North America · Panama City
Cost of living in Panama
Panama is 53% cheaper than the US, ranking #92 of 203 countries we cover for cost of living.
World Bank data through 2024 · last reviewed 2026-06.
What drives the cost here
Price levels by category, where the world average = 100. Above 100 is pricier than the global norm; below it is cheaper.
In Panama, communication is the priciest category relative to the world (143), while transport is the most affordable (64).
Category price levels: World Bank ICP 2021 (world average = 100) · source
What your money is worth here
A $100,000 US lifestyle would cost roughly $47,000 in Panama.
Quality of life
78/100 · #96 of 198Beyond cost — health, safety, and connectivity. The score is a transparent, equal-weight composite of the verified metrics below (see methodology).
About Panama
Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela that was named the Republic of Gran Colombia. When the union dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land known as the Panama Canal Zone on either side of the structure.
Read the full background
The US Army Corps of Engineers built the Panama Canal between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, Panamanian dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. An ambitious expansion project to more than double the Canal's capacity by allowing for more Canal transits and larger ships was carried out between 2007 and 2016.
Background from the CIA World Factbook (public domain), archived 2026-06-03.
Frequently asked
Is Panama expensive to live in?
Panama is 53% cheaper than the US, ranking #92 of the 203 countries we track. Its most expensive category relative to the world is communication; transport costs the least.
How much money do you need to live in Panama?
A lifestyle that costs $100,000 in the United States would cost roughly $47,000 in Panama, going by overall price levels. The salary translator turns your own figure into a local equivalent.
Is Panama cheaper than the United States?
Yes. Its overall price level is 47.0, against 100 for the United States.
What is the quality of life in Panama?
Panama scores 78 out of 100 on our quality-of-life index (#96 of 198), a composite of life expectancy, safety, health, and connectivity, with life expectancy around 80 years.
Every number, sourced.
We cite the exact source and year for each figure. Derived values are computed at build time, never hand-entered.
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