1:1
The balboa is pegged to the US dollar
~$1,700+
A couple's month in Pedasí, renting (approx.)
~$2,600+
A couple's month in Panama City, renting (approx.)
$120,000
Registered value exempt for a primary residence
The Short Answer
Most couples spend somewhere between about $1,700 and $4,800 a month, depending far more on where and how they live than on Panama itself.
Panama uses the US dollar. The local currency, the balboa, has been fixed at par with the dollar since 1904, so prices, bank accounts and ATMs are all in dollars and there is no exchange-rate risk if your income is in US dollars. Canadians and UK buyers still need to watch their own currency against the dollar.
The figures on this page are approximate ranges as of October 2026, drawn from Numbeo, Live and Invest Overseas sample budgets, published tariffs and what we see locally from our office in Pedasí. They are a planning guide, not a quote. Housing and air conditioning swing the total most, followed by health insurance and eating out.
Sales tax (ITBMS) is 7% on most goods and services, while most basic groceries are exempt.
Sample Monthly Budgets for a Couple
Approximate ranges for two people renting a two-bedroom home, as of October 2026. Health costs assume private insurance for two.
Panama City: about $2,600 to $4,800
Rent: about $1,200 to $2,000
Electricity with air conditioning: about $80 to $200
Water, gas, internet and two phones: about $90 to $135
Groceries: about $500 to $750
Eating out: about $250 to $500
Transport (taxis, Metro or one car): about $150 to $350
Health insurance and doctor visits: about $250 to $600
Part-time cleaner: about $100 to $250
Compare neighbourhoods on our Panama City page.
Pedasí: about $1,700 to $3,300
Rent: about $500 to $900
Electricity with air conditioning: about $80 to $200
Water, gas, internet and two phones: about $85 to $130
Groceries: about $450 to $650
Eating out: about $150 to $350
Transport (a car is close to essential): about $150 to $300
Health insurance and doctor visits: about $250 to $600
Part-time help: about $80 to $200
See homes and lots on our Pedasí page.
Boquete: about $2,100 to $3,800
Rent: about $800 to $1,400
Electricity (little or no air conditioning): about $40 to $90
Water, garbage, gas, internet and two phones: about $95 to $150
Groceries: about $450 to $650
Eating out: about $200 to $400
Transport: about $150 to $300
Health insurance and doctor visits: about $250 to $600
Part-time help: about $80 to $200
Browse condos and homes on our Boquete page.
Coronado: about $2,300 to $4,300
Rent: about $1,000 to $1,600
Electricity with air conditioning: about $90 to $220
Water, garbage, gas, internet and two phones: about $95 to $150
Groceries: about $450 to $700
Eating out: about $200 to $450
Transport: about $150 to $350
Health insurance and doctor visits: about $250 to $600
Part-time help: about $80 to $200
See beach condos and homes on our Coronado page.
Housing: Renting and Buying
What rent costs
Rent is the largest line in every budget. As of October 2026, Numbeo puts a one-bedroom in central Panama City at about $1,260 a month and a three-bedroom at about $2,180, with outer neighbourhoods roughly 30% lower. In Boquete it reports about $700 to $825 for a one-bedroom and $1,300 to $1,570 for a three-bedroom.
Coronado rentals start at around $1,000 a month according to Live and Invest Overseas. Pedasí is the least expensive of the four: a two-bedroom home in town was recently advertised at $500 a month, though furnished homes near the beach cost more.
Most long-term rentals are furnished, and the rent in a condo normally includes the HOA fee. We suggest renting for a few months before you buy.
What property costs to buy
Advertised asking prices from our current listings, as of October 2026 (not closed sales):
Pedasí: casitas from about $48,000, two-bedroom homes about $139,000 to $255,000, ocean-view homes with pools about $435,000 to $525,000
Boquete: a 100 m² two-bedroom garden condo at $190,000, new single-level homes in gated communities from $273,000 to $342,000
Coronado area: a three-bedroom home in Río Hato at $169,000, a two-bedroom ocean-view golf community condo at $299,250
Panama City: new Bella Vista units from $160,000, a 76 m² Costa del Este apartment at $330,600
Buyers pay no agent commission when they buy with us. Closing costs are legal fees of about 1% to 1.5% plus small notary and Public Registry fees. The 2% transfer tax is customarily paid by the seller. See Buying & Closing Costs.
Utilities: Electricity, Water and Internet
Electricity and air conditioning
Electricity is regulated by ASEP, the national utilities authority. Naturgy supplies western and central Panama, including Coronado, the Azuero and Chiriquí, and ENSA supplies eastern Panama City, Colón and Darién.
Households using up to 300 kWh a month keep a state subsidy; above that you pay the full tariff. That is why air conditioning matters: as a rough guide, fans only run about $25 to $45 a month, moderate AC $45 to $90, and AC every night $120 to $250 or more. In Boquete, most homes need little or no AC.
Water and gas
Public water from IDAAN or a local water board is inexpensive, usually about $5 to $20 a month including garbage collection, and often included in condo HOA fees. Many rural and beach homes run on wells with storage tanks, so you pay for the pump's power instead.
Cooking gas comes in cylinders. A subsidised 25 lb tank costs only a few dollars to refill and lasts most couples several weeks.
Internet and phones
Fibre internet is widely available in Panama City, Coronado, Boquete and Pedasí town, typically about $40 to $70 a month. Main providers include Tigo, Claro and Más Móvil. Some rural homes use satellite internet.
A mobile plan with 10 GB or more of data runs about $25 to $40 a month per phone.
Food: Groceries and Eating Out
Groceries
Local produce, chicken, eggs, rice and fish are good value. As of October 2026, Numbeo lists a dozen eggs at about $2.55 to $2.75, a pound of chicken fillets at about $3 to $3.50, and a litre of milk at about $1.80 to $1.90. Imported brands, cheese, wine and North American speciality foods can cost as much as or more than at home.
Panama City and Coronado have large supermarkets. Boquete has its own supermarkets, with more choice in David. Pedasí has small supermarkets and a market, and many residents do a bigger shop in Las Tablas or Chitré. A couple cooking mostly at home typically spends about $450 to $750 a month.
Eating out
Eating out is where Panama can be very affordable or not. A set lunch at a local fonda can still cost well under $10, while Numbeo puts a meal at an inexpensive restaurant at about $6.50 in Boquete and $11.50 in Panama City, and a three-course dinner for two at a mid-range restaurant at about $40 to $48 before drinks.
A 10% tip is customary, and some restaurants add it to the bill. Holders of the Pensionado visa receive retiree discounts at many restaurants.
Transport, Healthcare and Domestic Help
Transport and fuel
Fuel prices are set by the Secretaría Nacional de Energía and reviewed every two weeks. In mid-September 2026, regular 91-octane petrol cost about $1.29 a litre in Panama City, a little more in remote areas.
In Panama City you can manage without a car using the Metro, Metrobus, taxis and ride-hailing apps. In Pedasí, Boquete and Coronado a car is close to essential. See our Panama Transportation Guide.
Healthcare and insurance
Private care costs much less than in the United States. A general practitioner visit commonly runs about $30 to $80 and a specialist about $60 to $150, more at top Panama City hospitals.
Local private health plans typically cost about $50 to $200 a month per person, and international plans about $150 to $500. Many local insurers stop accepting new applicants at 65 or earlier, and pre-existing conditions are usually excluded, so arrange cover early. Panama City has the major private hospitals; Boquete residents use hospitals in David, and Pedasí residents use the Azuero hospitals in Las Tablas and Chitré.
Domestic help
As of January 2026, the legal minimum wage for a full-time domestic worker is $350 a month in the main urban districts, including Panama City and David, and $320 elsewhere. Employers also owe Social Security (CSS) contributions and the thirteenth-month bonus, so ask your lawyer how to employ someone correctly.
Most couples hire a cleaner or gardener by the day instead, which is how the budgets above are calculated.
Owning a Home: HOA Fees and Property Tax
If you buy, rent disappears from your budget, but HOA fees, property tax, insurance and maintenance take its place.
HOA fees. Condo fees are usually charged per square metre of your unit. In Panama City towers they commonly run about $1.25 to $2.50 per m² a month, so a 100 m² apartment pays roughly $125 to $250. Beach condos in Coronado can cost more because salt air wears buildings faster. Houses in gated communities in Boquete, Coronado and Pedasí usually pay a flat monthly fee. Always ask for the bylaws, the current fee and the reserve fund before you sign.
Property tax. Tax is charged on the property's registered value, not its market value. For a registered primary residence the first $120,000 is exempt, value from $120,001 to $700,000 is taxed at 0.5%, and value above $700,000 at 0.7%. A primary residence registered at $250,000 would pay about $650 a year. Second homes and rentals have a $30,000 exemption and rates from 0.6% to 1.0%. Our Property Tax Guide has the full table.
Upkeep. Budget for home insurance, pool and garden care, and regular maintenance, especially near the ocean, where salt air is hard on metal and appliances.
Planning Your Move
Your budget will depend on your health, your habits and how much of home you bring with you. A breezy, shaded house uses far less air conditioning, local brands cost less than imported ones, and renting first lets you choose the right town before you buy.
For visas, banking, shipping and paperwork, read our guides for Canadians moving to Panama, Americans moving to Panama and moving from the UK, and our Panama Relocation Information.
Plan Your Budget With Someone Who Lives Here
We live and work in Panama, with our office in Pedasí and local agents in Boquete, so we can help you understand what life really costs in the place you are considering. Buyers pay no agent commission when they buy with Panama Properties.
Visit us at Unit 1 Plaza Pedasí (Super Pedasí Plaza), Pedasí, Los Santos 7401, message us on WhatsApp at +507 6169-2453, or start the buying process.
Frequently Asked Questions
What currency does Panama use?
The US dollar. Panama's balboa is fixed at par with the dollar, and US banknotes are used every day. Panama mints its own balboa coins, which circulate alongside US coins.
How much does a couple need per month to live in Panama?
As of October 2026, roughly $1,700 to $3,300 in Pedasí, $2,100 to $3,800 in Boquete, $2,300 to $4,300 in Coronado and $2,600 to $4,800 in Panama City, renting a two-bedroom home and including private health insurance. These are approximate ranges, not quotes.
Is Panama City more expensive than the rest of the country?
Yes, mainly because of rent. Groceries, fuel and utilities are similar across the country, but Numbeo's central Panama City rents are well above those in Boquete, and Pedasí rents are lower again.
How much is electricity in Panama?
It depends mostly on air conditioning. A couple using fans might pay about $25 to $45 a month, while running AC every night can cost $120 to $250 or more in hot areas. Boquete's cool climate keeps bills low.
Do I need private health insurance?
We strongly recommend it. Local plans typically cost about $50 to $200 a month per person and international plans about $150 to $500. Many local insurers stop accepting new applicants at around 65, so apply early.
Do retirees get discounts in Panama?
Yes. Holders of the Pensionado visa receive retiree discounts on a range of services, including many restaurants and some medical costs. See our Pensionado Visa guide and confirm the current rules with an immigration attorney.