Move to Panama: The Complete Expat Guide (2026)

Moving to Panama is one of the most practical expat decisions you can make in 2026. The country uses the US dollar, has no currency risk, grants permanent residency on $1,000/month pension income, offers private healthcare at 20–30% of US costs, and sits within 3 hours of most US cities by flight. This guide covers everything — in plain language, no sales pitch.

Visas: How to Live in Panama Legally

Panama offers several visa pathways for foreign residents. The two most used by expats are:

Cost of Living in Panama

Panama City costs are comparable to a mid-tier US city. Smaller towns and beach areas are 30–50% cheaper. Here’s a realistic monthly budget for a couple:

Expense	Panama City	Boquete / Coronado	Playa Venao / Pedasí
Rent (2BR)	$1,000–$1,800	$700–$1,200	$600–$1,000
Groceries	$350–$500	$300–$450	$250–$400
Utilities	$100–$200	$60–$120	$50–$100
Health insurance	$150–$300	$150–$300	$150–$300
Transport	$80–$150	$60–$100	$50–$80
Dining out	$200–$400	$150–$300	$100–$200
Total (couple)	$2,000–$3,400	$1,500–$2,500	$1,200–$2,100

For a full breakdown, see our Panama cost of living guide.

Best Places to Live in Panama for Expats

Healthcare in Panama for Expats

Private healthcare costs 60–80% less than the US. Panama City’s Hospital Punta Pacífica is a Johns Hopkins affiliate — the best private hospital in Central America. A GP visit costs $40–$80. Specialist: $80–$150. International health insurance (Cigna Global, Allianz) runs $150–$300/month for most expats. Read our full healthcare in Panama for expats guide.

Banking as a Foreign Resident

Panama’s dollar-based banking system is one of its biggest advantages. Most banks accept foreign residents with a passport, proof of income, and reference letters. Processing takes 4–8 weeks. See our full guide to opening a bank account in Panama as a foreigner. Panama is also known for its territorial tax system ↗ — foreign-sourced income is generally not taxed.

Panama vs Other Expat Destinations

Panama is frequently compared to Costa Rica, Colombia, and Portugal. The dollar economy and banking access set Panama apart. See our detailed Panama vs Costa Rica comparison or our Panama vs USA cost of living breakdown.

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