Panama is in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica. The climate is tropical maritime, hot, humid and cloudy with a prolonged rainy season (May to January), and a short dry season (January to May). The official language is Spanish. In Panama City and Colón, most Panamanians speak English, which is widely used in business circles. The country's indigenous languages such as Kuna and Ngöbe-Buglé are well preserved and mainly spoken in rural areas. The main religion is Christianity. The Economy of Panama is free market economy with a history of low inflation. It is based mainly on the services industry, heavily weighted toward banking, commerce, and tourism. North American business practices heavily influence the business culture. Expatriate business dress is conservative in the form of a suit for meetings. The security risk for expatriates in Panama is low, but medium for Colón and high for Darién. Risks include petty, street, and violent crime, with kidnapping being a high risk in Darién. The currency of Panama is the Panamanian Balboa (PAB). ATMs are widely available and most international cards are accepted. Medical facilities in Panama City are generally good, but elsewhere are limited. Cases of Zika virus and Chikungunya virus have been reported. Malaria and dengue fever are common. The population of Panama is 4 Million (2019 est.), while the inflation rate (CPI) is 0% for Panama as at May 2019. Xpatulator Hypothetical Tax for Panama is based on the current personal income tax rates which are progressive up to 25%.
Cost Of Living
The cost of living for expatriates / professional migrants in In Panama, the cost of each basket, based on local prices, compared to the international average, is categorized follows (Exact cost of living percentages only available in personalised reports): Panama as at 1 July 2019 is high in comparison to other places in the world. 1) Alcohol (where available) & Tobacco: Very Low 2) Clothing: Average 3) Communication: High 4) Education: High 5) Furniture & Appliances: High 6) Groceries: High 7) Healthcare: Average 8) Household Accommodation: High 9) Miscellaneous: Very High 10) Personal Care: High 11) Recreation & Culture: High 12) Restaurants Meals Out and Hotels: Very High 13) Transport: Very Low Panama is for example 1.6% more expensive than USA for groceries, 16.1% more expensive for household costs than UK, and 45.6% more expensive for transport costs than India. The hardship premium for Panama for an expat from Australia, is for example 10%, i.e. host location (Panama) premium of 20% minus home (Australia) location premium of 10%. Panama is ranked as a some hardship location. Want to know more about cost of living, hardship (quality of living) or expat salary in Panama? Register subscribe to your home location and Panama and run your personalised reports.