Cost of Living in Panama (2025): A Monthly Budget Breakdown
Curious what it actually costs to live in Panama with kids? We were too. From grocery hauls in Boquete to beach-town rent in Bocas del Toro, here’s what a real family should expect to spend, without the sugarcoat or the travel-brochure fluff.
Is Panama Expensive to Live In?
Panama’s reputation as a retiree haven and digital nomad hotspot has made it one of Central America’s most discussed countries when it comes to affordability, but is it actually cheap in 2025?
The truth? Panama is more affordable than Costa Rica, but slightly pricier than Colombia or Nicaragua, especially in tourist-heavy hubs like Panama City and Bocas del Toro. Still, it’s entirely possible to live well on a modest budget if you know where to base yourself and how to spend.
Here’s a rough idea of monthly budgets in Panama (USD):
| Lifestyle | Single | Couple | Family of 4 |
|---|---|---|---|
| Budget: | $900–$1,200 | $1,400–$1,800 | $2,000–$2,600 |
| Mid-range: | $1,500–$2,200 | $2,200–$3,000 | $3,000–$4,200 |
| High-end: | $2,500+ | $3,500+ | $5,000+ |
These ranges vary depending on your location, living in the highlands of Boquete vs. a beachfront Airbnb in Bocas del Toro makes a big difference.
💡 Quick Tip: Panama’s cost of living in 2025 is ideal for those seeking value over luxury. Budget-conscious travellers, expats, and remote workers can all find their groove here, especially outside of peak tourist zones.
Table of Contents
Cost of Living in Panama – Monthly Breakdown (2025)
Living in Panama can look wildly different depending on where you are, and how you choose to live. From city condos to cloud forest cabins, here’s what monthly living costs might look like across key regions.
Panama City
Panama’s capital is modern, fast-paced, and the most expensive spot to live. Expats love the skyline, amenities, and nightlife, but you’ll pay for it.
1-bed apartment (central): $900–$1,300
Utilities & internet: $120–$200
Groceries (for 1): $250–$350
Transport (Uber, metro): $60–$100
Dining out: $8–$15/meal
San Francisco and El Cangrejo are popular expat neighborhoods with decent walkability and access to parks and shops.
Boquete
A favourite for retirees and families, Boquete offers cool mountain air, stunning views, and a slower pace at a lower cost.
1-bed apartment (town center): $500–$800
Utilities & internet: $100–$150
Groceries (for 1): $200–$300
Local dining: $5–$10/meal
Transport: Often walkable, $20–$40/month
Boquete is a great base for families or remote workers seeking stability, nature, and better value.
Bocas del Toro
Tropical vibes, overwater bungalows, and a bit of island chaos. Bocas is great for short-term adventure, but long-term can get pricey.
1-bed overwater stay: $900–$1,400
Utilities (often included): Varies
Groceries: $300–$400 (higher due to import costs)
Boat taxis: $1–$5 per ride
Dining: $7–$15/meal
Isla Colón is the most built-up, while Isla Bastimentos is more rustic, choose based on comfort and connectivity.
This blog is fuelled by caffeine and chaos, if it helps, support our journey.
Cost of Accommodation in Panama (Short & Long-Term)
Whether you’re coming for a scouting trip or setting up for the long haul, accommodation is usually the biggest line item and it varies wildly depending on where you land.
Short-Term Rentals
Short stays are easy to find through Airbnb, Booking, and local Facebook groups. Prices spike in high season (December–April), so it’s worth booking early.
Panama City (1-bed, Airbnb): $40–$90/night
Boquete: $30–$60/night
Bocas del Toro (waterfront): $70–$120/night
El Valle de Antón: $35–$55/night
Booking a week or more? Message the host, many offer unlisted discounts for longer stays.
Long-Term Rentals
Monthly rentals are usually listed through Facebook Marketplace, expat forums, or local real estate sites like encuentra24.com and even Airbnb where usuall a 40-50% is available, plus someting to note with Airbnbs is utilities and wifi etc are baked into price.
Panama City:
1-bed in expat zone (furnished): $900–$1,300
2–3 bed family apartment: $1,200–$2,000
Boquete & El Valle:
1-bed cottage or casita: $500–$800
Family home: $800–$1,200
Bocas del Toro:
Studio or rustic 1-bed: $500–$900
More modern or waterfront: $1,000+
📍 GEO Tip: In Boquete and El Valle, unfurnished rentals are more common — but some come with “furnished basics” (think: fridge, stove, bed).
Cost of Food & Groceries in Panama
Eating out in Panama is surprisingly affordable, especially if you lean into local. Grocery prices vary depending on whether you’re in the city, the highlands, or island communities like Bocas del Toro.
Grocery Shopping in Panama
Panama City: Larger supermarkets like Riba Smith and Super 99 offer a wide range of imported goods, but they’ll cost you.
Boquete & El Valle: Smaller markets dominate, but you’ll find weekly farmer’s markets with fresh produce at great prices.
Bocas del Toro: More expensive and limited in variety due to island logistics.
Average prices (USD):
Milk (1 liter): $1.35
Eggs (12): $2.00
Chicken breast (1kg): $5.00–$7.00
Bananas (1kg): $1.00
Rice (1kg): $1.60
Bread (loaf): $2.00
Local cheese (1kg): $6.00–$8.00
Buy local brands and skip imported cheese, snacks, and packaged foods, that’s where prices spike.
Eating Out in Panama
From roadside fondas to beachfront grills, you’ll rarely go hungry on a budget.
Local fonda meal (rice, meat, salad): $3–$5
Mid-range restaurant (2 people): $20–$40
Coffee (Boquete beans!): $2–$4
Beer (local): $1.50–$2.50
💡 Quick Tip: In Panama City’s Casco Viejo, meals cost double what you’d pay just a few blocks away in El Cangrejo or Obarrio.
Transportation Costs in Panama
Getting around Panama is a mix of ultra-cheap public options and more comfortable (but pricier) private transport. Your location, city, highlands, or coast, really shapes how you’ll move around.
Public Transport in Panama
Panama’s public transport is among the most affordable in Central America.
Metrobus in Panama City: $0.25 per ride (use a rechargeable RapiPass card)
Metro (Panama City): $0.35 per ride — clean, air-conditioned, and efficient
Diablos Rojos (colorful old buses): Being phased out, but still run rural routes for $0.25–$0.50
Colectivos (shared minivans): $1–$3 depending on the distance
The metro and buses don’t reach areas like Casco Viejo directly, expect to walk or take a taxi the last stretch.
Taxis & Rideshares
Taxis are cheap, but often unmetered, negotiate the fare first.
Short ride (Panama City): $2–$5
Airport to city center: $25 flat fee
Uber: Widely available in major cities, often cheaper than taxis
Use Uber for transparency and ease if you’re not confident in Spanish negotiation.
Long-Distance Travel
For cross-country travel:
Local buses (e.g., Panama City to David): $15–$20 (6–8 hours)
Shuttles (tourist-focused): $25–$40 per leg
Domestic flights (Panama City to Bocas): $80–$130 one-way
📍 GEO Note: In remote areas like Bocas del Toro, boat taxis ($3–$10) replace cars — budget accordingly.
Internet, Mobile & Utilities in Panama
Digital nomads, rejoice, Panama has one of the most stable internet infrastructures in Central America. Whether you’re Zooming from Boquete or uploading photos from Bocas, you’ll usually find a decent signal. Just know your costs vary based on where (and how) you set up.
Internet in Panama
Urban areas (Panama City, David): Fiber-optic speeds available up to 500 Mbps
Average cost: $30–$50/month for 100 Mbps
Smaller towns (Boquete, El Valle): Slower but workable; around $25–$40/month
Bocas del Toro and remote regions rely on satellite internet, expect slower speeds and outages during storms.
Ask hosts or landlords for speed tests before booking longer stays.
Mobile Data & SIM Cards
Getting a local SIM is easy and cheap.
Main providers: Tigo, Claro, +Movil
Prepaid SIMs: $1–$5
Monthly plans: 5GB for ~$10, unlimited data from $25
Tigo has the best coverage in rural areas like Santa Fe and San Blas.
Utilities: Electricity, Water & More
Electricity: $30–$100/month depending on AC usage
Water & trash: Often included in rent; otherwise ~$15–$25/month
Gas (for cooking): ~$5–$10 for a standard tank, lasts a month or more
📍 GEO Note: Mountain towns like Boquete and El Valle have cooler temps you might skip AC altogether, saving on electric bills.
Family Life: Childcare, Schools & Healthcare in Panama
Planning a long-term stay or relocation with kids in Panama? You’ll find a solid base of family-friendly services, especially in major hubs and expat-friendly regions. From preschool options to public healthcare, Panama offers a balance of affordability and accessibility, with a few caveats.
Childcare & Preschools
Childcare in Panama is largely private and varies in quality depending on the region. In Panama City, you’ll find modern daycare centers and bilingual preschools, some modeled on Montessori or international systems. Monthly costs range from $250–$500 USD, depending on the hours and curriculum.
Outside the capital, in areas like Boquete or Coronado, options are more limited but still available. Many expats opt for nanny shares or part-time sitters, often at $4–$6/hour.
Schooling: Public vs. Private
While public schools are free, they’re taught in Spanish and may have limited resources. Expats often lean toward private international schools, especially in Panama City and larger towns like David. Expect to pay $300–$700/month, with more elite institutions going higher.
Boquete has a growing number of bilingual private schools popular with expat families, an appealing blend of lower tuition and small class sizes.
Healthcare Access
Panama’s healthcare system is widely accessible, and expats are eligible to use public hospitals at minimal cost. Private care is also affordable by U.S./UK standards — a general doctor’s visit runs about $20–$40, while specialists might charge $50–$80.
Cities like Panama City and David offer the best facilities, but even smaller towns have clinics with basic services.
💡 Quick Tip: Private health insurance plans cost around $50–$100/month per adult and provide access to top-tier hospitals, often with English-speaking doctors.
Healthcare Costs in Panama (What to Expect as a Family)
Panama’s healthcare system is one of the strongest in Central America, offering a mix of affordable public services and high-quality private care, particularly in Panama City. For expat families, this can be a big draw, but costs vary depending on where you are and how you access care.
Public vs Private:
Public clinics are very affordable, a doctor’s consultation might cost as little as $2–$5 USD. However, wait times can be long, and English-speaking staff aren’t guaranteed. Most expat and traveling families opt for private clinics, where service is faster and often bilingual.
Private Clinic Costs (Panama City):
General doctor visit: $25–$60 USD
Specialist visit: $60–$100 USD
Routine dental cleaning: $30–$50 USD
Emergency room consultation: $100–$200 USD
Health Insurance Options:
While many families pay out of pocket for basic care, travel insurance or local private insurance plans offer peace of mind for emergencies. Some popular international providers even offer family plans under $100/month.
Prescriptions:
Medication is generally affordable. Common antibiotics or asthma inhalers can be sourced over the counter at local pharmacies, often for less than $10 USD.
Private hospitals like Hospital Punta Pacífica (affiliated with Johns Hopkins) in Panama City are top-tier and often recommended for expat families needing specialised care.
💡 Quick Tip: Keep digital copies of your family’s prescriptions and medical history. Many clinics accept walk-ins, but having these handy speeds up treatment, especially if there’s a language barrier.
Entertainment, Activities & Leisure: What It Costs to Enjoy Panama
Whether you’re zip-lining through the cloud forests or enjoying a movie night in Panama City, the cost of fun in Panama can fit a variety of budgets, from affordable local options to more curated (and costly) experiences.
Fitness, Yoga & Gyms
Local gym membership: $20–$40/month
Yoga drop-in classes: $7–$15 USD
Boutique fitness studios (in expat areas): $50–$80/month
Larger cities like Panama City and David offer more variety in classes and facilities. In places like Boquete or Bocas del Toro, you’ll find small community-led sessions, sometimes on rooftops or near the beach.
Cinema & Indoor Fun
Movie ticket (standard): $4–$7 USD
Premium cinema/lounge seats: $10–$12 USD
Arcade or bowling: $5–$15 USD per person
Panama City boasts modern malls with cinemas and entertainment zones. Outside the city, options are fewer, but often more affordable.
Day Tours & Excursions
Panama Canal visitor center: $15 USD per adult / ~$5 per child
Guided rainforest hike: $25–$40 per person
Coffee or chocolate farm tour (Boquete): $20–$30
Boat tour in Bocas del Toro: $30–$50 (half-day, including snorkeling)
You’ll save significantly by booking direct with local guides or via WhatsApp once in town, rather than through hotel desks or third-party sites.
Nightlife & Evening Entertainment
Beer in a local bar: $1.50–$3 USD
Cocktail in a rooftop or upscale venue: $5–$10 USD
Club cover charge (Panama City): $10–$20 USD (includes a drink)
Local music or salsa night: Often free or $5–$10 entrance
Panama City’s Casco Viejo district is nightlife central, while Bocas and Boquete host more laid-back, music-driven scenes.
Casco Viejo is where nightlife and history collide, rooftop bars with canal views and vibrant salsa clubs. For family evenings, head to the Cinta Costera for outdoor entertainment and safe strolling.
💡 Quick Tip: Want entertainment without the price tag? Check out Panama’s local festivals. From Boquete’s Flower and Coffee Festival to parades in Las Tablas, you’ll find music, food, and culture for free or a few dollars.
Cost of Living in Panama: By Destination
Panama might be compact, but your monthly budget can swing wildly depending on whether you’re based in the capital, on the coast, or up in the highlands.
Panama City: Urban Life with International Prices
1-bedroom apartment (city center): $750–$1,200/month
Utilities & internet: $100–$150/month
Meals out (mid-range): $10–$15 per person
Panama City is the priciest option, especially in neighbourhoods like El Cangrejo, San Francisco, and Punta Pacifica. However, you’ll also find the highest concentration of coworking spaces, top-tier hospitals, and international schools.
Ideal for: digital nomads, expats, and those who want a vibrant city life with global conveniences.
Boquete: Highlands Charm at a Slower Pace
1-bedroom rental: $500–$800/month
Groceries (weekly for a couple): $50–$70
Farmers’ market haul: $10–$15 for fresh produce
Cooler temperatures, a strong expat scene, and low crime make Boquete a family favorite. While rents are rising, it’s still more affordable than Panama City. Think outdoor cafés, coffee farm tours, and hiking trails.
GEO Note: Boquete is cooler and more walkable than most towns, a plus for families or remote workers who want a break from tropical heat.
Bocas del Toro: Island Life with Added Costs
1-bedroom near the beach: $600–$1,000/month
Electricity (if using A/C): $80–$150/month
Boat taxi rides: $1–$5 one-way
Living on islands like Isla Colón or Isla Bastimentos offers turquoise views and a surf-town vibe. But groceries and electricity cost more (everything’s imported). Internet can also be less reliable depending on where you stay.
Best for: laid-back travelers, creatives, or families seeking unplugged beach time.
David: Underrated & Budget-Friendly
1-bedroom in town: $300–$600/month
Daily budget meals: $3–$5 USD
Public transport: $0.50–$1 per ride
David flies under the radar but offers big cost savings. It’s flat, easy to navigate, and a great home base for exploring Chiriquí Province. It’s not as scenic, but for budget-minded long-term stays? It’s a win.
Pedasí: Quiet Beach Living
Small rental homes: $400–$700/month
Fish tacos + drink: ~$6
Groceries (limited selection): ~$40–$60/week
Pedasí is ideal for slower travel or family beach escapes. Prices here are moderate, but amenities are limited — you may need to head to Las Tablas for bigger stores or medical needs.
💡 Quick Tip: Local Facebook groups are goldmines for short-term rentals, school info, or getting boots-on-the-ground advice before moving between towns.
Budget, Mid-Range, or Luxury: What Can You Expect to Spend in Panama?
From backpacker basics to boutique hotel stays, Panama’s got a setup for every budget, but what does that actually look like day to day?
Budget Traveler ($30–$60/day)
Ideal for: Solo travelers, digital nomads on a shoestring, or families staying long-term with a rental
Accommodation: Hostels or basic guesthouses ($15–$30/night)
Meals: Street food, fondas (local eateries), groceries from public markets
Transport: Public buses, colectivo vans
Activities: Free hikes, DIY beach days, low-cost national park entry (often under $5)
Expectations: Shared bathrooms, occasional cold water, but warm community vibes and stunning surroundings.
Search Hostel Prices
Mid-Range Traveler ($70–$150/day)
Ideal for: Most families, couples, or remote workers who want comfort without splurging
Accommodation: Airbnb or hotels with private rooms and A/C ($40–$80/night)
Meals: Mix of local and tourist-friendly spots ($6–$15 per meal)
Transport: Shuttle services or short domestic flights
Activities: Guided day tours, wildlife experiences, coffee or chocolate farm visits
Perks: Hot showers, stronger Wi-Fi, kitchen access, and peace of mind in quieter, family-oriented stays.
Luxury Traveler ($200+/day)
Ideal for: Short-term splurges, honeymooners, or digital nomads who work & live in style
Accommodation: High-end resorts, boutique ecolodges, city hotels with pools and views ($120–$300/night+)
Meals: Upscale restaurants or in-house chefs
Transport: Private drivers, domestic flights, water taxis
Activities: Private boat trips, spa treatments, premium excursions like sailing San Blas or deep-sea fishing
Expectations: English-speaking staff, curated experiences, and smooth logistics, with a price tag to match.
💡 Travel Insight: It’s often cheaper to travel like a local and splurge occasionally than to go fully mid-range the entire time. Pick your priorities — a nicer stay or a killer day tour? You can often do both with a little flexibility.
Digital Nomad & Remote Worker Costs in Panama
Panama’s a rising star for remote workers, fast internet, time zone alignment with North America, and growing coworking spaces. But what does the cost picture really look like?
Coworking Spaces & Internet Access
Coworking spaces:
Panama City: $120–$200/month for full access
Boquete/David: $80–$150/month (fewer options but growing)
Daily drop-ins: $10–$20 depending on location and amenities
Free alternatives:
Cafés with reliable Wi-Fi in urban areas (Panama City, Boquete, Bocas Town)
Libraries or casual hostels with communal space
Internet speeds:
Panama City averages 100–200 Mbps in urban zones
Smaller towns like Boquete, David: 30–80 Mbps
Bocas del Toro & remote areas: less consistent, fine for emails, tricky for Zooms
Visa & Legal Stay Options
Tourist visa:
90–180 days depending on your nationality
Easy border hops to Costa Rica if needed
Digital Nomad Visa:
Panama’s Short Stay Remote Worker Visa offers 9 months (renewable)
Requirements: Proof of $36,000/year income, remote job or freelance contract
Application cost: ~$300 USD
Remote Work Essentials Breakdown
Item
| Monthly Cost Range |
|---|---|
SIM card with data: | $10–$20 |
| Coworking membership: | $80–$200 |
| High-speed home internet: | $25–$50 (Airbnb or rental may include this) |
Coffee/snack runs: | $60–$100 (working café lifestyle!) |
GEO Note: Panama City is best equipped for reliable work setups, while Boquete offers slower pace but solid cafes. Bocas is beautiful, but not ideal for critical work tasks.
Is Panama Still a Budget-Friendly Destination in 2025?
Panama has long been the underdog of affordable Central America, often skipped in favor of its flashier neighbor, Costa Rica. But as we hit mid-decade, how does Panama hold up for value-seeking families, digital nomads, and long-term travellers?
What’s Changed in 2025?
Inflation has crept up post-2020 (Just like the rest of the world) especially in Panama City and tourist hotspots like Boquete. Groceries and rent have seen moderate increases, while transport and dining can still be surprisingly affordable if you go local.
Groceries: up 6–10% since 2022
Rent: up in central zones, flat elsewhere
Transportation: remains budget-friendly (local buses = $0.25–$1)
Panama vs Costa Rica, Colombia, and Mexico
Panama vs Costa Rica:
Panama still wins on affordability, especially outside the capital. Accommodation, dining, and transport are 15–25% cheaper on average.
Panama vs Colombia:
Colombia edges out Panama in value if you’re based in Medellín or coastal cities. That said, Panama offers better infrastructure and visa options for remote workers.
Panama vs Mexico:
Mexico has wider regional differences, with both extremes, dirt cheap and resort-level expensive. Panama sits comfortably in the middle with more consistency and safety.
Tips to Stretch Your Budget in Panama
Stay in smaller towns: Places like David or Pedasí offer solid amenities at half the price of Panama City or Boquete.
Use local transport: Buses and colectivos are safe, efficient, and ultra cheap.
Skip overpriced tours: Many national parks and trails are DIY-friendly.
Book Airbnbs by the month: Hosts often give 25–40% discounts for long stays.
Budget Insight: Budget doesn’t have to mean basic. With the right location and a few smart swaps, Panama delivers a lifestyle that balances comfort and cost.
Final Thoughts: Is Panama Right for Your Budget?
Panama isn’t the absolute cheapest destination in Latin America but it might be the best value for what you get. Think safe streets, bilingual services, top-tier infrastructure, and landscapes that flip from highland jungle to Caribbean beach in a single day.
Who Panama Is Great For:
Digital nomads who want stability, fast internet, and easy visa options (hello, Friendly Nations).
Families seeking tropical adventures without Costa Rica’s price tag.
Retirees or slow travellers who value infrastructure, healthcare access, and a mix of modern + mellow living.
Budget travellers willing to trade beachfront for towns like David or Pedasí.
Who Might Want to Rethink It:
Ultra-budget backpackers chasing $10 dorms and rock-bottom street food.
Travellers who prefer walking cities, Panama is car-dependent outside a few zones.
Those expecting nonstop nightlife outside Panama City.
