How Much Does it Cost to Live in Panama in 2017?
Every year I write a post about our costs to live in Panama. This beautiful country is always ranked in the top 10 places in the world to retire. This means many people are looking for information.
There are normally two groups that I focus on. People on fixed incomes who are wondering if Panama is right for them and freedom seekers who want to live life by their own rules. If you are looking for a job in Panama forget about it! This country does not offer many well paying jobs so if you want to move here and still earn an income being an entrepreneur or digital nomad is a must.
Things I Recommend if You are Moving to Panama.
1. Live Outside of Panama City. - Panama City traffic is terrible and the housing costs are much higher. Cut your costs by more than 50% by moving to the outlying suburbs or interior of the country.
2. Choose a Gated Community. - Crime is not bad here but taking precautions never hurts. I have never had a problem in 7 years.
3. Do Not Buy a House Immediately. - Too often people come here and buy a house immediately. This is a terrible decision because it takes time to figure out what area of the country suits you.
4. If You Buy in the City Do Not Buy a Car. - This may seem odd but Panama City traffic is absolute mayhem. Uber is strong in Panama plus we have a brand new subway. If you live outside the city a vehicle is a must.
5. Hospitals. - If Health is a concern your best options are near Panama City or David which are the two largest cities.
6. Learn Spanish! - The basics are essential in Panama. It improves your quality of life.
Example of Our House in Panama.
We live in a neighborhood called Arboledas which is situated 40 minutes west of Panama City just off of the Pan-American Highway in Panama Oeste (Panama West). Panama Oeste is a newly created province and the capital of the province is La Chorrera.
Our rent is $650 a month but the rents start at around $450 for houses in Arboledas. Our house is one of the larger models.
The Ten Provinces of Panama.
The most common provinces for expats are Panama, Panama Oeste, Cocle, Chiriqui , Los Santos and Bocas del Toro. When you see the word Comarca on the the map that means regions set aside for indigenous tribes. The native people of Panama are highly respected. In the photo below you can see women representing their tribes at a march.
The Panama Cost of Living has Been Rising. Here is Why.
1. Inflation - The Panama Balboa is pegged to the US Dollar which is being debased. The inflation has slowed slightly but it really stressed the economy as housing costs have risen sharply over the last ten years.
2. Immigration - The Venezuela crisis has caused a huge spike of Venezuelan expats in Panama. This has put a burden on the housing and job markets. Sometimes when I visit Panama City I forget that I live in Panama. Panama is now making it much more difficult for Venezuelan expats to enter and stay in the country. I hope they can fix their countries economy soon.
3. Safe Haven - Big money flows into Panama. This money is used to buy up real estate and agricultural projects. The Panama government recently signed an agreement with the Peoples Republic of China which is sure to bring massive amounts of capital into this small country. The Chinese community in Panama is huge. Panama recently turned their backs on Taiwan and signed an agreement with the PRC.
4. Supply vs. Demand - Panama is a perfect example of the economic law of supply vs. demand. The supply of housing was very low and the demand was high. We have entered a buyers market as many projects are finishing up. This means rent and property costs are coming down slightly for the first time since 1999.
Our Monthly Cost of Living in Panama for 2017.
Housing - $650
Utilities - $50
Car Insurance - $50 per month for a 2013 VW Tiguan.
Food - $300
Two LTE Mobile Phones - Pre-Pay $50 for both.
Cable/Internet/Phone - $90
Health Insurance for two - $200
Gas for the Vehicle - $120
Total - $1550
Our Costs Jumped by almost $330!
Our cost of living in 2017 jumped so much because we have moved to a larger house. We bought a newer vehicle with Steem earned on Steemit and due to business we go to the city much more often.
I have not included our corporation taxes because it is personal information. Most people moving to Panama will not be operating a company. If you do run a business in Panama you have to pay taxes on the money earned within the country.
If You Want to Move to Panama and Apply for Residency I Do Not Refer People to Lawyers.
Lawyers in Panama have been my biggest disappointment. So much money and time wasted over the years. I am not the only one who feels this way. If you are interested in moving to Panama I recommend testing the waters for six months before making a decision.
When it is time to buy a house I recommend working with Kent Davis, he owns Panama Equity Real Estate.
We Live Off of Bitcoin.
Now this may seem odd to many of you but our personal economy is almost 100% reliant on the Bitcoin and Crypto Currency economy. When we factor this in our actual cost of living has dropped by 80% or more this year. We keep our money in Bitcoin and only take dollars out to pay our bills. As Bitcoin continues to rise our costs plummet.
