Panama City, Panama, is a top destination for expats seeking a dynamic urban lifestyle with a mix of modern conveniences, rich cultural heritage, and stunning natural beauty. As the capital and largest city of Panama, it offers a well-developed infrastructure, a stable economy, and a favorable tax climate for retirees and business owners. Whether you’re considering relocating permanently or visiting for an extended stay, this guide covers everything you need to know—including expert insights, top accommodations, and must-do activities.
Here’s a pros and cons list for living in Panama City, Panama, as an expat, based on general insights about the area:
Pros:
- Modern Amenities: Panama City boasts high-quality healthcare, international schools, shopping malls, and luxury residential buildings.
- Expat-Friendly: With a large international community, many locals and businesses cater to English speakers, making integration easier.
- Tax Benefits & Residency Programs: The Pensionado Visa offers excellent benefits for retirees, and the Friendly Nations Visa provides an easy path to residency for certain nationalities.
- Business Opportunities: The city is a regional financial hub with tax incentives and a strong banking sector, making it attractive for entrepreneurs and investors.
- Transportation & Connectivity: A metro system, reliable taxis, and international flights from Tocumen International Airport provide easy travel options.
- Diverse Food & Culture: From high-end dining to traditional Panamanian cuisine, the city offers a vibrant cultural scene with museums, theaters, and festivals.
- Natural Beauty Nearby: While a major metropolis, Panama City is close to beaches, rainforests, and the famous Panama Canal, offering quick escapes into nature.
Cons:
- Cost of Living: While lower than many U.S. and European cities, Panama City can be expensive compared to other parts of Latin America, particularly in high-end areas.
- Traffic & Congestion: The city’s roads can be highly congested, and driving can be stressful for newcomers.
- Humidity & Rainy Season: Panama has a tropical climate with high humidity and heavy rains from May to November, which can lead to flooding in some areas.
- Bureaucracy: Setting up bank accounts, visas, and utilities can be time-consuming and require patience.
- Income Disparity: There is a noticeable gap between wealthy and lower-income neighborhoods, leading to some safety concerns in certain areas.
- Noise & Construction: The city is rapidly developing, so noise from ongoing construction is common, especially in growing residential zones.
How to Research Moving to Panama City, Panama
Before making a major move, it’s essential to do thorough research and visit Panama City for at least a few weeks to experience the lifestyle firsthand.
Where to Stay When Researching the Area
Choosing the right accommodations will help you get a true sense of what living in Panama City is like. Consider staying in different neighborhoods to explore the city’s variety.
- Luxury Stay: JW Marriott Panama – A high-end hotel with oceanfront views and top-tier amenities.
- Mid-Range Comfort: Central Hotel Panama – A historic boutique hotel in Casco Viejo with excellent charm and service.
- Budget-Friendly: Casa Love by Wynwood House – A trendy and affordable option for digital nomads and budget-conscious travelers.
- Vacation Rentals: Casa del Horno – Apartment with kitchen, near Avenida Balboa.
Things to Do When Researching the Area
- Explore Casco Viejo: Walk through the historic district, visit local cafes, and enjoy the colonial charm.
- Test Transportation: Try using the metro, Uber, taxis, and walking to see what works best for daily mobility.
- Meet Other Expats: Join expat meetups, Facebook groups, or visit coworking spaces to network.
- Visit Grocery Stores & Markets: Compare prices and availability of local and imported goods at places like Riba Smith and Super 99.
- Try Local Services: Visit banks, clinics, and pharmacies to assess essential services and ease of access.
- Experience Daily Life: Spend time at a local café, take a Spanish class, or work from a coworking space to get a feel for the routine.
Top Activities in Panama City
Panama City offers a mix of urban and outdoor experiences, making it an exciting place to live or visit. Here are some must-do activities:
- Panama Canal Tour: Visit the Miraflores Locks to watch ships pass through this engineering marvel. Book a tour
- Amador Causeway: Rent a bike or take a leisurely walk with stunning skyline and ocean views. Book a tour
- Metropolitan Natural Park: Enjoy hiking and wildlife spotting just minutes from the city center. Book a tour
- Shopping at Multiplaza or Albrook Mall: Explore high-end brands or find great deals in Latin America’s largest shopping mall.
- Day Trip to Taboga Island: Take a quick ferry ride to a nearby island for a beach getaway. Schedule a tour
- Gamboa Rainforest Experience: See sloths, monkeys, and lush jungle landscapes on an eco-tour. Book your experience
- Casco Viejo Nightlife: Experience Panama’s lively bars, rooftop lounges, and music venues.
Banking & Finances
Opening a Bank Account
Panama has several banking options, including Banco General, Banistmo, and BAC. While some banks allow expats to open accounts with just a passport, others require proof of residency or a local reference.
Managing Money Internationally
Many expats continue using their international bank accounts and withdraw cash from ATMs. Some of the best banking options for expats include Wise (formerly TransferWise), Charles Schwab, Capital One, and HSBC, which offer low international fees and ATM reimbursements.
Currency & Exchange Rates
Panama uses the U.S. dollar (USD) alongside the Panamanian balboa (PAB). Since the balboa is pegged to the dollar at a 1:1 ratio, there is no currency exchange hassle for U.S. expats.
Cost of Living Budget
- Rent: $800–$3,500/month (varies by location and amenities)
- Groceries: $400–$800/month
- Utilities (Electricity, Water, Internet): $100–$250/month
- Transportation (Uber, Metro, or Car Rental): $50–$300/month
- Healthcare (Private Insurance or Public System): $100–$500/month
Final Thoughts
Panama City provides an attractive lifestyle for expats, offering a blend of modern living, business opportunities, and cultural experiences. However, it’s crucial to visit before committing to a permanent move. Spend time exploring different neighborhoods, meeting locals, and experiencing daily life to ensure it’s the right fit for you.
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Disclaimer
This guide is for informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, information may change over time. Always consult with local experts, legal professionals, and financial advisors before making decisions related to moving to or living in Panama.