12 Expat-Friendly Places in Panama That Feel Like Home

Panama surprised me in ways I never expected. After spending two months exploring this incredible country, I discovered it’s not just about the canal or beach resorts. It’s a place where mountain coffee farms meet Caribbean islands and where expat communities blend seamlessly with local life in the most fascinating way.

I fell hard for spots like Coronado, where my mornings started with beach walks and fresh papaya, and the Casco Viejo neighborhood of Panama City, where colonial architecture meets modern cafes and rooftop bars. These experiences showed me why the best places in Panama are drawing everyone from retirees to young entrepreneurs. Whether you’re dreaming of a beachfront condo or a mountain retreat, these 12 spots offer that perfect mix of comfort, community, and adventure you’re looking for.

Most Beautiful Places in Panama       

Looking for the best places to live in Panama? Experience the vibrant energy of Panama City, a modern hub with excellent infrastructure and business opportunities. Enjoy the tropical paradise of Bocas del Toro, known for its beaches, relaxed lifestyle, and expat-friendly community. Settle in David, a growing city with affordable living and access to nature. Or explore El Valle de Antón, a scenic mountain town perfect for a peaceful retreat. Whether you prefer city life, coastal beauty, or a tranquil escape, these are some of the top places to live in Panama.

• Best for urban lifestyle: Panama City
• Best for island life: Bocas del Toro
• Best for natural beauty: El Valle de Anton
• Best for affordability and convenience: David
• Best for cultural experiences: Chitre
• Best for historical charm: Casco Viejo
• Best for beach living: Pedasi
• Best for mountain views: Volcan
• Best for retirees: Boquete
• Best for coastal tranquility: Coronado
• Best for a relaxed pace of life: Pedasi
• Best for expat community: Coronado

1. Panama City

• 💰 Average Monthly Cost: $1,500 – $3,000 (budget to mid-range lifestyle)
• 🌟 Unique Features: Modern skyline, vibrant nightlife, international business hub
• 📅 Best Time to Live There: December to April ☀️ (dry season, best weather)
• 🏆 Perfect For: Expats 🌍, digital nomads 💻, business professionals 💼

Panama City is a dynamic mix of modern skyscrapers, colonial charm, and tropical landscapes. As the country’s economic hub, it offers top-tier healthcare, international schools, and a thriving job market. The city’s skyline is dotted with luxury condos, but affordable living options also exist in neighborhoods like El Cangrejo and San Francisco.

Beyond business, Panama City is a cultural melting pot. Casco Viejo, the historic district, is filled with lively cafés, boutique hotels, and rooftop bars, while the Cinta Costera offers stunning waterfront views for walking or cycling. The city’s culinary scene is diverse, blending traditional Panamanian flavors with global influences.

With the Panama Canal just minutes away and easy access to beaches and mountains, residents enjoy both city life and nature escapes. Whether you crave urban excitement or a laid-back coastal vibe, Panama City is a place where modern convenience meets tropical paradise.

2. Bocas del Toro

• 💰 Average Monthly Cost: $1,200 – $2,500 (budget to mid-range lifestyle)
• 🌟 Unique Features: Caribbean island vibes, eco-tourism, relaxed beach lifestyle
• 📅 Best Time to Live There: September to October 🌾 (least rain, best diving conditions)
• 🏆 Perfect For: Beach lovers 🌴, surfers 🏄, retirees 🏡

Living in Bocas del Toro feels like stepping into a Caribbean postcard. This island chain off Panama’s northern coast is known for its turquoise waters, lush rainforests, and a laid-back atmosphere. Colorful wooden houses sit on stilts over the water, while locals and expats navigate town by bike or boat.

Bocas attracts surfers, divers, and digital nomads seeking a relaxed lifestyle. The main island, Isla Colón, offers restaurants, shops, and bars with a reggae-infused vibe. For more seclusion, islands like Bastimentos and Carenero provide quiet retreats with stunning beaches.

Despite its remote feel, Bocas has essential amenities, including healthcare centers and reliable internet. The cost of living varies, with beachfront homes commanding higher prices, while inland rentals are more affordable. If your dream is to live where flip-flops are the dress code and adventure is right outside your door, Bocas should be on your radar.

3. El Valle de Anton

• 💰 Average Monthly Cost: $1,000 – $2,000 (affordable lifestyle)
• 🌟 Unique Features: Mountain town, cooler climate, lush nature
• 📅 Best Time to Live There: December to April 🌿 (dry season, best for hiking)
• 🏆 Perfect For: Nature lovers 🌿, retirees 🏡, hikers ⛰️

If Panama had a hidden paradise, it would be El Valle de Anton. Picture waking up in a lush volcanic crater, surrounded by emerald-green mountains, cool breezes, and the sounds of nature instead of city traffic. It’s the kind of place where toucans casually fly by and hiking trails start right outside your doorstep.

Weekends here are for browsing the famous farmers’ market, grabbing fresh mangoes, or picking up handcrafted souvenirs. The town may be small, but it’s full of character—friendly locals, laid-back expats, and just enough cafés and restaurants to keep things interesting. And let’s not forget the natural hot springs, waterfalls, and secret jungle paths waiting to be explored.

Life in El Valle is simple yet incredibly rich. No stress, no rush—just fresh air, stunning views, and a built-in connection to nature. If you’re dreaming of a peaceful escape with just the right touch of adventure, this is it.

4. David

• 💰 Average Monthly Cost: $1,200 – $2,500 (budget to mid-range lifestyle)
• 🌟 Unique Features: Growing city, low cost of living, gateway to Boquete
• 📅 Best Time to Live There: December to April ☀️ (less rain, cooler evenings)
• 🏆 Perfect For: Budget-conscious expats 🏡, business owners 💼, retirees 🏡

David, Panama’s third-largest city, is a bustling yet affordable place to live, offering modern conveniences without the high costs of Panama City. Located in Chiriquí Province, it serves as a gateway to some of the country’s most stunning landscapes, including the highlands of Boquete and the Pacific beaches of Las Lajas.

The city has excellent infrastructure, with hospitals, shopping centers, and a regional airport connecting residents to Panama City and beyond. While David lacks the nightlife and cultural scene of larger cities, it makes up for it with a laid-back atmosphere and strong local community.

The cost of living here is one of the lowest in Panama, with affordable real estate and lower utility costs. Whether you’re a retiree looking to stretch your budget or an entrepreneur seeking an up-and-coming location, David offers a comfortable lifestyle with easy access to both mountains and coastline.

5. Chitre

• 💰 Average Monthly Cost: $1,000 – $2,000 (affordable lifestyle)
• 🌟 Unique Features: Small-town charm, affordable housing, local culture
• 📅 Best Time to Live There: December to April 🌾 (dry season, local festivals)
• 🏆 Perfect For: Retirees 🏡, families 🏠, history lovers ⚖

Chitré, located on the Azuero Peninsula, is a city rich in tradition and local charm. Known for its vibrant festivals and colonial architecture, this friendly town is a great option for those looking to experience an authentic Panamanian lifestyle.

Despite its historical roots, Chitré offers modern conveniences, including shopping malls, hospitals, and good schools. The city’s economy is strong, with opportunities in agriculture, commerce, and tourism. Residents enjoy a relaxed pace of life, but with access to all necessary amenities.

The surrounding region is home to beautiful beaches, rolling hills, and cultural landmarks, making it perfect for weekend getaways. Housing is affordable, and the cost of living is lower than in major urban centers. If you’re looking for a town that blends history, community, and affordability, Chitré is an excellent place to call home.

6. Casco Viejo

• 💰 Average Monthly Cost: $1,500 – $3,000 (mid-range to upscale lifestyle)
• 🌟 Unique Features: Colonial architecture, cultural hub, vibrant nightlife
• 📅 Best Time to Live There: December to April 🌆 (comfortable weather, best for exploring)
• 🏆 Perfect For: Culture lovers 🌟, young professionals 🏢, artists 🎨

Step into Casco Viejo, and you step into history with a modern twist. This UNESCO-listed district is where cobblestone streets, colonial mansions, and ancient ruins meet trendy rooftop bars, art galleries, and some of the best restaurants in Panama. Every building tells a story—whether it’s a beautifully restored boutique hotel or a centuries-old church standing strong through time.

Living here means embracing a walkable lifestyle where everything is just steps away. Mornings start with a strong Panamanian coffee at a sidewalk café, afternoons are for exploring local markets, and evenings come alive with live jazz music and the glow of the skyline across the bay.

Despite its popularity with tourists, Casco Viejo maintains a tight-knit community vibe. It’s a hub for artists, entrepreneurs, and expats, offering a perfect balance between old-world charm and urban energy.

• Read next: Top 8 Destinations with Cheap Flights To Central America Right Now

7. Pedasi

• 💰 Average Monthly Cost: $1,200 – $2,500 (budget to mid-range lifestyle)
• 🌟 Unique Features: Quiet coastal town, surfing, strong expat community
• 📅 Best Time to Live There: December to April 🌴 (best beach weather)
• 🏆 Perfect For: Beach lovers 🏖, surfers 🏄, retirees 🏡

On Panama’s Pacific coast, Pedasí is the kind of place where life slows down, but never gets boring. This coastal town is known for its pristine beaches, laid-back vibe, and rich cultural roots—making it a magnet for expats and retirees looking for a peaceful retreat.

Fishing, surfing, and whale watching are part of everyday life here. The nearby Isla Iguana is a snorkeling paradise, while the town itself is alive with festivals, parades, and local traditions. Pedasí’s sense of community is unmatched—neighbors know each other, and locals welcome newcomers with open arms.

The cost of living is affordable, and while it’s not as developed as Panama City, it has all the essentials—good internet, healthcare, and enough restaurants and cafés to keep things interesting. Dreaming of a beachfront lifestyle where the biggest decision of the day is whether to surf or sip a cold drink by the shore? Pedasí is calling.

8. Volcan

• 💰 Average Monthly Cost: $1,000 – $2,000 (affordable lifestyle)
• 🌟 Unique Features: High-altitude town, cool weather, coffee farms
• 📅 Best Time to Live There: December to April ☀️ (ideal for hiking and nature activities)
• 🏆 Perfect For: Nature lovers 🌿, hikers ⛰, coffee enthusiasts ☕

If you’re looking for mountain serenity over beach life, Volcán is a hidden gem tucked away in Panama’s highlands. This peaceful town sits at the base of Volcán Barú, Panama’s highest peak, offering cool mountain air, stunning scenery, and some of the country’s best coffee farms.

Life here is relaxed yet fulfilling, with a tight-knit community. The town is surrounded by hiking trails, waterfalls, and wildlife reserves, making it a paradise for nature lovers. It’s also an affordable alternative to Boquete, offering similar beauty and climate without the crowds.

The expat community is growing, but Volcán still feels authentic and untouched. With fresh produce from local farms, friendly locals, and low cost of living, it’s easy to see why retirees and adventurers alike fall in love with this peaceful mountain retreat.

9. The Arco Seco

• 💰 Average Monthly Cost: $1,200 – $2,500 (budget to mid-range lifestyle)
• 🌟 Unique Features: Driest region in Panama, beautiful beaches, great fishing
• 📅 Best Time to Live There: Year-round 🌊 (consistent dry climate)
• 🏆 Perfect For: Fishermen 🎣, beach lovers 🌴, retirees 🏡

For those who crave year-round sunshine, the Arco Seco (or “Dry Arch”) is Panama’s sunniest region, offering a warm, breezy climate almost all year. Stretching along the Azuero Peninsula, this coastal paradise is a dream for beach lovers, surfers, and retirees seeking a laid-back lifestyle.

Here, you’ll find long, empty beaches, charming fishing villages, and some of Panama’s best surf spots. The region’s affordability and strong sense of community attract expats looking for a peaceful yet connected place to settle. Whether it’s fishing at sunrise, exploring hidden coastal trails, or enjoying fresh seafood, life here moves at a relaxed, sun-soaked pace.

Despite its tranquil feel, The Arco Seco isn’t remote. You’re always a short drive from markets, healthcare, and cultural festivals, blending rural charm with modern convenience. If you’re seeking simple living by the ocean, this is the place to be.

10. Coronado

• 💰 Average Monthly Cost: $1,500 – $3,000 (mid-range to upscale lifestyle)
• 🌟 Unique Features: Popular expat destination, beachfront condos, golf courses
• 📅 Best Time to Live There: December to April 🌾 (best for beach living)
• 🏆 Perfect For: Retirees 🏡, beach lovers 🌴, golfers ⛳

If you love the beach but still want modern comforts, Coronado offers the best of both worlds. This popular expat hub features gated communities, golf courses, and beachfront resorts, making it one of Panama’s most developed coastal towns with a relaxed yet upscale vibe.

Unlike quieter beach towns, Coronado has everything you need—supermarkets, hospitals, international schools, and diverse restaurants and cafés. It’s a place where you can enjoy a laid-back beach lifestyle while still having high-speed internet, top-tier healthcare, and plenty of entertainment options at your fingertips.

With its stunning Pacific beaches, active social scene, and proximity to Panama City (just an hour’s drive away), Coronado is perfect for retirees, families, and digital nomads. Whether you’re into golf, surfing, or simply soaking up the sun, this town blends coastal beauty with urban convenience, making it one of Panama’s best places to live.

11. Boquete

• 💰 Average Monthly Cost: $1,200 – $2,500 (budget to mid-range lifestyle)
• 🌟 Unique Features: Mountain retreat, spring-like weather, coffee plantations
• 📅 Best Time to Live There: Year-round ⛅ (cool climate, perfect for outdoor activities)
• 🏆 Perfect For: Expats 🌍, nature lovers 🌿, retirees 🏡

Tucked into the Chiriquí Highlands, Boquete is Panama’s go-to destination for those who want cool mountain air, stunning nature, and a thriving expat community.

It’s easy to see why Boquete is a favorite among retirees and nature lovers—with its lush coffee farms, hiking trails, and breathtaking waterfalls, it’s a place where outdoor adventure meets small-town charm. The town hosts a variety of festivals, art markets, and live music events, keeping the social scene lively yet laid-back.

Despite its small size, Boquete has great healthcare, international restaurants, and reliable internet, making it a comfortable and convenient place to live. It’s a spot where you can wake up to misty mountain views, spend the afternoon at a local café, and end the day watching the sunset over the valleys. If you want a fresh start in a mountain paradise, Boquete is waiting.

12. Penonome

• 💰 Average Monthly Cost: $1,000 – $2,000 (affordable lifestyle)
• 🌟 Unique Features: Authentic Panamanian town, local markets, central location
• 📅 Best Time to Live There: December to April 🌆 (dry season, best for exploring)
• 🏆 Perfect For: Budget-conscious expats 🏡, families 🏠, retirees 🏡

For those seeking affordable living with a touch of history, Penonomé is a hidden treasure in Panama’s heartland. As the capital of Coclé Province, this town blends colonial charm with modern conveniences, making it a perfect mix of old and new.

Unlike the tourist-heavy areas, Penonomé offers an authentic Panamanian lifestyle with all its comforts. The town is known for its colorful festivals, traditional music, and strong local culture. Yet, it also has modern supermarkets, hospitals, and schools, making it an easy place to settle down.

One of its biggest draws is affordability—whether you’re renting a house or shopping at the local markets, your money stretches further here. Surrounded by rolling hills, rivers, and small farms, Penonomé is ideal for those looking for a peaceful, budget-friendly escape with all the essentials nearby.

Frequently Asked Questions (FAQs) About the Best Places to Live in Panama 

Interested in learning more about what are the best places to live in Panama? Here’s a rundown of frequently asked questions about the top places to settle in Panama.

Where are the most expats live in Panama?

The majority of expats in Panama tend to gravitate towards areas that offer a blend of comfort, convenience, and community. Panama City is a popular choice due to its modern amenities and vibrant lifestyle. The city’s diverse neighborhoods cater to a variety of preferences, from the historic charm of Casco Viejo to the bustling energy of the downtown area.

Another expat favorite is Coronado, known for its beautiful beaches and well-established expat community. It’s ideal for those who prefer a more relaxed, coastal lifestyle. Boquete, in the Chiriquí Highlands, is also a top choice, especially among retirees, for its cooler climate and scenic beauty. Each of these areas offers a unique living experience, but they all share a welcoming atmosphere that attracts expats from around the world.

Is Panama a good place to live in?

Panama is widely regarded as an excellent place to live, offering a variety of lifestyles to suit different preferences. Its appeal lies in its diversity – from bustling cities to tranquil beach towns and serene mountain communities.

Panama City is the epitome of a modern metropolis, boasting world-class healthcare, education, and entertainment options. For those seeking a more relaxed pace, towns like Pedasi and Bocas del Toro provide a serene beachside living, while places like Boquete offer cool climates and lush landscapes in the highlands.

Additionally, Panama is known for its stable economy, political stability, and use of the US dollar, adding to its convenience for expats. The country also offers attractive residency programs, making it easier for foreigners to settle. With its warm climate, friendly locals, and affordable cost of living, Panama stands out as not just a tourist destination, but a great place to call home.

Where is the best and cheapest place to live in Panama?

For those seeking affordability without sacrificing quality of life, Panama offers several options. David, the capital of Chiriquí Province, stands out as one of the most livable cities in Panama. It offers a low cost of living while providing essential amenities like healthcare, shopping, and dining.

Las Tablas and Chitre on the Azuero Peninsula are also known for their affordable living costs. These towns offer a glimpse into traditional Panamanian culture, with vibrant festivals and a strong sense of community, all at a lower price point compared to more touristy areas.

Volcan and El Valle de Anton are excellent choices for those who prefer cooler climates and natural surroundings. While slightly more expensive than David or Las Tablas, they still offer a cost-effective lifestyle compared to many other expat destinations in Panama.

Each of these locations balances affordability with a high quality of life, making them ideal for retirees, expats, and locals alike looking for budget-friendly living in Panama.

Where is the best place in Panama to retire?

For retirees, Panama offers several idyllic locations, each with its unique charm. Boquete is a top choice among retirees, renowned for its cool climate, lush landscapes, and vibrant expat community. It provides a peaceful, scenic setting with a well-established infrastructure catering to retirees’ needs.

Coronado is another favorite, especially for those who love the beach. This coastal town boasts a relaxed lifestyle, modern amenities, and a strong sense of community among its residents, both local and expatriate.

El Valle de Anton, situated in a volcanic crater, is perfect for those seeking tranquility and natural beauty. Its cooler temperatures and lush greenery offer a serene retirement setting.

Retirees also find Pedasi appealing for its laid-back coastal living and rich cultural heritage. Each of these locations offers a unique blend of comfort, community, and natural beauty, making them some of the best places in Panama to live for retirees.

Which side of Panama is better?

Deciding which side of Panama is better depends on personal preferences and lifestyle choices. The Pacific side, home to Panama City and Coronado, is known for its more developed infrastructure, modern amenities, and larger expat communities. It offers a blend of urban and beach lifestyles, making it ideal for those who seek convenience and a vibrant social scene.

The Caribbean side offers lots of things to do. With destinations like Bocas del Toro, is celebrated for its laid-back vibe, stunning beaches, and rich biodiversity. It’s a paradise for nature lovers, divers, and those seeking a more relaxed, tropical lifestyle.

Both coasts boast their unique attractions and lifestyles. The Pacific side is typically more popular among expats for its accessibility and modern conveniences, while the Caribbean side appeals to those looking for a quieter, more natural environment.

Where do the rich live in Panama?

In Panama, the affluent often reside in areas that offer luxury, exclusivity, and high-end amenities. Punta Pacifica in Panama City is a prime example, known for its upscale condominiums, breathtaking ocean views, and proximity to some of the city’s best shopping and dining experiences.

Another popular area among the wealthy is Costa del Este, also in Panama City. It’s a planned community with modern infrastructure, beautiful parks, and a variety of international restaurants and shops.

Outside the capital, affluent individuals are drawn to Coronado, a beachfront community with high-end real estate, golf courses, and private beach clubs. It’s a favorite for both wealthy expats and Panamanians.

Each of these areas offers a blend of luxury living and convenience, with access to the best amenities Panama has to offer. They are Panama’s best places to live for those seeking an upscale, comfortable lifestyle.

Final Thoughts on the Best Places to Live in Panama

Panama, much like California, is a land of diverse choices, offering an array of lifestyles to cater to various preferences. From the bustling streets of Panama City to the tranquil beaches of Pedasi and the cool, mountainous regions of Boquete, Panama presents a world of options for every type of resident.

For those seeking affordability without compromising on quality, places like David and Chitre offer a cost-effective lifestyle. They showcase that living in Panama can be both economical and enriching. Alternatively, if urban life and modern amenities are what you seek, Panama City and its surrounding areas offer a dynamic environment rich in culture and convenience.

Happiness and quality of life are paramount here. Communities like Coronado and El Valle de Anton are often praised for their perfect balance of natural beauty and community spirit.

So, what are the places to move in Panama? The answer varies as much as the landscapes of Panama itself. It ultimately depends on what you value most in your living environment. Whether it’s for the vibrant city life, serene beaches, lush highlands, or cultural richness, Panama offers more than just a home—it’s a lifestyle, a community, and a diverse cultural experience rolled into one.