The Real Cost of Living in Panama in 2026

Twelve months in, and the most common question we get from back home is still the same: how much does it actually cost to live in Panama? Not the optimistic version from the expat forums. The real version, including the things that catch you off guard.

We live in a standalone home on a double plot — not a city apartment. Our lifestyle is comfortable rather than frugal. We eat out regularly, run a car, and don't carry health insurance. Here is what we actually spend.

Grocery staples run $100–200 USD per month for the two of us. Panama's supermarkets are well-stocked, and the local markets are extraordinary. Fresh fruit and vegetables are cheap in a way that takes some getting used to after Palmerston North prices.

Dining out is $60–80 USD per month. A good lunch for two — with drinks — costs $12–15 USD in most of the places we eat. There are plenty of options under $8 per person.

Utilities — power at $80 per month, and Starlink for superfast internet at another $80 — come to $160 USD combined. Power is the variable one; air conditioning makes a real difference in the wet season. However we don't use it much now as after a while you don't notice the heat. We usual;y pop the air on in the dogs bedroom and our bedroom for an hour before bed , switch it off and leave the ceiling fan on. Its comfortable even in the wet season where the humidity can rise.    

Transport is $50–70 USD per month. We own a Ford Explorer Diesel. Fuel in Panama runs around $0.85 USD per litre — roughly a third of the $2.90 NZD per litre we were paying in the Manawatu. A full tank costs about $60 USD. And no road user charges here.

Healthcare runs around $40 USD per month without insurance. Doctor visits cost $20. As Pensionado visa holders we receive a 20% discount on prescriptions — my blood pressure medication costs $18 per month. When you fill a script here you get it back, so for regular medications you do not need another doctor's appointment to refill it.

Specialists are around $60 per visit. My wife was quoted $13,000 NZD in New Zealand for stem cell knee treatment, with the doctors advising a $33,000 knee replacement would eventually be required. She had the full course of stem cell treatment at a private hospital in Coronado — no insurance — and the actual account came to $800 USD (around $1,400 NZD). She regained 85% mobility and pain level has dropped to insignificant . Was it worth while ?? ... Definitely . 

Entertainment — meals out beyond our base budget, weekend trips — adds $40–60 USD per month.

In total, we spend around $600 USD per month on all of the above. In New Zealand dollars at current rates, that is roughly $1,000 NZD. Our equivalent lifestyle in the Manawatu — groceries at Pak'nSave, petrol at $2.90/L, power and rates — would cost us $2,100–$2,600 NZD per month minimum.

Land tax tells an even starker story. In New Zealand we were paying $6,000 NZD per year on a smaller plot and roughly the same size house. Our Panama land tax this year was $680 USD. Next year we will receive a 10% discount for paying a year in advance, plus a 20% reduction for our main residence — bringing it down to around $470 USD (roughly $800 NZD) per year.

The gap is not a rounding error. It is the central reason we moved. If you choose to Book a consultation with us , by all means make a list of questions, If i cant answer them off the top of my head I will research them and email the answers through . People forget some of the basics like drivers licencing and what needs to happen once you apply for residency. We will cover that for you . Its a bit of a mission but patience is the key. If you are impatient and cant abide a laid back easy going situation where " manana " ( Pronounced Munyana )loosely translated as "tomorrow " means any time in the next month then dont come. There is a common saying amongst expats " its panama , get over it "   I say to Dawn " dont worry about it , what else have we got to do " . If you can slip into that mindset you will fit in beautifully .