According to Numbeo, the cost of living in Panama is on average 33.8% lower than in the United States, and rent is 41.7% lower. A family of 4 can expect monthly costs of approximately $2,850 (excluding rent) and a single person around $780. Panama uses the US dollar as its official currency, eliminating currency risks for US investors.
Key Facts
-33.8%
Cost vs. USA
Numbeo 2025
-41.7%
Rent vs. USA
Numbeo 2025
$2,850
Family of 4 /mo
Numbeo 2025 (sin alquiler)
$780
Single /mo
Numbeo 2025 (sin alquiler)
Housing and Rent
According to Numbeo, a 1-bedroom apartment in Panama City center costs approximately $1,140/month, and outside the center $880/month. 3-bedroom apartments in the center run around $2,030/month. Premium areas like Punta Pacífica and Punta Paitilla can reach $1,500-2,500/month for 1BR. More affordable areas like El Cangrejo and San Francisco offer options from $800-1,500/month.
- 1BR center: ~$1,140/mo
- 1BR outside center: ~$880/mo
- 3BR center: ~$2,030/mo
- Premium areas: $1,500-2,500/mo
Food
Monthly food budget for one person ranges from $200 to $350 depending on lifestyle. Executive lunch costs $6-12, dinner at an upscale restaurant $25-50 per person. Supermarkets offer local and imported options. Uber Eats and delivery services are widely available.
- Executive lunch: $6-12
- Restaurant dinner: $25-50/person
- Groceries/mo: $200-350
- Public transport: $0.35-0.50
Comparison
| Item | Panama | USA | Europe |
|---|---|---|---|
| 1BR rent center | $1,140 | $2,200 | $1,800 |
| Lunch restaurant | $8 | $18 | $15 |
| Monthly transport | $35 | $100 | $70 |
| Internet (60Mbps) | $40 | $70 | $35 |
Tips
Dollarization
Panama uses the US dollar, eliminating currency risk for US investors and facilitating international transactions.
Negotiate long contracts
Landlords often offer 5-10% discount on 12+ month contracts. Many apartments come furnished.