Cost Of Living in Panama 2024
Average monthly spending for singles, couples, students, and families in Panama
Whether you're living in Panama or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.
Average Monthly Expenditure
Currency: PAB
Monthly Expenditure ▶ Single
Currency: PAB
Monthly Expenditure ▶ Couple
Currency: PAB
Monthly Expenditure ▶ Family
Currency: PAB
Monthly Expenditure ▶ Student
Currency: PAB
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.
Singles
The average monthly expense for a single person living in Panama is 1,400 PAB. Expenses can range from 200 PAB at the minimum level to 9,300 PAB at the highest end.
Couples
The average monthly spending of couples in Panama is 2,300 PAB. Expenditure can range from 770 PAB to 12,000 PAB per month.
Families
The average cost of living for families in Panama is 3,100 PAB per month. Families spend anywhere from 1,100 PAB to 20,000 PAB.
Students
The average monthly expenditure for students in Panama is 1,000 PAB. Students spend from 150 PAB to 6,700 PAB per month.
Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.
Prices and cost of goods and services in Panama
Dining, food, and beverages costs
Fast food combo meal
Restaurant meal for one
Fine dining meal for one
Cappuccino or latte
Grocery and market costs
Milk large bottle
12 eggs
Fresh whole chicken
Pack of beef
Medium bag of rice
Bag of tomatos
| 0.43 PAB | 0.57 PAB | 1.1 PAB |
Bag of apples
| 0.76 PAB | 0.99 PAB | 1.6 PAB |
Commute, travel, and transportation costs
20 minutes taxi ride
Average car full tank
Average car 1-day rental
Average car price
| 5,300 PAB | 11,000 PAB | 14,000 PAB |
Bus ticket one way
| 0.36 PAB | 0.53 PAB | 1.1 PAB |
Car Service
Utility cost (monthly)
Utility Bill - Individual
Utility Bill - Couple
Utility Bill - Family
Internet and cable
Mobile phone charges
Leisure and activities costs
Movie ticket
One month gym membership
Cloths and accessories costs
Pair of jeans or pants
Woman dress
Woman shoes
Men's shoes
Men suit
Regular t-shirt
Housing costs / monthly rent
Studio apartment
1-bedroom apartment
| 270 PAB | 430 PAB | 1,100 PAB |
2-bedroom apartment
| 350 PAB | 530 PAB | 1,400 PAB |
Housing costs / Buying
Studio apartment
| 35,000 PAB | 53,000 PAB | 110,000 PAB |
1-bedroom apartment
| 43,000 PAB | 71,000 PAB | 270,000 PAB |
2-bedroom apartment
| 71,000 PAB | 210,000 PAB | 430,000 PAB |
| $71,000 | $210,000 | $430,000 |
Furniture Costs
King Size Bed
Double Bed
Single Bed
Living Room
| 240 PAB | 300 PAB | 1,100 PAB |
Dining Table
Sofa or Couch
Electronics and House Appliance Costs
TV Set
Fridge or Freezer
Washing Machine
Stove or Cooker
Mobile Phone
Laptop or Computer
Expenditure to Income Ratio in Panama
One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.
Spending to Income Ratio
85%
77% to 94%
( expenditure / income ) x 100
Expense to income distribution levels
| Spending To Income Ratio | % People |
|---|
| < 50% | 5% |
| 50% - 60% | 11% |
| 60% - 70% | 17% |
| 70% - 80% | 26% |
| 80% - 90% | 17% |
| 90% - 100% | 10% |
| 100% - 110% | 5% |
| 110% - 120% | 3% |
| 120% - 130% | 2% |
| 130% - 140% | 2% |
| > 140% | 1% |
Interpretation and Analysis
The average spending-to-salary ratio in Panama is 85%
This means that on average, people spend around 85% of their income for living.
According to the distribution table, 17% of the population spend approximately 60% to 70% of their income every month.
How can spending be more than income?
A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.
Individual
77%
Spending-Income-Ratio
69%
85%
Couple
81%
Spending-Income-Ratio
73%
89%
Family
89%
Spending-Income-Ratio
81%
99%
How do people spend their money in Panama?
We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.
The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.
Housing Expenditure26%
26% of total expenses on average (15% to 34%)
| LOW | $46 46 PAB |
| AVERAGE | $600 600 PAB |
| HIGH | $6,000 6,000 PAB |
| Per Month |
People living in Panama typically spend from 15% to 34% of their total monthly expenditure on housing with 26% being the average. The average spend on housing is 600 PAB with expenditure ranging from 46 PAB to 6,000 PAB. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.
Utilities, Electricity, Water, Internet, Mobile7%
7% of total expenses on average (4% to 11%)
| LOW | $7.7 7.7 PAB |
| AVERAGE | $100 100 PAB |
| HIGH | $1,000 1,000 PAB |
| Per Month |
Utility expenditure like electricity, water, and gas in Panama ranges from 4% to 11% of total expenses with 7% being the average. The average monthly cost of utilities is 100 PAB with 7.7 PAB and 1,000 PAB being the upper and lower limits.
Transport, Fuel, Commute8%
8% of total expenses on average (4% to 12%)
| LOW | $15 15 PAB |
| AVERAGE | $200 200 PAB |
| HIGH | $2,000 2,000 PAB |
| Per Month |
Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 15 PAB to 2,000 PAB on commuting with 200 PAB being the norm for most people in one month. This means that money spent on transport constitutes about 8% of total spending on average but can go as low as 4% or as high as 12%.
Food and Groceries Cost27%
27% of total expenses on average (19% to 33%)
| LOW | $39 39 PAB |
| AVERAGE | $500 500 PAB |
| HIGH | $5,000 5,000 PAB |
| Per Month |
The average outlay on groceries in a month in Panama is 500 PAB. The cost of groceries can range between 39 PAB to 5,000 PAB. People spend on average about 27% on food and groceries with upper and lower bounds of 19% and 33% respectively.
Healthcare and Medical Services9%
9% of total expenses on average (4% to 12%)
| LOW | $11 11 PAB |
| AVERAGE | $140 140 PAB |
| HIGH | $1,400 1,400 PAB |
| Per Month |
People in Panama allocate 4% to 12% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 9%. The range of medical expenses range from 11 PAB to 1,400 PAB with 140 PAB being the norm.
Leisure and Shopping5%
5% of total expenses on average (3% to 9%)
| LOW | $6.2 6.2 PAB |
| AVERAGE | $80 80 PAB |
| HIGH | $800 800 PAB |
| Per Month |
This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 6.2 PAB to 800 PAB with 80 PAB being the average. Speaking of percentages, that equates to 3% to 9% of total expenses with an average of 5% for most residents.
Education and Schooling6%
6% of total expenses on average (4% to 12%)
| LOW | $9.3 9.3 PAB |
| AVERAGE | $120 120 PAB |
| HIGH | $1,200 1,200 PAB |
| Per Month |
Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 6% of the monthly expenditure with 4% and 12% being the lower and upper bounds respectively. The average reported education cost is 120 PAB per month with 9.3 PAB being the minimum spent amount and 1,200 PAB being the maximum.
Other Expenses13%
13% of total expenses on average (8% to 20%)
| LOW | $20 20 PAB |
| AVERAGE | $260 260 PAB |
| HIGH | $2,600 2,600 PAB |
| Per Month |
How much money can you save in Panama every month?
We asked thousands of people what percentage of their income can they save in a month. Below are the answers.
What percentage of people in Panama manage to save money from their income every month?
Almost 59% of the surveyed people in Panama said that they can save some money at the end of each month while 41% said that aren't saving anything.
Percentage of people saving money by population group in Panama
| Group | Savers | Non Savers |
|---|
| Singles | 68% | 32% |
| Couples | 63% | 37% |
| Families | 58% | 42% |
Savings-to-Income Ratio
The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.
Saving to Income Ratio
Average Monthly Saved Amount
58 PAB
$58 | 750 PAB
$750 | 7,500 PAB
$7,500 |
For most people, 9% to 29% of their monthly income is what they can allocate to their savings, with 16% being the average. The amount of money that people can save is approximately 750 PAB on average with savings ranging from 58 PAB to 7,500 PAB.
68% of surveyed singles reported some of their income going to savings while 63% of couples said the same. 58% of families confirmed their ability to save money.
How much money do people actually save in Panama?
The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.
Singles
Saving to Income Ratio
Average Monthly Saved Amount
58 PAB
$58 | 520 PAB
$520 | 3,500 PAB
$3,500 |
Savings to income distribution levels for singles
| Saving To Income Ratio | % Singles |
|---|
| 0% - 10% | 32% |
| 10% - 20% | 25% |
| 20% - 30% | 16% |
| 30% - 40% | 13% |
| 40% - 50% | 10% |
| > 50% | 4% |
Interpretation and Analysis
Singles who can afford to save reported that they allocate from 12% to 31% of their monthly income to savings, with 20% being the average for most singles. The average amount of money that singles are able to save is 520 PAB with 58 PAB and 3,500 PAB being the minimum and maximum respectively.
Couples
Saving to Income Ratio
Average Monthly Saved Amount
290 PAB
$290 | 870 PAB
$870 | 4,600 PAB
$4,600 |
Savings to income distribution levels for couples
| Saving To Income Ratio | % Couples |
|---|
| 0% - 10% | 36% |
| 10% - 20% | 27% |
| 20% - 30% | 19% |
| 30% - 40% | 8% |
| 40% - 50% | 7% |
| > 50% | 3% |
Interpretation and Analysis
Couples who confirmed their ability to save reported saving equivalent to 10% to 30% of their monthly income, with 18% being the average for most couples. The average amount of money that couples can save is 870 PAB with 290 PAB and 4,600 PAB being the minimum and maximum respectively.
Families
Saving to Income Ratio
Average Monthly Saved Amount
410 PAB
$410 | 1,200 PAB
$1,200 | 7,500 PAB
$7,500 |
Savings to income distribution levels for families
| Saving To Income Ratio | % Families |
|---|
| 0% - 10% | 39% |
| 10% - 20% | 30% |
| 20% - 30% | 20% |
| 30% - 40% | 5% |
| 40% - 50% | 4% |
| > 50% | 2% |
Interpretation and Analysis
Families in Panama can save anywhere between 8% to 27% of their monthly income, with 15% being the average for most families. The average amount of money that families can put aside is 1,200 PAB with 410 PAB and 7,500 PAB being the minimum and maximum respectively.
Saving Challenges in Panama
Reasons that make it difficult for people to save money
We wanted to understand what is stopping people from maximizing their savings in Panama. Listed below are the answers given by the survey participants.
| Reason | % People |
|---|
| Low Income | 6% |
| High Expenses | 9% |
| Debt and Loans | 16% |
| Lack of Budgeting Skills | 11% |
| Impulsive Spending | 10% |
| Financial Emergencies | 6% |
| Living the moment | 6% |
| Will do it later | 18% |
| Inflation | 11% |
| Social Pressure | 3% |
| Market Instability | 3% |
Around 6% of the people said that their salary is too low to accommodate a portion for savings while 9% said that the high cost of living leaves little room for savings. 16% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 10% blamed impulsive spending as the reason for saving inability. Around 6% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 18% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 11% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.
Typical saving choices for people in Panama
Where do people choose to put their savings?
| Saving Type | % People |
|---|
| Emergency Funds | 11% |
| Gold | 11% |
| Savings Accounts | 17% |
| Retirement Accounts | 11% |
| Cash Savings | 18% |
| Real Estate | 10% |
| Investment | 6% |
| Stocks | 5% |
| Bonds | 6% |
| Mutual Funds | 3% |
| Certificates of Deposit | 3% |
A typical and healthy budgeting structure
The 50/30/20 rule
Spending among different people can vary significantly based on factors such as their income, lifestyle,
location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule,
which suggests allocating your income into three main categories in the following percentages.
50% for needs and financial obligations
This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.
30% for wants and discretionary spending
This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.
20% for savings and emergency fund
This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.
About financial planning, money management, and household budgeting
The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.
Affordable living in Panama
Income and cost of living compatibility
We asked residents one simple question and recorded their answers.
Is it affordable or economical to live in Panama?
Around 67% of surveyed residents think that living in Panama is affordable with proper budgeting while 33% reported that it is just too expensive and not affordable even with frugality and thriftness.
Low-cost alternatives in Panama
People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:
Plenty of low-cost options57%
Few low-cost options43%
Based on the survey, 57% of the people living in Panama have no problem finding low-cost alternatives to support a frugal lifestyle while 43% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.
Emergency Funds
An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents of Panama whether they have an emergency fund and the answers were as follows.
Yes63%
No37%
Based on the survey, 37% of the people living in Panama said that they don't have an emergency fund while 63% said that they do.
Financial Literacy in Panama
Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.
Financial Leteracy62%
We asked residents of Panama whether they acquired any adequate personal financial training in their lives. Approximately 38% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 62% said that they know about the general principles of personal finance from sources other than their own experience.
Difficulty in Budgeting and Financial Planning
We wanted to understand whether residents of Panama have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 41% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 59% said that they have everything under control.
Struggles with finance41%
Easily manages finances59%
Financial goals of people in Panama
In an attempt to understand the economic situation in Panama, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.
| Financial Goal | % People |
|---|
| Emergency Fund | 7% |
| Debt Reduction | 36% |
| Retirement Savings | 8% |
| Education Funding | 8% |
| Homeownership | 17% |
| Investing | 8% |
| Travel or Lifestyle | 9% |
| Healthcare Expenses | 11% |
| Financial Independence | 7% |
Around 7% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 36% said their number one priority is to pay off high-interest debt or loans and improve credit. 8% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 8% reported that their priority is saving for the tuition fees and education costs of their children while 17% choose to buy a home or pay off existing mortgage before other things. 8% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 9% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 11% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.
Retirement, pension plans, and life after work in Panama
What does the retirement lifestyle look like in Panama and how much retirement savings are required?
Retirement age
The retirement age for most employees in Panama is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.
Retirement planning and savings
There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.
The typical saved amount of money you should have at every age as multiples of monthly salary:| Age | Amount |
|---|
| 25 | 5x monthly salary at age 25 |
| 30 | 10x monthly salary at age 30 |
| 35 | 15x monthly salary at age 35 |
| 40 | 25x monthly salary at age 40 |
| 45 | 32x monthly salary at age 45 |
| 50 | 48x monthly salary at age 50 |
| 55 | 56x monthly salary at age 55 |
| 60 | 64x monthly salary at age 60 |
| 65 | 78x monthly salary at age 65 |
The typical average saved amount of money you should have at every age in Panama:| Age | Amount |
|---|
| 25 | 5,500 PAB |
| 30 | 11,000 PAB |
| 35 | 19,000 PAB |
| 40 | 28,000 PAB |
| 45 | 41,000 PAB |
| 50 | 58,000 PAB |
| 55 | 69,000 PAB |
| 60 | 86,000 PAB |
| 65 | 100,000 PAB |
Retirement Income Distribution
We asked residents of Panama about their retirement income sources and below are the results.
| Source | % People |
|---|
| Pensions | 13% |
| Savings | 22% |
| Investments | 13% |
| Social Security | 8% |
| Annuities | 8% |
| Part-time Job | 12% |
| Real Estate | 17% |
| Dividends and Interest | 8% |
Retirement Monthly Expenses in Panama 110 PAB
$110 | 1,000 PAB
$1,000 | 6,700 PAB
$6,700 |
Debt, loans, and mortgages in Panama
Percentage of people who are in debt
According to the survey, 32% of the people in Panama have some kind of debt, loan, mortgage, or credit card payments while 68% reported that they don't have financial obligations to banks.
Debt-to-income ratio in Panama
Debt to income ratio
30%
21% to 39%
( monthly debt payment / monthly income ) x 100
Interpretation
The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 30% of the people's monthly income in Panama goes to debt settlement.
Debt levelsMonthly debt settlement payment as percentage of monthly income
| Debt-to-income ratio | % People |
|---|
| > 60% | 3% |
| 50% - 60% | 14% |
| 40% - 50% | 12% |
| 30% - 40% | 14% |
| 20% - 30% | 13% |
| 10% - 20% | 16% |
| 0% - 10% | 27% |
According to our data, 3% of the debtors in Panama pay 60%+ of their income as debt settlement while 14% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 12% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 14% dedicated 30% to 40% of income for same. Things are looking brighter for 13% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.
Distribution by type of debt in Panama
| Debt | % People |
|---|
| Real Estate Mortgage | 11% |
| Auto Loan | 20% |
| Student Loan | 3% |
| Credit Card | 27% |
| Personal Loan | 39% |
11% of debtors in Panama confirm that real estate mortgages constitutes the main part of their outstanding debt while 27% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 20% of people and personal loans rose at 39%. Lastly, student loans are the main source of debt for 3% of debtors in Panama.
About credit score and debt managementManaging debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.
Good debt vs. Bad debt
Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.
Loan Affordability Index in Panama
Besides measuring the loan-to-income ratio, we asked residents of Panama how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.
Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.
| Frequency | % People |
|---|
| Never | 53% |
| Once a year | 23% |
| Twice a year | 12% |
| Three times a year | 8% |
| Four times a year | 4% |
Housing costs, accommodation, and housing affordability in Panama
Rental costs and house/apartment prices can vary drastically between different areas and locations.
Rent Cost in Panama
Monthly Rent Prices
Studio apartment monthly rent cost
1-bedroom apartment monthly rent cost
| 270 PAB | 430 PAB | 1,100 PAB |
2-bedroom apartment monthly rent cost
| 350 PAB | 530 PAB | 1,400 PAB |
3-bedroom apartment monthly rent cost
| 430 PAB | 710 PAB | 1,900 PAB |
Furnished apartment monthly rent cost
| 850 PAB | 2,100 PAB | 4,300 PAB |
Townhouse monthly rent cost
| 710 PAB | 1,100 PAB | 3,000 PAB |
House monthly rent cost
| 850 PAB | 2,100 PAB | 4,300 PAB |
Villa monthly rent cost
| 1,100 PAB | 2,700 PAB | 4,300 PAB |
The monthly rental cost of a studio apartment in Panama ranges between 180 PAB and 710 PAB, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 270 PAB to 1,100 PAB. Two-bedroom rentals rate ranges between 350 PAB and 1,400 PAB per month. The monthly rental for a three-bedroom apartment ranges from 430 PAB to 1,900 PAB. The average rent of a townhouse in Panama is around 1,100 PAB while house rental costs can be as high as 2,100 PAB per month. Finally, if you want to rent a villa, expect to pay anywhere from 1,100 PAB to 4,300 PAB per month.
Apartment and house prices in Panama
Cost of buying a property
Studio apartment price
| 35,000 PAB | 53,000 PAB | 110,000 PAB |
1-bedroom apartment price
| 43,000 PAB | 71,000 PAB | 270,000 PAB |
2-bedroom apartment price
| 71,000 PAB | 210,000 PAB | 430,000 PAB |
| $71,000 | $210,000 | $430,000 |
3-bedroom apartment price
| 240,000 PAB | 350,000 PAB | 1.1M PAB |
Townhouse price
| 300,000 PAB | 710,000 PAB | 2.7M PAB |
House price
| 350,000 PAB | 2.1M PAB | 3M PAB |
Villa price
| 430,000 PAB | 2.4M PAB | 3.5M PAB |
The average price of a studio apartment in Panama can range from 35,000 PAB to 110,000 PAB depending on location. One bedroom cost can be anywhere from 43,000 PAB to 270,000 PAB. A villa can cost you 2.4M PAB on average with prices ranging from 430,000 PAB to 3.5M PAB.
If you're leasing or purchasing, housing costs in Panama will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.
House / apartment prices to income ratio
Property price to income ratio
( average property price / average monthly income ) x 100
| 37 | x107 monthly income | 204 |
Property prices in Panama can be x107 to x204 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x107 multiples of the average monthly salary in Panama.
Rent to income ratio
Rent to income ratio
( monthly rental / monthly income ) x 100
The average rent-to-income ratio in Panama is around 31%. This means that people pay 31% of their income for rent. Those figures can range from 21% to 41% depending on the salary, location, and type of property.
The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.
Housing affordability index
The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.
Housing Affordability Index
29% Property Taxes
Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.
Home Maintenance Costs
Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.
Urban vs. rural living costs
Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.
Monthly costs and expenses of energy and basic utilities in Panama
Utilities expenditure can vary slightly between different areas and locations.
Energy, electricity, water, gas, internet, and mobile cost in Panama
Utility Bill Cost / Electricity + Water + Gas / Individual
Utility Bill Cost / Electricity + Water + Gas / Couple
Utility Bill Cost / Electricity + Water + Gas / Family
Internet and cable cost
Mobile phone bill and charges
Because most utility bills club electricity, water, and gas costs in one bill, we can't provide a breakup for each type of utility and will display electricity, gas, and water as single cost.
The average monthly expenditure for individuals on electricty, water, and gas in Panama ranges between 12 PAB and 560 PAB with average being 84 PAB, meanwhile the expenditure of couples is slightly higher at 100 PAB with 31 PAB and 680 PAB being the upper and lower limits respectively. As expected, the energy and water consumption of families is the highest among the three groups with an average of 150 PAB. The cost of internet and WiFi is unchanged among the three groups and ranges from 11 PAB to 28 PAB with 21 PAB being the average internet bill. Finally, the average monthly mobile charges is around 14 PAB but can range between 8.5 PAB and 43 PAB depending on consumption. Mobile charges include both calling minutes as well as data packages.
Energy / Utility expense to income ratio
( monthly utility expenses / monthly income ) x 100
The average utility-to-income ratio in Panama is around 6%. This means that people pay 6% of their income for energy, water, internet, and mobile charges. Those figures can range from 3% to 10% depending on salary and location.
Food Prices, Dining Expenses, and Grocery Costs in Panama
Grocery / Food expenditure and prices can vary drastically between different areas and locations.
Prices and cost of goods and services in Panama
Dining out, food, and beverages costs. Price variations for common food items.
Fast food combo meal price
The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Panama is approximatly 4.3 PAB with meal cost ranging from 2.1 PAB to 7.1 PAB. The typical combo meal consists of a burger, french fries, and a drink.
Restaurant meal for one price
If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 7.1 PAB and 21 PAB with 11 PAB being the average price of a plate for one person at a regular restaurant in Panama.
Fine dining meal for one price
The price range of a meal at fine-dining restaurant is 14 PAB to 85 PAB with the average cost being 21 PAB for one person. This is what you would expect to pay a top-tier diner in Panama.
Beverage prices, cappuccino, latte etc..
The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Panama is around 2.8 PAB. Price ranges between 1.8 PAB and 4.3 PAB depending on the type of beverage, the size, and optional add-ons.
Grocery and market costs
Large bottle of milk price
The average price of a large bottle of milk in Panama is 1.7 PAB. The maximum what you would pay for milk is 2.1 PAB and the minimum being 1.4 PAB depending on the brand of milk and other properties.
12 eggs price
A dozen eggs costs around 1.4 PAB on average with 1.1 PAB and 2.1 PAB being the lower and upper limits respectively.
Fresh whole chicken price
The price range of a fresh whole chicken in Panama is between 2.4 PAB and 4.4 PAB depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 3.1 PAB.
Pack of beef price
The price of a regular pack of beef or meat is around 4.3 PAB. A pack of beef contains around 1Kg or 1lb depending on packing.
Medium bag of rice price
A bag of rice in Panama costs around 1.6 PAB on average with prices rangeing between 1.1 PAB and 2.2 PAB depending on the brand and quality.
Bag of tomatos price
| 0.43 PAB | 0.57 PAB | 1.1 PAB |
A bag of tomatoes costs anywhere from 0.43 PAB to 1.1 PAB. A bag of tomatoes denotes 1Kg or 1lb depending on location.
Bag of apples price
| 0.76 PAB | 0.99 PAB | 1.6 PAB |
A bag of apples costs 0.99 PAB on average. A bag of apples denotes 1Kg or 1lb depending on location.
Grocery and food expenditure to income ratio
( monthly grocery expenses / monthly income ) x 100
The average grocery-to-income ratio in Panama is around 26%. This means that people spend 26% of their income on grocery and basic household items. The expenditure can range from 18% to 32% depending on salary and location.
Expenditure on food and grocery for every population group
A single person living alone spends approximately 220 PAB per month on grocery and food with expenditure fluctuating between 32 PAB and 1,500 PAB depending on location and the type of person. The average cost of food and groceries for a couple is around 320 PAB per month. That number can be get as low as 110 PAB or a high as 1,700 PAB. Families' spending on grocery ranges from 190 PAB to 3,600 PAB with the location, income, and size of the family being the most determinite factors.
SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Panama
Housing cost for a single person32%
32% of total expenses on average (20% to 44%)
| LOW | $71 71 PAB |
| AVERAGE | $500 500 PAB |
| HIGH | $3,300 3,300 PAB |
| Per Month |
Utilities, Electricity, Water, Internet, Mobile8%
8% of total expenses on average (4% to 13%)
| LOW | $12 12 PAB |
| AVERAGE | $84 84 PAB |
| HIGH | $560 560 PAB |
| Per Month |
Transport and Fuel Cost6%
6% of total expenses on average (4% to 12%)
| LOW | $16 16 PAB |
| AVERAGE | $110 110 PAB |
| HIGH | $740 740 PAB |
| Per Month |
Food and Groceries Cost18%
18% of total expenses on average (12% to 23%)
| LOW | $32 32 PAB |
| AVERAGE | $220 220 PAB |
| HIGH | $1,500 1,500 PAB |
| Per Month |
Healthcare Cost11%
11% of total expenses on average (5% to 15%)
| LOW | $18 18 PAB |
| AVERAGE | $130 130 PAB |
| HIGH | $840 840 PAB |
| Per Month |
Leisure and Shopping Expenditure3%
3% of total expenses on average (3% to 6%)
| LOW | $9.9 9.9 PAB |
| AVERAGE | $70 70 PAB |
| HIGH | $460 460 PAB |
| Per Month |
Education Cost2%
2% of total expenses on average (1% to 4%)
| LOW | $3.9 3.9 PAB |
| AVERAGE | $28 28 PAB |
| HIGH | $190 190 PAB |
| Per Month |
Other Expenses21%
21% of total expenses on average (13% to 25%)
| LOW | $35 35 PAB |
| AVERAGE | $250 250 PAB |
| HIGH | $1,700 1,700 PAB |
| Per Month |
CoupleAverage monthly living expenditure breaks and spending patterns for couples in Panama
Housing cost for a couple29%
29% of total expenses on average (22% to 39%)
| LOW | $260 260 PAB |
| AVERAGE | $790 790 PAB |
| HIGH | $4,200 4,200 PAB |
| Per Month |
Utilities, Electricity, Water, Internet, Mobile7%
7% of total expenses on average (5% to 11%)
| LOW | $31 31 PAB |
| AVERAGE | $100 100 PAB |
| HIGH | $680 680 PAB |
| Per Month |
Transport and Fuel Cost10%
10% of total expenses on average (4% to 15%)
| LOW | $93 93 PAB |
| AVERAGE | $280 280 PAB |
| HIGH | $1,500 1,500 PAB |
| Per Month |
Food and Groceries Cost16%
16% of total expenses on average (11% to 21%)
| LOW | $110 110 PAB |
| AVERAGE | $320 320 PAB |
| HIGH | $1,700 1,700 PAB |
| Per Month |
Healthcare Cost13%
13% of total expenses on average (7% to 17%)
| LOW | $85 85 PAB |
| AVERAGE | $260 260 PAB |
| HIGH | $1,400 1,400 PAB |
| Per Month |
Leisure and Shopping Cost4%
4% of total expenses on average (2% to 7%)
| LOW | $46 46 PAB |
| AVERAGE | $140 140 PAB |
| HIGH | $740 740 PAB |
| Per Month |
Education Cost2%
2% of total expenses on average (1% to 4%)
| LOW | $15 15 PAB |
| AVERAGE | $46 46 PAB |
| HIGH | $250 250 PAB |
| Per Month |
Other Expenses20%
20% of total expenses on average (14% to 26%)
| LOW | $130 130 PAB |
| AVERAGE | $390 390 PAB |
| HIGH | $2,100 2,100 PAB |
| Per Month |
FamilyAverage monthly expenses and break out of spending for families living in Panama
Housing cost for a family28%
28% of total expenses on average (23% to 38%)
| LOW | $350 350 PAB |
| AVERAGE | $990 990 PAB |
| HIGH | $6,400 6,400 PAB |
| Per Month |
Utilities, Electricity, Water, Internet, Mobile5%
5% of total expenses on average (3% to 8%)
| LOW | $54 54 PAB |
| AVERAGE | $150 150 PAB |
| HIGH | $1,000 1,000 PAB |
| Per Month |
Transport and Fuel Expenses6%
6% of total expenses on average (4% to 8%)
| LOW | $110 110 PAB |
| AVERAGE | $310 310 PAB |
| HIGH | $2,000 2,000 PAB |
| Per Month |
Food and Groceries Cost20%
20% of total expenses on average (13% to 26%)
| LOW | $190 190 PAB |
| AVERAGE | $560 560 PAB |
| HIGH | $3,600 3,600 PAB |
| Per Month |
Healthcare Expenses10%
10% of total expenses on average (6% to 15%)
| LOW | $97 97 PAB |
| AVERAGE | $310 310 PAB |
| HIGH | $1,600 1,600 PAB |
| Per Month |
Leisure and Shopping Cost3%
3% of total expenses on average (2% to 7%)
| LOW | $54 54 PAB |
| AVERAGE | $150 150 PAB |
| HIGH | $1,000 1,000 PAB |
| Per Month |
Education Cost14%
14% of total expenses on average (7% to 22%)
| LOW | $150 150 PAB |
| AVERAGE | $430 430 PAB |
| HIGH | $2,800 2,800 PAB |
| Per Month |
Other Expenses15%
15% of total expenses on average (8% to 20%)
| LOW | $87 87 PAB |
| AVERAGE | $250 250 PAB |
| HIGH | $1,600 1,600 PAB |
| Per Month |
StudentCost of living and expenses break down for students living in Panama
Housing costs for Student20%
20% of total expenses on average (15% to 26%)
| LOW | $37 37 PAB |
| AVERAGE | $240 240 PAB |
| HIGH | $1,600 1,600 PAB |
| Per Month |
Utilities, Electricity, Water, Internet, and Mobile Expenses6%
6% of total expenses on average (4% to 10%)
| LOW | $6.2 6.2 PAB |
| AVERAGE | $40 40 PAB |
| HIGH | $270 270 PAB |
| Per Month |
Transport and Fuel Cost5%
5% of total expenses on average (5% to 11%)
| LOW | $11 11 PAB |
| AVERAGE | $71 71 PAB |
| HIGH | $470 470 PAB |
| Per Month |
Food and Groceries Expenditure22%
22% of total expenses on average (16% to 26%)
| LOW | $31 31 PAB |
| AVERAGE | $200 200 PAB |
| HIGH | $1,300 1,300 PAB |
| Per Month |
Healthcare Cost8%
8% of total expenses on average (5% to 11%)
| LOW | $9.3 9.3 PAB |
| AVERAGE | $61 61 PAB |
| HIGH | $400 400 PAB |
| Per Month |
Leisure and Shopping Cost3%
3% of total expenses on average (2% to 7%)
| LOW | $7.7 7.7 PAB |
| AVERAGE | $50 50 PAB |
| HIGH | $340 340 PAB |
| Per Month |
Education Cost19%
19% of total expenses on average (12% to 24%)
| LOW | $29 29 PAB |
| AVERAGE | $190 190 PAB |
| HIGH | $1,300 1,300 PAB |
| Per Month |
Other Expenses18%
18% of total expenses on average (12% to 24%)
| LOW | $23 23 PAB |
| AVERAGE | $150 150 PAB |
| HIGH | $1,000 1,000 PAB |
| Per Month |
