Country topic
Cost of living in Panama
The World Bank's price level index for Panama was 45.08 in 2025, where the United States is 100. That is a national comparison of prices at market exchange rates across all of GDP, not a budget for one household, and it says nothing about rent in a particular neighbourhood. The same series gave 46.25 for 2024 and 47.17 for 2023. [Cost of living C1] Panama's currency is the balboa, which Canada's government says is used interchangeably with the US dollar. It warns of counterfeit US$50 and US$100 bills and advises carrying only small bills. The general sales tax (ITBMS) was set at 7% from 1 July 2010 in Law 8, with other rates for some goods such as alcohol; we did not check later changes. [C2] [C3]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- The World Bank's price level index for Panama was 45.08 in 2025, where the United States is 100. That is a national comparison of prices at market exchange rates across all of GDP, not a budget for one household, and it says nothing about rent in a particular neighbourhood. The same series gave 46.25 for 2024 and 47.17 for 2023. [Cost of living C1]
- Panama's currency is the balboa, which Canada's government says is used interchangeably with the US dollar. It warns of counterfeit US$50 and US$100 bills and advises carrying only small bills. The general sales tax (ITBMS) was set at 7% from 1 July 2010 in Law 8, with other rates for some goods such as alcohol; we did not check later changes. [C2] [C3]
- On 15 October 2026 two one-bedroom adverts in Panama City asked $1,125 a month (San Francisco, 102 m2, building with pool and gym) and $1,450 a month (Bella Vista, Calle 50, furnished 84 m2, one-year minimum lease). These are single asking rents on a private property portal, not averages or quotes, and availability is unconfirmed. [C4] [C5]
- Two-bedroom adverts on the same portal asked $1,000 a month (Calle 50, 97 m2), $1,100 (San Francisco, 80 m2) and $1,700 (a 104 m2 loft in Carrasquilla, marked negotiable). Size, furnishing and building amenities differ between adverts, so the spread shows what is advertised, not a typical rent. [C6] [C7] [C8]
- Outside the capital we found one advert for each place: a furnished three-bedroom house of 120 m2 in El Francés, Boquete, at $1,400 a month, and an unfurnished one-bedroom apartment in Coronado Golf at $1,500 a month. The Coronado advert shows a publication date of 29 October 2024, so it may be out of date. A house and an apartment are not comparable, so no Boquete or Coronado rent level is known. [C9] [C10]
- Bills are mostly unpriced. One advertiser says electricity bills in its building never exceed about US$80 a month, which is the advertiser's claim, not a tariff. We found no dated, sourced prices for groceries, internet, mobile plans, local transport or leisure, so those costs are unknown, not zero. [C5]
- Canada's government says good care is available in private hospitals and clinics in Panama City, public hospitals vary greatly and are limited outside the capital, you may have to pay in advance in cash, and medical evacuation can be very expensive. The remote-worker visa requires health insurance valid in Panama for the whole stay. We found no priced insurance quote, so the cost is unknown. US Medicare usually does not cover care outside the US, and Australia's reciprocal healthcare agreements do not include Panama. [C2] [C11] [C12] [C13]
- One-off government fees we found: the remote-worker visa costs B/.250 to Migración plus B/.50 for the card; the friendly-nations provisional residence asks for certified cheques of B/.250 and B/.800; and extending a tourist stay by up to 60 days to change category costs B/.250 with a B/.500 guarantee deposit that is returned if you file the full application in time. These are fees only; lawyers' fees are unknown. [C11] [C14] [C15]
The Fernshore Index
How the Index grades the cost of living.
Each grade is against a published measure, with its source and the date we checked it. It is research information, not advice. Where we have no figure, the row says Unknown.
Cost of living
74 of 100Strong
Price level 0.451 of United States prices (2025).
Source: Price level index (GDP), Panama. Checked 15 October 2026.
The country
More on Panama.
Topics
More about Panama.
Questions about Cost of living in Panama.
How much cheaper is Panama than the United States?
In 2025 the World Bank's price level index for Panama was 45.08, where the United States is 100. That is a country-wide measure across all goods and services at market exchange rates, not a budget for you, and it says nothing about rent in a particular neighbourhood.
How much is rent in Panama City?
On 15 October 2026 one-bedroom adverts asked $1,125 (San Francisco) and $1,450 a month (Bella Vista), and two-bedroom adverts asked $1,000 to $1,700. These are single asking rents on a private portal, not averages or quotes, and availability is unconfirmed.
What currency does Panama use?
The balboa, which Canada's government says is used interchangeably with the US dollar. It warns of counterfeit US$50 and US$100 bills and advises carrying small bills. The general sales tax (ITBMS) was set at 7% in a 2010 law; we did not check later changes.
How much do groceries and utilities cost in Panama?
We found no dated, sourced prices for groceries, internet, transport or most utilities, so they are unknown, not zero. One advertiser says electricity in its Panama City building never exceeds about US$80 a month; that is the advertiser's claim, not a tariff.
What does health care cost for newcomers in Panama?
We found no priced insurance quote, so the cost is unknown. Canada's government says private hospitals in Panama City offer good care, you may have to pay in advance in cash, and medical evacuation can be very expensive. The remote worker visa requires health insurance valid in Panama.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [PA C1] Price level index (GDP), Panama, World Bank. Checked 15 October 2026. 2025: 45.08 (United States = 100), read from the World Bank API on 15 October 2026 (data.worldbank.org pages were not used; the API was).
- [Cost of living C1] Price level index (GDP), Panama, World Bank. Checked 15 October 2026. 2025: 45.08 (United States = 100); 2024: 46.25; 2023: 47.17. Read from the World Bank API on 15 October 2026 (updated 8 October 2026).
- [C2] Panama travel advice and advisories, Government of Canada (travel.gc.ca). Checked 15 October 2026. Written for Canadian travellers; last updated 15 October 2026. Used for the currency (balboa, used interchangeably with the US dollar), counterfeit US$50 and US$100 bills, private hospitals and clinics in Panama City, paying in advance in cash, and the cost of medical evacuation.
- [C3] Law 8 of 15 March 2010 (tax reform), article 76: ITBMS rate, Gaceta Oficial No. 26489-A, as published by the Dirección General de Ingresos (official). Checked 15 October 2026. Paragraph 6 of Tax Code article 1057-V: the rate of the tax is 7% from 1 July 2010, with other rates listed for some goods. This is the 2010 text; later changes were not checked.
- [C4] Apartment in San Francisco, 1 bedroom, 102 m2 (ID 70594), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,125 a month on one advert shown as updated 7 October 2026; availability unconfirmed.
- [C5] Furnished apartment in PH Lemon Tower, Calle 50, Bella Vista (ID 70748), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,450 a month, minimum lease one year, on one advert shown as updated 13 October 2026; the advertiser says electricity bills never exceed approximately $80 a month; availability unconfirmed.
- [C6] Furnished apartment in PH Excelsior Plaza, Calle 50, 2 bedrooms (ID 70771), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,000 a month, 97 m2, on one advert; availability unconfirmed.
- [C7] Apartment in San Francisco, 2 bedrooms, 80 m2 (ID 70597), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,100 a month on one advert; availability unconfirmed.
- [C8] Furnished loft-style apartment in PH La Loma Vista Tower, Carrasquilla (ID 70740), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,700 a month, marked negotiable, 104 m2, on one advert; availability unconfirmed.
- [C9] Furnished 3-bedroom house, Emerald Drive, El Francés, Boquete (ID 70759), PanamaRE, panama-real-estate.com (private property portal). Checked 15 October 2026. Asking rent $1,400 a month on one advert shown as updated 12 October 2026; furnished three-bedroom house of 120 m2 on a 602 m2 plot; availability unconfirmed.
- [C10] Unfurnished 1-bedroom apartment, Coronado Golf, Coronado, InmoPanama, inmopanama.com (private property portal). Checked 15 October 2026. Asking rent $1,500 a month on one advert; the portal shows it as published on 29 October 2024, so it may be out of date; availability unconfirmed.
- [C11] Requirements for the Short Stay Visa as a Remote Worker (Visa de Corta Estancia como Trabajador Remoto), Servicio Nacional de Migración de Panamá (official). Checked 15 October 2026. Checklist PDF (uploaded April 2026), in Spanish: payment of B/.250 to Migración, card B/.50, health insurance policy valid in Panama for the whole stay.
- [C12] Travel outside the U.S., Medicare.gov (Centers for Medicare & Medicaid Services). Checked 15 October 2026. Says Medicare usually does not cover health care outside the U.S., with a few exceptions.
- [C13] Reciprocal healthcare agreements, Victorian Department of Health. Checked 15 October 2026. Lists eleven reciprocal healthcare agreement countries for Australia (Finland, Italy, Malta, New Zealand, Norway, Ireland, Sweden, the Netherlands, the United Kingdom, Belgium, Slovenia); Panama is not one of them.
- [C14] Checklist: provisional residence for nationals of specific friendly countries (PPT-PE), Servicio Nacional de Migración de Panamá (official). Checked 15 October 2026. Checklist PDF (uploaded April 2026), in Spanish: certified cheques of B/.250 (Tesoro Nacional) and B/.800 (Migración).
- [C15] Checklist: extension of a tourist stay to change migratory category, Servicio Nacional de Migración de Panamá (official). Checked 15 October 2026. Checklist PDF (uploaded April 2026), in Spanish: up to 60 days, B/.250 and a B/.500 guarantee deposit, returned if the full application is filed in time.