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Cost of Living
Due to the impact of world economics and petroleum prices affecting us world wide, the days of cheap living are long gone. However, one can say that the basic amount needed for survival in the Panama highlands is still far less because we do not have to depend on air conditioning and heating. Electricity per kilowatt hour is higher but is offset with your retirement discount. Local beef, poultry, fruits and vegetables are about half the price as in the U.S.
 Regardless, where else could you survive on $800-1000 a month (if you had your own home) and still maintain some resemblance of a quality of life? This includes direct TV and the finer things and still survive on you Social Security and yet have has some left over for travel, projects and fun.
The only negative aspect (like every where) is that premium gasoline runs about $2.40-$2.50 a gallon. However diesel is 40- 50 cents less per gallon. Forget that hard work keeping up your yard and home, as housekeepers, yard boys and caretakers are $7-8 a day! Stores are well stocked with imported goods but one has to remember that the prices are similar to the U.S because of the shipping cost but they are available. In both David and Panama City, the streets are lined with shops where you can buy clothes at bargain prices.
To assist in calculating you expenses, we are providing an estimate on the cost of living based on our cost for a family of two. |
| Item |
Cost |
Notes |
| Property Tax: |
$000.00 |
No tax on land valued under $20,000.
No tax on new construction first 15 years. |
| Hospital ins: |
$100.00 |
Per month for a married couple |
| Car Insurance: |
$300.00 |
Per Year |
| Home Insurance: |
$210.00 |
Per Year |
| Telephone: |
$35.00 |
Per month. Prime plan for computer with 25% retirement discount. |
| Electricity: |
$50-90.00 |
Per month, with 25% retirement discount. |
| Water: |
$2-6.00 |
Per month. Depends on where you live. |
| Trash pickup: |
$3.00 |
Per month. Pick up once a week. |
| Direct TV: |
$29.50 |
Basic 77 channels (35 in English) 30 music. |
| Internet DSL: |
$35.00 |
Per month |
| Propane: |
$5.75 |
Per 25 lb. tank. |
| Gas: |
$2.35 |
Per U.S. gallon, 50 cents less for diesel. |
| Meat products: |
$2-2.50 |
Local grass fed beef, pork and poultry |
| Vegetable & fruits: |
|
Vary in season but generally half of the price in the U.S. |
| Dairy products: |
|
About the same in the U.S. |
Restaurants:
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Less than half that of the U.S. A typical special of the day, $1.75 |
| Movies: |
$3.50 |
Per person, $1.75 for a retiree |
| Gardener: |
$7-8.00 |
Per day |
| House cleaner: |
$7-8.00 |
Per day |
| Car Mechanic: |
$10.00 |
Per Hour |
Benefits
Because of the strong retirement lobby by the old folks, Panama has one of the most generous retirement programs offered anywhere including the U.S. Any qualified foreign resident pensioner of any age (military, government and private sector) or any resident (Nacional or x-pat) 62 or older, (ladies 58), enjoy these benefits. Many have asked if there would be changes like what has happened in Costa Rica with the annulment of all benefits but we doubt it because one must remember that these liberal benefits were passed for the Panamanian elderly and we as a guest may enjoy them as well.
You may bring in your furniture and a new car every 2 years. Or so they say. Although the there is a limit on the furniture, no one seems to be counting and if you do bring in something new, remove it from the commercial shipping boxes and prices and most important to have them declared on you list. However, there are hassles with brining in a car (especially new) because like in many counties, one ministry says you can and the other ministry says you can't and of course, they don't communicate with each other. Even if this issue is resolved, due to low prices and availability of vehicles in Panama, it does not make sense to pay the high cost to ship one and pay $50 a day for storage while waiting for the documents to clear. Even if you're exempt from importation duties, you would still have to pay 5% sales tax and have to worry about warranty coverage and parts availability. Our recommendation is to purchase one here!
Typical Pensioners benefits:
- Recreational, movies and sports events - 50%
- Public buses - 30%
- 30% on all Panama national and international carriers including Continental Airlines.
- Hotels Monday through Thursday - 50%; Hotels Fri-Sun - 30%
- Regular restaurants - 25% only for the retired person.
- Fast food restaurants - 15% off total bill if paid by the retiree.
- Hospitals, w/no insurance - 15%; Drugs - 10%
- Doctor visits and surgery - 20%; Dental - 15%
- Optometrist - 15%
- Property taxes. *
- Electricity - 25%
- Telephone - 25%
- Water - 25%
- Special "express lanes" in all public offices for retiree's
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Banking
Don't worry about changing your money, as the good old American buck is standard throughout the country. Around here, they call it the "Balboa" but it still has George's face on it. They are however, Balboa coins that are the same size, value and metal content as U.S. coins made by the U.S. Denver mint. They work in all US coin operated devices. ATM machines are available throughout the country. It is wise to carry a bank debit card instead of traveler's checks. Travelers checks is a dying technology and since ATM's are readably available, one does not have to carry large sums of cash nor be bothered trying to find some one to cash the checks. An easy way to handle your pension is to deposit it in a U.S. bank and access it through the ATM.
Panama has a lot to offer for those with accounts here for several reasons:
- All national currency is the US Dollar.
- ATM machines all over Panama that you can withdraw cash from your US account.
- Panama banks have their own debit card system called "Clave" (key) card and you can withdraw funds from your Panama account in the states.
- Panama "Clave" debit cards work the same as in the U.S. in stores.
- Panama does not report your account information to the US. It is up to you to declare the interest.
- Interest is paid monthly.
- Any visiting person can open a savings account but must be a resident to open a checking account and provide a letter of reference from a US bank.
- Banco National de Panama (BNP) accounts are not insured. However they are the State national bank run by the government of Panama. If they default it would severely impact all US banking as well and we don't think the US will allow it.
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