Living in Panama as an American: what daily life is like

Panama is a small country, about the size of South Carolina, with a modern capital, a canal that anchors the economy and a long history of Americans living there. This page covers what daily life is like. For the practical order of a move, see the steps for moving to Panama.

What draws people

• The US dollar. Panama’s currency, the balboa, is fixed one to one to the dollar, and US banknotes are what you use. There is no exchange rate to watch.
• Residency that is within reach. The Pensionado visa needs a lifetime pension of $1,000 a month, far below what many countries ask.
• Territorial tax. Panama taxes income earned in Panama, not foreign pensions or investments.
• Healthcare. Panama City has modern private hospitals, and many doctors trained abroad and speak English.
• Flights. Panama City’s airport is a hub with direct flights to many US cities.
• No hurricanes. Panama lies south of the hurricane belt.

What people find hard

• Heat and humidity. The lowlands are hot all year. The cooler places are the mountain towns.
• Rain. The wet season runs from roughly May to December, with heavy afternoon downpours. The Caribbean side is wet for most of the year.
• Bureaucracy. Banking, licences and anything involving a government office take longer than you expect and often need a return visit.
• Spanish. Life in English works in a few places. Everywhere else, and in every office, you need Spanish or a helper.
• Traffic in the capital. Panama City’s rush hours are long.
• Service outages. Power and water cuts happen, more often outside the capital.

Climate

Area	What to expect
Panama City and the Pacific lowlands	Hot and humid all year, with a dry season from about mid-December to April
Highlands (Boquete, El Valle)	Spring-like days, cool nights, misty rain
Azuero Peninsula	The driest part of the country
Caribbean coast and Bocas del Toro	Warm and rainy most of the year

Money and banking

You spend dollars, and prices are quoted in dollars or balboas interchangeably. ATMs are common in towns. Opening a local bank account takes patience: banks ask for references and proof of income, and US citizens fill in extra forms. Most residents keep their US accounts and cards as well.

For what things cost, see the cost of living in Panama.

Healthcare

The main private hospitals are in Panama City. David, the city near Boquete, has private hospitals too. Beach and mountain towns have clinics, and serious cases go to the capital. Medicare doesn’t pay for care in Panama, so you need private cover or savings. See health insurance in Panama.

Safety

Panama is generally considered one of the safer countries in Latin America, and most foreign residents report feeling safe in daily life. The picture is uneven:

• Crime is concentrated in certain districts of Panama City and in the city of Colón.
• The US State Department advises against travel to parts of the Darién, near the Colombian border, and parts of the Mosquito Gulf coast.
• Petty theft and break-ins happen in expat areas, especially in homes left empty for part of the year.
• Road accidents are a bigger everyday risk than crime. Night driving outside towns is best avoided.

Read the current State Department advisory, and ask people who live in the specific neighbourhood.

Getting around

Panama City has a metro and plentiful ride-hailing. The Pan-American Highway runs the length of the country and is in good condition for most of the way. Outside the capital most foreign residents own a car. You can drive on a US licence for 90 days, after which residents need a Panamanian one. Domestic flights link Panama City with David and Bocas del Toro.

The expat community

Americans have lived in Panama since the canal was built, and the former Canal Zone neighbourhoods still feel familiar. Today the largest foreign communities are in Panama City, Boquete and Coronado, each with clubs, volunteer groups and English-language services. They make the first year easier. They can also keep you inside a bubble, and people who learn some Spanish tend to settle better.

See the best places to live in Panama for how the areas compare.

Before you decide

1. Visit in the wet season as well as the dry.
2. Rent for six months to a year before buying.
3. Check which residency route you qualify for.
4. Get health insurance quotes at your current age.

Common questions

Is Panama a good place for Americans to live?

It suits many people. Panama uses the US dollar, has good private hospitals in the capital, direct flights to the US and residency routes that are easier than most. The main drawbacks are heat and humidity outside the highlands, slow bureaucracy, and the need for Spanish once you leave the main expat areas.

Is Panama safe to live in?

Panama is generally regarded as one of the safer countries in the region, and the areas where most foreigners live have low rates of violent crime. Crime is concentrated in particular districts of Panama City and Colón, and the US State Department advises against travel to parts of the Darién and the Mosquito Gulf. Read the current advisory and ask residents about specific neighbourhoods.

Where do most American expats live in Panama?

The largest groups are in Panama City, in Boquete in the Chiriquí highlands, and in Coronado and the neighbouring Pacific beach towns. Smaller communities live in El Valle de Antón, Pedasí on the Azuero Peninsula and Bocas del Toro.

Do they speak English in Panama?

Spanish is the national language. English is common in business and among professionals in Panama City and in the expat towns, and much less so elsewhere. Government offices work in Spanish.