How can you live for 50% less in Panama?

While I am not a proponent for claims that you can live in Panama for $1,000 per month especially if you chose to live in the City, I can say that you could realize savings of 35% to 50% here in Boquete over costs back in the US and Europe.  Here is how.

In general, if you live and buy local, the savings can be even greater. While the cost of  utilities, cell phone service, and internet connectivity are the same and in  some case even slightly more expensive than in the U.S., other things like transportation, entertainment, travel, dining out, household help  and housing are often dramatically less in cost.

I am often told “give me an example”.  My first question to them is how many cars do you own back home? The usual answer is 2 of course, one for her and one for me.  We have one car (bought a nice one too) and get by just fine here in Boquete, where we can walk to town and my son takes the bus to David when he wants to meet up with friends there.  So there is an immediate savings of 50% in the cost of transportation, insurance, maintenance and fuel.  Actually, the savings are  more because we do not commute an hour each way to do things everyday like a lot of our friends do back in the States.

While the costs of homes here in Boquete are a little higher than a lot of places in the US that saw the housing crash, other savings are realized here that make a big difference.  Panama provides tax relief and tax exemptions on new home construction. The tax exoneration period  for our average homes are between 15 – 20 years.  Savings in maintenance, insurance and taxes add up big time.

A live-in maid, who can cook is around $400 per month, or you can pay $3 to $4  per hour if you just need someone a few hours a day and  couple of times a week. Same with a gardener.    Most other manual labor services can also be contracted for at bargain prices in Panama, including car wash for $5, good quality plumbing and electrical repair, gardening and landscaping services, painting etc for $5 to $10 per hour.  I like what Harry Hunt here in Boquete says, “My garbage disposal has a tail and my dishwasher wears a dress”.

Dining out at some of the best restaurants in Boquete can cost you under $50 including wine, throw in a show at the local playhouse and cocktails for a total of under a hundred dollars for two people.  Susie and I often take trips to the beach and stay overnight and spend less that what we used to spend in Miami for a night on the town, yes at least 50% less.

Now if you must buy US food products you will pay more than the prices in the US, but most people here try to avoid them because of the ingredients and eat healthy local grown and raised food.  You can eat like a gourmand here and buy Filet Mignon for $5 per pound, fresh pork for $2 per pound, huge prawns delivered fresh from the ocean for $8 per pound, fresh fish for $3 per pound and all the veggies you need for a week for under $10.  If you do not know how to cook, we have cooking parties galore and everyone has a new dish from somewhere in the world to try out and demonstrate.

And of course, the cost of getting together with Friends – Priceless!!