While the residency requirement for monthly income is $500 or $750 per month depending on the type of Visa you obtain, this is not adequate for any more than a very basic lifestyle. Panama is a bargain when it comes to many things – health care, food, and entertainment. However, electricity is expensive and housing prices vary based on what you are willing to spend. Keep in mind that a middle class Panamanian earns between $16,000 and $35,000 per year. For this he lives a nice lifestyle and so can you.
Unfortunately, as of 2008 inflation has become a factor in Panama. Prior to this time 2% was what could be expected. However in the first three months of 2008 alone, inflation rose by 8%. The basic food basket, which measures the cost of 52 items in 10 categories, rose from around $176 last year to over $245 by May 2008. Gasoline and diesel are over $4 per gallon. While the minimum wage also increased for Panamanians, it is no where close to keeping up with the cost of living.
