Moving to Panama

Bordered by Costa Rica to the west and Colombia to the southeast, Panama is the meeting point between two oceans and two continents. With a population of just over 4 million, Panama is a small country, but the last few years have brought a massive influx of investors, businesspeople and fortune-seekers riding the country's development wave.

Panama has shaken off its third-world image to become a haven for expats. Foreigners are drawn to the country for its modern infrastructure complemented by a warm climate, peaceful lifestyle and beautiful tropical surroundings. Large expat communities can be found here, particularly in Panama City, and there is also a growing number of foreigners setting up holiday homes on Panama’s offshore islands.

Living in Panama as an expat

In years past, many expats living in Panama were of retirement age and were enticed by government incentives such as discounts on goods and low-cost medical treatment. In recent years, the Panamanian government has been pushing foreign investment, and as a result, there is now a vibrant, dynamic and driven community of people looking to grow their businesses in Panama.

Locals are known for being friendly, hospitable, and welcoming towards new arrivals. While the official language of Panama is Spanish, English proficiency is extremely common, especially in the cities and when conducting business.

There are a few cultural and lifestyle adjustments to consider when pondering a move to Panama. If you're from a Western country, you may struggle with the lack of certain conveniences and the slower pace of life. Getting used to shops closing for lunch and even government services shutting down at inconvenient times is something you will have to accommodate.

The standard of healthcare in Panama is fairly good, particularly in private hospitals in major cities. You should ensure you have a good health insurance policy to gain access to the best care and facilities. Panama is relatively safe compared to other South and Central American countries, but burglaries are still common, and vehicle break-ins are widespread. Police have a strong presence on Panama’s city streets and carry out regular checks on cars on roadsides to keep track of criminal movements. You should always exercise caution when using ATMs and be vigilant when walking alone at night.

Cost of living in Panama

Expats moving to Panama will be pleased to discover that the country's cost of living is quite low. Mercer's 2024 Cost of Living Survey ranked Panama City as the 151st most expensive city out of 226 expat destinations worldwide. This fairly low position makes Panama far cheaper than major North American and European cities.

Property prices have increased with the country's growing popularity, but this depends on the city and location. Transport is quite cheap, and shopping in Panama is mostly duty-free.

Families and children in Panama

While public schools in Panama tend to lack funding and resources, there are private and international schools in the country whose standards are comparable to those in North America. While fees at these institutions can be high, expat children are guaranteed an excellent education and facilities. International schools also teach in English or the language of the school's country of origin, making them more accessible to foreigners.

As a tropical country, Panama offers expat families plenty of opportunities to enjoy the outdoors. With beaches galore, Panama is ideal for families who enjoy water sports and activities such as whale watching and snorkelling. The country is also packed full of hiking trails and gorgeous spots where families can relax and enjoy the natural environment. Those in search of some indoor activities will also discover fun and interactive museums to entertain children of all ages.

Climate in Panama

Panama has a tropical climate characterised by hot weather throughout the year. The rainy season lasts from May to December, with the dry season making up the remaining months of the year. Panama experiences little temperature variation, but October and November tend to be slightly cooler but incredibly humid. March and April are generally the hottest months of the year. You can expect temperatures of between 74°F (23°C) and 85°F (30°C) all year round.

Expats moving to Panama usually stay far longer than originally anticipated thanks to the country's incredibly fascinating and picturesque natural landscape, the low cost of living, and good healthcare.

Fast facts

Population: About 4.5 million

Capital city: Panama City

Neighbouring countries: Panama is bordered by Costa Rica in the north and Colombia in the south.

Geography: Panama forms the isthmus that connects Central America to South America. The country has white, sandy beaches with turquoise waters and dense jungles that lead up into the volcanic mountain ranges that run its entire length.

Political system: Unitary presidential constitutional republic

Major religion: Roman Catholic

Main language: Spanish

Time: GMT-5

Money: Panama's official currency is the Panamanian Balboa (PAB), which can be divided into 100 cents. The currency used for day-to-day interactions is the United States Dollar (USD). ATMs and card facilities are widely available in Panama.

Tipping: A 10 percent tip is generally expected for most services where gratuity has not already been included in the bill.

Electricity: 110V, 60Hz. Plugs with two flat blades are used throughout the country.

Internet domain: .pa

International dialling code: +507

Emergency numbers: 104 (police), 103 (fire), 911 (ambulance)

Transport: Panamanians drive on the right-hand side of the road. Panama City has a reliable and extensive public transport network. For travel around the country, you should consider air travel or taking a car, as intercity bus networks are known to be unsafe.