Your Answers Are Essential To Figuring Out Your Real Cost of Living In Panama
“Can I Afford To Live In Panama?”
To get a realistic answer, you really must ask yourself 3 critical questions.
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What Lifestyle Do I Want?
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Where in Panama Will I Live?
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Will I Use My Capital to Buy My Panama Home and Car?
To help you answer the 1st 2 questions above, visit my “real cost of living in Panama” page.
Capital To Invest
After you answer those questions, the next thing to think about is your capital investment.
That is, how much do you plan to invest, up front, in Panama
Will you pay, up front & in cash, for the following?
- Home, including any needed remodeling
- Vehicles (car, truck, boat..)
Monthly Expenses Lower With Capital Investment
If you can afford to buy your home and car, up front & in cash, your monthly budget will be lower.
For instance, if you get a mortgage from a Panama bank, you will also be required to get:
- Life Insurance
- Fire Insurance
- Content Insurance – to cover contents of your home
So if you do decide to get a Panama bank loan for your home, don’t forget to factor in the costs of all that insurance.
Also with a car loan you are required to get full coverage insurance.
Panama does require drivers to get car insurance. But only liability is required. You can purchase that for about $120 a year.
Summary
In general, we have found that an income of $1200 a month for one or two is enough to live comfortably, although not in luxury.
But you need to determine what lifestyle you desire. Then you can figure out what it will cost to maintain it in Panama.
To help you think about how lifestyle will impact your budget, visit this page.
To look at actual budgets.
I am too poor to buy a home in Panama. How much does it cost to rent an apartment? And are any casitas, rooms or sublets available for rent – and at what price?
Hi David,
Rent depends upon where in Panama. Panama City is more expensive than other places in Panama. I talk about the cost of living in my site. You can start at this post: https://livinginpanama.com/why-panama/cost-of-living-in-panama/
In Puerto Armuelles, you can find rentals ranging from $100 to $700 a month. The best way to find a good rental is to come down and start asking around. I hope you find something! You might want to check out my 5 tips on finding a rental in Panama: https://livinginpanama.com/puerto-armuelles-panama/rental-tips/