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Cost of Living Overview
Panama is more expensive than most of Central America but significantly cheaper than the US or Western Europe. The dollar economy means prices are transparent and stable. Expats in Panama City typically spend $1,800–$2,800/month for a comfortable lifestyle.
- Rent: 1-BR in expat neighborhoods (Punta Pacifica, San Francisco) $900–$1,500; 2-BR $1,400–$2,500
- Groceries: imported US brands available everywhere — budget $200–$400/month; local markets cheaper
- Dining: local comida corriente $3–$8; mid-range restaurant $15–$30/person; US-style restaurant $25–$50
- Utilities: AC is essential — electricity bills $120–$200/month typical for a 1-BR with AC
- Internet: fiber internet 100 Mbps for $40–$60/month; 5G mobile data widely available
- Transport: Uber within Panama City $3–$10; monthly car costs $400–$800 including fuel and parking
- Entertainment: cocktails in Casco Viejo $8–$15; movies $6–$10 (50% off with Pensionado)
- Boquete: roughly 30–40% cheaper than Panama City for most categories