MigrantoCost of living in Panama
Average monthly spending, by standard of living and against other countries
Monthly cost
PAB 536
what a typical person spends
Spending by standard of living
PAB 151richest 20%
PAB 2,280
Panama lives off the dollar and the trade that crosses its canal, which gives Panama City a polished, pricey feel the rest of the country doesn't share. That split is the real story of its cost of living — the distance between a comfortable life and a bare one is about as stark as it gets.
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What it costs to live in Panama
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Cost of living in Panama
PAB 151/mo
vs PAB 800 in your country
Take-home
PAB 412
vs PAB 1,200 in your country
Potential savings
PAB 261
more than in your country
Standard of living
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How living costs in Panama compare
Mid-range against the world and mid-range in its region, Panama costs about what you'd guess for Latin America — no bargain, no shock. The dollar economy keeps prices from sinking the way they do in weaker-currency neighbours, while modest wages outside the capital keep them from climbing too high.
Data source: household consumption 2024 (World Bank), International Comparison Program 2021 (World Bank), adjusted to 2026 using IMF GDP-per-capita growth
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Frequently asked questions
What is the cost of living in Panama?
A typical person in Panama spends about PAB 536 a month — around PAB 6,430 a year — on housing, groceries, transport and other everyday costs. It's a nationwide average across different regions, cities and types of housing.
What is the cost of living in Panama in US dollars?
The cost of living in Panama is about $536 a month, or roughly $6,432 a year per person.
How much money do you need to live comfortably in Panama?
It all depends on your standard of living. A modest budget runs about PAB 151 a month per person, a typical one around PAB 536, and a comfortable life around PAB 885. In big cities and for a family, costs are usually higher.
Is the average salary in Panama enough to live on?
Yes, with room to spare. Average spending is about PAB 536 a month, while the average take-home pay in Panama is about PAB 833. For more on incomes, see salaries in Panama.
Is Panama an expensive country to live in?
Somewhat. Panama is more expensive than 57% of countries worldwide and ranks 16th of 33 in Latin America by cost of living.
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Living in Panama
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