Cost of Living in Panama City

It’s far less expensive to live in Panama than in the U.S., but that’s not to say it’s dirt cheap to live like kings.

One cost that was higher than expected was electricity. We had heard about extremely low utility bills in Panama, but came to realize that didn’t include air conditioning. Homes in the cooler mountain regions of Panama don’t have AC units (no need) so electric bills are low. But on the coastlines, where temperatures soar, air conditioners are always on.

Internet and phone service, on the other hand, are relatively cheap and we’ve been pleased with the speed and reliability of our local providers. We pay Tigo $67 a month for high-speed (600 Mbps) internet and cable channels, and Claro another $28 each for unlimited data and voice service for our phones. Like most everyone in Latin America, we primarily use WhatsApp to communicate.

Transportation costs are also low and it’s easy to get around the city without a car. There are plentiful, inexpensive Uber drivers and taxis, a new subway system, and multiple bus routes. It’s a flat rate of 35¢ per ride on the subway, and 25¢ per ride by bus, paid for by tapping the same reloadable card on entry. 

World's best ceviche

Services such as housecleaning and haircuts are very affordable in Panama. Our landlord introduced us to Mariana, who spends four hours cleaning our apartment every Wednesday morning for $30 per visit. Many housekeepers will spend the day cleaning for that price, but I prefer to do my own laundry. A spa pedicure at the d-uñas salon in Multiplaza mall is $40.

Prices at restaurants and cafes in the city are comparable to those in the U.S.—with a big range depending on where and what you eat. For example, a latte or cappuccino is usually $3.50 in a local cafe and $5.00 in Starbucks. Fresh fruit smoothies (batidos) are everywhere and can run to $5 each, while a 12 oz. cup of fresh-squeezed orange juice is $2.

Italian restaurants are popular in Panama. Prices for a really good oven-baked pizza at our local Zi Maria franchise run about $20 depending on toppings, while a serving of meat lasagna is $12. A styrofoam cup of the world’s best mixed seafood ceviche at Mercado de Mariscos, with one packet of Pascual cocktail saltines, is $3.50.

A large meal of roasted pork, yuca, rice, and salad is $13 at La Cubanita, a small outdoor fonda, while a plate of three specialty tacos at Tacos La Neta is $10.50. A quality 12 oz. skirt steak at Gauchos is $34, while one of our favorites for lunch is Empanadas Don Carlos, a deal at 70¢ each (we usually get two carne empanadas each and exact change is expected). 

Another favorite—Onde El Gringo—serves amazing Texas-style barbeque with U.S. beef. Sold in half-pound portions, it's $16 for brisket, $14 for ribs, and $12 for pulled pork.

Lechona special at La Cubanita

Barbecue platter at Onde El Gringo