🇵🇦 Cost of Living in Panama - Prices & Budget Guide
Last updated: February 2026
Verified Facts
Official NameRepublic of Panama
CapitalPanama City
Population4.1 million
Area75,417 km² (29,119 sq mi)
LanguagesSpanish
CurrencyPanamanian balboa (B/.), United States dollar ($)
TimezoneUTC-05:00
RegionAmericas / Central America
Drives onRight
Source: REST Countries API
Economic Indicators
GDP per Capita (PPP)$41,369 (2024)
Inflation Rate0.7% (2024)
Health Spend per Capita$1,558 (2023)
Out-of-Pocket Health Spend40.5% (2023)
Education Spend (% GDP)2.5% (2023)
Source: World Bank Open Data
Quick Facts
Cost LevelAffordable
Daily Budget (Backpacker)$30-50 USD
Daily Budget (Mid-Range)$60-100 USD
Daily Budget (Comfort)$150-250 USD
CurrencyPAB
Tipping Customexpected (10-15%)
How Expensive Is Panama?
Panama is considered an affordable country to live in or visit, especially when compared to other destinations in Central America. The cost of living in Panama is relatively low, with a mix of modern amenities and traditional ways of life. The country's strategic location and growing economy have made it an attractive destination for tourists, expats, and retirees. Compared to its neighbors, Costa Rica and Colombia, Panama offers a unique blend of urban and natural attractions at a lower cost.
Overall, Panama offers great value for money, with a wide range of accommodation options, dining experiences, and activities to suit different budgets. From the bustling streets of Panama City to the tranquil beaches of Bocas del Toro, visitors can enjoy a rich cultural heritage and stunning natural beauty without breaking the bank. Whether you're a backpacker, a mid-range traveler, or a luxury seeker, Panama has something to offer.
Accommodation Prices
Type
Price Range (USD/night)
Notes
Hostel/Budget
$15-30
Shared rooms, basic amenities
Mid-Range Hotel
$40-80
Private rooms, comfortable amenities
Luxury/Resort
$150-300
High-end amenities, stunning views
Apartment Rent (monthly)
$400-1,200
City center: $600-1,200, outside: $400-800
Food & Dining Prices
Meal Type
Price Range (USD)
Street Food / Local Eatery
$3-6
Casual Restaurant
$10-20
Mid-Range Restaurant (2 people)
$25-40
Fine Dining
$50-100
Beer (local)
$2-4
Coffee
$1-3
Water (1.5L bottle)
$1-2
Transport Costs
Transport
Cost (USD)
Local bus/metro ride
$0.25-1.00
Taxi (per km)
$1-3
Domestic flight
$100-250
Fuel (per liter)
$0.80-1.20
Monthly Budget Breakdown
Category
Budget ($)
Mid-Range ($)
Comfortable ($)
Rent
400
800
1,500
Food
300
600
1,000
Transport
100
200
300
Utilities
100
150
250
Entertainment
200
400
600
Total
1,100
2,050
3,650
Money-Saving Tips
Consider staying in neighborhoods like El Cangrejo or Marbella, which offer affordable accommodation options and easy access to public transportation.
Eat at local eateries or street food stalls, which offer delicious and affordable meals.
Use public transportation, such as buses or metro, to get around the city.
Take advantage of happy hour deals or discounts at mid-range restaurants and bars.
Visit local markets, such as the Mercado de Abastos, to buy fresh produce and souvenirs at lower prices.
Look for package deals or discounts on domestic flights, tours, or accommodation to save money on travel and activities.
By following these tips and being mindful of your expenses, you can enjoy a comfortable and affordable lifestyle in Panama, whether you're visiting for a short time or staying for an extended period. With its unique blend of urban and natural attractions, rich cultural heritage, and affordable cost of living, Panama is an attractive destination for travelers and expats alike.