Finding the right place to live is one of the most important decisions for anyone moving abroad. Despite its small size, Panama offers a variety of options, from the tranquil beaches of the Pacific and Caribbean coasts to the fresh mountain air of the highlands and the vibrant energy of Panama City. Each location has its advantages, price range and expat community. This guide covers the best areas for expats, accommodation prices and tips for renting or buying property in Panama.
Types of accommodation in Panama
Panama offers a variety of accommodation options for all tastes and budgets. City lovers should focus on the capital, as it is the country's only true city. While there are other urban areas, they have more of a small-town feel. Panama City caters to fans of urban design with its sky-rise apartment buildings. Those who seek privacy can enjoy a comfortable living in one of the capital's gated communities with private houses. Traditional neighborhoods offer budget-friendly single-family homes. Furnished and unfurnished options are available for all housing types.
Nature lovers have an ample playground in Panama. First, decide whether you prefer the beach or the mountains. Then, consider factors such as the local community—whether it draws younger crowds or retirees—proximity to the capital, affordability and access to healthcare. Finally, explore available options, visit different areas if possible and experience each place firsthand. While some beach destinations feature condo apartments, as do a few developments in Boquete's highlands, provinces primarily offer private houses, both furnished and unfurnished.
Best areas for expats in Panama
Panama City
High-rise buildings reaching for the clouds, the colonial charm of the historic district, waterfront promenades, sunlit streets, traffic and noise make up the buzzing Panama City. Smaller than many other world capitals with its 1.5 million inhabitants, it is a key global trade and finance hub, attracting multinational companies that, in turn, draw more expats into the country.
Modern infrastructure, international schools, fine dining and vibrant nightlife appeal to professionals and families alike. A tropical climate, with a warm sea an hour away and sunshine year-round, also adds to the city's high standard of living.
The capital provides a mix of high-rise condos, gated communities and traditional neighborhoods. Favorite expat areas include:
- Casco Viejo: A UNESCO world heritage site, this historic District of Panama City captivates with its colonial architecture, boutique apartments, numerous restaurants, shops and cafes.
- Punta Pacifica: This high-end residential area with luxury apartments and ocean views is close to one of the best private hospitals and malls.
- San Francisco: A mix of residences and offices, this neighborhood comes alive at night with its fine dining and bars.
- El Cangrejo: Popular among younger crowds, this pedestrian-friendly neighborhood is home to many cool bars and cafes.
- Marbella: In Marbella, residential areas harmoniously blend with the financial district. Sea views and great amenities of Balboa Avenue's apartments attract expats who enjoy comfort and a waterfront promenade just steps away.
- Costa del Este: The trendy district, farther from the city center, features high-end housing and well-developed infrastructure. With its many multinational companies' offices, Costa del Este draws professionals and their families.
- Clayton: Home to the City of Knowledge, Clayton hosts NGOs, schools and research centers. The main housing options of this quaint suburban neighborhood are cozy houses with yards, making it popular among families.
Panama City accommodation prices
Panama City's monthly rental prices vary based on location, property size and amenities:
- Luxury apartments (Punta Pacifica, Balboa Avenue, Costa del Este, Coco del Mar, Casco Viejo) - $2,000 – $5,000+;
- Mid-range apartments (San Francisco, El Cangrejo) - $900 – $3,000;
- Budget apartments (El Dorado) - $600 – $1,100;
- Houses in gated communities - $2,500 – $6,000+;
- Suburban homes - $1,200 – $4,500.
For those looking to buy, the average price in the city center is approximately US$2,500 per m², dropping to around US$1,600 per m² outside the center. In upscale areas, properties cost about US$3,500 per m².
Coronado
About a 1.5-hour drive from Panama City, this is the beach town closest to the capital. Loved by retirees for its well-developed infrastructure, this place offers apartments and houses—some beachfront—along with restaurants, supermarkets, shops, a private clinic and an international school. Coronado may not be the prettiest beach in Panama, but its convenient location attracts many expats.
Apartment prices currently range from US$1,200 to US$2,500 per m². Two- to three-bedroom houses are priced between US$150,000 and US$1,000,000. Rentals cost US$700-US$3,000, based on lot size, location and amenities.
Playa Caracol
Playa Caracol, a beach spot about 1.5 hours from the city, began a few years ago as a single project in the Chame area. Since then, two major developments have entered the beach, including the newly constructed Radisson Rivera and the Margaritaville Beach Resort and Residencies; the latter is under construction.
Playa Caracol residencies are popular for vacation homes, though some expats choose to live here full-time. The waves of this beach are perfect for surfing. There is not much infrastructure at the moment, though. Those who choose to reside here will need to do grocery shopping in Coronado, which is 40 minutes away.
Apartment prices at Playa Caracol range from US$2,600 to US$3,500 per m². As for rentals, most property owners in this development focus on short-term offers. However, for longer stays, landlords may offer significant discounts.
El Valle de Anton
This mountain gem, about a 2.5-hour drive from Panama City, is the ideal escape for those who prefer cool nights and lush vegetation. Located in the crater of an inactive volcano, this small town boasts fertile soil and stunning hiking trails.
El Valle de Anton offers a decent-sized supermarket, a few hardware stores and a public clinic with basic services. For more specific items like construction materials or home supplies, residents travel to Coronado, an hour away.
Home to an expat community and Panama's high-society estates, El Valle de Anton offers properties for purchase or rent, with land lots of varied sizes. Prices range from US$350,000 to US$2 million, depending on the m² of construction, lot size and amenities. You can find smaller houses with 2-3 bedrooms on 1,000 m² of land and large estates spanning several hectares.
There are plenty of short-term rentals in El Valle de Anton. However, long-term rentals are harder to come by. An entire place with a two- to three-bedroom house or a guest house in a larger property may cost around US$1,500-US$2,000 per month.
Pedasi and Playa Venao
Pedasi and Playa Venao, small beach towns in the Azuero Peninsula, are home to multinational expat communities.
Pedasi
Pedasi is popular among retirees from the U.S., Canada and Europe. The quiet life, filled with year-round sunshine, attracts beach lovers. Known as the “Tuna Coast” for its superb fishing, Pedasi draws enthusiasts of this sport. The area is also famous for great surfing.
Pedasi's property purchase prices depend on lot size, amenities and proximity to the beach. Two- to three-bedroom homes range from US$200,000 to US$1.5 million.
Rent prices vary based on the size and location. One-bedroom units may cost US$700-US$1,000, while three-bedroom houses rent for US$1,200-US$1,700.
Pedasi offers a few small grocery stores and a medical center with basic services. For specialized healthcare and major shopping, residents travel to neighboring towns: Las Tablas (40 minutes away) or Chitre (1.5 hours away).
Playa Venao
This lively beach place, a 30-minute drive from Pedasi, attracts younger crowds. Surfers, digital nomads and hospitality providers make up this small but diverse community.
Fun electronic music festivals take place here a few times a year, drawing international crowds and filling up all available properties. Venao might be your perfect spot if you love dancing the night away with your feet in the sand.
Playa Venao offers a small supermarket with a good selection of products, a few shops and numerous restaurants. You will need to drive to Pedasi (30 minutes) or Chitre (around two hours) for medical services.
Playa Venao's real estate is booming, with many new projects popping up. However, it is not a “buyers' market,” as prices are far from bargains.
Two- to three-bedroom properties sell for US$400,000-US$1.5 million, depending on the m² of construction, lot size, amenities and proximity to the beach. Rental prices range from US$1,500 to US$4,000.
Boquete
This quaint mountain area in Chiriqui province attracts expat retirees. The cool climate, splendid landscapes, availability of healthcare and one of the best coffees in the world contribute to the appeal of this Panamanian town. In fact, the world's most expensive coffee (2024's record), priced at US$13,000 per kilogram, was produced here.
Boquete's properties range from US$160,000 to US$800,000 for two- to three-bedroom houses. Rentals cost US$800-US$2,800 per month for two- to three-bedroom homes, based on location, lot size and amenities.
Bocas del Toro
Bocas del Toro is an archipelago of paradisiac islands washed by the crystalline Caribbean Sea. A community of expats—lovers of surfing, snorkeling and turquoise waters—call this place home.
Real estate prices range from US$450,000 to US$800,000 for two- to three-bedroom houses.
Bocas del Toro is a highly touristy area. Most homeowners focus on short-term rentals. However, significant discounts may be available for extended stays, with monthly rents ranging from US$2,300 to US$6,400. Prices depend on the amenities and the island where the property is located.
Housing search in Panama
To find the best home to buy or rent, apply a multi-level approach, including online search and the expertise of real estate agents. The following websites offer real estate listings in Panama:
Work with local real estate brokers or agencies to expand your options. These professionals must be licensed in Panama. Moreover, you can check if your broker or agency is a member of Acobir, the Panamanian Association of Real Estate Brokers and Developers.
Renting a property in Panama
Rental agreements and deposits
While most rental agreements in Panama are signed as one-year leases, shorter-term rentals may also require a contract. The agreement typically outlines the rent term, price, security deposit and liabilities. Expect to pay a security deposit equivalent to one month's rent. The typical notice period for leaving the property is 30 days.
Good to know:
For properties with high-end furniture and amenities, landlords may request a higher deposit amount.
Utilities
Electricity: $50 - $250 per month, depending on the AC usage.
Internet: $40 - $80 per month, depending on speed and provider.
Water: $10 - $30 per month (if not included in HOA fees).
Buying a property in Panama
Legal procedure
Consider hiring a local attorney when purchasing a property in Panama. Due diligence is indispensable once you find the ideal home and agree on the terms. After that, the parties sign a sales purchase agreement drafted by the seller's lawyer, and you pay the initial deposit. Your attorney will then prepare the final deed to be signed at a notary's office. The seller provides additional documentation on the signing day, and you pay the remaining amount. The last step is registering the property with the Public Registry, which is typically handled by the buyer's lawyer.
Property taxes
The seller is responsible for paying taxes on real estate transactions in Panama (2% for the transfer tax and 3% for the advance to the capital gain tax).
Property taxes vary depending on the property's value but do not exceed 1%. Primary residences under US$120,000 are exempt from taxes. New developments are also tax-exempt for up to 15 years.
Financing and mortgages
Foreigners can get a mortgage in Panama. However, local banks have tightened their requirements, asking foreigners to provide a larger down payment (around 30% to 50%) and proof of income. Currently, mortgage rates range from 6% to 8%, with loan terms of up to 30 years.
Takeaway
Panama offers diverse living environments, from the bustling capital to serene beaches and lush mountains. The best place for you depends on your lifestyle, budget and preferences. Understanding the local market and the legal aspects of renting or buying a property is essential. Exploring different areas, connecting with expat communities and working with trusted professionals are great strategies to find the best option.
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