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 is typically the largest monthly expense.
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.
Panama offers a mix of affordable local products and imported goods.
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.
Healthcare is one of Panama’s strongest advantages for expats.
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.
For families relocating to Panama, education is an important factor.
Panama remains significantly more affordable than the United States and competitive with Europe.
Panama City has a vibrant international dining scene.
Expect prices to be 30–40% higher.
Local dining in Madrid or Lisbon may be slightly cheaper, but international restaurants are often similar in price to Panama.
| 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 |
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.
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.