Many people are looking for information on this subject, especially people who are considering a move to this area. Money was a big factor in our move and of course it is a concern for many others as well, especially with all the economic problems in the US.
We are in the city of David, Chiriqui Province, Republic of Panama. This is only our experience, our information. Other people do things differently, live in other areas, and make other choices so their costs will be different. Keep in mind that many professional Panamanians in our area (eg; teachers, nurses) make $500-600 a month, and many others live on much less than this. If you live like a Panamanian you can have a good life here on less money than in the US.
This is our house. I’m guessing it’s about 1000 square feet, 3 bedrooms, 2 bathrooms, living room, dining room, kitchen, the carport you see here, a laundry room behind it, and a good size patio behind that.
Our House
Looking up our street.
This is our street, a nice quiet middle/upper class neighborhood with mostly professionals – teachers, lawyers, business people, tradesmen, etc. It is on the nicer side of town, 5 minutes from the Pan American Highway and an excellent shopping area. This neighborhood is considered desirable and very expensive by many of the locals.
Our rent is $385/month which includes water and trash pickup. The house was rented unfurnished (which means no appliances).
Electricity last month was $49.45 for 421 kWh which I think is about what we can expect monthly. We do not have air conditioning.
Cable – TV and mid range internet (about 5MB, not the fastest, but not the slowest, and it has worked out just fine) $53.52 / month
Gas for the kitchen – we buy it by the tank. It’s about $65 to buy a tank (you will probably want to have two) and $5.12 to refill it. A tank lasts us about a month. We cook almost everything from scratch and don’t eat out, and have an on demand water heater so we use a fair amount of gas.
Food – last month we spent $339.31 for two adults. This month we have spent $319 and there is a week to go in the month. But, this includes $30 of fish and about $30 of chicken, much of which is still in the freezer, and maybe $50 in bulk items from PriceMart. So far this month (about 3 weeks) we have spent $68.35 at the produce markets. This includes ALL our fruits and vegetables, and also some eggs, and corn for tortillas (I have only used a can opener once in the 4 months I have lived here). We have fresh fruit at every meal, and fresh veggies every day.
Food is a big variable. You can get almost everything you are used to in the US, but you will pay US prices and maybe more. You can get produce in the supermarket but you will pay a lot more, and it won’t be the wonderful quality of the markets. If you eat out, prices also vary widely. A Panamanian lunch at the corner hang out is maybe $3 – $4.50. If you go to a restaurant, it could be $6, or $10, or $20+ depending on where you go. Fast food is available but you will pay US prices and more. If you eat like a Panamanian you can keep your costs down a lot, and eat better and healthier food.
Cars – used cars are surprisingly expensive here. Major brands of new cars are readily available. We paid $5300 for a Hyundai Atos from another expat who was returning to the US. When I first got here I paid $4000 for a 97 Mazda 323. My friend’s mechanic sold me his wife’s car because he said he couldn’t find any other decent cars in my price range ($3-5K). Other people here have told me similar stories about expensive used cars. But, the insurance on the Mazda is about $95/year, and on the Atos (full coverage) about $550 for the year. Since I’ve been here, gas has ranged from $3.85 – $4.10 a gallon for 91 (which is the lower octane rating here).
If you want to save money, use public transportation. There is an excellent bus system that goes everywhere. A ride is maybe $.25 – $1.00 depending on where you go. Even an all day ride to Panama City is $18. Taxi’s are everywhere and inexpensive, maybe $1 – $3 in town. They charge more for more passengers, or extra packages and baggage, as well as for distance. Bicycles and walking are other very common forms of getting around. we have found biking easier here because drivers are used to sharing the roads with bikes and pedestrians, so they are very considerate.
Alcohol – Local beer is $.48/can (and really good!), less by the case at Pricemart – $.40/can. Rum (2 liters – decent local brand) $10.89 at Pricemart, maybe a couple dollars more in the supermarket. Seco (2 liters – local rum type product) $8.69 at Pricemart, again a bit more at the supermarket. You can get decent box wine, $2/box/liter, and good bottled wine for less than $5/bottle. There is a decent wine selection in the supermarket, and a very nice wine store in the nearby shopping center with a good selection and personal service to help you choose.
Entertainment – we spent $7 for two at the movie theater, evening showing. Another day it was only $5 for both of us. We didn’t buy snacks though, so not sure what they cost.
We found a tennis group, $25 each to join, $5 monthly dues. Tennis balls however are $8/can. If I understand correctly, golf is also available at the same location for $30/month.
We bought bicycles, $265 each for good bikes, 21 gears, shocks in the front. (I don’t know how this compares to the US).
Health Care – a visit to the doctor will cost $20 – $40 basic charge. A visit is as much time as you need. A visit to the dentist is maybe $30 for a cleaning or filling, more for other procedures. I am getting a crown for $250. I have found health care here much more affordable and the quality excellent. I was a nurse in the US, and I am very happy and thankful to be here. There are various options for health insurance but this is not a subject I’m qualified to talk about. We have decided to pay as we go.
Also, keep in mind that that jubilado or pensionado discounts lower costs of many things even further, for those who qualify. More info HERE
Moving expenses – this is a one time expense, but people are understandably curious so I will give you my $.02 worth. This expense can also vary greatly. If you want to save money, move as little as possible. Come down here with whatever you can bring in suitcases. It’s cheaper to buy what you need here than move it. Do not bring a car. From what I understand it’s complicated and expensive, and older cars cost more than newer cars to import. If you want to move stuff that involves shipping, expect to pay thousands. If you want to move the entire household of stuff, you can rent a container so with enough money it is possible.
Getting settled – another one time expense. For us, I saw this unfurnished house that I really wanted, so I had to do some major shopping for appliances, beds, dishes, everything! But, this is not as difficult as it sounds. There is a large variety of options. You can get a little $100 stove, or a $900 stove with all the bells and whistles. I think decent mid range appliances are comparable to what they cost in the US, and you will see many familiar brands. I lived in Florida before, land of wealthy people where you can furnish your house with great second hand stuff. Here in Panama though, there is little used furniture and it’s expensive. New furniture is available all over town but it costs probably as much as new furniture in the US, though that is hard for me to say since I never bought new furniture. Or, it’s also possible to rent a furnished place. Some have everything down to the spoons and towels.
Whew! I think I have covered all the basics. Thanks for hanging in there to the end. If you see incorrect information, have suggestions, questions, or anything else please leave me a comment!
Whew! Great. Hey, Kris, what about cell phone?
Thanks! I bought a cheap phone for around $20 and prepay for time ($.09/minute) When it gets low on time I go put some more money on it. You can get iPhones and other smart phones – very common here but I don’t know what they cost.
Great post. I’ve always wondered about costs…especially house rentals. It’s funny how expensive some items are, though….used cars, tennis balls etc. Loved the post. Keep up the good work.
In this area house rentals can be $100 (wouldn’t want to live there) to $1500? (large luxury mansion with maid’s house). Ours is an example of what we think is a very comfortable house and neighborhood which I’m happy to have at an affordable price (affordable for us, not for most locals) Someone told me they want fewer cars on the road so that’s why prices are high (the government influences things somehow), and public transportation is so good. Tennis balls? I dunno, supply and demand, I suppose.
Great job! Much of what you said is true here in Ecuador as well – especially the part about food costs. If one wants to go to the city and get canned goods and prepared foods, they can pay as much as we did in the United States, but if one eats like an Ecuadoriano, they will eat much better and spend far less. Beside, going to the mercado is one of the highlights of our week.
Thank you
I just told our neighborhood produce guy today that his store is my very favorite, and it’s true! I’m so spoiled by all the produce here.
Great post. Thanks for the openness and honesty. Internet and food is what usually seems to run the highest for most expats, it seems. And also if in Panama City, the A/C running all the time can cause electric bills to skyrocket! This is why I am leaning towards the mountains
but time will tell. I could change my mind tomorrow, again.
Come spend some time in various places and see what feels right to you. For me both Panama City and David are more comfortable than Florida. I wouldn’t want to be without a/c in FL. But if you do use a/c here your bills will go up. I think electricity is as much as the US, if not more. Food? This is much less than we spent in the US where it wasn’t unusual at all to spend $150/week. We also spent twice as much on TV/internet. But, if you are talking about the greatest percentage of our budget now, yes, food and rent, and then internet. and then some optional things like Spanish lessons and our tennis coach.
Great information! Thank you for taking the time to post. Very helpful.
Thanks! glad you found it useful.
Hi Kris:
If any of your readers are interested I posted our living expenses after living in our area after we lived here for five months last October. They can find it here: http://indacampo.wordpress.com/2012/10/23/what-does-it-cost-to-live-in-panama/
Probably the main differences with us is that I included our Spanish lessons (still doing them twice a week) and we have health and dental insurance from Canada (my hubby was a federal government employee and we have comprehensive insurance with his pension). We’ve never had to use it but it covers the basics as well as catastrophic and repatriation so we kept the plan.
We also own our home and an SUV that we bought used. I estimated all our costs on the high side to keep it honest. Gas prices go up and down and so does our grocery bill but I’m also finding that we get by more and more without Norte Americano food. Like you we hardly ever open a can and eat a lot of fresh fruit and vegetables. We live in a fishing community so we usually have fish in the freezer or fresh from someone who has extra. I don’t use very much prepackaged food and I bake at least once or twice a week.
Thanks for posting this. I’m enjoying see how your area compares to mine!
KA
and I was interested to read yours! It seems our basic costs aren’t too much different except for the house. I also have Spanish lessons and tennis lessons but figured these were optional and didn’t include them with the basic living expenses.
I’m going to post a link to your page on my blog! You’re pressed again!
KA
Ahhh, so being pressed means being linked somewhere. Here I thought I’d get a wrinkle or two smoothed out
Loved the link. Interesting to see all the different averages. Definitely gives us a better idea of what we are looking at.
Good, glad if it was helpful. I’ll probably post other such reports periodically because it’s a very important subject for people thinking about living here!
I’m laughing about your can opener comment. The other day, I bought a can of cherries to make a cherry pie…the first can of anything I ever bought in over 2 years here in Nicaragua. I couldn’t find a can opener anywhere and we had to resort to using the Swiss Army knife to open it. Two weeks ago, a young local friend of ours stopped by to visit. Our local visitors always bring us some little food treat..usually fruit, but Paulino brought us canned tomato soup and chicken noodle soup. “Where in the world did you find this?” I asked Paulino. He told us that missionaries brought the canned food to his church, but no one knew what to do with gringo food, so he brought it to our house. LOL Thanks for your cost of living analysis. I am always curious to know how much expats pay for things in different countries. Our electricity is high, too. We average about $50 a mo. with no air conditioning. I only wish that when the electricity goes out..almost daily..that they’d give us a discount. Sometimes I don’t think they read the meter, only make an average of last month’s bill.
I wonder if the missionaries know how not useful their food donations are. I bought a can opener when I set up the kitchen because of course, you have to have one, right?
Good luck with the electricity. That has to be annoying especially when you’re paying a good amount for it. At least here ours is quite reliable.
Why such a big difference in car insurances?
The Mazda has only basic coverage and the other has full coverage so they’d fix it if it gets wrecked.
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Thanks for the insights and tips! The cost of living is great there!
Like yourselves, I live in a middle class neighborhood at a fraction of what it cost me in Fort Lauderdale. I rent a small, completely furnished house for $175/month, and you’ve seen it. Nothing fancy, but quite comfortable. My electric bill fluctuates depending on the time of the year. It’s rather high right now. It’s the dry season and it IS HOT down here “on the flat,” and I’m using the a/c for a few hours during the hottest part of the day. Even so, I’m only paying about $30 and change for the month. In the rainy season I’ve paid as low as $8 and change. In Lauderdale my part of the rent for a 2/2 duplex was $600/month and the electric bill was ALWAYS at least $125!
Transportation is also a real value, and you’re right about the buses. You can get pretty much anywhere you want to go in this country on public transportation. The cheapest fare around David is 35 cents. From my place in Boqueron to the central terminal in David the cost, after the “Jubilado” (Old Farts) discount is 65 cents. Another 35 cents takes me to Plaza Terronal where the big El Rey supermarket is. So, for $2 round-trip (about 40 miles) it’s a bargain. It would be absolutely impossible to make the trip in your car for that. And we’re NOT talking chicken buses here, either, folks. Most of the buses are nearly new Toyota Coasters. Thirty seats and air conditioned, too. Mostly. The only converted school buses are the ones that run up to Boquete.
I get what is the “average” Social Security check each month. In the States that means I’d have to have a job as a greeter at Squalmart or as a bag boy at Publix if they’d hire me. Here, on the other hand, I have a comfortable life with wonderful neighbors and at the end of each month I have more money than I started with.
Yep! That’s a big reason many of us are here, a comfortable life for much less. The wonderful neighbors are a wonderful bonus.
And, not only are the buses comfortable, there is an attendant to help you off and on, and deal with excess packages, and anything else he can do to help. You don’t find that in the US.
Squalmart. LOL We’ve all seen the seniors out working, and thankful that Squalmart and Publix will give them a job because they need the money to survive.
To be fair, not all of the people working as greeters and baggers are doing it for the money, though I suspect the majority are. There are a lot of retired people who just don’t want to sit around the house and acquire a patina of mold, and going to a part time job gives them purpose in their lives. You were a nurse, I think. Lots of hospitals depend on retirees who volunteer their time, and shelters feeding the homeless see a lot of retired volunteers, too. And then there are others, like us, who move on to another adventure.
You’re right. We always chatted with the store employees and the majority of them who talked with us on this subject needed the money. Otherwise they could taken some of the many volunteer opportunities around town. Yes, I was a nurse, and I also encountered many volunteers in the school system (and I was one myself). I think with all the retirees in FL, there are lots of volunteers who work in a great variety of positions and make very valuable contributions to their communities.
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