Pros and cons of hiring a contractor vs. hiring a day wage worker
Paying social security for employees in Panama
In my previous post on employees in Panama, I talked about:How to choose a good employee, What to expect, and Real cost, as opposed to the perceived cost of a worker
Labor Ministry
If you speak to enough expats, you are bound to find at least one who has a nightmare saga to report about an employee. An employee who reported the employer to the Labor Ministry (“Ministerio de Trabajo”).
The Labor Ministry is sort of like the Gestapo in Hitler's Germany.
You really don't want to be called in to see the Labor minister to face charges of illegal hiring practices.It is always painful, frustrating, and often expensive.And it is one of the more corrupt branches of Panamanian Government (This is saying a lot!)
Most often an employer is called before the Labor Minister, because a worker is incapable, or unwilling, to perform the required task, and simply wants to get a big “severence pay check” prior to quitting, or being fired. This can even happen when an employee has as little as a few days of employment with the foreign employer.
This whole situation can be avoided, if the expat employer had performed the necessary research to find an employee capable of performing the task. Mostly by asking other expats whether the "employee worked successfully in the past?'
To sum up so far, to successfully hire an employee in Panama, one must take one's time. Do not rush things. If you are in a hurry to get a project started, and you hire the wrong person, or persons, it will end up costing you dearly, in both time, and in money, and frustration. If you get too frustrated on your first attempt, who knows, you might not try again too soon. Particularly if you are a retiree. You just don't know how much stamina you have left for work relationships that don't go smoothly. Far better to take your time, do your research, and hire well the first time.
Contractor vs Employee
Often it might be a better approach to hire a Panamanian contractor for a task, particularly a construction project, rather than trying to save money and hire a laborer, so that you can be your own contractor. Be honest with yourself; If you really don't have any construction experience, Panama might not be the place to attempt your first project, especially if you only plan on building your own home. You would surely learn a lot in such an endeavor. But if you don't plan to continue to build, then all the knowledge, and experience acquired will not have been of much value (Unless you have always wanted to contract your own house construction project, in which case the satisfaction of a project well- executed would have been its own reward.
If you hire a building contractor, again, be sure to get lots of recommendations from expats. This is your best guarantee of getting what you are hoping for. If the project is not too big, you might find that a contractor need only be a single individual, or a guy and his helper. You might not be charged much more than the usual wage for a day laborer. But, you would have the assurance that the contractor, and not you is responsible for paying his own social security taxes, and those of his helper. This is definitely worth something. You will gain some piece of mind, and you will, hopefully, have hired someone who has performed the task at hand numerous times in the past, be it masonry, painting, plumbing, etc...A word of caution. Be sure to get a copy of the contractor's (up-to-date) license and related paperwork. Be sure to check with the local authorities in the labor department to be sure that they accept as valid the paperwork in question.
Social Security
If you hire a laborer as your own, personal, or professional employee, be aware that you will be required to fill out social security paperwork every two weeks and deliver it to the local Social Security office in person. (Although, you may now file it online!).
If you are from the US, or any other modern nation, you will likely be taken on “a trip down memory lane” at the social security office.It will either remind you of how things were done in the US 50 years ago at a similar social security office, or it will remind you of your worst recollections of endless lines, and incompetence at the US Postal Department in years past.
You will try to recall when the last time was that you saw endless forms filled out, longhand, and then stuffed randomly into unlabeled file boxes to be forgotten forever.
If you are enticed by the idea of hiring a domestic servant, or cook, or gardener for $10-$15 per day, but you are also reluctant to go through all the hassle of wrestling with the Panamanian social security system, you will definitely have to get creative. One thought is that you may be able to train the employee to take their own paperwork to social security, stand in the line, and file their own Social Security payments. You pay your part, but you do not have to lose your sanity, little by little, dealing with the incompetence and glacial torpor of the Social Security process.
In the case of having your employee do their own filing, it is a brilliant concept, but not so simple in the execution. The success of this one goes right back to principal #1 of part one of this article:Hiring the right employee.
In our own case, we had a wonderful woman working for us as a domestic helper. She was smart, nice, talented, she could cook really well. The whole family loved her. But, little by little, over the years, she began to show up for work less and less. Since she was doing her own social security paperwork, it should come as no surprise that this woman was not a reliable person to have the responsibility for doing this important job. Though it was with tear filled eyes, we eventually ended up letting her go.
I think that if you hire the right person, you should be able to train this person to do their own bi-weekly social security filing. This is a target that I believe is entirely achievable, within the Panamanian social security system, and it is one that should not drive you crazy. Although, now that you can file online, this is not such an issue.
Contractor
Another possibility, especially in the case of heavy manual labor, such as gardening, logging, hauling, construction, etc...is that of helping your trusted worker to acquire their own contractor's license. There are a number of specialty licenses available, including “gardener” “general contractor” “handyman”, among others. If your laborer has other clients, it is entirely feasible that your relationship with this person be that of contractor and client, rather than that of employee and employer.
Costs of such licenses are not too high. Also, if you truly value this person, and not just this person's services, then you may want this person to pursue their highest potential. If they are licensed contractors, you will always be encouraged to pay the best wages to your valued employee, or you will lose your employee to the competition. Hopefully, as Panama continues to develop, wages will keep pace with the cost of living, and your laborer will continue to be more valuable, year after year.
Not Paying What Employee Is Worth
We have witnessed the experience of expats who tried to maintain an artificially low wage for their own trusted, long-term employee(s). Invariably, that employee will eventually leave, even if the employee never openly voices dissatisfaction with the wages received.
Panamanians are well known for being conflict avoiders. If an employee doesn't think he's getting a square deal, the first time you hear about it will probably be the day he asks for his final wages.
It's likely that you will not get a second chance to negotiate, especially if your ex-employee has already been hired by another employer who shows greater appreciation of your now ex-employee.
Where Will Your Monthly Panama Budget Fall On This Graph?
In 2012, 25 people shared their actual monthly cost of living with Don Winner of Panama-Guide.com
You can see all 25 of those monthly budgets below.
The budgets are from a wide range of people who live throughout Panama
12 Retired Couples
7 Retired Singles
6 Families
2 part-timers
All the retired singles are males. This gives a false impression.
There are plenty of single female retirees in Panama as well, but they didn't seem to respond to Don Winner's request.
2 Lessons Learned
If you examine the budgets below, it will give you a good jump start when figuring out what it will cost you to live in Panama.
Two items that stand out when looking at these budgets are:
1. Those who made larger capital investments, up front & in cash, to buy homes and cars tend to have lower monthly living expenses
2. There are big, sometimes huge, differences in the way people decide to live their lives. These seemingly subtle differences and decisions can double or even triple the monthly cost of living, per person.
The 25 Real Budgets of Expats in Panama
1. A Retired Couple on Social Security in Volcan
A retired couple ages 70 and 68 both receive Social Security checks, for a total of $2,394 every month between the two of them.
They live near Volcan in Chiriqui, full time in Panama, and have been here for about 7 years.
Capital Investment: Spent $110,000 to buy 1.5 hectares of land in 2006 and to build their own home, so they don't have a mortgage.
Car: Own 2 vehicles, bought and paid for. No car payment.
Car Insurance on the vehicles is $350/per year (or $29 per month).
Car Maintenance: Budget $50/mo for vehicle maintenance
Car fuel: Spend about $120/mo on fuel for car.
House Maintenance: Average about $50/mo
Groceries: $400/mo.
Eating out. They seldom eat out at restaurants, spending only about $75/mo there.
Utilities, $90 for electricity, $6 for water, $25 for two cell phones, $25 for gas (cooking and heating water), $85 for Internet, $85 for DirecTV.
International Travel: $600/year (or $50/mo). They rarely go to the United States or other international travel
Health insurance is $140/mo.
Miscellaneous: They budget $50/mo for "miscellaneous fees" for things like renewing a driver's licence, getting tags on the car, stuff like that.
Summary
Monthly expenses - $1,280
Capital Investment. They invested $110,000 up front to build their home.
So Bottom Line is - A retired couple live on Social Security in Volcan for $640 per person, per month.
2. Retired Couple in Panama City
A 62 year old man and his 59 year old wife are retired and have been living in Panama City full time for about three years.
They have income from Social Security and an IRA.
Expenses
Capital Investment: They purchased a new home for $236,000. They made a 25% down payment ($59,000) and financed the balance.
Car - they paid $15,500 to buy a used vehicle, no car payments.
Fuel for car - $157 per month on fuel, $67 on the Southern Corridor, and budget $40 per month for vehicle repairs and maintenance.
House Mortgage: $1,084/mo
Life insurance, $277/mo - which is a requirement of the house loan.
Home owners association fee of $100 per month HOA fee, plus
Home maintenance of $92/mo
Health insurance policy with a $5,000 deductible that costs them $4,988 per year, or $415 per month.
Car insurance cost is $633 per year or $52/mo
Fire insurance for $279 per year or $23/mo
Policy to insure the contents of their home for $748 per year or $62/mo
Groceries are $954/mo which "includes booze" and they entertain at home.
Dinning out cost them $317/mo
Utilities: $142 on electricity, $19 for water, $76 for gas to cook and heat water, $44 for cable television, $5 per month on cell phones, $66 for Internet and home phone, $8 for NetFlix, $14 for ClearVPN.
International travel they budget $300/mo
Mail forwarding is $71/mo
Summary
Monthly Expenses: $4,385
They also reported their total spending during 2011 - for a total of $89,800. However this level of spending apparently includes discretionary items, beyond the essentials reported in the list above.
Capital Investment. They invested a total of $74,500 for the house and car up-front.
So, the bottom line is - A retired couple lives in a new house in Panama City for $2,192 per person, per month.
3. A Retired Couple in Chiriqui
A retired couple, both 65, have been living in Chiriqui since 2008.
Their total income is about $2,800 per month.
Expenses
Capital Investment: They paid $148,000 for a house on an acre lot. Spent another $30,000 to fix up the house. And another $20,000 to build a workshop behind the main house. The house and property is in a Foundation.
Car - They bought a car for $10,000 new cash upon arrival, so no car payments.
Foundation fees on house/property: $450 yer year or $37 per month.
Property taxes are $160 per month.
Utilities: $40 for electricity, $4 for water, $3 for garbage pickup, Cable and Internet $20.
Groceries: $600/mo. This includes food for their 8 dogs. They make them dog food.
Gas - $60 per month on gas, $25 per month on insurance, $5 per month for tags and registration.
International travel - They budget about $100 per month.
Summary
Monthly Expenses: $1,054
Capital Investment. Up front cash investment was $208,000 for the house, upgrades, and the car.
So, the bottom line is - A retired couple lives in a house in Chiriqui for $527 per person, per month.
4. Built A Home in Altos del Maria
Barry & Janice are 64 and 67 years old.
They built their own house in Altos del Maria and have been living here full time for two years.
Expenses
Capital Investment: They spent a total of $320,000 up front to buy the land and to have their house built, so no monthly mortgage payment.
Common area maintenance fee: $125/mo
Home maintenance - Budget $170/mo
Groceries: $800/mo on food and groceries ("includes booze")
Eating out - $150/mo.
Utilities: $120 for electricity, $10 for water, $55 for cable television, $55 for Internet, $10 for cell phone, $40 gas for cooking and heating water.
Car - They bought a car in cash for $15,000.
Gas - $240 per month on gas, $55 per month on insurance, and they budget $100 per month for maintenance and repairs.
Travel. They "travel a lot" and budget $1,000 per month for international travel, about half of which is airfare.
Golf - $250/mo on golf, and they report spending a
Maids/Gardeners/Handymen - $630/mo
Medical - They also budget $250 per month for medical expenses.
Summary
Monthly Expenses: $4,060 - about half of which goes to pay for golf, a lot for travel, and domestic employees.
Capital Investment. Their total up-front cash investment was $335,000 for the house and car.
So, the bottom line is - A retired couple lives in a house in Altos del Maria for $2,030 per person, per month.
5. A New Condo in Downtown Panama City
A 51 year old man and his 48 year old wife are retired and they live in downtown Panama City.
Expenses
Capital Investment: They bought a new condo for $170,000 cash.
Monthly maintenance fees are $175.
Utilities: $150 for electricity, $30 for insurance, $100 for cable TV (water and gas is included with the condo fee), and $60 for cell phone.
Car - They bought a car for $12,000 cash.
Gas - $60/mo, $15/mo on insurance (liability only).
Medical. They spend $250 per month for health insurance
Maid. $88 per month on maid service
Groceries - $530/mo.
Miscellaneous. They also report $500 per month for "miscellaneous expenses" which they reported as "everything else" such as "cleaning supplies, medicines, buying some clothes or shoes, personal care items, taxi or bus, something for the house, etc."
Summary
Monthly Expenses: $1,958
Capital Investment. Total up-front cash investment was $182,000 for the apartment and the car.
So, the bottom line is - A retired couple lives in an apartment in downtown Panama City for $979 per person, per month.
6. A Part Timer in Cerro Azul
A 46 year old single guy lives in Los Altos de Cerro Azul about four months out of the year.
Expenses
Capital Investment: He spent $160,000 cash to buy the house.
HOA fee: $35/mo
Car: $5,000 to buy a car. Insurance for the car is $17/mo. fuel is $150/mo.
Utilities: $45 for electricity, $12 for water, $28 for Internet and telephone line, $20 for cell phone.
Groceries & Dining Out: He reports $400 per month for "food and drink" which is apparently a combination of groceries and dining out.
Miscellaneous: He also reports $20 per month for "lawn car" and another $200 per month for "various, household items, car parts, etc."
Summary
Monthly Expenses: $927
Capital Investment. His up-front cash investment was $165,000 for the house and car.
So, the bottom line is - A single man lives part of the year in a house in Cerro Azul for $927 per person, per month.
7. Retiree Lives "High On the Hog" in Panama City
A 70 year old single American male has been living in Panama full time since 2000.
A full time girlfriend lives with him, so these monthly expenses are for two people.
Expenses
Capital Investment: He bought a nice 280 square meter oceanfront condo in 2005 for $270,000 cash.
Car: He bought a new SUV in 2004 for $30,000 in cash.
Condo fee: $370/mo for operations and maintenance for the building, as well as security, common water, gas, and garbage collection.
Utilities: $120/mo on electricity, $130/mo for cable television and Internet, and $330/mo for two cell phones.
Medical Insurance: He spends $4,000 per year ($333/mo) for major medical insurance.
Groceries & Booze: He reports spending $1,500/mo on "groceries and booze"
Dining out & fun: $650/mo on "restaurants and fun."
Miscellaneous: He lists another $500 per month for "stuff."
Summary
Monthly Expenses: $3,933
Capital Investment. There was a total upfront investment in cash of $300,000 dollars to buy the condo and his vehicle.
So, the bottom line is - A retired man and his girlfriend live in downtown Panama City for $1,966 per person, per month.
8. Living On A Farm in Boquete
A single American man lives on his farm in Boquete.
He has a live-in girlfriend who spends a lot of time with him, especially on weekends, so these expenses are for two people.
Expenses
Capital Investment: He bought a working (income producing) four acre coffee and citrus farm upfront for $350,000 in cash.and
Car: He also bought a new car for $21,000 in cash, $200 per month for fuel, $50 per month for auto insurance
Property taxes are $150/mo.
Utilities: $5.35/mo for propane gas, $40/mo for electricity, $2.50/mo for water, $8.95/mo for Netflix, $25/mo for a cellphone contract and unlimited data.
Home insurance: $20/mo for home insurance
Groceries: $300/mo
Dining Out & entertainment: $300/mo
Internet: There is also a $60/mo cost for a wireless Internet connection - more expensive because of the relatively remote farm location.
Farm worker. One half-time farm worker costs $260 per month, including Social Security payments as required by law for an employee.
Miscellaneous: $50/mo were listed as "miscellaneous".
Summary
Monthly Expenses: $1,471
Capital Investment. There was an up-front investment of $371,000 to buy the farm and the car.
So, the bottom line is - A retired man and his girlfriend live on a working coffee and citrus farm in Boquete for $735 per month, per person.
9. A Youngish Retired Couple Living On The Beach
A 55 year old man and his 45 year old wife live in Ojo de Agua, which is near the Playa Venao on the Azuero Peninsula, Panama.
They bought their home in Panama 6 years ago. They started living full-time in Panama 2 years ago.
Expenses
Capital Investment: They bought their house for $27,000 cash about six years ago and invested another $10,000 in cash to remodel the house while they both continued to work in the US, before they could retire.
Car: They bought a truck for $12,000 cash in 2009.
Car Insurance: $56/mo, full coverage.
Car Fuel: They spend about $160 per month for fuel, used to drive to Las Tablas, visit friends, or to go to the different beaches in the area.
Utilities: $40/mo for electricity, $11 for water, $55 for Skye TV, $25 for Internet through a Cable & Wireless USB connection, $30 in cell phone cards, and
Life insurance: $60
Groceries: They spend $200/mo on groceries and household supplies
Dining out & Beer: $300/mo on restaurants, dining out, and "my husband's cerveza."
International Travel: They budget about $2,000 per year for international travel to visit the United States.
Quote: "Give or take an ice cream here and there our living expenses for Panama is $550 a month per person. It would be more affordable if my husband would give up the Atlas and if we stopped eating at the beach everytime we go! But it is for those things that we love it here!!"
Summary
Monthly Expenses: $1,100 (just over)
Capital Investment. An initial cash investment of $49,000 for the house, remodeling, and car.
So, the bottom line is - A retired couple lives on the beach in Panama for $550 per month, per person.
10. Living On Social Security in Downtown Panama City
A retired American male has been living in Panama City for the past five years.
His only source of income his his monthly Social Security check, so he has to "watch every dollar."
Expenses
Capital Investment: He bought a new two bedroom condo in El Cangrejo for $150,000 dollars cash, so there's no monthly mortgage payment.
Car & Motorcycle: He also bought a new car for $18,500 and a motorcycle for $1,500 dollars in cash, so no monthly payments there either.
Fuel for vehicles: $60 for gas for both the car and motorcycle
Vehicle insurance: $24/mo
Condo Fee: $126/mo in condo fees
Utilities: $75 for Internet and cable television, $65 for electricity,
Groceries: $300 for food
Miscellaneous: He lists another $100 per month as "miscellaneous" monthly expenses.
Discretionary: He spends the remainder on discretionary items such as travel and partying.
Quote: "I live very comfortably on $750 per month, and I don't skimp."
Summary
Monthly Expenses: $750
Capital Investment. His total up-front cash investment was $170,000 for the apartment, car, and motorcycle.
So, the bottom line is - A retired man lives alone in his apartment in Panama City for $750 per month.
11. Off The Grid in Bocas del Toro
A retired husband and wife live on an island in the Bocas del Toro archipelago in the Republic of Panama.
Expenses
Capital Investment: They spend $100,000 to buy the property and another $150,000 to build their home.
Utilities: They have no monthly utility bills because they live "off grid" using solar electricity and a rainwater catchment system.
Car fuel & maintenance: $100/mo for truck and boat
Groceries & Dining Out: $450/mo, including wine and beer.
Yard & Agricultural work: $150/mo
Lawyer Fees: $100/mo lawyer fees for "typical Bocas stuff"
Propane: $20/mo.
Summary
Monthly Expenses: $820
Capital Investment: They had an initial up front investment of $250,000 for the property and to build the house.
So, the bottom line is - A retired couple lives on an island in Bocas del Toro for $410 per person, per month.
12. A Family of Five in Veracruz
A young working couple and their 3 kids live in a house they bought in Veracruz, located just outside of Panama City.
Expenses
Capital Investment: They paid $23,000 or 10% down to buy the house, and then spent an additional $60,000 on repairs, remodeling, and upgrades.
Car: They spent $24,000 cash to buy two cars, one of which is paid off and there's still a loan on the other one.
Car payments: $330/mo, which includes insurance
Car Insurance: on paid off car it is $100/mo
Car fuel: $280/mo
House Mortgage: $1,600/mo
Life Insurance: $257/mo for life insurance (required by the mortgage),
Fire/Flood/Content insurance: $90/mo (required for mortgage)
Property taxes:$165/mo
Private schools tuition: $600/mo for three kids.
Utilities: Electricity is $350/mo. Garbage $12/mo, Internet is $30/mo. Satellite TV is $13/mo and they subscribe to 2 different satellite TV services.
Groceries: $1200/mo.
Maid: $200/mo, 5 days a week, mornings only.
Gardener: $80/mo, only 1 day per week, full day.
Summary
Monthly Expenses: $5,544
Capital Investment: They put down $107,000 to buy the house, fix it up, and buy two cars.
So, the bottom line is - A working couple and their three children live in Veracruz for $1,108 per person, per month.
13. Living The High Life In Cerro Azul
A 61 year old male lives alone in Cerro Azul. Cerro Azul is located about 40 minutes by car outside of Panama City.
Expenses
Capital Investment: He bought his house for $135,000 dollars by putting down $35,000 in cash, and he financed the balance for 13 years at $900 per month. He also dropped another $50,000 into the house to fix it up.
HOA fee: $20/mo which pays for road upkeep and maintenance.
Car: bought for $10,000 cash, so no car payments
Car Fuel: $200/mo.
Car insurance is $100/mo on a ten year old car
Utilities/Phone/TV: Electricity $150/mo (no need for air conditioning in Cerro Azul), water $30, cable television is $55, Internet access $15 per month (via Digicel USB modem), monthly cell phone is $25 dollars (calls only, no data.)
Groceries & Eating Out: Budgets $400/mo
International Travel: 2 trips per year at $600 per ticket, $1,200 annual, or $100/mo.
Summary
Monthly Expenses: $1,995
Capital Investment: Total of $95,000 invested in the purchase of the house, remodeling the house, and purchase of the car.
So the bottom line is - A single man lives alone in Cerro Azul for $1,995 per month.
14. Couple Rents A House in Altos del Maria
Lloyd and Linda Sherman live full time in Altos del Maria.
They return to the US about once a year.
Expenses
Capital Investment. None, except for car.
Car. Bought 2 cars, purchased in cash for $10,800 total.
Car Fuel. They spend a total of $240/mo
Car insurance. $26/mo for insurance on both vehicles
Car repairs & Maintenance. Budget of $200/mo
Rent: Rent a house for $900/mo.
Rental insurance: They purchase insurance on the contents of their home for $45 per year (or $3.75/mo).
Groceries: They budget $600 per month for groceries which includes regular trips to PriceSmart for large package items and cleaning supplies
Eating Out: $300/mo
Utilities/TV/Phone: $65/mo for electricity, $8.50/mo for water, $76/mo for cable TV (including movie channels), $80/mo for Internet access, $6.99/mo for Skype with unlimited calls to the US, $15/mo for cell phone on prepaid cards.
Maid and Gardener - Domestic help $110/mo for part time maid and gardener.
Propane. $15/mo for propane for cooking and hot water.
Mail Service: $80/mo for mail services
Health Insurance: $125/mo
International Travel. They have budgeted $3,000 per year or $250/mo
Summary
Monthly Expenses: ~$3,112
Capital Investment: Bought 2 vehicles for $10,800.
So, the bottom line is - A retired couple lives in Altos del Maria for $1,556 per person, per month.
15. A Family of 3 in Gamboa
An American man, his Colombian wife, and their school aged daughter live in Gamboa. Gamboa is next to the Panama Canal where the Chagres river enters Gatun Lake.
Expenses
Capital Investment. None, except for car.
Car. They bought a car and paid about $6,100 total for the purchase and needed repairs.
Car & boat fuel. $80/mo for car and $200 for fishing boat fuel
Car insurance: $138/mo for car insurance, and $200 per month for fuel for the boat (fishing) and $40 for bait.
Rent: They rent their house for $750 per month, which includes all of their utilities - gas, electricity, water, Internet, air conditioning, satellite television, a gardener, garbage pick-up 3 times a week, and no maintenance fees.
School. Free. Their daughter attends a public school, and they were surprised and impressed with the school (free).
Groceries: $400/mo
Eating Out: $300/mo,
Utilities/TV/Phone. Utilities included in rent. $75 for cell phone service
Bait for fishing: $40/mo
Wife's hair and nails: $25/mo
Dad's haircut: $5/mo ,
Clothes for daughter: budget $50 /mo
Prescription medicines. $35/mo
Summary
Monthly Expenses: $2,058
Capital Investment. Bought car for $6,100
So, the bottom line is - A family of three lives in Gamboa for $686 per person, per month.
16. Swinging Single in Las Tablas
A 65 year old retired American male lives in Las Tablas, in the Azuero region of Panama.
He's been coming to Panama since 2001, but has been living here full time for the past seven years.
He has not been back to the United States.
Expenses
Capital Investment. None
Rent. He rents a single family house (in a respectable neighborhood for $225/mo
Utilities/Phone: $32/mo for electricity and $7.50/mo for water, he pays $11 per month for data on his Blackberry cell phone, and $15/mo on cell phone cards.
Groceries. $400/mo
Eating out: $45/mo
Beer & cigarettes: $30/mo o
Transportation: He owns a scooter for local transportation.
Gas for Scooter: $5/mo (with no insurance).
Buses & Taxis: $20/mo
Prescription medicines. His greatest expense is on prescription medicines at $300/mo.
Summary
Monthly Expenses: $1070
Capital Investment. Zero
So the bottom line is - his costs for necessities is about $1,070 per month. - A single man lives in Las Tablas for $1,070 per month.
But here's the kicker. He gets a check for about $2,500 per month and he blows the rest on "girlfriends and casinos." He spends all of his income, but he could get by for less if he either had to or wanted to.
17. A Family of 3 in Pedasi
This family, a 51 year old retired law enforcement officer, his 45 year old wife, and their 12 year old son, moved to Pedasi in Los Santos after selling all of their belongings in the United States.
They moved to Panama and rented for the first five months, but now they have purchased their home and they have been in there for seven months. They live in Panama full time.
Expenses
Capital Investment. They bought the house cash for $125,000 and there are no HOA or other scheduled maintenance fees.
Fire insurance. They pay $15/mo for homeowner's fire insurance. T
Groceries: They budget $750/mo
Eating out. $150/mo
Utilities/TV/Internet/Phone: $150/mo electricity, $8 for water, $40 for Internet (via Claro USB stick and router), $8 for cell phone. They don't have cable TV or a landline telephone.
Car. They bought a used car for $12,000 cash.
Car fuel. $180/mo
Car maintenance. $58/mo
Car insurance: $62/mo
They rarely use public transportation.
School. School for their son is done with a home schooling plan through the Internet at $166 per month.
Dentist. Their costs are a little elevated right now because their son needs braces - which will cost them $105/mo over the next two years.
Summary
Monthly Expenses: $1669 (for 3)
Capital Investment. They invested $125,000 for the house plus $12,000 for the car, or a total of $137,000.
So, the bottom line is - A family of three lives in Pedasi for $556 per person, per month.
18. A Retireed Couple Living in Boquete
An American couple in their 70's purchased a 2-bedroom ground floor condominium in a gated community in Boquete, Panama.
Expenses
Capital Investment. They paid $240,000 cash about two years ago for their condo
HOA fees. Their Home Owner's Association fees are $2,114 for the year or $176/mo. They, cover security, external maintenance, and landscaping of the common areas.
Fire insurance: $18/mo.
Utilities/TV/Internet/Phone: $100/mo for electricity (no air conditioning necessary in Boquete), water for $4.50/mo, $100/mo with Cable Onda for cable television, local telephone, and Internet service.
Cooking gas: $5.80/mo for range top and oven.
Legal fees for a Panamanian corporation $29/mo.
Real estate tax is $2.50/mo.
Maid & Gardener: ~$105/mo
Health insurance is $350 per month because they are over 70 years of age and have large deductibles - this is for catastrophic medical problems only.
Car. They bought a new SUV from the dealer in David, paying cash.
Car insurance is $83/mo, full coverage.
Food. Estimated monthly food costs: $600.
Summary
Monthly Expenses: $1573
Capital Investment: The up front investment was about $270,000 for the house and car.
So, the bottom line is - A retired couple lives in Boquete for $786 per person, per month.
19. A Family of 5 in Panama City
A family of 5 - an adult man and wife, two grown children, and one small child all live together in an apartment in Panama City.
Expenses
Capital Investment. They purchased the home with $11,000 down, financed the rest, and have invested about $50,000 in upgrades and improvements to the property.
Monthly mortgage is $640
Condo maintenance fees are $150/mo.
Utilities/TV/Internet/Phone: $290/mo for electricity, $300/mo for Cable Onda which includes full cable TV for four digital boxes, two local telephone numbers, and high speed Internet access. Water bill is $40/mo, which also includes garbage collection. Cell phone is $150/mo, broken down as one phone on a monthly plan, and several others using prepaid cards.
School and education expenses: $200/mo for a private school. The two older kids are done with school.
Groceries: $600/mo
Eating Out: $400/mo.
Car. Car payment of $260/mo for a new car.
Car Fuel: $100/mo.
Car repairs & maintenance: $100/mo budgeted
Car insurance: $120/mo.
Summary
Monthly Expenses. $3,350
Capital Investment. There was a total of $61,000 invested up front to make the move to Panama.
So, the bottom line is - A family of five lives in Panama City for $670 per person, per month.
20. A New Low In The Mountains of Los Santos
A retired couple lives in the province of Los Santos in Panama. He's 71, she's 61.
He's retired from the US Navy and also has income from US Social Security.
They live in a small mountain community and have a good sized garden. They don't like to go into town very often, and they've been living in Panama for eleven years.
They rarely travel back to the US to visit relatives - and when they do the relatives pay for the plane ticket.
Expenses
Capital Investment. Spent$62,000 in labor and materials to have the house built. So they have no mortgage
House maintenance. They budget about $30/mo
Groceries: $325/mo
Eating Out. $20/mo. They only eat out at restaurants about once a month
Utilities/Internet/Phone: $40/mo for electricity, 25 cents/mo for water (not a typo!), Internet is $60/mo (for the "Mobilnet ripoff" as they describe it), and two cell phones for $40/mo.
Car. They bought a used SUV for $5,000 cash when they arrived, so no car payments.
Car Fuel. They spend about $40/mo on diesel for the car.
Car insurance. $200 per year (or $16.66/mo)
Car Maintenance & repairs. Last year they spent a total of $350 (or $29.16/mo) on maintenance, tires, and car repairs.
Medical. $50/mo for medicines. $25/mo on dental.
Summary
Monthly Expenses: $676.07 (for 2)
Capital Investment. Initial cash investment, 11 years ago, of $67,000 to build a house and buy a car. Their total monthly cost of living is $676.07 for two people.
So, the bottom line is - A retired couple live in the mountains in Los Santos for $338.03 per person, per month.
21. Loving Life On The Beach in Las Tablas
A retired couple lives in Las Tablas, specifically Playa Las Comadres in the Azuero peninsula.
They have been in Panama since 2003, but consider themselves to be "part timers."
Expenses
Capital Investment. They spent $30,000 to have a two bedroom, to bath home built which they own with no mortgage.
Utilities/Internet/Phone: $4/mo for water, $25/mo for electricity, and $80/mo for cell phones and Internet access.
HOA fee: $5/mo.
Car. They shipped a car down from the states.
Car Insurance $12/mo
Car fuel $200/mo
Groceries only $100/mo on food - which I doubt is accurate. No other family has reported spending only $50 per person, per month on food.
Summary
Monthly Expenses: $730 - although they only included $426 in specifics - and because of the suspected lack of accurate reporting I'm going with the higher number.
Capital Investment. An initial investment of $30,000 to build a house.
So, the bottom line is - A retired couple live on the beach in Las Tablas for $365 per person, per month.
22. Single Man Getting By Quite Nicely in Boquerón on SSA
A 70 year old man lives alone in Boquerón. It is located to the West of David in the province of Chiriqui. He lives in a Panamanian neighborhood.
He's been living in Panama for two years and his only income is the $1,200 he receives each month from the US Social Security system.
Expenses
Capital Investment. None.
Rent. He rents a fully furnished and renovated house with a/c for $175/mo. He does not use his air conditioning,
Utilities/Phone. Electricity, on average, $19.64/mo. Water for $5/mo, Garbage collection for $3/mo, $44.40/mo for Internet access. He uses a pre-paid cell phone, but hardly spends any money on it at all.
Motorcycle. He recently bought a motorcycle, but didn't report how much he paid, or what he spends for fuel.
Groceries. He spends $250/mo for food
Tobacco: $150/mo.
Eating out. $20/mo. He does not eat out often.
Cooking gas: $5/mo
Summary
Monthly Expenses: $672.04
Capital Investment: Zero
So the bottom line is - A retired man lives alone on his Social Security check in Boquerón for $672.04 per person, per month.
23. Hallelujah in Cabuya for Part-Timers
A couple, ages 58 and 56, live in Cabuya, located just outside of Coronado, near Panama's Pacific coast.
They are part timers who have been coming to Panama for 4 years.
They only spend about 4 months per year in Panama.
Expenses
Capital Investment. They paid $235,000 for their home and have no mortgage.
House Maintenance is $75/mo
HOA fee: $100/mo,
Home Insurance: $276 per year (or $23/mo)
Groceries: $130/mo
Eating out: $50/mo
Utilities/TV/Internet/Phone: $50/mo for electricity, $4.50/mo for water, $18/mo for cable television, $50/mo for Internet access, and $10/mo for cell phones.
Car. In the transportation category they only report $80/mo for fuel.
Summary
Monthly Expenses: $590
Capital Investment. Initial cash investment of $235,000 to buy their house
So, the bottom line is - A part time couple lives part-time near the Pacific beaches for $295 per person, per month.
24. Family in Panama City - With Kids in Private Schools
A family of four lives in downtown Panama City - two adults, and two kids under age 12.
Expenses
Capital Investment. They made an initial cash investment of $120,000 to buy an apartment. They spent another $15,000 on improvements and renovations before moving in.
Car. They bought a used car for $8,000 in cash.
Car Fuel: $80/mo
Car insurance is $500 per year (or $41/mo).
Condo maintenance fee: $185/mo
Home insurance: $200 per year ($16/mo)
Other condo fees. They report an expense of $800 per year (or $66/mo) for "anonymous SA fees for the condo title."
Property taxes are $100/mo
Utilities/Phone: $125/mo for electricity, $18/mo for water, $20/mo for cell phones.
Bus fares: $180/mo - transportation for the kids to get to school.
Health insurance. For the family of four is $800/mo.
Private school tuition and fees: $1,500/mo.
Groceries. They didn't report any cost for groceries so I'm going to add $400 for that.
Summary
Monthly Expenses: $3,531
Capital Investment. Initial cash investment of $143,000 to buy the apartment, fix it up, and to buy a car.
So, the bottom line is - A family of four lives in an apartment in Panama city for $882 per person, per month.
25. A Family Of 4 In A House in Panama City
A family of 4 lives in a house in Panama City.
Expenses
Capital Investment. They put $7,000 down in cash to buy the house and have a mortgage.
Mortgage: $615/mo on the mortgage
Required mortgage insurance: $85/mo
Car. $15,000 cash total to buy two cars, and have a loan on one of them.
Car payment. $235 /mo
Car Insurance: $40/mo
Car fuel: $120/mo
Car maintenance: $40/mo
Groceries: $800/mo
Eating Out: $150/mo
Utilities/Internet/TV/Phone: $200/mo for electricity, $30 for water & garbage collection, $80/mo for Internet, cable TV, and a telephone line. They spend $160/mo for two cell phones on contracts.
School. $400/mo for tuition. They have two kids in school
Health insurance: $200/mo
Maid: $250/mo
Gardener: $50/mo for a part-time gardener.
Summary
Monthly Expenses: $3,295
Capital Investment. Total cash investment of $22,000 to buy the house and the car.
So, the bottom line is - A family of four lives in a house in Panama City for $823 per person, per month.
December 27, 2014 & Updated February 2, 2015
Yeah! There is a new hotel in Puerto Armuelles.
Swim Into The Sunset
Heavenly Hotel Is An Ocean Front Hotel.
UPDATED
Milton Hutto, an expat in Puerto Armuelles, has been busily building this hotel & restaurant over the past year. (He named the hotel after his daughter.)
He has done a commendable job.
Restaurant
The restaurant is open!
My mouth waters when I think about Milton's description of the food he served in the restaurant he had for years in the States.
I look forward to trying his menu here.
I plan on going soon. I will post a review of it.
There are both English and Spanish speaking waiters.
Location
It is in the San Vicente neighborhood.
It is next door to another good, if a bit greasy, seafood restaurant, Las Juanas.
Las Juanas was named after a then popular soap opera from Colombia.
Stay at the Heavenly Hotel
Rates are from $45 to $100/night.
There are long-term rates available
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.
Summary
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.
Please comment below.
View over Panama. Flight from Panama City to David
UPDATED POST
As of May 2018, there are still no direct flights from the USA to David.
However, you can get a connecting flight from Panama City's Tocumen (PTY) airport to David's Enrique Malek Airport (DAV).
This has been true since 2014.
Keep in mind, you can make a reservation for a flight from the USA (or elsewhere) all the way to David Panama, but it will NOT be a non-stop flight.
All flights must stop in Panama City's Tocumen airport. Once you land at Tocumen, you will go through immigration and customs and then you go to the Copa counter and check your bags. Once you are checked in, you will walk to the domestic terminal at Tocumen to catch your connecting flight to David.
Thankfully, this is usually a pretty quick process.
You can typically make it with only an hour between landing at Tocumen and catching your connecting flight to David. However, I'd recommend giving yourself more than that minimal hour between the flights.
Why Book A Flight Thru To David
The advantage of purchasing your ticket all the way through to David is your baggage allowance.
If you book your flight from the USA (or where ever) through to David, Copa Airlines will allow you the same baggage allowance as your flight to Panama City permits. Typically international flights have a much higher baggage allowance than domestic flights.
This is good option if you have more than 1 checked bag of over 44lbs (20 kilos). Most airlines coming to Panama allow bags of up to 50 lbs and often allow up to 2 bags. Normally, Copa allows you only 1 checked bag of 44lbs (20 kilos) on its flight to David. That is, unless you booked your international flight through to David.
My comment on my original post: While there are still no direct flights from the USA to David, there are more flights to David that are not controlled by George Novey. As I explain above, for the last year or more Copa offers flights to David out of Tocumen.
This is a big improvement. You used to have to change airports in Panama City to catch a plane to David. Copa airlines, my favorite, offers flights from Panama City to David out of Tocumen airport. Air Panama continues to offer flights out of Panama
Here is that original post:
The internet is awash with hopeful information on this topic. So often it seems like it will happen. For awhile I bought into the hoopla.But I don't think it will ever happen.Or at least not anytime soon.
Why?
The short answer is Air Panama.
Air Panama is Panama's only regional airline, since Aeroplas airline closed in 2012
George Novey's Profit Motive
George Novey owns Air Panama. He is a very well connected, very wealthy, international businessman.
He is one of the main reasons there will never be direct flights to David from either the USA or Panama's Tocumen airport.
He is making oodles of money with Air Panama's flights out of the Albrook Airport.
He has no competition. There is not other airline who offers the flights that Air Panama offers.
Any direct flight from another airport into David will drastically reduce Air Panama's profits.
David is the 2nd largest city in Panama. There is alot of demand for flights in and out of David.
Maybe I am cynical. But unless Mr Novey can make money on direct flights to David, that do not originate from the Albrook Airport, I don't think there will be any.
You will find alot of outdated and confusing information about flights from Panama City to David.
In this post, I give up-to-date answers to 3 common questions about that flight
Is there a flight from Panama's Tocumen Airport to David?
How about the Albrook airport: Where can I fly from there? Where is it?
Can you fly into Tocumen and fly out of Albrook in the same day?
1. Flights from Panama City's Tocumen Airport (PTY) to David
Yes, you can now get a connecting flight from Tocumen to David’s Enrique Malek Airport! Thank goodness.
But there is a caveat.
Technically, you can only fly from Tocumen to David’s airport if you are connecting from an international flight. You allowed a 24 hour window between arriving in Panama City to boarding the connecting flight.
However, I have flown from Tocumen to David more than 24 from having arrived on an international flight. But I wouldn’t count on being able to do that.
This development is wonderful, and so much cheaper for travelers. International travelers used to have take a taxi from Tocumen to the Albrook airport to catch a flight from Panama City to David.
Given schedules and time needed to get to Albrook, you often had to spend the night in Panama City and take a flight out of Albrook the next day. This meant you had to pay for taxis, a hotel, and meals in addition to the flight. And even if you could catch a flight that day, you had the cost of the taxi ride to Albrook.
With Copa’s flight to David you get to skip the taxi ride to Albrook and you are much more likely to be able to catch a connecting flight that day.
Cheaper Fares
Plus since Copa started offering flights to David out of Tocumen, Air Panama has lowered their fares. Previously, Air Panama's fares had been inching up steadily. I took a flight in early 2015 which cost me $102, without taxes. When I last checked, Air Panama's base fare was as low as $40!
To book a flight on COPA, click here.
2. Panama City's Albrook Airport
Air Panama is the only airline offering flights out of the Albrook airport (aka, Marcos A. Gelabert International Airport).
Air Panama is Panama's only domestic airline. (Copa is Panama's International airline)
Air Panama offers many flights out of Panama's Albrook airport
Destinations out of Albrook Airport
San Jose, Costa Rica
2 places in Columbia
Many destinations within Panama
Air Panama does not fly after dark. This impacts its flight schedule.
You can call their office in Panama City as well at
(507) 316-9000, 315-0888, 315-0300
The people doing the booking speak English.
Fare Discounts
Pensionado's & other senior residents get a discount on the ticket. I believe it is a 25% discount. You must show your qualifying visa or cedula to receive the discount.
Albrook Airport Location
The Albrook airport is next door to both the main bus terminal and the Albrook Mall.
It is a 15 minute drive from downtown Panama City and 30 - 45 minutes from Panama's Tocumen International Airport.
3. Tocumen to Albrook airport - in the same day
If you are not flying to David, but somewhere else in Panama you will need to fly out of Albrook.
Plan on it taking 2 -3 hours from the time you land at Tocumen to when you take-off at Albrook.
This allows time for:
Customs
Baggage Claim
Travel time to Albrook
Your best bet is to take a taxi. If all goes well, it will be a 30 minute taxi ride. But it is best to allow an hour for travel time. Of course, you can also take the bus there. If you go by bus you need to allow more time.
I hope that helps answer some of your questions about flying from Panama City to David, Panama
If you don't qualify for duty fee import, the fee assessed will be between 15% - 25% of the value of the car.
In addition, everyone must pay a 7% goods and services fee.
As a pensionado you may be able to import your car duty free. But you will have to pay that duty when you sell the car. You will pay the duty based on the car's value when you imported in, not when you are selling it.
You need to have a whole bunch of documents to ship your car to Panama. Also it must be in your name and owned by you free and clear.
Getting parts & a good mechanic could be difficult and costly if your car is not commonly in Panama
Even if you are shipping a car commonly found in Panama, the parts could be different.
This is because some cars are manufactured differently depending upon where they will be sold.
Japanese cars made for the latin american market are made in Mexico and Guatemala and are slightly different than those same car made for the North American market.
Cars are approximately the same cost and availability as the States and Canada
American cars are not popular here. So you will not be able to sell if for as much as you could in the States.
Why Ship Your Car To Panama
You can avoid the hassle and cost of buying a car in Panama.
Buying A Car In Panama
But it really isn't that much trouble to buy a car in Panama.
There are things to look out for, but it can be a very pleasant experience.
You may not want to sell your car before moving to Panama.
We have always been thankful that we keep one of our cars in the States.
Visits are much cheaper if you don't have to rent a car.
Of course you must figure out how to store it when you are not there.
But it isn't very difficult. Usually we found a friend with some extra space in their garage. A much cheaper option than using a car storage facility.
Make sure you reduce your insurance rates to cover a car in storage. I think the cost of insurance on our garaged 1998 Honda Odyssey is $120 a year.
Please share your comments below.
We love to hear from you.
Follow The Tips In This Post To Hire A Good Panamanian Employee
Panama offers expats amazing buying power.
Housing is inexpensive compared with many places in the US and Canada.
Food costs are cheaper, especially if you shop at vegetable stands, fish and meat markets, or buy from local farmers.
Labor costs are similar to those paid 30 years, or more, ago in the US.
For example, a gardener in Panama can earn $12 a day, which is $1.50/hr.
In 1976, I earned $2.65/hr at a fast food restaurant. It was my first job, and I was only a high school student.
Hidden Labor Costs In Panama
Panama's cheap labor can make it seem smart to start a business here.
You'd simply find an unmet need, hire as many cheap Panamanian laborers as possible, and watch the profits roll in. Right?
The truth is that there is a huge gap between the “apparent cost” of hiring Panamanian labor and the “true cost" of that labor.
Labor Expectations
First of all, there is a big difference between what an employer would expect of a worker in the States and what an employer is likely to receive from a laborer in Panama. It doesn't matter if you are hiring a gardener, a cleaning person, a fruit picker, or agricultural worker on a coffee estate, palm oil farm, etc…..
There is a clear link between the absolutely abysmal public education system and the kind of employee that one is likely to encounter in Panama. Since there is no emphasis placed upon independent thinking and problem solving in many Panamanian schools, the average worker is totally unprepared to take on even the simplest responsibility.
I have seen painters wait all day for the boss to return to the job site to show them the paint brushes they should use. Meanwhile, there were perfectly good brushes on site, but under a few rags in a paint bucket. No one even thought to look for them. They just waited for the boss.
Hire the Right Worker
Those painters would demand to be paid for a full day, even though they didn't paint at all that day. Which means, if a painter was being paid $15/day, the first day’s labor cost has just doubled, and the actual cost for the painter is now $30/day.
You, as the employer, now understands that if the paint brush is not placed directly into that painter’s hand (right hand, if he’s right handed; Left hand if he’s left handed), then it is safe to assume that no painting will be done, until this first step is accomplished. Okay, maybe I'm overstating the case, but you get the idea.
Of course, with experience, you will learn to vet prospective employees more carefully, talking to former employers (hopefully expats), to see if the laborer is capable of doing the required task to your satisfaction.
You need to master this first, and most important step, of hiring the right worker. It is critical to your success, whether it is doing a small home remodeling project, or opening a hotel or restaurant.
Expat As Employer
Expats who wish to hire an employee, even for a simple domestic task such as house cleaning, cooking, or gardening, may talk to their Panamanian neighbors and find out that the neighbor has employed the same couple, the wife to cook and clean, and the husband to garden and do handyman tasks, for the past 25 years. You may also discover that the couple, in all that time, has never had a pay raise, a paid holiday, or had any social security payments made on their behalf.
To the tender hearted, this sounds like slavery. To the unscrupulous, this sounds like a money making machine. Imagine, laborers who work for peanuts, and demand nothing in return! If this sounds too good to be true, that’s because it is.
The same innocent Panamanian couple who will work for slave wages for a wealthy Panamanian, will never, ever, give an expat that kind of a deal. Don’t try to figure out why a poor Panamanian has no problem being taken advantage of by one of their own countrymen. You will waste a lot of time.
Books have been written about the sense of inferiority which poor latinos, from all over the Americas, feel which causes them to feel powerless in their relationships with their wealthier compatriots.
Some hypothesize that it is a vestige of their conquered and colonized past. Whatever the origins of this attitude of inferiority, rest assured that though an expat may receive some superficial respect, merely for being presumably wealthy, that is where the homage ends.
An expat has no access to the historical mandate that a Panamanian of wealth has over his less affluent countrymen. If you make the mistake of thinking that you do wield this same power, this same historic right, you are in for a rude awakening.
How To Hire A Good Employee
The number one way to have a good working relationship with a Panamanian employee is the same as it is anywhere: Choose the right person for that employment.
Take your time.
Talk to lots of other folks who’ve had employees.
Talk to at least a few who’ve hired the person you have in mind.
Panama is a tiny country. With very little effort, you should be able to talk to former employers of your prospect.
Create A Good Relationship
Once you have a good employee, you need to treat him really well.
Since there are so many truly worthless prospective employees in the country, if you do your research and land yourself an outstanding employee, you should feel grateful.
Not just a little bit grateful. But very grateful.
In Panama, as in other more traditional cultures, a good employee, one who thinks he has landed a good, long-lasting job is also very grateful.
As an expression of that gratitude, he would probably like to continue to be your employee for the rest of his life.
If this is what you want as well, then this is a match made in heaven. You want a forever employee whom you like and trust. Your employee wants a lifetime job with a compassionate and appreciative employer.
What To Pay A Good Employee
Probably the best way to show your appreciation for your employee, is to pay him more than other employees who do similar work in your area receive. But be careful about creating expectations and a sense of entitlement.
If you have the best employee in your town, you should pay your employee the highest wages in your town. It’s just that simple.
While there are those who say that if you “spoil” your employee by paying him too much. His work output will fall off, and you will end up with an overpaid, underperforming employee. No one wants that. But it can happen.
It is my opinion, and personal experience, that you avoid this problem by successfully hiring the right employee. If so, then paying an above average wage to that employee will not cause a problem.
However, you must also remember that workers in Panama are not motivated by money the same way as a worker is in the western world, especially in the States.
A person's pride is often just as important to them as their wage. And people are not necessarily motivated by accumulating more money, just to have more money. But they do want what they consider enough money. The trick is finding out what that amount is.
Please look for my next article on hiring an employee in Panama, in which I will cover the topic of social security for employees, and hiring a contractor.
We love to hear from you.
Please share your thoughts on this post below.
MultiPlaza Mall Racked Up A $48K Bill. Water Company Cut Off Their Water Yesterday
It is not unusual for people not to pay their water bill in Panama.
For years.
Common for Panamanians that is.
I'm not sure you could get away with that as an expat.
One of our maids had to pay IDAAN (the water company) the $600 she owed before they would fix her pipes. It is not unusual for people to rack up a 400 or even $1000 bill with IDAAN.
Of course, IDAAN won't necessarily come out and fix your pipes even if you have paid in full.
Which means, if you buy property in Panama, make sure the owners pay off any outstanding water and electricity bills BEFORE you sign a sale contract.
But I have never heard of IDAAN cutting off someone's water before. Even if they haven't paid for years.
(FYI - a residential water bill is somewhere between $3-$9/mo - depending upon where you live and if you get a discount. )
MultiPlaza Mall's Water Is Cut Off
But IDAAN did cut off the water to the huge and very popular MultiPlaza Mall in Panama
It happened yesterday, October 28th.
They owed $48,000.
Wow!
Maybe they just thought they could continue to skate by. Or maybe someone ticked off a bigwig at IDAAN.
But I imagine the other big malls checking their IDAAN balances today.
A spokesmen for the mall said they were preparing a statement in response to the situation.
Hum.. I wonder what explanation you could give for owing 8 times more money than most Panamanians earn in a year.
