Cost of Living in Panama for an American (Monthly Budget)

Where these numbers come from

Panama is the simplest country here for budgeting because it uses the dollar. A U.S. International Trade Administration market guide describes Panama's dollarized economy, and Numbeo lists local prices in dollars, so no currency conversion is applied and the rate is 1.00. Prices shown in US dollars. Check current exchange rates. Numbeo, updated 26 September 2026, shows a one-bedroom at $930 in the city centre and $699 outside it, each with a wide range ($575 to $1,500 in the centre).

Monthly budgets for one person are $1,450 low, $1,726 mid and $2,277 high, and $1,977, $2,374 and $3,202 for a couple. The high figures are driven by private health cover, where International Living's sample budget shows $100 to $300 for one person and $200 to $500 for two. International Living's own single-person total runs $1,724 to $3,620, so our mid figure sits at the lower end of that range.

The retiree route is the Pensionado permit from the National Migration Service. Its requirements sheet asks for proof of a lifetime pension of at least B/.1,000 a month, which is equal to $1,000 because the balboa is pegged to the dollar. The test drops to B/.750 if you own property valued above B/.100,000. Each dependent adds B/.250 a month, proved by extra pension or a local bank reference, and spouses may combine incomes. The permit is indefinite and needs no renewal.

Worked example: a married couple with two Social Security checks of $1,400 and $900 combine to $2,300. The pension test for two is B/.1,000 plus B/.250 for the dependent spouse, so B/.1,250, and they clear it. Their mid budget of $2,374 a month leaves about $-74, so a city-centre flat is tight and a place outside the centre works better.

For health, International Living reports couples paying $180 to $190 a month for private cover, with a $250 deductible in one case and 70% hospital coverage in another. We use $90 and $100 for one person at low and mid, and $300 at the top of the published range, then $180, $200 and $500 for a couple. This is general information, not legal or financial advice. Test your savings in the how long will my money last abroad calculator and compare Ecuador, also dollar-based, or Costa Rica.

Sources

• Panama National Migration Service: Pensionado/Jubilado requirements (PE2)
• Panama National Migration Service: migratory permits
• U.S. International Trade Administration: Panama market overview (dollarized economy)
• Numbeo cost of living: Panama
• International Living: cost of living in Panama
• International Living: health care in Panama

Figures checked on September 30, 2026.

Prices shown in US dollars. Check current exchange rates.

This page is general information, not legal, insurance or travel-agent advice. Fees, rules and limits change, so confirm the figures with the official sources listed above before you book or travel.