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35 Pros And Cons Of Living In Panama In 2024
Are you wondering about the pros and cons of living in Panama? I can help!
Moving to Panama is an adventure, but it’s important to know the realities of life in Panama before you make the move.
Many people consider moving to Panama due to the low cost of living, retirement benefits, and hot weather. But there are also disadvantages to living in Panama, such as stray dogs, noisy cities, and bugs!
As someone who has moved to over 18 countries, I know that it’s important to think long and hard as you weigh the pros and cons of living abroad before you assess if living abroad is the right for you.
The decision to move to Panama (or anywhere new) is not something you should take lightly, so I am here to help you in the decision-making process by providing all the pros and cons of living in Panama!
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35 Pros And Cons Of Living In Panama
1. Pro: Low Cost Of Living
If you’re looking forward to some cheap beach living in Panama, then you’ll be happy to know that the cost of living in Panama is relatively low compared to many other countries.
Panama real estate is very affordable. You can rent an apartment near the beach for as little as $1000 USD per month. Groceries and other necessities are also relatively inexpensive, improving Panama’s standard of living.
2: Con: Crumbling Infrastructure
There are some bad things about living in Panama, especially concerning the country’s infrastructure.
Power and water outages are common. The roads are often bumpy and poorly maintained. You might also find that the internet connection isn’t always reliable.
Many people in Panama have to buy a water tank and a backup electricity supply, such as a generator. Remember to consider these Panama living conditions before you move.
3. Pro: Good, Inexpensive Healthcare
One of the most well-known benefits of living in Panama is that healthcare is much cheaper than in the United States. It’s good quality healthcare too!
Panama has a public healthcare system, and you can receive treatment in the hospital for free. You may have to pay for some medications not covered by this system, but they are generally inexpensive and easy to require.
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4. Con: The Language Barrier
Many people in Panama only speak Spanish, so if you don’t know any Spanish, you may find it difficult to communicate with people.
If you move to Panama from America or another majority English-speaking country, then you should take some lessons to learn Spanish.
Learning the local language will help you fit into your new community and understand better what is happening around you. Consider joining a language exchange group or taking Spanish lessons from a local!
5. Pro: Safe For Expats
Many people ask, “Is Panama safe to live in?”
If you are considering living in Panama as an expat, the good news is that Panama is generally a safe place to live. There is a large expat community in Panama, especially in Panama City.
Crime rates are low in Panama, and the police are efficient at catching criminals.
As an expat living in Panama, you should have no worries about safety other than the usual common sense safety precautions that you would need to use when living in any big city.
🤝 Meet new people in Panama with MeetUp!
6. Con: Sexual Harassment
Panama has a problem with machismo culture and sexual harassment. It is common for women to experience street harassment, catcalling, and even verbal abuse.
This culture can make it difficult for women to feel safe and comfortable walking around on their own, especially in the streets of Panama City.
7. Pro: Great Public Transportation
Public transport in Panama is cheap, reliable, and easy to use. All the major cities have buses, taxis, and metro systems.
Buses have routes throughout the country, allowing you to get around easily. Taxis are also reasonable, and the metro in Panama City is clean and efficient. It’s very easy to get around without needing a car.
8. Con: Cash Society
One of Panama’s biggest disadvantages is that hardly anywhere accepts credit card transactions. You will need cash on you all the time.
The lack of credit card acceptance can be very inconvenient since you may have to physically go somewhere every month to pay your bills in cash rather than taking care of them electronically.
Be aware that you are also more likely to be short-changed or scammed when only using cash around the country.
9. Pro: Retirement Benefits
Of course, there are many pros and cons to retiring in Panama. But overall, Panama is named one of the best places to retire in the world.
The Panama Pensionado visa provides excellent benefits to retirees.
Those with the Panama Pensionado Visa are free from paying import taxes on domestic goods and are entitled to many benefits, such as discounts on public transport, medicine, cinema tickets, airline tickets, and more.
10. Con: Bureaucratic Problems
Another reason you may not want to live in Panama is that the country faces several bureaucratic problems.
Getting the local government to do anything can be difficult or slow. There are often complicated rules and procedures that can cause long delays and may not make sense to you.
The slow and complicated process can make things difficult regarding filing taxes or running a business in Panama.
11. Pro: No Income tax
There is no income tax on foreign-earned income in Panama. This is a big draw for many expats who are looking to move abroad and keep more of their hard-earned money.
Other territorial tax incentives for foreign businesses in Panama can be attractive to entrepreneurs and those looking to set up a business.
By saving money on taxes, the Panama quality of life is higher.
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12. Con: Noise
Another one of the disadvantages of living in Panama, is that it can be noisy!
Panamanians love to party and enjoy nightlife. Music is often played quite loudly in the streets, and people like to socialize all hours of the day or night.
This can be overwhelming if you are not used to it and can make it difficult to get a good night’s sleep.
13. Pro: The Weather
One of the best things about living in Panama is the weather.
Panama is a tropical country which means that temperatures are pretty consistent throughout the year, with highs ranging from 29°C – 32°C (~84°F – 90°F).
If you want to go to the beach every day, no problem! Even during the rainy season, you are still likely to see the sun every day in Panama.
14. Con: Tropical Rain
Panama doesn’t experience four different seasons the way that North America does. Panama only has a dry season and a wet season.
During the rainy season, you can expect thunderstorms and tropical downpours. If you’ve never experienced tropical rain, you might be in for a shock when you move to Panama.
The Caribbean coast, in particular, typically gets about 130 inches of rain a year!
15: Pro: The Food
One of the best things about Panama daily life is the food! Panama has a variety of well-known dishes, like tacos, ceviche, and the famous Sancocho.
You can find plenty of fresh seafood and delicious tropical fruits for sale, especially in the coast’s beach towns. There are also many different regional dishes, so you can always find something new to try!
16: Con: Name Brand Product Availability
After moving to Panama, you might become homesick for some of your favorite brands from back home.
Popular brand-name products are limited in Panama, so you might not be able to find the same products that you used to buy in the local grocery stores in your home country.
17. Pro: People are friendly
People in Panama are extremely friendly, so it is easy to make friends! The culture has a strong sense of community, and people tend to know their neighbors well.
There are also many Americans moving to Central America, so as an expat living in Panama, you should be able to meet plenty of other people in the same boat as you.
18. Con: Everything Is Slow
If you enjoy a fast pace lifestyle, you may regret moving to Panama. No one is ever in a rush, and living is slow-paced.
You will likely have to wait longer for queues in the shops and post office and find that the road’s pot-holes never seem to get fixed.
Panama does not rush things and may seem less efficient than you are used to. Learn to take things in stride and not expect the same turnaround times as in North America.
19. Pro: Political And Economic Stability
Another benefit of living abroad in Panama is that Panama has political and economic stability.
Panama has one of the strongest economies in Latin America, and there is very little political tension, especially compared to other countries within the region.
Panama has a democratically elected government, and there is no strong division between left and right-wing parties.
20. Con: Culture Shock
Culture shock is a real issue when it comes to moving abroad.
The culture in Panama can be quite different from what you are used to, and you may find it difficult to adjust.
Feeling comfortable in your new home can take some time, so prepare for some inevitable culture shock.
21. Pro: Diverse Landscapes
Panama has many diverse and beautiful landscapes.
The country has large cities, beautiful mountains, and beaches galore. Located in the Caribbean Sea, the climate is tropical in most parts of the country.
You can enjoy swimming, hiking, and exploring the jungle as well. There are even some beautiful Caribbean Islands, just a short boat ride off the coast of Panama, that you can visit.
Boquete, located in the west, is a beautiful highland area and one of the best places to live in Panama.
22. Con: Panama Has Lots Of Bugs
Panama has its fair share of creepy crawlies! Bugs can be a huge disadvantage of living in Panama, especially if you are fearful of them.
Small insects such as mosquitos, ants, and spiders are common. They will often make their way inside your home, so it’s important to keep the windows and doors closed or use a bug screen.
You should also be aware of larger bugs like scorpions and centipedes, which can be more dangerous.
23. Pro: Panama Uses The US Dollar
Another great benefit of living in Panama is that the US dollar is one of the official currencies.
If you move to Panama from America, you don’t have to worry about exchanging money or understanding a different currency. If you are used to the US dollar, this will make the transition to living in Panama go smoothly.
24. Con: Confusing Laws
If you are moving to Panama from the US, then you may find that it takes a little while to adjust to the rules and laws in your new home country.
Some of Panama’s laws can seem confusing and illogical to foreigners. Seatbelts are only mandatory for drivers and passengers in the front seat. You may find that taxis don’t often have seatbelts in the backseat, and this can come as a shock to foreign visitors!
25. Pro: Direct Flights From US
Direct flights from the US can be very convenient if you plan to fly back and forth for visits. There are plenty of direct flights to Panama from the USA.
You can get to Panama in just 3 hrs from Florida!
It can also give you peace of mind that you are only a short flight away if you need to return home for an emergency or even if you get a little homesick.
26. Con: Traffic Issues
Living in Panama can be difficult due to the traffic. Traffic is very congested and slow, especially in many parts of Panama City.
It can be difficult to get around, and even a short journey can take much longer than you originally expected.
27. Pro: LGBTQ+ Friendly
Panama is one of the more LGBTQ-friendly countries in Latin America.
There is acceptance and visibility for same-sex couples, with Panama City being one of the most accepting cities in Latin America for LGBTQ+ people. There is a large pride parade held in Panama City every year.
There is still some discrimination, so it is worth researching this before deciding to move to Panama as an LGBTQ+ person.
28. Con: Asking For Directions
If you ask a Panamanian for directions, they will give you some – even if they don’t know where to direct you!
This is a weird quirk of the culture that is common in Latin America.
People are just trying to be helpful rather than deliberately trying to get you lost – choose to find it endearing.
29. Pro: Large Expat Community In Panama City
The Panama City expat community is large and welcoming.
Making new friends and meeting like-minded people as an expat in Panama is easy. There are many expat groups and activities which you can join to meet people.
It is also easy to find places that cater to expats, such as bars and restaurants with international cuisine and English-speaking staff.
30. Con: Panama City Can Be Very Crowded
Panama City is one of the most populated cities in Central America.
On some days, the streets can get so crowded that it can be difficult to move around or even cross the street.
The traffic is also congested, which results in long delays and frustration. Unfortunately, this is just a part of Panama daily life that you will have to get used to.
31. Pro: There Is A Lot To Do In Panama City
Living in Panama City is great as there are many activities and attractions to enjoy.
You can visit impressive colonial buildings, take in the views from Ancon Hill, learn about Panama’s history at the Panama Canal Museum, or head to one of the nearby beaches.
There are also plenty of day trips and excursion opportunities from Panama City.
🚤 This is my favorite day trip from Panama City – Getting out of the Panama City life and into the Caribbean Sea is the perfect way to spend your day off!
32. Con: Sun Sets Around 6:30 pm
Panama is close to the equator, so there is little variation in day length throughout the year.
The sun sets consistently around 6.30 pm, no matter the time of year.
The early sunset can be difficult to adjust to, especially if you are used to spending long summer nights outside.
33. Pro: Easy To Get A Visa
Residency visas are well-priced and easy to obtain, especially for Americans living in Panama.
The permanent residency visa in Panama is one of the most popular visas for those looking to move abroad. You can apply for a visa as a retiree or self-employed person.
Once approved, you can live in Panama and enjoy all the benefits of being a resident.
34. Con: Stray Dogs
Sadly, Panama has a big problem with stray animals. It is common to see packs of stray dogs roaming the streets, and you will definitely hear barking at night.
It can feel heartbreaking to see the state of these animals, so if you’re an animal lover, it’s best to prepare and expect it.
35. Pro: Diverse Population
Panama is a diverse and multicultural country.
It has a rich cultural heritage with many influences from its indigenous population, Afro-Caribbean people, and Spanish settlers.
You will find a lot of cultural diversity in Panama, making it an interesting and vibrant place to live.
FAQs: Pros And Cons Of Living In Panama
Is Panama Safe To Retire In?
Yes, Panama is safe to retire in. The truth about retiring in Panama is that it offers a safe and secure environment for retirees. Panama has low crime rates, a low cost of living, a stable economy, and plenty of amenities for those looking to retire abroad.
How Long Can A US Citizen Stay In Panama?
American citizens can stay in Panama for up to 180 days on a tourist visa. You’ll need a residency visa if you want to live in Panama full-time. Residence visas in Panama are fairly straightforward and easy to obtain, which is one of the pros of moving to Panama.
Does Panama Have Free Healthcare?
Yes, the social security system funds most of the healthcare in Panama. You can get treated at a hospital for free, and most medications are also free. You may have to pay some costs out of pocket, but these are minimal compared to the US. Expect to pay ~ $20 for a GP visit.
How Is Living In Panama vs Costa Rica?
Living in Panama and living in Costa Rica has similar benefits. Both countries are great destinations for expats and retirees, offering great quality of life, good healthcare, low cost of living, and friendly locals. Panama is modern, while Costa Rica is laid-back.
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Final Thoughts: Pros And Cons Of Living In Panama
There are many living in Panama pros and cons, but overall it is a great place to live.
With low crime rates, affordable housing, a diverse population, no income tax on foreign-earned money, and an easy visa process, the Panama lifestyle is an attractive option for those looking to live abroad.
Some downsides to life in Panama include the language barrier, crumbling infrastructure, and sexual harassment, but you can manage all these disadvantages with proper preparation.
If you’re considering moving abroad, Panama should definitely be one of your top choices!
When you are ready to take the leap into Panama life, check out my moving abroad checklist! If you are still trying to figure out if living abroad is for you, then take my quiz to find out which country you should move to.
Read more about living in South America and Latin America:
- Living in Cancun, Mexico: Is It Worth It?
- Pros and Cons of Living in Mexico
- Best Things to Do in Mexico City for Solo Travellers
- Living in Chile Pros and Cons
- Pros and Cons of Living in Costa Rica
- 50+ Countries with Digital Nomad Visas
- 35 Pros And Cons Of Living In Panama
Living Abroad Travel Planning Guide
🚑 Should I buy expat travel insurance?
100% YES! — With basic coverage averaging just $5-10 USD per day, enjoy peace of mind with a plan from Safety Wing!
🌎 What is the best country to live in as an expat?
It depends – the best country to live in as an expat will depend on your unique needs. I developed this free quiz to help you figure out where is right for you!
📍 How do I pick a country to live abroad?
It depends – picking a country to live in is hard. That’s why I developed this $7 course to share all of the steps I’ve taken when deciding to move to 20+ different countries, and how I handle homesickness when I get there.
Ultimately, making the choice of where to move is going to be hard. But the hardest thing is deciding to move abroad at all!
💼 How do I get a job as an expat?
You can find work abroad via local job boards or temp agencies. My favourite way to work is remotely, so I always look for jobs on FlexJobs.com when I live abroad. They hire for 100% remote roles only.
If you’re looking to teach English abroad, Premier TEFL has the best online course to get you great work!
💰 How do I open a bank account abroad?
Wise.com offers free global accounts, and the cheapest money transfers. Since it can be a headache to open bank accounts in different countries (it took me 2 months in the UK!), Wise.com is a great solution.
I actually use it as my primary bank now worldwide due to the multi-currency debit card. (Read more)
👯♀️ How do you make friends abroad?
Meetup.com – Meet likeminded people who share a similar hobby with Meetup! It’s free to join, but some activities may cost money, like if you go to a cafe and get a coffee.
🙀 I don’t speak the language. Can I still live abroad?
Learn languages in no time with iTalki! Moving abroad is an opportunity to learn the language. You don’t need to know it before you leave home.
💻 Do I need a VPN?
Yes! – VPNs allow you to access more of the internet. From US Netflix in the UK to social media sites banned in Asia. It’s a really helpful and cheap thing to ensure your online activities aren’t restricted.
🧳 What’s the best luggage for living abroad?
This is my favourite luggage set for long term travel. You can read more about my review of types of suitcases for travel here.
🏡 How do I tell my friends and family I want to live abroad?
Take this $7 course and learn the exact script I used to tell my family I was moving abroad … and then when I did it again. I even include tips for prepping your family, and for how to handle family who aren’t supportive.
✈️ What’s the best site to buy cheap flights?
To find cheap flights, I recommend Skyscanner. (Read more)
🏨 What’s the best site to find cheap hotels?
To find cheap hotels, I recommend Booking.com. (Read more)
Or stay for free with Trusted Housesitters!
🚗 What’s the best site to rent cars abroad?
To find cheap rental cars, I recommend Discover Cars.
🚗 What’s the best site to find tours?
To find epic tours, I recommend Viator.
