Panama City is one of the most popular destinations for international residents.
Many expats live in Panama for its tropical climate, affordable lifestyle, and investment opportunities.
Below, we’ll explore the key locations, communities, and factors that make Panama attractive to expats:
- Where is the best place for expats to live in Panama?
- Where do most American expats live in Panama?
- What are the negatives of living in Panama?
- What are the advantages of living in Panama?
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Is Panama a Good Place for Expats to Live?
Yes, Panama is considered an excellent place for expats to live. It offers a favorable environment due to:
- Affordable living costs compared to many Western countries
- Friendly residency programs, such as the Friendly Nations Visa and Pensionado Visa
- High-quality healthcare, with private and public options
- Expat-friendly infrastructure, including international schools, shopping centers, and modern housing
What is the Biggest Expat Community in Panama?
The largest expat community in Panama is concentrated in Panama City, the capital. Key features include:
- A cosmopolitan environment with international businesses and modern amenities
- Vibrant social life with expat clubs, restaurants, and networking events
- Access to top-tier healthcare and international schools
Other notable expat communities are found in beach and mountain towns, offering relaxed lifestyles and retirement-friendly facilities.
What is the Best Place to Live in Panama for Expats?
The best places to live in Panama for expats include Panama City, Boquete, Coronado, David, and Bocas del Toro, each offering unique lifestyles.
- Panama City – The country’s capital attracts professionals, entrepreneurs, and business owners. It offers modern infrastructure, international schools, shopping centers, dining, and vibrant cultural experiences, making it ideal for those seeking city life and career opportunities.
- Boquete – Nestled in the highlands of Chiriquí province, Boquete is famous for its cooler climate, lush landscapes, and outdoor activities such as hiking and coffee plantation tours. Retirees often favor this town for its peaceful atmosphere and strong expat community.
- Coronado – A coastal area known for its gated communities, golf courses, and beaches. Coronado offers a balance of relaxation and convenience, with easy access to Panama City for work or travel, making it popular with both retirees and seasonal residents.
- David – As the second-largest city in Chiriquí province, David is more affordable than Panama City while providing essential amenities like hospitals, schools, and shopping. It appeals to retirees, families, and those looking for a quieter city lifestyle without sacrificing services.
- Bocas del Toro – Located in the Caribbean, this area is popular among younger expats, digital nomads, and those seeking a laid-back island lifestyle. It’s known for vibrant culture, beaches, water sports, and a strong tourism-driven economy.
Who are the Largest Immigrant Groups in Panama?
According to the UN database, Colombians make up the largest immigrant group in Panama, accounting for 24.2% of the country’s approximately 185,072 immigrants in 2019 (about 4.39% of the total population).
Major Expat Groups in Panama:
- United States: U.S. citizens represent around 8.6% of immigrants, attracted by favorable residency programs and a lower cost of living.
- Europe: Europeans, particularly Germans, Italians, and Spaniards, have established communities in Panama, often in areas like Boquete and Panama City.
- Latin America: Besides Colombians, significant numbers of Venezuelans (7.3%) and Costa Ricans (4.5%) reside in Panama, many moving for economic or political reasons.
- Asia: The Asian community, particularly Chinese immigrants (10.7%), is notable for business and trade contributions.
This diverse mix of expat groups contributes to Panama’s rich cultural tapestry, offering a variety of international cuisines, cultural festivals, and business opportunities.
Where Do Most US Citizens Live in Panama?
US citizens predominantly live in:
- Panama City – Access to business, modern amenities, and healthcare
- Boquete – Retirement and outdoor activities
- Coronado & Playa Blanca – Beachside living and resort-style communities
These areas combine lifestyle benefits with access to expat services and English-speaking communities.
Is it Cheaper to Live in Costa Rica or Panama for Expats?
Panama generally offers a lower cost of living than Costa Rica:
- Housing: More affordable, particularly outside Panama City
- Healthcare: Private insurance premiums are lower in Panama
- Groceries and services: Slightly cheaper in Panama, though imported goods cost similarly
However, Costa Rica is preferred by some for its eco-tourism and slightly higher infrastructure standards in certain regions.
Is Panama Safer than Costa Rica?
Overall, Panama is considered slightly safer than Costa Rica:
- Crime rates are generally lower in popular expat towns like Boquete and Coronado
- Urban areas like Panama City require normal urban precautions
- Both countries have regions with higher petty crime, so research neighborhoods before moving
Who Has Better Healthcare, Panama or Costa Rica?
Panama’s healthcare system is modern and accessible:
- Private hospitals in Panama City are comparable to US standards
- Medical tourism is growing due to affordability and quality
- Costa Rica has strong healthcare too, but wait times in public hospitals can be longer
Many expats prefer Panama for its combination of quality, affordability, and English-speaking medical staff.
What are the Pros and Cons of Living in Panama as an Expat?
Pros:
- Low Taxes and Territorial Taxation – Foreign-sourced income is generally exempt from local taxation, allowing expats to legally optimize their finances.
- Expat-Friendly Visa Programs and Retirement Benefits – Options like the Pensionado Visa and Friendly Nations Visa make residency and retirement straightforward, often with additional perks such as discounts on healthcare, transportation, and utilities.
- Diverse Lifestyle Options – Expats can choose from mountain towns like Boquete, beach communities such as Coronado and Bocas del Toro, or urban life in Panama City.
- Modern Infrastructure and Growing International Community – Reliable internet, shopping centers, international schools, and healthcare facilities support a comfortable expat lifestyle.
- Stable Economy and Services – Panama’s economy, driven by the Panama Canal, banking, and logistics sectors, provides a level of security for long-term living and investment.
Cons:
- Language Barrier – Spanish is the official language, so basic proficiency is recommended for day-to-day interactions, especially outside expat hubs.
- Tropical Climate – Hot, humid weather with a pronounced rainy season can be challenging for some, particularly in coastal or lowland areas.
- Urban Traffic and Crowding – Panama City, while modern, experiences heavy traffic congestion, especially during peak hours.
- Healthcare Variability – Private healthcare is excellent but can be costly without insurance; public healthcare is less consistent outside major cities.
- Cultural Adjustment – Adapting to local customs, bureaucracy, and slower pace in certain areas may require patience and flexibility.
Conclusion
Panama offers a compelling mix of affordability, lifestyle diversity, and expat-friendly services.
From vibrant Panama City to scenic towns like Boquete and Coronado, expats can find communities that suit careers, retirement, or remote work.
Strong healthcare, reliable infrastructure, and accessible residency programs make it a practical and attractive destination for international residents.
FAQs
Can expats work legally in Panama?
Yes, but foreign nationals need a work permit or residency visa that allows employment.
Many retirees or digital nomads may operate remotely without local employment.
What is the cost of renting vs. buying property in Panama?
Renting in Panama City averages $700–$1,500/month for a modern apartment, while coastal or smaller towns like Boquete or Coronado are cheaper.
Buying property varies by location, size, and amenities.
Are there international schools for expat children in Panama?
Yes, Panama City and other popular expat areas have international schools offering US, British, and IB curricula.
Tuition generally ranges from $8,000 to $20,000 per year, depending on the school and grade level, with some additional fees for registration or materials.
Do expats need health insurance in Panama?
While not mandatory, private health insurance is strongly recommended to access private healthcare and reduce costs. Some visas require proof of coverage.
How reliable is internet and mobile connectivity in Panama?
Internet and mobile coverage are reliable in major expat hubs like Panama City, Boquete, and Coronado, with speeds sufficient for remote work and streaming.
In rural or remote areas, connectivity can be slower or intermittent, and some smaller towns may have limited broadband options.
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