Thread: Living expenses in Panama

I have never been in Panama. much less I lived by a month salary there, but from everything I learned here $ 1000 should be enough to live well a month, especially if you don't have to pay a rent . I 've been told that a non-doctor would make 600-800 a month over there and I suppose he/she could afford internet , air conditioning and eating outside a few times a week .

Living in the interior with the locals, $1000/month is huge money. You can afford good private health insurance as well. You can rent a decent house for $200-$400/month. Food is cheap in the places it grows but gets expensive once it hits Panama City or the major food markets in general.

I never had quite all the responsibilities to worry about as you will moving there solo, but I do know that you will be more than fine on one thousand a month.

I have family down there and when I go, I always stay with them so I dont need to worry about rent and paying for most of the utilities. When I was down there though I did give my aunt something for food and stuff as well as put internet and cable in the house because I needed the internet to work and liked watching cable.

With the incomes combined in the house we were just at one thousand a month and my family lives in the nicer part of the city.

One thousand a month is way more than enough.

Originally Posted by zog

How much is electricity per month including air conditioning?

That`s an intersting question.
I`ve heard electricity is very expensive
because the Utilities of Panama use oil to produce electricity??

Is it cheaper than in Europa or US?
How much we have to pay
f.e. for a 4 rooms-Flat ?

Cheers
Mike

Apartment maintenance fees average $1 per square meter -- but it depends on the building (and owners' association).

Electricity in Panama comes from 50% hydro and 50% diesel.

Electricity is cheap up to 500Kwh/month, because the government provides subsidies. In addition, if you have jubilado status, you get a 25% discount on usage up to 600Kwh/month. But as soon as you go over those limits, it's expensive. E.g., one month when I used 480Kwh, my bill was $13. When I used $650Kwh, my bill was $96. The biggest factor as to whether you'll hit the limits is, by far, AC. For most ex-pats I know in Panama City, $100-150/month seems to be a reasonable amount to budget. But I know some who spend less, and some who spend much more. And if you live in the mountains where the weather is much cooler, you'll spend less.

Hi!
We live very comfortably on $1200 a month for 2 people. My husband gets social security only. I am not eligible for social security yet.

We own our own home and vehicles.

My bills run:
Electricity: $70-90/month (no air conditioning and we have a large pool)
Water: $6/month
Gas: $15/month (cooking, dryer and hot water)
Internet: $47/month (high speed satellite)
DirecTV: $47/month (132 English speaking channels - no movies)
Cell Phones: $40/month (425 minutes) + $10/month (card for 2nd phone)

Balance is for food and going out.

Other expenses:
Car Insurance $165/year (minimum coverage for each vehicle).

Mary
whypanama.com

That's very good info, but in your list you have not included:
> medical insurance
> doctors, dentists, and prescriptions
> home insurance
> travel (airfare, hotels, car rental, etc.)
> taxes

You said the balance (approx $930/month) is for "food and going out." If we say (and this is just *my* guess for two people) that groceries and dining out run $500/month, that leaves approx $430/month. Is that enough for the other items I listed? Or do you not buy the things in my list?

Please understand, I am not trying to argue -- I have no doubt that you do live very comfortably. I'm just trying to clarify that what's comfortable for one person may not work for another. E.g., I want to make a couple big trips every year, and that creates a pretty huge line item in my annual budget. :-)

Hi!
Good points.

We don't have medical insurance except Matt's social security and pay as we go. The doctor runs us about $25 plus the blood work of $40 every 4-6 months to verify his medications. His medications compared to the states are next to nothing, plus we are proud to say he is no longer on blood pressure medicine or lipitor after living here for 3 years and he is down 1/3 on his diabetes medications. This was handled by a doctor in PANAMA and verified by our doctor in Chicago.

When the hospital is completed in Coronado we will get the catostrophic insurance at around $100/month for the both of us.

Home insurance runs around $100/year for coverage - fire in a cinder block home with very little wood due to termites.

Travel is minimal. Panama is our home and we have found paradise! I am going to the states next month and my round trip ticket to NEBRASKA was $450. The 6 kids can see us if they want a vacation from the snow and cold in Chicago, Washington DC or Omaha! We have internet, 800 number in the states that is transfered to my cell phone, and the videocam. We talk and "see" more of our kids that we are here then when we were in the states--they all have kids and with that comes sports and time, let alone extra money with the economy in the U.S.

Taxes aren't relevant because we are pensionado and had our home built and fall under the 20 year no taxes.

Mary

Thanks -- your answers make sense, all around.
But, for the newbies, a couple of points about paradise: <g>

1) It does make sense to keep Medicare coverage, but it doesn't work in Panama; it's only useful for unfortunate events in the US. (Btw, this seems to be a common reason that ex-pats leave Panama: Medical care that they need is unavailable in Panama, or not covered by their Panama health insurance. I'm not saying it *will* happen, but it *can* happen.)

2) Home insurance is most important, imho, not for fire but for theft-of-contents coverage. In Panama City, for my apartment, I pay $263/year for the complete homeowner's package.

3) Travel costs can be minimal, especially if you have family/friends to stay with wherever you go, and if you can avoid eating in restaurants. I don't/can't, so, e.g., I usually budget $2K for a 10-day trip to the US. For an upcoming trip 2-week to LA & SF, where hotels are expensive, it will be more like $3K. More still if I take a Panamanian friend. :-)

4) Taxes *are* relevant as long as you are a US citizen and have any income from the US: interest, dividends, *and* Social Security. Even if you become a Panamanian citizen (difficult), you cannot escape US taxes. :-(

Are we refering to USD or Panama'n money here?

Technically, the currency in Panama is the Balboa, but Panama stopped printing its own paper money in 1941. The exchange rate to the US dollar has been 1:1 since 1903.

I have heard that in the interior life is much cheaper.

Who prints the balboa then? I know this probobly belongs in a different thread but I'm just curious.

if you live in a posh area i think you would need a bit more than that...but if you live a normal life you might not need that much money...

If you give up your Medicare and purchase health insurance in Panama is it expensive? Do they look at pre-existing conditions? Is your premium based on your health? Do they give you a physical?

We a looking at a move there, but I have some medical problems. Nothing too serious, slightly high blood pressure and overweight.

Thanks in advance for answering all my questions!!

Who prints the Balboa...?

The paper money in circulation in Panama is US dollars -- identical to the paper money in the US. Panama does have its own coins (in denominations of .01, .05, .10, .25, .50, and 1.00) with its own images; they are minted in the US and are identical to US coins in size and weight. Coins you'll find in circulation in Panama are a mix of US coins (e.g., a George Washington quarter) and Panamanian (e.g. a Vasco Nuñez Balboa quarter). No one in Panama cares if you pay them with a US coin or a Panamanian coin; they are completely interchangeable.

Medical insurance: What's "expensive"? Insurance here is more expensive than Mexico, less than the US. Depends entirely on the kind of coverage you want, your age, pre-existing conditions, etc. I'm paying approximately 1/4 of what I paid in the US, for the same coverage.

All companies will require a medical exam in Panama to initiate coverage (and you will pay for that; a little over $100). All providers that I know of have age limits for writing the first policy -- some as low as 66 years, some at 70 or 72. Once you've covered they will not kick you out, but it can be a problem for older ex-pats looking to get coverage.

Also, be careful about cancelling Medicare. Even though it is useless in Panama, you'll want it if you ever have to return to the US -- maybe because some procedure you need is not covered or not available in Panama. I have also heard that you do want to opt for (and keep) the "B" portion of Medicare -- something about available coverage should you return to the US. There was some discussion of this on one of the Yahoo forums, but I've forgotten the specifics. There is one Yahoo Group specific to healthcare: http://groups.yahoo.com/group/expathealth/

Another thing, what are taxes like in panama?

Whypanama wrote:
"My bills run: Electricity: $70-90/month
(no air conditioning and we have a large pool)
Gas: $15/month (cooking, dryer and hot water)"

THX!
2 questions about it:
Gas...
Prices are comimhg up worldwide
I think 15 US$ seems relative cheap?

And the othe point is:
NO Aircondition?
But if so, electricity will cost m u c h (?) more than 70 - 90 US$?

Saludos
Mike, still living in Frankfurt

Hi!
My gas is for the clothes dryer, cooking, and continuous hot water system. A 100 lb tank usually last 4-5 months and costs $70. I haven't had to purchase a tank in 3 months. We have 2 tanks, so I replace the empty tank about 2 months after I change them with a switch.
The electricity in Panama is much more expensive then the U.S. - it runs 19 cents/KW. I have 2 computer systems on 24 hours, a freezer, BeerMeister, TV, ceiling fans, etc. The pool is large and is run on an average of 3 hours per day.
I hope this answers someof your questions.
Mary
www.whypanama.com

Hello all.

What would some others cost in Panama?

I am thinking like things like a new laptop, do they seem cheaper than the usa? I am also looking at maybe buying a new jeep wrangler... So I was wondering about a cost of a set of wheels compared to the usa...

I guess the recent cost of a gallon of gas would be intresting to know to, here in Canada it is $5.20 a usa gallon, were in california it is now over $4 a usa gallon. How about in Panama city?

Last question I had was the cost of eating out, I know it depends on the type of place, but as a comparion to something that can be compared what would the cheapest hamburger, french fries and drink combo cost at mcdonalds? Here in canada at the momment it is about $4:50 with the taxes....

Thank

In every example you asked about, the cost will be more in Panama than in the US. The laptop will be a LOT more in Panama; the Big Mac will be a little more. Regular gas is currently $4.20 to $4.60 per gallon, in Panama City.

I agree with Soltero on your questions Bel-Air. If buying a laptop I would get Dell since there is a lot of service down here vrs. Gateway (none), etc.
Also the car can be a pain in the a** if bringing from Canada or U.S. We brought a car down here and it took me 18 months to get everything completed to have it registered! Also if you are pensionado you will pay a 5% sales tax and if it is over a certain dollar you may be hit with another 5-10% luxury tax. With the pensionado you don't pay duty, but if you sell it you have to pay the duty before it can be transferred.

Mary

O.K.
Let`s buy DeskTops or Notebooks in US :-)
but what about other prices NOW?
Coming Down ?

The Thread is named:
"L i v i n g expenses in Panama"

Just announced by REUTERS:

"Los precios en Panamá subieron un 0,7 por ciento en septiembre respecto al mes previo, mientras la inflación anualizada se ubicó en un 10 por ciento, afectada por costos volátiles en alimentos y energía, dijo el miércoles la Contraloría General de la República.
La Contraloría dijo que los mayores incrementos en los precios en septiembre se registraron en viviendas, agua, electricidad y gas.

Los precios de los alimentos subieron en general un 17 por ciento en los últimos 12 meses hasta septiembre, mientras que la gasolina lo hizo en un 30,4 por ciento en el mismo periodo, dijo el Gobierno.

Panamá, que usa el dólar como su moneda, tiende a disfrutar de menores niveles de inflación que Estados Unidos, pero precios internacionales de alimentos y combustibles más elevados, combinados con una demanda interna más fuerte, lo han llevado a las tasas de inflación más alta..

La inflación se aceleró a lo largo de América Latina este año, con los precios de > alimentos básicos < creciendo debido a la creciente demanda de Asia y el crecimiento de la industria de biocombustibles.."

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I think Oilprices coming down very sharp now (under70 $)

and also other commodities (bc. the economic crisis now)
should result in lower prices in Panama as it does in US or Europe?
Am I right?

Saludos
Mike, Frankfurt

In my opinion $1000 are more than enough for living in Panama. There are not so much expenses. The food is not that expensive, especially if you eat at your house and not in restaurants. Electricity will be mostly about 7-8% of your month expenses. However, if you don't have your own apartment, living with $1000 a month will much harder.

If with $1000 are more than enough for living in Panama, I wonder how much is the average salary there?