Moving to Panama

Why Panama Is a Popular Choice for Expats

Quality of Life

Panama offers a high standard of living for expats who want modern comforts without the high cost. Its healthcare system is a standout feature, with major hospitals in Panama City offering procedures at significantly lower prices than in the United States. Many physicians are trained internationally, and patients often receive timely care. The use of the U.S. dollar adds stability to daily expenses and financial planning, which appeals to North Americans relocating abroad.

From upscale condos in Panama City to mountain homes in Boquete or coastal properties near Pedasí, housing options cater to various lifestyles and budgets. Fresh local produce is widely available and supports healthier diets while efficient transportation from highways, domestic flights, and urban transit makes it easier to enjoy both work and leisure. Many expats say the slower pace helps reduce stress and allows them to focus on personal well-being, something they couldn't achieve back home.

Lifestyle

The lifestyle in Panama attracts people looking for a balance between city amenities and natural beauty. Panama City offers fine dining, modern shopping centers, and cultural events in areas like Casco Viejo. At the same time, it’s easy to access national parks, islands, and hiking trails on weekends without major travel planning. Whether you're interested in art, food, or nature, there’s a rhythm of life that encourages you to enjoy more of each day.

Access to affordable help, like housekeepers or drivers, allows many newcomers to spend more time on meaningful activities instead of daily chores. The food scene includes traditional Panamanian dishes and global cuisine, notably in the capital. Shopping ranges from upscale malls to markets filled with handmade crafts and local produce. For many expats, this blend of ease, beauty, and affordability enhances everyday life in a way that’s hard to replicate elsewhere.

Climate, Regional Differences & Terrain

Panama has a tropical climate with consistent warmth year-round. The dry season runs from December through April, while the rainy season brings mostly short afternoon showers. Coastal regions tend to be warmer and more humid while highland towns like Boquete offer cooler, spring-like weather with temperatures in the 60s and 70s Fahrenheit. This variation lets you choose a region that matches your comfort level.

The country’s location outside the hurricane belt offers peace of mind that isn’t guaranteed in other parts of Central America or the Caribbean. Differences in elevation shape the experience more than seasons do. The Pacific side is drier than the Caribbean coast, and microclimates across the country mean you can enjoy a particular environment without being far from city life. The steady climate supports year-round outdoor activity and a more consistent daily routine.

Safety & Crime

Panama is one of the safest countries in Latin America for foreign residents. Its stable political system and low violent crime rate make it an appealing choice for those who want a secure environment with the benefits of tropical living. Most crime issues involve petty theft yet it's manageable with the same basic precautions used in cities worldwide. Areas like Punta Pacifica or Costa del Este in Panama City have gated communities and private security.

Rural areas often feel even safer, though it’s still wise to invest in standard home security. Local police are present in tourist zones and expat neighborhoods and they offer assistance in English in many cases. The bigger concern tends to be traffic safety where road conditions and driving behavior require attention and caution. Panama’s government continues to support safety as a national priority, knowing it plays a direct role in attracting long-term foreign residents.

Visa and Residency Options

Tourist Visa Rules and Duration

Most North American and European visitors receive tourist stamps upon arrival allowing 180 days of continuous stay in Panama without additional documentation. The tourist visa grants temporary residency privileges including the ability to open bank accounts, purchase property, and participate in most aspects of Panamanian life short of employment.

Extensions beyond the initial 180-day period require exiting the country with many expatriates making brief trips to Costa Rica, Colombia, or other neighboring countries before returning for another tourist stay. Immigration officials retain discretion regarding entry periods and may occasionally grant shorter stays, particularly for travelers with limited documentation or unclear purposes for their visit.

Passport validity requirements stipulate a minimum of three months remaining before expiration at the time of entry into Panama. Return or onward tickets sometimes face verification at both airline check-in and Panamanian immigration, though enforcement varies considerably. The tourist visa prohibits formal employment with Panamanian companies but permits remote work for foreign employers and management of personal investments.

Many expatriates initially explore Panama under tourist status while researching permanent residency options, gathering documentation, and determining their preferred location within the country before committing to a specific visa program.

Long-term residency options (temporary, permanent, investor, pensions, etc.)

• The Friendly Nations Visa provides one of the most accessible paths to residency for citizens from 50 specific countries including the United States, Canada, and most European nations. This program requires establishing economic ties through either purchasing real estate valued at $200,000+ or creating a Panamanian corporation with a minimum investment.
• The Popular Pensionado (Retiree) Program offers residency to applicants of any nationality who demonstrate guaranteed monthly income of at least $1,000 from pensions, social security, or annuities, with an additional $250 required for each dependent.
• The investor visa options include agricultural investments, reforestation projects, and fixed-term deposits in Panamanian banks each with specific minimum investment requirements ranging from $80,000 to $300,000 depending on the category.
• The Self-Economic Solvency Visa requires a minimum $300,000 investment in Panamanian real estate plus additional financial qualifications but offers a direct path to permanent residency. The Panama Qualified Investor Program provides residency through a $500,000 investment in real estate or Panamanian securities.
• Professional visas cater to individuals with specialized skills in fields where Panama experiences shortages requiring university degrees and professional certifications.
• Family-related visas allow foreign nationals married to Panamanian citizens or with Panamanian children to obtain residency based on these relationships rather than economic criteria. Each residency program offers different benefits, processing timelines, and paths to permanent status or citizenship make professional guidance essential in selecting the most appropriate option for individual circumstances.

Required Documents

Applying for long-term residency in Panama typically requires a valid passport, proof of financial solvency, and a nationwide criminal background check from your home country. A recent health certificate from a Panamanian doctor confirming you’re free of contagious diseases is also required and must be issued within 90 days of your application.

If you’re applying under the Pensionado visa, you'll need official proof of lifetime pension income. For Friendly Nations or investment-based residency, expect to submit documents showing business formation, bank deposits, or property ownership. Any foreign documents must be apostilled and translated into Spanish by an official translator in Panama. Preparation in advance and using a local immigration attorney helps you avoid costly mistakes or delays.

Panama Immigration Fees

Residency application fees in Panama vary by visa category but generally range from $250 to $1,500 per applicant. These include government filing fees, lawyer fees, and charges for document authentication or translations.

• The Pensionado visa has one of the lowest total costs with most applicants spending under $1,000 including legal support.
• The Friendly Nations visa, especially when paired with business or real estate investment involves higher legal and bank fees that often total between $1,200 and $2,500.
• Renewal or permanent residency upgrades may involve additional costs usually ranging from $100 to $300 depending on the paperwork involved.

These fees are non-refundable so budgeting in advance and confirming current rates with your attorney is highly recommended.

Renewal Periods

Panama’s residency permits typically begin as provisional for one or two years, depending on the visa type. After this period, you can apply for permanent residency and grants you indefinite legal status as long as you visit the country at least once every two years to keep it active.

Unlike other countries, Panama does not require you to live there full-time to maintain residency—making it ideal for retirees, digital nomads, and investors who split time between countries. That said, tracking your entry and exit dates is still wise if you plan to pursue Panamanian citizenship in the future.

Panama's Monthly Cost of Living

How Much It Costs to Live Comfortably in Panama

Panama stands out as one of Latin America’s most accessible and affordable destinations for expats offering modern amenities and a laid-back lifestyle. If you’re living solo in Panama City, you can expect monthly expenses will take care of rent, food, transportation, and leisure activities to range from $1,200 to $1,800, subject to your location and lifestyle preferences. In smaller cities like David or mountain towns such as Boquete, that same quality of life might cost $900 to $1,400 per month.

For couples, sharing rent and utilities makes things even more manageable. Many expat couples report living quite comfortably on a joint budget between $1,600 and $2,200 in urban centers, and often under $1,500 in quieter regions with fewer tourist inflations.

Why Panama Is Cost-Effective for U.S., Canadian, and UK Expats

Panama’s U.S. dollar-based economy gives North American and British expats predictable spending power without the need for currency exchange guesswork. The overall cost of living here is noticeably lower than in cities like Miami, Toronto, or London.

Fresh produce, domestic healthcare, and public services are all affordably priced. Whether you're a retiree on a pension or a remote worker earning overseas income, Panama delivers value that goes a long way without skimping on lifestyle comforts.

Average Rent Prices Across Panama

Monthly rent in Panama can fluctuate based on city size, proximity to the ocean, and level of modern amenities. Here's what you can typically expect to pay for a furnished one-bedroom apartment:

• Panama City (central areas like El Cangrejo or Obarrio): $850–$1,200/month
• Coastal zones or beach communities (Coronado, Pedasí): $700–$1,000/month
• Boquete, Volcán, or David: $400–$800/month for quieter, cooler climates
• Fully furnished apartments in luxury buildings with amenities: often $1,300 and above

Most landlords request one month’s rent as a deposit, and while local bank accounts can be helpful, they’re not always required for lease agreements involving foreigners.

Utility Bills and Internet Service in Panama

Utilities in Panama generally include electricity, water, garbage pickup, and sometimes gas for cooking. Monthly costs for these services run between $70 and $130, with electricity rising during hotter months due to air conditioning.

High-speed internet is widely available—even in highland areas like Boquete—and costs roughly $30 to $50 per month for a reliable fiber connection. Some landlords include internet in the rent, especially in furnished short-term rentals.

Dining Out, Shopping, and Leisure Activities

You’ll find no shortage of affordable dining options. A casual lunch in a local fonda (Panamanian eatery) averages $5 to $8, while a two-course dinner at a mid-range restaurant lands around $18 to $30 per person, including a drink.

Grocery costs for a single adult range from $250 to $350 per month, with savings found at open-air markets offering locally grown fruits, vegetables, and seafood. Imported products in large supermarkets will cost more, especially U.S. brands.

As for fun, Panama offers year-round festivals, beach outings, and nature hikes, many of which are free or very low-cost. A movie ticket is typically $4 to $7, and domestic travel to the islands or countryside is affordable for weekend getaways.

What a Comfortable Budget Looks Like in Panama

Living well in Panama doesn’t require high income or extravagant spending. A single expat in a provincial town or small city can maintain a high quality of life for around $1,000 to $1,400 per month. Add in the comforts of regular dining out or air travel, and you might reach $1,800 monthly in the capital.

Couples tend to find a sweet spot in the $1,600 to $2,200 range. Those who work remotely, receive retirement benefits, or live off investment income often find Panama’s affordability paired with modern infrastructure makes it an ideal long-term choice.

Best Places to Live in Panama

Popular expat-friendly cities or towns

Panama City attracts professional expatriates with its cosmopolitan atmosphere, banking center, and international schools with apartments in El Cangrejo costing $800-1,200 monthly for middle-class accommodations or $1,200-2,000 in upscale Punta Pacifica.

The Pacific beach corridor centered around Coronado draws retirees and remote workers seeking coastal living within 90 minutes of the capital offering condos from $900-1,300 and houses from $1,000-1,800 monthly in a community featuring multiple shopping centers, medical facilities, and established expatriate networks.

Boquete in Chiriquí Province maintains the largest concentration of North American expatriates outside Panama City with its spring-like climate, mountain scenery, and active community organizations attracting primarily retirees who rent homes from $800-1,400 in this area known for coffee production, outdoor activities, and cultural events.

Pedasi on the Azuero Peninsula appeals to expatriates seeking authentic Panamanian culture alongside beautiful beaches, with rental prices ranging from $600-1,000 for houses in this smaller, more traditional town featuring excellent sport fishing, surfing opportunities, and a growing but still intimate expatriate presence.

Urban vs. Coastal vs. Rural Living in Panama

Panama offers three very different lifestyle experiences: urban, coastal, and rural. Living in Panama City means access to international dining, top hospitals, and world-class internet. This is ideal for professionals and remote workers who value convenience and fast-paced living. However, city life also comes with heavier traffic, higher humidity, and more expensive housing compared to other regions.

Coastal living appeals to those seeking a beachside lifestyle with easy access to water sports, golf, and tight-knit expat communities. Pacific hotspots like Coronado or San Carlos are well developed whereas Caribbean towns like Bocas del Toro provide a laid-back, eco-friendly vibe. In contrast, rural areas such as Volcán or Las Tablas deliver the lowest cost of living and deep cultural immersion but require basic Spanish due to limited services.

Community Vibe, Access to Amenities, and Infrastructure

Each region of Panama has its own pace and personality. Panama City feels cosmopolitan with neighborhoods like Punta Pacifica and Casco Viejo offering lifestyle diversity, from ultra-modern towers to colonial charm. The city boasts international schools, English-speaking specialists, and shopping centers that stock both local and imported goods making it ideal for expats who need strong infrastructure and global conveniences.

Beach areas such as Coronado have grown into mini-hubs for expats, complete with private clinics, supermarkets, and social clubs. Meanwhile, mountain towns like Boquete offer cooler temperatures and a slower lifestyle rooted in nature and outdoor activities. Infrastructure is improving in these regions, although some services like medical specialists and legal assistance are still concentrated in the capital or major urban hubs.

Luxury & Middle-Class Neighborhoods in Panama

While Panama offers many safe and welcoming communities, certain neighborhoods are known for higher crime rates or limited infrastructure. It's advisable for expats and travelers to exercise caution or avoid these areas.

Neighborhoods to Avoid in Panama

• Panama City – El Chorrillo, Curundú, and San Miguelito:
  • El Chorrillo and Curundú have historical significance but are currently plagued by gang activity and high crime rates .
  • San Miguelito, a densely populated district, experiences elevated levels of violence and theft particularly in areas like Veranillo and Belisario Porras.
  • These neighborhoods are best to be avoided after dark due to frequent reports of assaults and robberies .
• Colón City – Downtown and Surrounding Areas:
  • Despite its economic importance, Colón suffers from high unemployment and gang-related violence .
  • The city has been identified as having one of the highest homicide rates in Panama.
  • Visitors are strongly advised to avoid downtown Colón and exercise extreme caution if travel is necessary.
• Boquete – Certain Outskirts:
  • While Boquete is generally safe, some remote areas lack adequate police presence and infrastructure.
  • It's recommended to stay within well-established communities and avoid isolated regions at night.
• David – Barrio El Retiro and Las Lomas:
  • These neighborhoods have reported higher instances of petty crime and limited public services.
  • Expats should consider residing in more developed areas with better security measures.

Real Estate and Long-Term Rental Options in Panama

Panama City's real estate market is diverse, with luxury condos in Punta Pacifica and Costa del Este renting from $1,200/month or selling from $250,000. More affordable areas like El Cangrejo or San Francisco offer walkable neighborhoods with rentals between $800 and $1,100. Casco Viejo remains a niche market with high per-square-meter prices due to its historic charm and short-term rental demand.

Outside the capital, beach communities like Coronado feature beachfront condos and gated homes starting around $900/month or $200,000 to buy. Boquete and David in Chiriquí Province offer affordable living for retirees and expats, with homes under $100,000 and rentals from $500. Smaller towns such as Pedasí or Santa Fe are gaining attention for their authentic charm and low housing costs, though infrastructure may still be developing. Rental agreements are typically negotiated informally, with long-term tenants often securing better rates than advertised listings.

Finding a Place to Live

Renting vs. Buying Property

Renting offers newcomers flexibility to explore Panama’s neighborhoods and lifestyle before committing to a purchase. While foreigners can own titled property with similar rights as locals, ownership is restricted near coasts and borders. Buying is straightforward with lower closing costs than the U.S. or EU but renting is often more economical short-term in areas with slow appreciation. Buyers should avoid untitled properties and may find immediate purchase viable in established areas. As expected new and emerging regions may require more time to assess viability.

Lease Terms

One-year leases are standard, with shorter terms available at higher costs. Security deposits typically equal one to two months’ rent and should be registered with the housing authority. Some landlords skip this step entirely. Tenants are responsible for utilities. Furnishing levels of your rental will vary. As a tenant, legal protection hinges on detailed written contracts reviewed by a local attorney to avoid disputes over maintenance or lease termination.

Working with Real Estate Agents

Panama’s real estate sector lacks strict licensing, and agents (agente inmobiliario) often represent multiple owners rather than serving as dedicated buyer advocates. Commissions are usually paid by sellers or landlords. Expat-focused agents can offer helpful insights but may lean toward higher-end listings whereas Spanish-speaking agents access broader inventory. Service quality varies, so recommendations from trusted expats are more reliable than online reviews outside major cities.

Online Resources for Home Searches

Encuentra24.com is the largest listing site, though posts may be outdated. Facebook groups and expat communities are increasingly used for rentals and sales without agent fees. Sites like Comprehensive Realty and Panama Equity target English-speaking buyers, while Casa Solution specializes in Boquete. Virtual tours are common but don’t always reflect real conditions, making in-person visits essential due to frequent listing inaccuracies.

Get Connected

Cell Phone & Internet Providers

Panama’s main mobile providers are +Móvil, Claro, Digicel, and Tigo. +Móvil has the widest coverage, including rural areas, while Digicel works well in Panama City and major highways. Claro is strong for regional calls, and Tigo offers frequent data deals.

Monthly plans range from $10 to $60 depending on speed and perks. Prepaid is popular since it avoids contracts but costs more per minute. Phones from abroad usually work if they support the 850 and 1900 MHz bands.

Internet speeds in cities reach 50 Mbps, and 5G is expanding slowly. Cable & Wireless, Tigo, and CWP offer bundled packages. WhatsApp is used for everything from chats to scheduling government appointments.

Utility Set-up

Electricity is managed by ENSA, EDEMET, or EDECHI, depending on the area. New accounts require ID, a technician visit, and a deposit based on property size. Water service from IDAAN starts in one to two weeks after paperwork is submitted.

Propane tanks are delivered by Panagas or Tropigas and used for cooking and heating. Internet and TV are bundled in most places, though satellite is available for rural homes. Speeds vary by location and package, from 20 to 500 Mbps.

Bills are paid through bank apps, mobile wallets like Nequi or Yappy, or in person. Autopay is available but not widely trusted due to billing errors. Most expats prefer manual payments for better control.

Best Apps and Services

PedidosYa and Appetito24 offer food delivery in English within Panama City. Uber is the most reliable ride option, while InDriver lets you negotiate your fare. Coworking spots are listed on Coworker.com and Liquidspace.

Banks like Banco General and Banistmo offer apps with some English support. Encuentra24 is used to find housing, cars, or local services. Waze works better than Google Maps for directions in Panama.

Xoom and Wise are good for sending money with lower fees than banks. WhatsApp-based translators like SpanishPanama help with appointments and paperwork. Most expats manage daily life through a mix of apps and direct messages.

Mail & Packages

Mail forwarding services like Miami Mail Box or Mailboxes Etc. are the norm. They give you a US address and charge by weight to ship packages to Panama. Local mail is too slow and unreliable for anything urgent.

DHL and FedEx take three to five business days with tracking. Cheaper couriers are slower and often lose updates after customs. Packages under $100 are usually duty free, but rules are not applied consistently.

AmazonGlobal ships to Panama but has limited selection and high fees. Medication imports need a doctor’s letter and are tightly controlled. Stick with major couriers for anything valuable or time-sensitive.

Healthcare & Insurance

Working or Retiring in Panama

Work Permits and Legal Employment Options

Non-residents must obtain a work visa before employment. The process requires a job offer from a Panamanian employer. Professions in demand include engineering, IT, and education.

• The Friendly Nations Visa facilitates residency for citizens of specific countries.
• English teachers are often hired by language schools in urban areas.
• Legal employment requires proper documentation and approval from immigration authorities.

Common Jobs or Remote Work Opportunities

Panama is attractive for remote workers due to reliable internet and lower living costs. Expats often work in fields like software development, marketing, and consulting. Some supplement income through teaching or freelance work.

• Co-working spaces are available in Panama City and other major towns.
• The government has introduced a Short Stay Visa for remote workers.
• Online platforms can help find freelance opportunities in various sectors.

Business or Freelancing Requirements

Starting a business or freelancing legally in Panama requires registering with the local tax authority (DGI) and acquiring a commercial license if offering services locally. Freelancers must comply with tax regulations and may need to register with the Social Security Fund (CSS) depending on income type.

• To register, you’ll need a RUC (Unique Taxpayer Registry), a personal ID or residency card, and proof of local address.
• Freelancers offering services to international clients are often exempt from collecting local VAT.
• Monthly or quarterly tax declarations are required, especially for higher-earning professionals.
• Hiring a Panamanian accountant or “gestor” is common to manage filings and ensure compliance.
• A simple sole proprietorship setup is often sufficient for freelance or small-scale consulting work.

Retirement Visa in Panama

The Pensionado Visa is Panama’s most popular option for international retirees. It grants permanent residency to those with a lifetime pension of at least $1,000/month, making Panama a top retirement destination for North Americans. Cities like Boquete, El Valle, and Coronado offer scenic views, mild weather, and active expat communities.

• The Pensionado Visa is permanent upon approval and does not require renewal.
• Spouses can be included under the same application if the pension exceeds $1,250/month.
• Applicants must show proof of lifetime pension through government letters or company retirement statements.
• Additional benefits include discounts on travel, dining, healthcare, and utility bills.
• Legal assistance from Panamanian immigration attorneys is often recommended to navigate paperwork.

Income Requirements for Int'l Retirees

To qualify for Panama’s Pensionado Visa, retirees must demonstrate a monthly income of at least $1,000 USD for life, from a reliable pension or social security. Applicants with dependents may need to show additional income and are also required to obtain private health insurance for the first two years.

• Income must be proven with notarized documents, apostilles, and official translations when needed.
• Accepted income sources include government pensions, military pensions, and some annuities.
• Applicants who do not meet the minimum pension may instead qualify under other residency options like the Friendly Nations Visa.
• Initial health insurance must cover care in Panama, but many retirees later use the public system once fully settled.
• Visa applications must be submitted through Panama’s immigration office, not from consulates abroad.

Your Family or Pets

Schools for Children (local & international)

Panama offers a range of schooling options with international schools following American, British, or IB programs and charging $5,000 to $15,000 annually based on reputation and grade level. Local private schools provide bilingual instruction at lower costs such as $2,000 to $6,000.

Public schools are essentially free but present language and curriculum challenges. Admission typically requires transcripts, test scores, recommendation letters, and entrance exams, with deadlines often a year in advance. The academic year runs from March to December, which may require adjustment. Homeschooling exists in a legal gray area but is practiced quietly, and families with children needing specialized support should research institutions carefully due to inconsistent resources.

Childcare and Education Costs

Full-time nannies in Panama earn $400 to $700 per month based on experience and responsibilities. Daycare centers charge $250 to $600 for infant care. Preschools typically cost $300 to $800 depending on curriculum and services like meals or transportation. After-school care and holiday programs can add another $150 to $300 per month for working families.

International schools charge significantly more once fees for uniforms, extracurriculars, and transport are added, often increasing tuition totals by 15 to 30 percent. Most families spend between $8,000 and $20,000 per child each year when factoring in imported supplies and limited scholarship availability at private institutions.

Family-friendly areas

Clayton and Costa del Este are popular with families for their safety, walkability, and access to top-tier international schools. Pacific coast towns like Coronado and Gorgona appeal to families seeking more outdoor space and a slower pace while Boquete offers a temperate climate and small-town charm along with good educational options.

Healthcare access plays a role in relocation decisions, with top pediatric care available in Panama City at facilities like Hospital del Niño and private clinics. Family-oriented areas report lower crime rates than other districts, and recreation options include sports leagues, arts programs, and bilingual activities. Homes with family-friendly layouts typically start around $250,000 and go up based on amenities and proximity to schools.

Pets in Panama

Bringing pets to Panama requires a microchip, rabies vaccine given 30 to 11 months before arrival, and a government-endorsed health certificate issued within 10 days of travel. Specific antiparasitic treatments must be listed by name and date on the certificate, and pets with accurate paperwork typically avoid quarantine. Airlines impose their own rules on breed, size, and transport conditions, so checking ahead is important.

Import-related costs include vet visits, authentication, customs, and airline fees that range from $150 to $400 depending on services. Each person may bring up to five animals, and pet-friendly housing should be arranged in advance since many rentals limit animals by species, size, or number.

Acclimating to the Culture

Language Learning

English is spoken in Panama City and some coastal expat areas, but most daily interactions across the country require basic Spanish. Locals usually respond well when you try to speak their language, and even simple efforts improve communication and connection. Learning Spanish builds trust and helps you feel more integrated into local life.

Best Way to Learn Spanish

Structured classes in cities like Panama City and Boquete offer a strong foundation, and private tutors provide personalized instruction at your pace. Practicing Spanish in everyday situations and joining language exchange meetups can speed up your progress. Regular use builds confidence and helps you understand local culture more deeply.

Local customs, etiquette, and do’s/don’ts

Do's

• Greet people with a handshake or light cheek kiss when meeting and depending on familiarity.
• Use formal titles such as Señor or Señora until invited to do otherwise.
• Say “buenos días,” “buenas tardes,” or “buenas noches” upon entering shops or shared spaces.
• Be patient in government offices and service environments—processes often take longer than expected.
• Always say thank you, and express appreciation for hospitality.
• Maintain eye contact during conversation to show sincerity and attentiveness.
• Accept food or drinks when offered is considered polite, even if only a small amount.
• Dress modestly when visiting churches or attending formal events.
• Respect family connections. Family is a core value in Panama and often comes up in conversation.

Don'ts

• Do not raise your voice or speak aggressively, especially in public.
• Do not assume punctuality; social events often start later than scheduled.
• Do not touch someone’s head or hair. This is considered impolite.
• Avoid using first names in professional settings unless given permission.
• Avoid criticizing the country or comparing it negatively to your home country.
• Do not bring up politics or religion unless you know the person well.

Holidays, traditions, and cultural immersion tips

Public holidays are a central part of Panamanian life and offer an excellent opportunity to understand local values. Observing or participating in these events gives you firsthand insight into Panamanian history and celebrations.

Holidays & Traditions

• Carnaval de Las Tablas (February): Panama’s most vibrant celebration with parades, elaborate costumes, music, and water throwing festivities.
• Semana Santa (Holy Week - March/April): Marked by religious processions across cities like Panama City and Penonomé, blending Catholic traditions with local customs.
• Festival de la Mejorana (September): Held in Guararé, this folk festival honors traditional music, dress, and Panamanian craftsmanship.
• Fiestas Patrias (November): A month of patriotic celebrations including Independence Day (November 3) and Flag Day (November 4), filled with parades, folk dances, and school bands.
• Navidad y Año Nuevo (December): Christmas and New Year are celebrated with fireworks, family feasts, and festive lights across the country.

Other ways to enjoy yourself in Panamanian culture:

• Watch a typical dance performance like the tamborito or enroll in a folklore class to learn local rhythms.
• Sample iconic dishes such as sancocho in the interior provinces, ceviche in coastal towns, and arroz con pollo at family gatherings.
• Join a village celebration or street fair during festival season for a real taste of local music, food, and traditions.

Smaller religious and regional festivals also reveal how culture varies from province to province. Joining community events such as patron saint days or local artisan fairs helps you meet neighbors and experience daily life beyond tourism. Many expats find that volunteering with local organizations is a meaningful way to contribute and learn. The more time you spend engaged in local life, the more connected and welcomed you will feel in your new home.

Transportation

Public Transportation & Costs

Panama’s public transit is affordable and used mainly in cities. In Panama City, the Metro is a fast and cheap way to get around, costing just 35 cents with a rechargeable RapiPass card. Metro buses reach most neighborhoods and use the same card system, making them cost-effective for daily trips.

In rural areas, minibuses called “colectivos” or “chivas” run frequent routes. Fares range from one to two dollars depending on distance, with informal but regular service. Locals often help you figure out routes and stops. Once you get familiar with the system, you'll save money, feel confident, and connect better to local life.

Buy or Ship Your Vehicle

Many expats buy cars after moving, especially if they live outside Panama City or travel often. Vehicles are sold by dealers and individuals, though prices may be higher than in North America. Importing a vehicle adds taxes and paperwork, so buying locally is often simpler.

It’s smart to get a mechanic to inspect before buying. Annual registration and insurance are required. Road quality varies, so choose a car that suits your region. Four-wheel drives are common in rural or coastal areas with rough roads.

Driving Rules and License Conversion

Panama drives on the right, with speed signs in kilometers. Urban enforcement is common, and drivers must carry ID, insurance, and registration. Police checkpoints are frequent, and fines are issued on the spot if rules are broken.

Tourists can drive with a foreign license for up to 90 days. After getting residency, you must convert your license with an embassy letter, certified translation, and medical exam. A local license makes dealing with authorities and insurers easier.

Ride-sharing and Taxis

Uber and DiDi operate in Panama City and some towns, offering cheaper, more reliable service than regular taxis. These apps let you track trips, pay online, and skip price haggling, though rates can spike during busy times.

Traditional taxis charge by zone and usually don’t use meters, so fares are often negotiated upfront. Some drivers speak little English, so knowing key phrases helps. In smaller towns, taxis are shared and run set routes, similar to minibuses.

Bank and Money Matters

Opening a Panama Bank Account

• What you’ll need: Most banks ask for your passport, a second ID, proof of address, and a reference letter from your current bank. Some may also require proof of income or a minimum deposit.
• Choosing a bank: Visit a few branches, as requirements vary. Having a local friend or advisor helps. Banks like Banistmo and BAC are more expat-friendly. You'll usually get a debit card and online access within a few days. Spanish skills are useful for customer service and online banking.

Sending Money Internationally

• Transfer services: Wise, Remitly, and Xoom offer low fees and fast transfers. These are often better than traditional bank wires, which may charge more and require in-person setup.
• For large amounts: A local financial advisor can help navigate Panama's banking laws. You may need documents to comply with anti-money laundering rules, especially for home purchases or retirement transfers.

Currency Exchange (Casa de Cambio)

• Panama’s currency: The U.S. dollar is used for paper currency. Coins (Balboas) match U.S. coins in size and value. ATMs are common in cities and accept most cards, though fees may apply.
• Payment methods: Credit cards work widely in urban areas. Visa and Mastercard are most accepted; AmEx less so. In rural areas, cash is preferred, so keep small bills handy. Let your bank know about your move to avoid declined charges.

Taxes and Legal Assistance