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.
