How Much Does it Cost to Live in Panama in 2016?
This has to be the most common question I get about life in Panama. How much does it cost to live there? The biggest misconception people have is that the cost of living in Panama is super low. The truth is that if you want to live like a North American then your costs are going to be around the same.
I am part of every major Panama Group on the social network that shall not be named. I watch with amusement as I see expats complaining about the cost of living here. They talk about the cost of having a maid, living in the expensive parts of Panama City, shopping at the most expensive grocery store and dining at the upscale restaurants.
Living the High Life in Punta Pacifica, Panama City.
The thing is these people move to Panama expecting that they can take their North American income and magically turn it into a lavish life here. Then they get upset that the life they desire costs the same as living North of the Mexican border.
How We Chose to Live.
Over the last three years Anabell and I gave up on the expensive tower life in Panama City and decided to move 30 minutes over the Panama Canal. We live in a gated community surrounded by other young middle class Panamanians. I like to joke that I am the only Gringo in my neighborhood.
Our house is a one year old 3 bedroom 2 Bathroom 100 square meters home. It is perfect for the two of us and our cats. The development is surrounded by jungle. We have plenty of animals around domesticated and wild, "Panama Critters". Things I don't have here that I had in my beautiful tower apartment are a balcony, pool and security.
10 minutes from our house we have one of the largest malls in Central America. We also have every major grocery store in the vicinity except the one super expensive one expats in Panama City complain about. All of life's necessities are within 10 minutes of our home.
Athanasiou Upscale Coffee Shop, Bakery and Chocolatier.
Our Monthly Cost of Living in Panama.
Rent- $450
Electric- $25
Gas- $5
Cable- $50
Internet- $20
Food- $300
Auto Insurance 98 RAV4- $10
Medical Insurance- $200 for Both
Mobile Phones PrePay- $40 for Both
Total $1100
Prior to Moving Out of the City $1150 was Just My Rent!!
$8 Worth of Veggies and Fruit From the Farmers Market.
The key to having a low cost of living in Panama is to live like the local middle class. My friends think Anabell and I live this life of luxury but the truth is we live like any other Panamanian that works a job. The difference is we work from home and get to enjoy the benefits of having the extra income to go out.
We are frugal people. We would rather spend money on travel and going out. We also don't think twice about spending money on our business or investments. In a few months we will be buying a newer vehicle, so our car insurance rates are sure to climb. We also want to buy our own home in a gated community. Due to not having Property taxes on new homes our monthly home costs should go down. The only way our housing costs will go up is if we have a mortgage over $100K.
