We get questions all the time about the differences in the cost of living in Panama compared to other countries. Panama is a haven for expats looking for a convenient and luxurious location to call home, so we’re relaying the following story from one of our clients on just this topic. Enjoy!
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Dave’s parents raised him to believe in the value of a dollar. They didn’t have much money when he was growing up, so frugality was more of a necessity than a choice. Their frugality allowed them to save enough money for him to attend college. His education opened opportunities for him that his parents could have only dreamed about.
By his thirties, Dave was a tech executive earning a six-figure salary. Coming out of the pandemic, Dave learned that remote work was more desirable than commuting to the office every day. Plus, he could live anywhere and escape Seattle’s high cost of living.
Dave decided to think outside the box by looking for a place with as many conveniences as a big city like Seattle without the high cost of living.
His research led him to investigate the cost of living in Panama.
Exploring the Cost of Living in Panama vs. the US
The cost of living in Panama has been one of the country’s major draws in attracting expats from all over the world. Panama’s cost of living was also very attractive for Dave, who was looking to get the most from his money.
He learned that the cost of living in Panama is roughly 34% cheaper than in the United States. While that statistic felt significant, it became even more stark to Dave when he ran the numbers for individual expenses.
Affordable to Dine Out
Dave rarely ate out at restaurants in Seattle. The average cost of a meal with a drink was just over $18. That same meal in Panama would only cost $7.70. Dave knew that even small savings like that add up over time.
Housing Costs in Panama
What pushed Dave towards choosing Panama as a relocation destination was the living expenses. Renting a 1-bedroom apartment in Seattle would cost Dave $2000 per month. In other big cities, monthly rent would be at least that, if not higher. Rents in upscale communities in Panama City range from $900 to $1500 per month. Homes for sale in the US that list for upwards of $400,000 compared to $185,000 in Panama. It was becoming clear to Dave that the cost of living in Panama vs the United States is substantial.
The Cost of Groceries in Panama
Simple things like groceries also offer considerable savings in Panama. Getting out of a grocery store in America for under $150 for a week’s worth of groceries is challenging. In Panama, you would spend less than $100. Bread, meat, produce, beer, and wine all range from 20% to 60% cheaper in Panama. Rice is a whopping 117% less expensive in Panama than in the US. The only thing more expensive in Panama than in the US is milk.
Utility Prices in Panama
Utilities are also much less expensive in Panama than in the US. Basic utilities in a US apartment average $203.76 per month. Those utilities in Panama are less than half of that, at $98.77 per month. A mobile phone plan that costs $50 in the US will cost under $30 in Panama. Internet service is also around 40% less expensive in Panama.
Dave also considered that Panama uses the US dollar as currency. That means he wouldn’t have to worry about moving exchange rates. The new adventure awaited him in a place where he could live frugally while still enjoying the best life offers. Panama’s cost of living offered Dave the best of both worlds.
Does Living in Panama Sound Interesting?
If you’re considering a relocation, why not consider Panama? So many others have found exactly what they were looking for in this tropical paradise. If we can help make your dreams come true, please don’t hesitate to contact us. We’ve been working with expats for years. And we can help you, too. Expats who find a life in Panama find success and a magnificent lifestyle to go with it.