“Can I Afford To Live In Panama?”
To get a realistic answer, you really must ask yourself 3 critical questions.
What Lifestyle Do I Want?
Where in Panama Will I Live?
Will I Use My Capital to Buy My Panama Home and Car?
Capital To Invest
After you answer those questions, the next thing to think about is your capital investment.
That is, how much do you plan to invest, up front, in Panama
Will you pay, up front & in cash, for the following?
- Home, including any needed remodeling
- Vehicles (car, truck, boat..)
Monthly Expenses Lower With Capital Investment
If you can afford to buy your home and car, up front & in cash, your monthly budget will be lower.
For instance, if you get a mortgage from a Panama bank, you will also be required to get:
- Life Insurance
- Fire Insurance
- Content Insurance – to cover contents of your home
So if you do decide to get a Panama bank loan for your home, don’t forget to factor in the costs of all that insurance.
Also with a car loan you are required to get full coverage insurance.
Panama does require drivers to get car insurance. But only liability is required. You can purchase that for about $120 a year.
In general, we have found that an income of $1200 a month for one or two is enough to live comfortably, although not in luxury.
But you need to determine what lifestyle you desire. Then you can figure out what it will cost to maintain it in Panama.
To help you think about how lifestyle will impact your budget, visit this page.
To look at actual budgets.