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)
$1,770
Rent + groceries + bills
Safety Score
53/100
Moderate
Avg Temperature
27°C
81°F average
Tourist Visa
90 days
DN visa available
Internet Speed
150 Mbps
Fast
Cost of Living in Panama City
Rent Prices (USD/month)
| Apartment | City Center | Outside Center |
|---|---|---|
| 1 Bedroom | $1,050 | $683 |
| 3 Bedroom | $2,300 | $1,495 |
Source: Numbeo, crowd-sourced data.
Groceries
$400/month
Healthcare
$150/month
Utilities
$120/month
Transport
$50/month
Climate in Panama City
Monthly Average Temperature (°C)
Jan
27.2°
Feb
27.5°
Mar
27.8°
Apr
28.1°
May
27.9°
Jun
27.4°
Jul
27.3°
Aug
27.3°
Sep
27°
Oct
26.8°
Nov
26.6°
Dec
26.9°
Air Quality (AQI)
42
Good
Avg Rain Days/mo
14
days per month
Beach Distance
0 km
to nearest coast
Mountains
15 km
to nearest range
Lifestyle in Panama City
Walkability
45/100
Internet Speed
150 Mbps
Cultural Score
38/100
Nightlife
85/100
Outdoor Activities
48/100
English Proficiency
80/100
Expat Community
large
Transit Quality
basic
Coworking Spaces
3+
LGBTQ+ Friendly
moderate
Tax Overview in Panama
Tax System
Territorial (taxes local income only)
Tax residency threshold: 183 days/year · Treaty network: excellent
| Tax Type | Rate |
|---|---|
| Capital Gains (Long-term) | 0% (exempt) |
| Capital Gains (Short-term) | 0% (exempt) |
| Dividend Tax | 0% (exempt) |
| Interest Income | 10% |
| Wealth Tax | None |
| Crypto Gains | 0% (exempt) |
| Exit Tax | No |
| Estate Tax | No |
Special Regime: Pensionado Visa (Retiree Visa)
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 $1,770-2,832/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 $1,050/month.
Is Panama City safe for expats?
Panama City has a safety index of 53/100 (higher is safer). Panama City requires heightened awareness. Stick to well-known neighborhoods, avoid walking alone at night, and take standard urban safety precautions. Healthcare quality is rated 63/100.
What is the weather like in Panama City?
Panama City has an average annual temperature of 27°C (81°F). The warmest months reach 28.1°C and the coolest drop to 26.6°C. Air quality is good with an average AQI of 42.
What is the internet speed in Panama City?
Average internet speed in Panama City is 150 Mbps, which is excellent for remote work and video calls. There are 3+ coworking spaces available.
What taxes will I pay living in Panama?
Panama uses a territorial tax system. Capital gains are taxed at 0% (long-term) and dividends at 0%. There is no wealth tax. Tax residency kicks in after 183 days/year. A special regime (Pensionado Visa (Retiree Visa)) 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: Immediate for Investor/Pensionado; 2 years for Friendly Nations..
Is Panama City good for digital nomads?
Panama City has fast internet at 150 Mbps, a large expat community, and 3+ coworking spaces. English proficiency is high at 80/100. The cost of living index is 44/100 (NYC = 100), making it moderately priced for remote workers.
Can You Retire on $X in Panama City?
Run the FIRE math for Panama City against the most-searched portfolio milestones — honest yes/no/tight verdicts with the numbers behind them.
Compare Panama City with other cities
See what your money actually buys across housing, food, healthcare, and more with our lifestyle purchasing power tool.