify What You Expect from Social Integration
Last point, often underestimated: social integration. Living in a foreign country is not just about enjoying a lower cost of living or a pleasant climate. In the long run, everything also depends on the quality of your network: neighbors, colleagues, other expats, school families, interest groups.
During preparation, ask yourself: “What are my objectives?”
– Are you ready to get involved in a local community (associations, clubs, volunteering)?
– Do you want to live in a very international environment (neighborhoods and schools suited to that) or, on the contrary, in a more “Panamanian” setting?
– Do you need to join expat networks from your home country (online groups, events) to ease your arrival?
Your answer will influence your choice of neighborhood, school, type of housing, and even the level of Spanish proficiency you aim for.
25. Put Everything in Writing: A Transition Plan
Finally, synthesize all these elements into a concrete plan: a task list with deadlines, responsible parties (you, your spouse, your lawyer, your mover), documents to gather, appointments to schedule, budgets to refine.
A good outline might look like this:
| Area | Key actions before departure |
|---|---|
| Budget | Set target monthly budget, simulate several scenarios |
| Housing | Shortlist 2–3 neighborhoods, plan exploratory trip |
| Visa / Residency | Choose program, hire a lawyer, gather documents |
| Tax | Consult tax professional, clarify residency status |
| Health | Choose insurance, list hospitals, prepare medical file |
| Banking | Identify banks, prepare references and statements |
| Moving | Decide what to import vs. buy locally, get quotes |
| Schooling | Shortlist schools, start applications, plan visits |
| Climate / Natural risks | Check exposure of future neighborhood, prepare emergency kit |
| Transport | Decide car vs. public transit, know driving rules |
| Language / Integration | Plan Spanish classes, identify communities and clubs |
Once this roadmap is defined, your departure will no longer be a leap into the unknown, but a structured transition to a new life in Panama, with a clear vision of your costs, rights, obligations, and the opportunities this country can offer you.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
