What is the real monthly cost of living in Panama for a retired couple?
The actual cost of living for a retired couple in Panama varies significantly by location and lifestyle, but here's what real expats report spending in 2026:
The Quick Answer
- Budget lifestyle: $2,000-2,500/month
- Comfortable lifestyle: $2,500-3,500/month
- Luxury lifestyle: $4,000-6,000+/month
This is 30-50% less than comparable lifestyles in the US, Canada, or Europe.
Detailed Monthly Budgets By Location
Panama City - Comfortable Expat Lifestyle
| Expense | Monthly Cost |
|---|---|
| Rent (2BR modern apartment, good area) | $1,200-1,800 |
| Utilities (electric, water, internet) | $150-200 |
| Groceries (shopping at local supermarkets) | $400-600 |
| Dining out (2-3x per week) | $250-400 |
| Transportation (Uber, occasional taxi) | $150-250 |
| Health insurance (both, ages 60-70) | $300-500 |
| Entertainment (movies, activities) | $150-250 |
| Household help (cleaning 2x/week) | $100-120 |
| Miscellaneous | $200-300 |
| TOTAL | $2,900-4,420 |
Boquete - Mountain Town Living
| Expense | Monthly Cost |
|---|---|
| Rent (2BR house with yard) | $1,000-1,500 |
| Utilities (less AC needed, cooler) | $80-120 |
| Groceries | $350-500 |
| Dining out | $200-300 |
| Transportation (car needed) | $200-300 |
| Health insurance | $300-500 |
| Entertainment | $100-200 |
| Gardener/cleaner | $120-150 |
| Miscellaneous | $150-250 |
| TOTAL | $2,500-3,820 |
Coronado/Beach Areas
| Expense | Monthly Cost |
|---|---|
| Rent (2BR condo near beach) | $1,100-1,600 |
| Utilities | $100-150 |
| Groceries | $350-500 |
| Dining out | $200-350 |
| Transportation | $150-250 |
| Health insurance | $300-500 |
| Entertainment | $150-250 |
| Help | $100-150 |
| Miscellaneous | $200-300 |
| TOTAL | $2,650-4,050 |
Breaking Down Key Expenses
Housing:
- Biggest variable based on location and quality
- Panama City center: $1,200-2,000 for 2BR
- Boquete: $1,000-1,500 for 2BR house
- Beach towns: $1,000-1,600
- Most include building amenities (pool, gym, security)
Healthcare:
- High quality at 25-50% US costs
- Private insurance: $150-250 per person (ages 60-70)
- Many routine visits affordable out-of-pocket ($20-50)
- Pensionado discounts: 15% off hospital, 20% off consultations
Food:
- Local markets: Very cheap (fruit, vegetables, local proteins)
- Supermarkets (Super 99, Riba Smith): Moderate prices
- Imported US brands: 2-3x more expensive
- Couple can eat well for $400-600/month shopping smart
- Dining out: $8-15 per person casual, $25-50 per person nice restaurant
Utilities:
- Electricity: $50-100 light AC use, $150-250 heavy use
- Panama City requires more AC (hot and humid)
- Boquete uses minimal AC (spring weather)
- Internet (fiber): $40-60/month, excellent speeds
- Water: $10-25/month
Transportation:
- With car: Gas $3.50-4/gallon, insurance $600-900/year, maintenance
- Without car in Panama City: Uber/Metro very affordable ($100-150/month)
- Without car in Boquete/beach: More challenging, need car or taxi budget
What's Cheaper Than Expected
- Domestic help (cleaning, gardening) - $12-15/day
- Healthcare (doctor visits $20-50, procedures 50-70% less than US)
- Dental care (cleaning $40-60, major work 50% less)
- Fresh produce at local markets
- Public transportation and Uber
- Property taxes (very low, first $120K exempt)
What's More Expensive Than Expected
- Air conditioning (if you run it constantly)
- Imported foods from US/Europe
- International flights (Panama City is a hub but can be pricey)
- Private international schools (if you have kids/grandkids)
- Alcohol in restaurants ($8-12 per drink)
Pensionado Benefits - Extra Savings
If you have the Pensionado visa ($1,000/month pension requirement), you get amazing discounts:
- 50% off entertainment (movies, concerts, sports)
- 25% off restaurant bills
- 20% off medical consultations
- 15% off hospital bills
- 30% off public transportation
- 25% off airline tickets (Copa Airlines and others)
These discounts can save $200-500/month for active retirees.
Real Expat Examples
Couple 1 - Boquete, Budget-Conscious:
"We rent a small house for $900, shop at local markets, cook most meals, and spend about $2,200/month total. We have a car (paid off) and basic health insurance. Very comfortable."
Couple 2 - Panama City, Mid-Range:
"Our 2BR in San Francisco area is $1,500. We eat out frequently, use Uber everywhere, and have good health insurance. With entertainment and travel, we spend about $3,500/month. Still way less than our $6,000+ in California."
Couple 3 - Coronado Beach, Comfortable:
"Beach condo $1,300, we have a car, eat out 3-4x/week, have a cleaner twice a week. With everything including healthcare and occasional US trips, we're at $3,800/month. Living well."
Budget Recommendations
Minimum comfortable budget: $2,500/month
- Covers basic 2BR rent in decent area
- Normal groceries and some dining out
- Health insurance
- Transportation
- Basic entertainment
Recommended for comfort: $3,000-3,500/month
- Nicer housing options
- Frequent dining out
- Car ownership
- Better health insurance
- Regular activities and entertainment
- Some travel
Top-tier lifestyle: $4,500-6,000+/month
- Luxury housing (high-rise, ocean view)
- Frequent fine dining
- Extensive travel
- Premium healthcare
- Full domestic help
Immigration Information Disclaimer
This content is for general informational purposes only and does not constitute legal advice. Immigration laws change frequently. Always consult a qualified immigration attorney for advice specific to your situation.