Panama City, Panama 🇵🇦 Gringo's Guide
In-depth breakdown of Panama's capital, including intel on residency, banking, and taxes...
Over the years, Panama City has been hated on by many expats, remote workers, and digital nomads.
Some of it justified, some of it not.
In the opinion of your humble author, I disagree with the hatred this city gets.
Panama City, Panama (PTY) has a lot to offer — and I’m not just referring to the easy residency and territorial taxes.
Now, of course, I could be a bit biased here.
Why?
Because in 2014, when I first left the USA in search of adventure and degeneracy, Panama was my first stop.
It was eye-opening, to say the least.
That trip truly changed me. Fast-forward over a decade and…
After my neighbor showed up to my front door with a gun in Mexico, I quickly moved my family to Panama a few months back. And to be honest, we’re enjoying the hell out of PTY right now.
Here’s why…
🇵🇦 Panama City, Panama 🇵🇦
Population:
In 2026, Panama City's metro area population is roughly 2.1 million by most estimates.
This is nearly half of Panama's total population of approximately 4.3 million.
Weather:
If you do NOT like the heat, Panama City is not going to be the place for you.
PTY offers a classic tropical climate — hot and humid year-round with temps hovering around 75–90°F.
I sweat through my shirt anytime I’m outside for more than 5 minutes from 9:00AM to 7:00PM.
However, mornings and evenings are pleasant enough.
Rainy season runs from roughly May to November (daily afternoon downpours) and a dry season from December to April that locals call "verano” — but just means it only rains a few times a week.
Even in the dry season, humidity stays high.
Why Visit Panama City, Panama?
For what it is and what it does well, Panama City is a solid place.
It's the most cosmopolitan city in Central America, with a significant expat and international business community. In many ways, it's a legit global city.
The Casco Viejo old town is gorgeous, with rooftop bars overlooking the Pacific, restored colonial architecture, and nightlife that draws an international crowd.
The infrastructure is surprisingly modern. There’s a metro system (the only one in Central America), the highways are nice, Uber works seamlessly, and the robust banking sector means you’ll find services here you won’t get in other LatAm cities of similar size.
English is widely spoken, especially in business and expat circles, which lowers the friction for those who don’t speak Spanish just yet.
Geographically, it’s a hub. You’re a short flight from Colombia, Costa Rica, or Venezuela — and you have direct flights to most major U.S. cities.
One could argue PTY has the best international airport in Latin America — although CDMX and Bogota can compete.
The tax structure is a major draw:
Panama operates on a territorial tax system, meaning foreign-sourced income isn’t taxed.
Pair that with accessible residency options, like the Friendly Nations Visa, the Pensionado program (one of the best retiree visas in the world), and various investment-based pathways — then you start to see why so many entrepreneurs and remote workers are planting flags here.
More on that below…
The downsides?
Traffic is brutal, the humidity will test you, and the neighborhoods outside the tourist corridors can feel rough.
Oh, and if you’re comparing Panama City, Panama to places like Rio de Janeiro or maybe Bueno Aires — yeah, it’s going to fall short.
If you need a legit global city with real tax advantages, easy residency, and genuine connectivity — Panama City belongs on your short list.
How to Get to Panama
Panama City’s Tocumen International Airport is one of the best-connected hubs in all of Latin America, thanks largely to Copa Airlines being based here.
This is a massive advantage.
Copa runs direct flights to over 90+ cities across the Americas and Europe, making Panama City a natural crossroads.
For US-based readers, direct flights are available from dozens of cities, including:
Miami
Houston
Dallas
New York
Los Angeles
Orlando
Denver
Chicago
Las Vegas
It’s one of the easiest LatAm capitals to reach from almost anywhere in the States. European connections have skyrocketed lately, as well, with directs to Madrid, Paris, Amsterdam, and more.
Where Panama really shines is regional connectivity…
Need to pop over to Colombia, Costa Rica, or Mexico City? You’re looking at short, cheap flights — many under two hours. It’s truly “the hub of the Americas” in many ways.
Best Neighborhoods in Panama 🇵🇦
So this is where things get tricky in Panama…
There’s not that one perfect neighborhood in PTY, one that has everything and can work for all types.
It simply does not exist.
That being said, there are a bunch of solid neighborhoods in Panama City — each with their own specific use-cases, benefits, and downsides.
Here’s a few of my favorites:
Costa del Este
Who is Costa del Este for? — Families
Arguably the nicest overall neighborhood in the country of Panama, Costa del Este has pleasantly surprised me.
It’s clean, organized, and safe.
You’ve got a major hospital, a decent sized mall, tons of restaurants, multiple pre-schools, a couple international private schools, grocery stores, and close by there’s even a “Panamanian Costco” — aka PriceSmart.
There’s the Malecon Costa Del Este, which is a fantastic place to walk in the morning. Hell, even the sidewalks are wide enough to push a stroller. Rare in LatAm cities.
Dozens of multinational companies have their Latin America headquarters in this neighborhood, so you’ll see and meet people from all over the world living here — especially from Asia.
P.S: For gated community or resort-style living, the best place in Panama City is Santa Maria — which is next to Costa del Este.
Casco Viejo
Who is Casco Viejo for? — Nightlife + Tourism
Casco Viejo is probably the most well-known neighborhood in the country.
Think of it as Panama’s version of Cartagena’s walled city or Havana’s Old Havana — colonial architecture, narrow streets, plazas, old churches, and of course — scammers.
While the neighborhood is one of the city’s trendiest areas, packed with rooftop bars, boutique hotels, and restaurants — you’ll still see crumbling buildings next to fully restored ones.
Charming in it’s own way.
It’s where most of the nightlife is concentrated, and the views of the modern skyline across the bay are insane.
If you’re coming to Panama solo-dolo on a short trip, less than two weeks, it’s an option and easily the most touristic part of the city. If you just want to party all day and night while in the country, this would be the spot.
But for long-term living, the neighborhood lacks many things an expat needs to survive day-to-day.
El Cangrejo — Via Argentina
Who is El Cangrejo for? — Budget Travelers
Make no mistake about…
Panama City is not exactly cheap — more on that below.
So if you’re looking to spend some time here while keeping costs low, the options are fairly thin.
El Cangrejo is easily my favorite budget-friendly neighborhood in PTY, specifically around Via Argentina.
Here’s why…
Most neighborhoods in Panama are not remotely walkable. Costa del Este and Casco Viejo are — but outside of that, the pickings are slim.
Via Argentina is the most walkable neighborhood in Panama for the single broski on a budget. You can walk to gyms, a nice park, dozens of restaurants and bars, supermarkets, etc. And Via Argentina is a pleasant street for a stroll — safe, international vibes, and middle-class.
Oh, and it’s right next to a major university here in Panama. Ya tu sabes.
Cinta Costera — Bella Vista, Marbella, Punta Paitilla, Punta Pacifica
Who is the Cinta Costera for? — Errr, It’s the Heart of the City
Over the years, the areas around Cinta Costera like Bella Vista, Marbella, Punta Paitilla, and Punta Pacifica — have been some of the neighborhoods most popular with travelers and expats alike.
There’s endless options of high-rise apartments to choose from here. No lack of inventory in this area.
You can walk along the Cinta Costera and enjoy the ocean breeze. You’re close to the best mall in Central America — Multiplaza Panama. There’s some parks, a couple marinas for yachts, and some decent restaurants.
This area is smack-dab in the middle of the whole PTY metro area, so it’s convenient in many ways too.
That being said…
I’m not a huge fan. I’ve lived in this area for months on end. It gets boring really fast. There’s a few places to walk, but you’re going to be in an Uber a lot here.
Where to Stay in Panama City, Panama?
Pick your poison from the neighborhoods listed above and go from there.
But before all that, you need to know a few things about renting in Panama and how things work here.
1. Airbnb options are very limited in Panama City
Panama has a 45-day minimum stay law that makes traditional short-term rentals technically illegal in the capital — unlike Medellín or Mexico City where Airbnb runs amuck.
Casco Viejo is the exception, since it's a designated tourism zone. There’s also certain apartment buildings spread throughout PTY that have been designated for short-term rentals.
Of course, plenty of hosts still operate in a grey area (there are 4,000+ listings in the city), but expect fewer options, higher prices, and less variety than you're used to.
2. This creates opportunities you don’t see in other Latin America cities
For a family on a trip to Panama, you’re going to have to pay that premium on Airbnb to get a decent three-bedroom that’s functional.
But for the single broski, there’s other options…
Many hotels in PTY offer more “aparthotel” style options, like what you might find in Southeast Asia.
Often, these are far nicer than an Airbnb and surprisingly, cheaper too. More on that below.
Options in Costa del Este
If you’re coming to Panama with a family in tow, then Costa del Este is the choice. No need to overcomplicate things.
But you’re going to be paying for it.
Expect to pay $4,000-5,000/month for a three-bedroom apartment in Costa del Este on Airbnb:
Not exactly impressive at that price point.
Now on a yearly lease…
You’ll find furnished three-bedrooms in Costa del Este run about $2,000-4,000/month depending on the building, location, and amenities.
For hotels, the best option in Costa del Este is probably The Westin.
For a single dude or a couple, you can find nice apartments on Booking.com for under $100 a night.
This is the cheapest one-bedroom you’ll find on Airbnb in Costa del Este.
Options in Casco Viejo
Finding lodging in Casco Viejo is actually super easy.
Probably the easiest neighborhood in PTY to book something decent on a short trip — without paying an arm and a leg for it.
Here’s some studio and one-bedroom spots for the single broski or a couple, all in that $1,500-2,000/month range:
I don’t think I’d recommend basing up here for a month or more, but you could do it for fairly cheap if you wanted to.
There’s endless hotel and hostel options here, as it’s such a touristic area. The party hostel is currently Viajero Hostel — since Selina closed down. For boutique luxury, the American Trade Hotel is a pretty cool spot.
Options in El Cangrejo — Via Argentina
Soon, this will be one of the easiest places to find short-term rentals in PTY.
Why?
This massive apartment complex located right in the heart of Via Argentina will be delivered soon. There’s hundreds of apartments here, many of them sold to investors. The building already has the short-term license and will be Airbnb legal from the jump.
But for now, the Airbnb options, like this apartment, are limited.
If you want a hotel in this area, there’s some international chains like Best Western.
Options in Cinta Costera
This is where it gets interesting…
You’ve got some Airbnb options in this area, like these:
However, if you want to stay in this area, the Waldorf Astoria Panama rents studios on a monthly basis for under $2,000/month.
Pretty damn good deal.
On top of that, the old Trump Tower, now called The Ocean Club, has tons of apartments available at any time. These are cheap, usually starting around $1,200/month and can go up to $3,000/month for larger units.
Cost of Living in Panama
It’s a bit difficult for me to truly breakdown cost of living in Panama City, as things change drastically if you’re a single broski living in PTY vs. raising kids down here.
But I’ll do my best to give you a rough idea here…
Apartment in Best Area(s): $1,200-5,000 USD a month
Hotel in Best Area: $2,000-6,000 USD a month
Maid: $200-600 USD
Grocery Store: $200-800 USD
Eating Out / Delivery: $400-800 USD
Gym: $30-60 USD
BJJ / MMA: $50-100 USD
Partying / Dating / Social: $200-1,000 USD
Cell Data: $20-30 USD
Like most places, by far the biggest expense is going to be rent.
For a single broski, you’d need $3,000-5,000/month to make it work in this city. $3,000/month is viable without missing much in terms of lifestyle.
For a family of 4 living in Costa del Este, you’d want to plan on $5,000-8,000 a month — depending if renting short-term or long-term.
Is Panama City, Panama Safe?
Yes, PTY is safe.
Next question.
Okay fine, I’ll add some nuance. Panama City is one of the safer capital cities in Latin America — significantly safer than cities like Bogota, Quito, and Caracas.
Panama’s national homicide rate in 2024 was about 12.9 per 100,000 inhabitants, which sounds high until you put it in context:
The Latin American and Caribbean median was 20.2 per 100,000 that same year.
Panama sits well below that regional average. For further context, the U.S. homicide rate hovers around 6 per 100,000 — so Panama is roughly double, but nowhere near the levels of other countries in Latin America.
Most of the violence is gang-related and confined to specific neighborhoods that tourists and expats never visit.
The areas where you’ll actually spend time — Costa del Este, Casco Viejo, Bella Vista, El Cangrejo, etc. — are generally fine, day and night.
Use the same common sense you’d use in any major city:
Don’t flash cash and expensive things
Stick to Ubers at night
Stay out of neighborhoods you shouldn’t be in (El Chorrillo, Curundú)
Violent crime targeting tourists is rare. The police presence in tourist zones is noticeable and the overall vibe in Panama City is relaxed.
Do You Need to Speak Spanish in Panama?
Being a Latin American country, speaking Spanish is always going to make life easier while visiting and/or living in Panama.
You should learn some Spanish if you’re planning to spend some time in PTY.
Is it an absolute necessity?
It is not.
Panama City is an international spot. There’s people from all over the world here. You’ve got multinational companies from everywhere. This means a lot of people in Panama are going to speak English.
In fact, the areas you’ll be spending your time in, you won’t have any issue getting by on English if need be.
I had a friend who lived in the Waldorf Astoria Panama for nearly two years. Couldn’t speak a lick of Spanish when he left. Had a fantastic time in Panama for those years.
If the language barrier in Latin America is a concern, Panama City is an ideal starting point.
But, you should 100% learn some Spanish if you’re going to be living in Latin America.
Things to Do in Panama City 🇵🇦
Panama City packs more into a few square miles than most, but this isn’t Mexico City or Rio de Janeiro. There’s a handful of fun things to do in the city, but it’s not endless.
You’ve got a canal that changed global trade, a UNESCO old town with world-class rooftop bars, rainforest hiking inside city limits, and some of the best ceviche around.
Here's what's worth your time:
Visit the Panama Canal — Miraflores Visitor Center, watch ships transit, interactive museum
Walk around Casco Viejo — colonial architecture, restaurants, street art
Mercado de Mariscos — waterfront fish market near Casco Viejo, grab a $2 ceviche from the ground-floor vendors
Cinta Costera — the oceanfront promenade, great for running/biking with skyline views
Amador Causeway — connects three islands, views of the canal entrance and city skyline, visit the Biomuseo
Rooftop bar hopping — Tantalo, Lazotea, CasaCasco
Shopping at Multiplaza Panama — best mall in all of Central America
Metropolitan Natural Park — rainforest hiking inside the city limits
Ancon Hill — short hike, best panoramic view of the city, canal, and bridge
Beaches Close to Panama City 🇵🇦
Now, you may have noticed I glossed over the “things to do” section. That’s because the best things to do in Panama City are outside of the city limits.
Panama is a beautiful country filled with lush mountains, tropical islands, and stunning beaches. It might not be Costa Rica, but the nature to explore here isn’t far off.
Here’s my favorite beach spots close to PTY:
Isla Contadora
Pacific side, 2-hour ferry from Amador marina (~$99 RT) or 20-min prop-plane flight. Part of the Pearl Islands — tiny, no cars, just golf carts. Multiple white sand beaches and good snorkeling.
Take the private plane, rent a golf cart, stay at Mar Y Oro Hotel for a couple nights, and enjoy.
Potentially my favorite place in all of Panama.
Playa Caracol
Pacific side, ~90 min drive via Pan-American Highway toward Punta Chame. Easy drive on a nice highway once you get outside the city traffic.
Long white sand beach with decent surf, no sand fleas, and typically sunnier weather than the city. Tons of good beachfront Airbnb and hotel options.
Closest legit beach spot with real sand and waves from PTY — well, one that’s not an island.
Playa Escondida Resort & Marina
Caribbean side, ~2 hour drive towards Colón.
Turquoise water, coral reef snorkeling, rainforest backdrop. Gated resort with villas, overwater bungalows, marina, and spa.
Ideal weekend getaway from PTY.
Lastly…
If you’re going to spend some time in Panama — maybe even base up here, get residency, and all that jazz…
There’s one place in the country you absolutely must visit eventually:
San Blas Islands (Guna Yala)
An archipelago of 365+ islands on the Caribbean coast, run autonomously by the indigenous Guna people.
Think crystal-clear turquoise water, tiny palm-covered islands, zero development — no resorts, no chain hotels, no Wi-Fi. You sleep in basic cabins or hammocks on the beach.
Better yet, spend some time on a catamaran in San Blas — just know, it’ll cost you a pretty penny to do that.
Getting there is either a rough 2.5-hour 4x4 ride from Panama City followed by a boat transfer, or a 30-minute puddle-jumper flight.
Why make the effort to go here?
The beaches and scenery are legitimately some of the most beautiful you’ll find in the entire Caribbean. Truly postcard-perfect.
