Panama City has been transformed from a run-down third world city, to a bustling metropolis with a first world infrastructure. Hip neighborhoods attract more and more positive attention from outside investors, pursuing creative business adventures at third world costs.
In a place where you can live at 1/10 the value of the United States, investment or retirement in Panama has proven to be one of the best lifestyles one can adopt.
Courtesy of our friends at Semusa Realty in Panama City, here is a pricing chart identifying some of the basic costs for living in Panama City.
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MONTHLY EXPENSE (In US Dollars)
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PANAMA *
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Residence (House or Condo)
• 3 Bedroom
• 2,000 Square Feet
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Investment – $ 200,000
Rent – $ 1,500.00
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FIX COST
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Electricity
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$175
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Water (Very Safe to Drink The Best in Latin America )
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$20
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Phone (Includes Monthly Fee and Estimate Usage)
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$50
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Live-In Maid (If you can afford Highly Recommended)
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$150
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Cell Phone
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$ 50
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Condo Maintenance Fee
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$ 200
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Internet Services (Residential)
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$ 30
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Cable Service
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$ 50
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Gasoline ($2.35 Per Gallon Estimate)
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$ 50
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Groceries (Monthly for Family of 4)
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$ 500
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Fire Insurance (Building & Content)
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$ 50
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Health Insurance (Basic Coverage for Family)
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$ 150
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Car Insurance (Based on a $ 30,000 Auto)
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$ 100
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Gas (Cooking & Water Heater) Note: Some Condos include it on the Maintenance Fee
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$ 30
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OTHER REFERENCE COST
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Mortgage Interest Rates (Usually about 2 point higher than US Very good for Latin-American Standards)
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%6- %8
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Property Tax (Yearly)
• Land
• Betterments
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From 0% to 2%
From 0% to 2%
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Taxis within Panama City
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$1.50
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Sales Tax
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5%
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Dinner at Fancy Restaurant (For Two with Wine)
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$ 60
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Movie Theater
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$ 3.50
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Bottle of Wine (Plenty of Variety) Mayor Re-Export Business from the Colon Free Zone
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$ 8
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Schools
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$ 6,000 Capital Donation
$ 6,000 – $8,280 Tuition
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Gymnasium Monthly
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$ 65
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Dentist
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$ 35
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Doctors Appointment
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$ 40
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Note: All indicated cost are estimates based on a family of four, cost may vary
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Tags: Cost of living Panama
With these prices Florida may again become the choice of many retiring americans. The median price of a 2000 sq foot house in Cape Coral is only about 115,000 and you can find many for even less. Electricity most of the year (winter-no AC) is less than 100.00 per month. Gym memberships (to full gyms) as low as 10 per month. Tuition to Florida colleges as low as 4,000 for instate tuition. Cell phone service 19.99. The only thing on this list that is not more expensive than Florida is probably the health related costs and the real estate taxes.
Can’t figure out the auto insurance. I pay 184.00 per month currently for 4 cars and two teenage drivers. So 100 for 1 car seems expensive.
Have spent considerable time in Panama over the past ten years in both Panama City and the mountains and beach area. Panama is a wonderful place to visit for a few weeks at a time but hardly a place for spending the rest of your life in retirement. Panama is a tropical country and it is warm and humid. There are a few cool places in the mountains but those are fast being taken up and it is costly to live there. You mention in your “budget” fixed cost for electricity in a 2000 sq.ft. home or condo at $175/month. That figure is totally unrealistic if you are accustomed to air conditioning below the 80 degree level in your living environment. You could well be looking at $800 or more per month. Most places have air conditioning zoned in limited areas of the house. North Americans expect uniform cooling. There are strings and long term obligations when you hire household staff fulltime in Panama and their laws have teeth in them unlike other areas. You are suggesting that people not carry much health insurance. That is a mistake. Retirees are aging and with aging all types of chronic conditions can come up–heart, lung, diabetes, ambulation difficulties and chronic pain from arthritis etc. The “big ” hospital there Punta Pacifica has an affiliation with Johns hopkins in the U.S. That does not mean it is Johns Hopkins or has the offerings on site of Johns Hopkins. In reality it is a 60 bed hospital with a by line. Don’t get me wrong it is not a bad place but it is by no stretch of the imagination Johns Hopkins. North Americans need to carry legitimate health insurance especially as they age and they need evacuation coverage with an organization like Medjet assistance for the time when they require real expert care or comprehensive rehabilitation. The problem with retiring to Panama is that there really is nothing to do after a few weeks to sight seeing. What are you gonna do day in and day out and week in and week out? Lots of AA chapters popping up. My suggestion get a condo in central florida in a place like Winter Haven. Cost $60-80,000. lots to do, excellent health care. Then take trips as you like for a couple of weeks at a time to places like Panama, Argentina etc and rent a little place there. Non stop flights from Orlando International Airport at reasonable prices. Have a little variety in your life and not just Panama. I thought of relocating to Panama and then I realized that life would be much better over the long haul in Winter Haven FL!!!
If we wanted to retire in the United States, it would not be Florida. We would just stay in our current location. There are several reasons we are looking in other countries; taxes and healthcare. We may not be able to afford the taxes that are coming and who know what the new healthcare system will allow. We are prepared to retire on $2,000 to $2,500 a month. We are not looking for perfection because it does not exist. It may not be Panama; it definitely will not be Florida.
We are currently looking into relocating to Panama or Ecuador. With all the recent articles stating that these are some of the best places to retire. I am concerned as I was given the impression that one could live comfortably on $500.00 a month, is that not so?
I agree with the previous email that I may not be able to afford the taxes and health insurance in the US. So where would I get accurate information?
Since this is an estimate from 2008 and was really more geared towards a “top end” lifestyle, we have asked our new Gringo, Alex to do a write up that is more current and suited to a more budget minded crowd. Check out what he has to say here:
http://thepanamagringo.com/2011/08/31/cost-of-living-panama/
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