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Is It Expensive to Live in Panama? Cost of Living Compared to Miami and Europe (2026)

If you're considering relocating abroad, one of the first questions that comes to mind is:

Is Panama expensive compared to Miami or Europe?

For many expats and investors, the answer is surprisingly positive.

In this guide, we break down the real cost of living in Panama City and compare it with Miami and major European cities such as Madrid and Lisbon.

All figures are shown in U.S. dollars (USD).

Housing: The Biggest Cost Difference

Housing is typically the largest monthly expense.

Panama City

  • 1-bedroom apartment (modern area): $900 – $1,500
  • 2-bedroom in premium neighborhood: $1,500 – $2,500
  • 3-bedroom luxury apartment: $2,000 – $3,500

Miami

  • 1-bedroom apartment: $2,800 – $4,000
  • 2-bedroom apartment: $3,000 – $4,500

Europe

  • Madrid (city center): $1,700 – $2,800
  • Lisbon (central areas): $1,500 – $2,500

Living in Panama can mean paying up to 40–50% less in rent compared to Miami, while still enjoying modern buildings with amenities like pools, gyms, and 24/7 security.

Groceries and Everyday Expenses

Panama offers a mix of affordable local products and imported goods.

Average Monthly Grocery Costs

  • Single person: $250 – $400
  • Family of four: $700 – $1,000

In Miami, groceries are typically 25–35% more expensive.
In Europe, prices are similar for local products, though certain items may be cheaper depending on the country.

Buying local in Panama significantly reduces monthly costs.

Private Health Insurance

Healthcare is one of Panama’s strongest advantages for expats.

Panama

  • Young adult: $80 – $150 per month
  • Family plan: $250 – $600 per month

Miami

  • $400 – $900 per person per month

Europe

Many countries offer public healthcare, but private insurance averages $150 – $350 per month.

Panama offers high-quality private healthcare at a fraction of U.S. prices.

International Schools

For families relocating to Panama, education is an important factor.

Panama

  • $6,000 – $15,000 per year

Miami

  • $20,000 – $40,000 per year

Europe

  • Madrid: $9,000 – $20,000 per year
  • Lisbon: $8,000 – $18,000 per year

Panama remains significantly more affordable than the United States and competitive with Europe.

Dining and Lifestyle

Panama City has a vibrant international dining scene.

Panama

  • Lunch: $8 – $15
  • Mid-range dinner: $25 – $50
  • Fine dining: $60 – $100

Miami

Expect prices to be 30–40% higher.

Europe

Local dining in Madrid or Lisbon may be slightly cheaper, but international restaurants are often similar in price to Panama.

Cost of Living Comparison Table (Monthly Averages)

Category Panama City Miami Madrid Lisbon
1-Bedroom Rent $900 – $1,500 $2,800 – $4,000 $1,700 – $2,800 $1,500 – $2,500
Groceries (1 person) $250 – $400 $350 – $550 $250 – $400 $250 – $400
Private Health Insurance $80 – $150 $400 – $900 $150 – $300 $150 – $300
International School (Annual) $6,000 – $15,000 $20,000 – $40,000 $9,000 – $20,000 $8,000 – $18,000
Mid-Range Dinner $25 – $50 $40 – $80 $25 – $45 $25 – $45

So, Is Panama Expensive?

Compared to Miami, Panama is significantly more affordable — especially in housing and healthcare.

Compared to Western Europe, Panama remains competitive and often offers better value when factoring in:

  • Use of the U.S. dollar

     

  • Tax incentives

     

  • Strong banking system

     

  • International connectivity

     

  • Year-round tropical climate

Panama may not be the cheapest country in Latin America, but it consistently ranks among the best in terms of cost-to-quality-of-life ratio.

Considering Moving to Panama?

At Reside Panama, we help expats and investors evaluate real living costs based on lifestyle, neighborhood, and long-term goals.

If you're comparing Panama with Miami or Europe, we can guide you through the numbers and help you make a strategic decision.