Costa Rica and Panama are wonderful countries in Central America that will definitely surprise you with a wealth of wildlife, stunning beaches, incredible entertainment and the endless coastline of the Pacific Ocean and Caribbean. Find out more about the peculiarities of living and vacationing in Costa Rica and Panama in 2024

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Do you dream of living in Central America but can't decide between Panama and Costa Rica? The choice is not limited to a place on the map - it's a matter of lifestyle. Both countries are expat-friendly and offer different opportunities for retirees, change of scenery, or investment.

When considering your options, it is important to pay attention to several aspects. The cost of living in Panama is more affordable than in Costa Rica. In terms of healthcare, both countries have good systems, but Panama can offer more English-speaking doctors. Security is an important factor and both countries have their advantages and disadvantages here.

We will analyze the cost of living, healthcare, real estate markets, security measures, and opportunities for investors in Panama and Costa Rica to help you make an informed choice.

Features of life in Panama

Panama is located in the south of Central America, has a rich Spanish colonial history, which is reflected in the culture and traditions. Spanish is the official language, and the majority of the population professes Catholicism. The society has an open and welcoming attitude that includes Creoles, mestizos, European immigrants, Africans, and indigenous Indians.

Panama is known not only for its famous canal, but also for its incredible natural resources. Here you can enjoy bird watching, rafting and snorkeling among the magnificent coral reefs. Panama's biodiversity surpasses that of the United States, Canada, and Europe combined, which emphasizes its unique natural beauty.

As of December 2023, the population of Panama was about 4.5 million people, according to the UN. The country is famous for its tradition of going outside to dance and sing, including popular Latin American dances such as salsa, merengue, and bachata.

In 2017, Panama was recognized by UNESCO as a “Creative City for Gastronomy”. The local cuisine reflects a combination of African, Spanish and indigenous influences, offering unique flavors and dishes.

The Panama Golden Visa program provides accommodation for the whole family, including spouses, children, full-time students and parents. This makes Panama an attractive choice for those looking for a variety of opportunities or for digital nomads seeking new experiences and working conditions.

Features of life in Costa Rica

Costa Rica is a mountainous country located between the Caribbean Sea and the Pacific Ocean, known for its natural beauty and rich biodiversity. The coastal areas of this country have sandy beaches and mangrove forests similar to those of Panama, but as you move inland, the country becomes more mountainous due to the Talamanca mountain range that divides it.

This country is famous for its national parks, which offer visitors a variety of outdoor activities such as rafting, canyoning, caving, and zip-lining. Costa Rica is also a popular destination for nature lovers seeking to see exotic animals such as parrots, sea turtles, and sloths.

As of December 2023, the population of Costa Rica was over 5.2 million people. The country is known for its hospitality and cultural diversity, as it has had many ethnic influences in its history, including African, Chinese, Jewish, and Lebanese cultures. Costa Ricans speak Spanish and often refer to themselves as “ticos” (men) and “ticas” (women). Dancing is an important part of Costa Rican culture, and children learn traditional dance steps from an early age, combining modern and traditional styles.

Costa Rica's cuisine is a fusion of Spanish, African, and local flavors. One of the most famous dishes is Gallo Pinto, which consists of rice, beans and aromatic spices, making it popular for a hearty breakfast.

Costa Rica's Golden Visa program offers an easy way to obtain a residence permit while maintaining your nationality. This program allows you to travel to 149 countries without a visa, including Schengen countries, making it very attractive for those looking for new living and traveling opportunities.

Climate comparison in Panama and Costa Rica

The weather in Panama varies significantly depending on the region. In the country's capital, Panama City, the climate is usually warm, with average daytime temperatures ranging from 22°C to 33°C throughout the year. In the higher elevations, such as Boquete, temperatures are much cooler, ranging from 13°C to 24°C. In general, Panama's climate is tropical and stable, with a wet season lasting from May to December and a dry season lasting from January to April.

Costa Rica also has two distinct climatic periods. The dry season lasts from December to April, characterized by a hot climate and minimal precipitation, while the wet season lasts from May to November. The lowlands of the country have a warm and tropical climate, while the highlands have a cooler climate. For example, in the capital San Jose, the average daytime temperature ranges from 14°C to 26°C, while in Monte Bello, located in the province of Heredia, the average temperature ranges from 24°C to 30°C.

In general, Panama and Costa Rica have a similar tropical climate with corresponding weather conditions. Both countries often experience short-term storms, but strong tropical storms and hurricanes are rare in both countries. This makes the climate of these countries attractive to residents and tourists looking for stable weather conditions throughout the year.

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Cost of living in Panama compared to Costa Rica

Central America is a popular destination for those looking to relocate abroad, and Panama and Costa Rica are at the top of the list. 

The cost of housing

The real estate market in Panama offers a wide range of housing options with different price ranges, depending on the type of property and its location. In particular, the prestigious neighborhoods of Punta Pacifica and Punta Paitilla stand out among others. The cost of housing in these areas ranges from $2000 to $2900 per square meter, depending on the age of the building, the view from the window and the availability of additional amenities. Monthly rent for a one-bedroom apartment in Panama starts at $600 and can reach $1500.

In Costa Rica, the housing market also offers a variety of types of houses and apartments. In the capital San Jose, the average cost of real estate is about $2400 per square meter. It is important to keep in mind that prices may vary depending on the location of the property - whether it is in the city center or in the suburbs. Renting a one-bedroom apartment in San Jose usually costs between $600 and $850 per month.

Both countries have their advantages when it comes to choosing a place to live. Panama offers luxury apartments in prestigious neighborhoods with a wide range of amenities, while Costa Rica provides opportunities to live in different types of housing, depending on preferences and financial capabilities. Real estate prices in both countries are competitive and both countries provide comfortable and affordable housing for their residents.

Cost of food

The cost of food in Panama, for example, a simple lunch with a drink in a budget restaurant costs about $7.70, if you visit the market and buy 1 kilogram of rice, it will cost $1.98. In addition, you can find fresh and very affordable fruits and vegetables in the nearby Panamanian markets. 

Costa Rica may be more expensive than the neighboring country, but there are ways to save money. For example, a simple lunch at an inexpensive restaurant can cost about $9.42, while a 1-kilogram bag of rice at the market costs $2.18.

Utilities

In Panama, the cost of utilities, including electricity, water, and gas, typically ranges from $50 to $70 per month. However, heavy use of air conditioning can significantly increase bills. Internet costs in Panama range from $35 to $60 per month, depending on the provider you choose and the speed of your connection.

In Costa Rica, utility costs also remain quite economical. The average monthly cost of electricity, gas, and water is approximately $100. This contributes to the overall affordability of life in Costa Rica. Internet costs here range from $40 to $50 per month, depending on the chosen tariff plan and provider.

In the previous article, we told you why you should invest in the Caribbean, what are the benefits of investing and what are the best Caribbean islands to invest in in 2024.

Comparison of the healthcare system in Panama and Costa Rica

The healthcare system in Panama provides access to high quality healthcare for all categories of the population, including expats and residents. The public healthcare sector is funded by the government and controlled by CSS (Social Security Fund) and MINSA (Ministry of Health). For citizens and permanent residents, medical services in public institutions are free of charge.

The private healthcare sector in Panama, although more expensive, provides a high level of service. Private hospitals attract medical tourists and are popular among expats due to their high quality and affordable prices. They offer fast service and often have English-speaking doctors. Modern equipment, specialized services, and qualified medical staff are the hallmarks of the Panamanian healthcare system, which meets a variety of medical needs, from routine check-ups to emergency care and specialized treatment.

Costa Rica provides healthcare for all residents through the CAJA program. This public healthcare system is funded by monthly contributions paid by employees based on their salaries. For citizens in need of financial assistance, health care is free. Both locals and foreigners using the public healthcare system are required to pay the contributions.

Although the public healthcare system in Costa Rica offers reasonable prices and excellent service, it is often overcrowded. This can lead to long wait times and delays in procedures. Because of this, many expats choose private healthcare. Costa Rica's private healthcare system provides access to highly qualified doctors, inexpensive medical services, and modern hospitals, although its technological level may be inferior to Panama.

Costa Rica's healthcare system is considered the best in Central America, while Panama ranks second. According to Legatum's 2023 World Health System Prosperity Ranking, Costa Rica was ranked 30th and Panama 57th. Both countries offer a pensionado visa program, but the Panamanian program provides more healthcare benefits, such as discounts on hospital bills and prescription drugs. This makes healthcare costs for retirees in Panama lower compared to Costa Rica.

Investing in real estate in Panama and Costa Rica

Panama's economy is developing rapidly, making it one of the fastest growing countries in Latin America. Panama is a significant player in international trade and banking, with numerous large global companies located there. Of particular importance is the Panama Canal, which has had a significant impact on business and shipping.

Panama uses the US dollar, which contributes to the stability of its economy. Despite the challenges the country has faced during the pandemic, its economic foundation allows for a rapid recovery. The tourism industry has a significant impact on the real estate market, and this impact continues to grow. Real estate prices in Panama have been rising steadily over the past decades, making it attractive to international buyers.

Costa Rica is a great place for investors due to its stable and reliable real estate market, which makes it attractive for long-term investments. While financial multinationals have chosen Panama, tourism in Costa Rica is booming, creating favorable conditions for the hotel and vacation rental industries. In addition, a number of large companies, such as Amazon, Intel, HPE, and VMware, have opened offices here.

Costa Rica offers a stable business environment, a skilled workforce, and government support for the ICT industry, making it particularly attractive to investors. In addition, foreign investors have access to numerous benefits and initiatives that contribute to the country's investment attractiveness.

You can learn more about Caribbean Citizenship by Investment, which Caribbean countries offer citizenship by investment in 2024 and what are their advantages in our previous article.

Security and crime rate in Panama and Costa Rica

Panama is an attractive option for foreigners looking for a safe and prosperous living environment, characterized by low crime rates and a traveler-friendly atmosphere. In 2023, the crime rate in Panama was 45.15 per 100,000 people. 

Unlike some other countries, Panama is characterized by the absence of widespread problems related to envy or racial hatred. Although the country is not completely free of crime, violent crime is almost non-existent. Although Panama is generally safe, caution is advised in certain areas such as Yaviza.

Costa Rica also offers expats a safe environment. In 2023, the crime rate in Costa Rica was 54.22 per 100,000 people. The country's commitment to eco-tourism and conservation has contributed to a peaceful and tranquil environment in many regions. 

In general, both countries have relatively high levels of bribery and have seen an increase in crime over the past 3 years. Costa Rica is dealing with higher levels of vandalism, theft and assault, as well as drug-related crime, which is more evident than in Panama.

Daria Rogova, Head of Insurance at Visit World

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