City Guide 2026
Panama
Living in Panama City
Everything you need to know about cost of living, visas, taxes, climate, and lifestyle in Panama City, Panama.
Monthly Cost (Solo)
$1,470
Rent + groceries + bills
Safety Score
55/100
Moderate
Avg Temperature
27°C
81°F average
Tourist Visa
180 days
DN visa available
Internet Speed
80 Mbps
Good
Cost of Living in Panama City
Rent Prices (USD/month)
| Apartment | City Center | Outside Center |
|---|---|---|
| 1 Bedroom | $900 | $585 |
| 3 Bedroom | $1,600 | $1,040 |
Source: Numbeo, crowd-sourced data.
Groceries
$300/month
Healthcare
$150/month
Utilities
$80/month
Transport
$40/month
Climate in Panama City
Monthly Average Temperature (°C)
Jan
27°
Feb
27°
Mar
28°
Apr
28°
May
27°
Jun
27°
Jul
27°
Aug
27°
Sep
26°
Oct
26°
Nov
26°
Dec
27°
Air Quality (AQI)
28
Excellent
Avg Rain Days/mo
12
days per month
Beach Distance
5 km
to nearest coast
Mountains
30 km
to nearest range
Lifestyle in Panama City
Walkability
45/100
Internet Speed
80 Mbps
Cultural Score
55/100
Nightlife
60/100
Outdoor Activities
70/100
English Proficiency
55/100
Expat Community
medium
Transit Quality
basic
Coworking Spaces
25+
LGBTQ+ Friendly
moderate
Visa & Immigration in Panama
| Visa Type | Status | Duration | Requirement |
|---|---|---|---|
| Tourist Visa | Available | 180 days | Standard passport |
| Digital Nomad Visa | Available | 9 months | - |
| Investment Visa | Available | Available | Min $300,000 investment |
Residency Pathway
Friendly Nations Visa -> Immediate PR -> 5yr Citizenship
Tax Overview in Panama
Tax System
Territorial (taxes local income only)
Tax residency threshold: 183 days/year · Treaty network: limited
| Tax Type | Rate |
|---|---|
| Capital Gains (Long-term) | 10% |
| Capital Gains (Short-term) | 10% |
| Dividend Tax | 0% (exempt) |
| Interest Income | 0% (exempt) |
| Wealth Tax | None |
| Crypto Gains | 0% (exempt) |
| Exit Tax | No |
| Estate Tax | No |
Special Regime: Friendly Nations
Flat rate: 0%
Requirements: Citizens of 50 friendly nations, establish economic ties
Tax rates are estimates. Consult a qualified tax advisor for your specific situation.
Frequently Asked Questions
How much does it cost to live in Panama City?
A comfortable solo lifestyle in Panama City costs approximately $1,470-2,352/month for a single person or couple, covering housing in the city center, groceries, healthcare, utilities, and transport. Rent for a 1-bedroom in the center averages $900/month.
Is Panama City safe for expats?
Panama City has a safety index of 55/100 (higher is safer). Panama City has moderate safety levels. Standard precautions are recommended, especially at night in less-trafficked areas. Healthcare quality is rated 65/100.
What is the weather like in Panama City?
Panama City has an average annual temperature of 27°C (81°F). The warmest months reach 28°C and the coolest drop to 26°C. Air quality is excellent with an average AQI of 28.
What is the internet speed in Panama City?
Average internet speed in Panama City is 80 Mbps, which is good enough for most remote work needs. There are 25+ coworking spaces available.
What taxes will I pay living in Panama?
Panama uses a territorial tax system. Capital gains are taxed at 10% (long-term) and dividends at 0%. There is no wealth tax. Tax residency kicks in after 183 days/year. A special regime (Friendly Nations) may offer reduced rates.
Can I get a digital nomad visa in Panama City?
Yes, Panama offers a digital nomad visa valid for 9 months. The residency pathway is: Friendly Nations Visa -> Immediate PR -> 5yr Citizenship.
Is Panama City good for digital nomads?
Panama City has decent internet at 80 Mbps, a medium expat community, and 25+ coworking spaces. English proficiency is moderate at 55/100. The cost of living index is 42/100 (NYC = 100), making it moderately priced for remote workers.
Compare Panama City with other cities
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