Panama Versus Portugal Cost of Living
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- čas přidán 4. 07. 2024
- Now Panama is my favorite Latin American retirement destination and we will put it up against Portugal- one of the best European destinations. Panama and Portugal have made it to the top of several well-known retirement lists and they are very popular with expats from the United States and abroad. Some of you might already know or suspect which of these countries has a lower cost of living, but you might not know exactly why. Keep watching to find out which of these countries would be best for the budget you have to work with and the lifestyle you are looking for.
If you have ever considered moving and retiring to another country such as Panama or Portugal, one of your biggest considerations will be cost of living. Watch this video for a comparison between the cost of living in Panama Versus Portugal. If your goal is to become an expat or simply visit one of these great countries for a while, then you need to know what rent and the cost of homeownership will be, including any taxes you would be responsible for in these scenarios. In addition to housing we will cover topics such as budgets, salaries, and places to live. In our next video we will discuss Quality of Living which takes the cost of living and balances that against quality of life factors to give you a sense of overall value for the money. Please subscribe so you don't miss the next one. Lastly, follow the in-video links to other videos about how to travel and where to go in Panama and Portugal and use the time codes below if you want to jump to a particular section of this video:
Time Codes
0:00-1:18 Intro
1:19-5:53 Housing
5:54-8:34 Taxes
8:35-10:26 Budgets
10:27-13:12 Cost Of Living Conclusion
World Data Website:
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Salary Explorer Website:
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Panama is much closer to the US and because of the ex canal zone more people speak English. Also Spanish is a more common language than Portuguese and in my opinion easier to learn. Panama is in the tropics whereas Portugal is in a temperate zone. Panama uses the US dollar as their currency as the balboa doesn't really exist only in name. For Americans I think Panama is a better choice. I have lived in Panama for 23 yesrs up to now.
Thanks for contributing! I tend to agree with your conclusion, but admittedly I'm a bit biased. You brought up some great points though. Much appreciated.
Can you tell me more. 😊
@@zhanebrantley2944 Panama has Taco Bell.
@@bm5906
I wouldn’t eat in a Taco Bell in any country… It make me cringe just to think of it!! 🤢🤮
All true, unless you have kids, then the education system plays huge role in your decision . Both are good options depending on one’s personal needs. You made great points though.
I live in Panama. The choice was easy for me.
Indeed! Where in Panama?
I have residency in both countries. I left Portugal after nine months mainly because of needing to return to the US periodically requiring long flights. Portugal is notoriously difficult to get things sent from the US. Panama is infinitely easier to access anything you might need from the states. The infrastructure in Portugal is far superior to Panama. Trains crisscross the country and are inexpensive (as are buses). A shocking number of people speak English in both countries. The COL in the Algarve (warm beach area) in Portugal is 50% to 75% more expensive than beach areas in Panama.
I've found the people in both countries to be incredibly warm, welcoming and friendly. I'm headed back to Panama permanently in just a few months.
The visa process for Panama is much easier compared to Portugal. The Pensionado visa in Panama offers numerous discounts, there's no such thing in Portugal.
You must give up your US drivers license to obtain a Portuguese and it is an unbelievably tedious process. One of my friends there waited a year for his.
Portuguese residency offers a path to EU residency and citizenship (and passport!). The Panamanian Pensionado does not offer a path to citizenship.
Thank you for the very thoughtful information you provided. Usually people are in one camp or the other. I appreciate a more balanced perspective on this comparison.
Very informative. If their education system was better, we’d move there. Thanks for your input
@@unapologeticallyroxanne8046 I understand education is an important consideration. Thanks for the comment
Panama is highly Modern with advanced modern Architecture and more pleasant conditions of living in my opinion .
They both have their charms but I won't disagree with you 😎
I dont know Panama, but I know Portugal. Some tipos: Living in Lisbon you have a good airport to go to whatever country in Europe. Weather in Lisbon and down is dry and sunny, up to Lisbon is windy. The beachs are nice, but the water is freezing. Driving and parking in Lisbon is a nightmare, but for going to a Hypermarket you will need a car or you have to buy in the proximity stores, that are more expensive than in the comparison that you did.
Thanks for contributing. I believe for many of us cost of living has risen faster than our paychecks unfortunately.
Hermosa panamá algún día iré a conocer bello video
Oh sí, Panama es lo major, gracias!
We lived in Panama for multiple months in the city of Chitre, and our rent for a furnished home with a new large double door refrigerator with water supply in the door, paid $18 for half of internet cost and Paid $250 per month. Chitre was an amazing city and had multiple exceptional supper markets in the town center that were all very close to each other. It also has a major hospital. In addition it has a massive builder supply and a equally massive home refurbishing shop. We lived with 30 meters of a major university, which had a huge covered bus stop. We rarely waited more that 5 minutes for a bus and a ride cost .35 cents. It seemed like Chitre had every thing we could want. Our favorites were a shop that made exceptional ice cream that cost $1 for a double cone. Also, we found a bakery that would be hard to beat anywhere in the world, and we loved to stop and relax in this shop. The down town was packed with shops that sold everything we ever wanted and highly competitive prices. One point that was missed in the Portugal vs Panama comparison was water temperature. I researched Portugal for quite some time, and found that beaches in the west end of the Algarve had the hottest temperature rise to 67°F in June. By comparison, Panama water temp in June will be in the 84F range. To me Portugal's mid 67F or lower is too cold and if you notice there are usually only a few people in the water playing long term. Most just seem to cool off their feet.
Thanks a lot for your comment! I love to hear personal experiences like that. I will have to look into Chitre a bit more. As for the water temp, that is something I should include in future videos as it is something I myself consider when traveling. I do a lot of snorkeling, so I am always wondering about the water temps. Thanks for sharing info regarding your time in Panama and providing some helpful feedback. Take care!
Both are beautiful and near the top of my travel bucket list!
They are! Hope you get to go soon.
The Portugal Non habitual tax regime (NHR) gives you 10% tax for 10 years. After that expect 30 + % tax rates.
Portugal tax residents (over 183 days) pay tax on their worldwide income as does the USA.
Panama only taxes income derived in Panama.
Panama is a better overall value for a retiree.
Portugal DOES NOT recognize the tax free benefits of a ROTH IRA.
I am a dual US/Portugal citizen. From a financial standpoint, I would
absolutely choose Panama.
Great points and I have to agree that Panama wins if we're just looking at the economics of it all. But if you we someone that had your heart set on Europe I think you could do a lot worse than Portugal. I'm actually watching an HBO show about surfers that catch enormous 100 foot waves in Nazare Portugal. Very interesting show. Thanks for the comment!
Thanks for that information!
Very good for you because you are Portuguese\American and if you have a child , get cancer or any other serious illness in Panama you can always choose between paying for your child education and your treatments in Panama or in the USA but you can also opt for having them both for free in Portugal like any Portuguese or foreigner paying taxes in Portugal.
@@terra7066 Excellent point!
Great video and very informative. We are looking at Ecuador and also Columbia. Both still working and in our 50's. We are leaning towards Ecuador for clean water, air and Organic Food in Southern Ecuador, travel time 15 hours back to the West coast, Panama, although a little bit more in cost allows us a 6 hour flight from David back to Los Angeles for family, one last option is Thailand where we have lived prior...plan for 30 hours to return. We also lived in Puerto Vallarta Mexico. 4 hours.
We are concerned with safety and yes Puerto Vallarta is very safe with those who have common sense.
Once ag
Appreciate the comment! Sounds like you all are getting around and enjoying it. We are obviously biased towards Panama but my wife is Peruvian so we plan on spending some time there as well once fully retired. We are mid 40s and, if our plans gel, we should be able to retire by mid 50s. Check out my recent video on Crime in Panama vs USA. There is some excellent crime data in the links that may be useful in your decision process. Thanks again!
I am from Panama and every local that leave the country return 1 or 3 years later.
We love it here in Ecuador (Manta). We prefer the more stable weather (no hurricanes) and lower temperatures and humidity compared to coastal Panama.
Well done, no-hype video. The publisher actually presents factual data, not "internet science and opinion". Both countries look to offer lifestyle benefits that may appeal to different population segments, but the fact that Portugal is tax-hungry while Panama courts people with stable incomes (and, being retired, strongly tend to obey the law/ not cause trouble). In short Portugal looks to attract revenue through comprehensive taxation, while Panama seeks to attract revenue because money will always flow to where it is treated best.
Nice compliment and good analysis. Thanks 🙏
WELL Said !!.
@Beasleyfinds - what you neglected to mention is after ten years of NHR in Portugal. The retiree has to pay what an average Portugese pays in taxes, even on income that is not made in portugal. And those tax rates are ridiculously high, like in the neigbouhood of 35-45%. That changes the paradigm and makes Portugal less attractive. Same with spain , except in spain it is from day one and not after 10 years. In that respect, Latin America is significantly better. Heck the U.S would be better if the Healthcare wasn't so crappy and expensive. So I appreciate the video, gave you a thumbs up. But my point is at first blush all these places look cheap. When you do more research however the truth you discover makes you realize that they are as expensive as homestead.
I'm not sure that I neglected the tax consequences of moving to Portugal, but if I did I thank you for filling in the gaps!
Very nice comparison. I lived in Panama at one time in my life & I can verify that you speak the truth.
Many thanks my friend
Very detailed comparison! I found your content very insightful and beneficial. Thanks for all of your hard work putting this analysis together.
So glad you found it useful. It did take a lot of hours to research.
I too felt you did a very good job. Thank you. @@beasleyfinds
Thank you!
Terrific video. Excellent quality information well presented. You more than earned my ‘like’ and subscription. Keep up the good work!
Wow thanks very much! Im in progress with another video about crime in Panama vs U.S. I better get to it! Thanks again 👍
good video i really appreiciate it the information you provided.
My pleasure, glad it was helpful.
Portugal has reportedly made pension visa unavailable to expats living on the coast as they have driven the cost above affordability for native Portuguese
This is a problem in other places as well such as Puerto Rico. It even happens in the US. When a place gets popular, the rents go up and up. Sad for people who've grown up there and want to continue living there.
Thanks for the video!
You're very welcome
Well done! Thank you! 🙂
Much appreciated 👍 thank you!
Such a well-researched and informative video. New subbie from Jamaica 💕
Thank you very much! For the comment and the sub :)
That was very helpful as we are considering spending a good amount of retirement time in both before we decide.
Thanks or that. Just subscribed.
Appreciate the feedback! Working on a Quality of Life comparison next 👍
Another amazing video, very nice! I hope you reach 1k subscribers soon.
I hope so too!
Great video
Thank you Randy!
Love the funny "beg" for subscibers. You must be some good fun at a party ! Quality vid for a newbie. Enjoy Monetization brother !!!!
Haha thanks! I'm the life of the party of course 🥳. Appreciate the compliment- not sure where my CZcams career will take me but I'm having fun. Cheers bro!
Enjoy our latest video and let me know what you think and what you'd like to see next. Please be kind!
My biggest question has been difficult to find an answer for. What options does a retiree in either of these countries have if they fall ill and are no longer able to care for themselves. Say I retire happily to Panama, but then suffer a stroke? Are there supported living homes for the ill or very elderly? Are they accessible to expats? How much do they cost? Would I be forced to move back to the US instead? What if you just have a long bout of illness and need a temporary stay at a skilled nursing type facility? Do they exist? I would love to see you make some sort of informative video that addresses these types of concerns.
This is a really good question and one that I've pondered myself from time to time. I am dealing with these realities with my aging parents back home and it's a serious challenge. I've learned a lot along the way so I do have some thoughts on the subject. Most people in the middle class in the states end up receiving Medicaid if they can't afford nursing care or assisted living. But if you were living abroad and could afford private senior care it might be quite possible to stay living abroad while recovering or receiving personal assistance. However, if your condition affected mental cognition who would coordinate your care? In the end, I suspect many people end up returning "home" where they have family, friends, or the state to care for them. That might be the most sensible thing in the end. Good question! See what I can do about a video.
Thanks! I liked, and sub’d and I am going to watch more of your video. Thank you for your service. I am more interested in Panama but not the expat areas. I speak well enough español so I would rather just go with the natives…. Until next time. Thanks again.
I appreciate your support 🙏 and I am trying to improve my Spanish every day as my wife and in-laws are Spanish speaking. I am thinking of doing some videos on Peru next or continuing to post videos on Panama as they seem to be the most popular. We shall see
Videos on Peru would be greatly appreciated! And on any countries in Latin America, really.
@@thegourmetcornerusa3128 I am working on a Peru video right now. Thank you!
PT has the non-habitual resident program, taxing you at 10% for the first 10 years. They tax worldwide income. Panama does not.
A nice benefit
Hi Sir....How are you? I'm a new subscriber to your channel. I'm looking for information regarding to have a virtual therapy business in Portugal in mental health services. Can you guide me or know anyone that might know the field well. Thank you.
Hi 👋 I'm doing fine. Unfortunately I'm the wrong guy to ask about this kind of thing. Although, a video on starting an online business while living abroad sounds interesting. You should search for a video related to this topic. Best of luck!
@@beasleyfinds Thank you and will do
What’s the date of this video??
2-4-23
God go to Portugal please…
I was in Portugal during my tour of duty in the military.. hoping to return soon. Thank you!
The decision for me as german is made. I prefer Panama because it is far away from EU.
In EU we are faced with economic decent fir the next decade/s. Panama gas a lot of advantages. Legal certainty and a lot of advantages for pensioners. I don't trust EU because it seems to become an marxism dictatorship. Prices are climbing and prohibitions and regulations wherever you go.
Thanks for your perspective. Good to hear from someone from Europe. Glad you find Panama to your liking.
I’ve been to both and it’s no comparison, Panama seems like a third world country, Portugal is not.
Brutal
I’ve never visited Portugal but my wife and I went to Panama for a month. We enjoyed visiting Panama but I wasn’t that impressed. We drove all over except the eastern coast. The roads (Highways) were very. I just didn’t care for it that much! Food wasn’t special, lots of Chinese presence in Panama.
I don’t like the % numbers. Rather see prices on same products( eggs, milk, beer, gas, coffee, steak, pork chops, bus rides ect) let’s call it real costs. I stayed in a Holiday Inn in Panama City. That was very nice with a great breakfast! Stayed in 3 airB&Bs those were lets say lower end and language was a challenge also which surprised me because the US had been over there for so long!
Hey, it's not for everyone. I'd be curious to know where exactly you visited. I have videos on where to go in Panama and also Portugal if you care to watch. Thanks for the comment!
I think it is not very legitimate to compare Panama and Portugal on COL only. Why? They are very different types of countries in very different parts of the world. Panama is said to be 'developing', which is a way of not saying it is largely 3rd world. Portugal is first world all the way. Panama is in central America, which is all 3rd world. Portugal is in western Europe, the whole region being very first world. All of Panama`s infrastructure is still pretty 3rd world, and things like power and water outages are common. Portugal has excellent infrastructure in every respect, especially in healthcare, public safety, public sanitation, and transportation. I`d say Portugal`s COL is reasonably commensurate with all the country and that region has to offer. In contrast, Panama`s COL is much higher than it should be, given what the country offers to who lives there. You can`t just compare raw COL figures between countries when the nature of the countries is as different as Panama and Portugal are. I know International Living does that, and they often mislead people by doing so. COL is just one factor. You could have a very low COL in Afghanistan, but would you want to live there? Point made!
Thanks for your perspective. Sounds like you got it figured out. If you're asking for another video, not a problem, but doesn't seem like you'd be interested. Have a nice day.
@@beasleyfinds I got very little figured out. But I am pretty confident in saying that the COL in Panama is high in relation to the type of country that it is, and more or less commensurate in Portugal, for the type of country it is. The COL in Portugal would be a lot lower if it were not for the flood of Europeans and Americans pouring into it because it is a high quality lower cost of living place. In about 70% of Portugal, not the 30% that is coastal, the COL is dramatically lower than Panama, but that`s because it is rural and mountainous and isolated, and most people don`t desire to live like that.
What a garbage take. You have in your mind of what cost of living means to you while it can mean different to someone else. To comment to try to make your point more valuable after the work @beasleyfinds put in is ridiculous.
and Russia could declare all out war on NATO and completely cripple the EU for decades. Meanwhile people living in Panama aren't paying any taxes, get discounts for having a retirement visa, are 3 1/2 hours from the US, use American currency, have access to American cell plans with the best coverage and speeds available in Panama, have access to private healthcare that's expedient and inexpensive yet decent quality. Enjoy giving up to 45 percent of your retirement to Portugal's government while you surrender your native drivers license and wait up to a year for a local one. Enjoy your overpriced, over taxed, over regulated bureaucratic nightmare.
Portugal all the way! You can buy a very affordable house in central Portugal or about 30-45 minutes away from the coast and still have the same quality of life. Panama is great but it’s not as cheap for buying a house that’s akin to what you would expect in the US (Portugal is cheaper, especially in the Azores). Portugal is also much safer and easier to get around
Sounds lovely actually. I spent time in the Azores as a member of the armed forces. I really liked it there.
It's not cheaper once you start paying their insane taxes.
@@Sheepleton I pay much more in the US when you add up the exorbitant amount of money you have to pay for health insurance, Rx, tuition, insanely expensive homeowners insurance and tons of security measures because of the high crime, college tuition and higher costs for food and water that’s not poison. The US is a dysfunctional dystopian dumpster fire that’s literally living out Idiocracy and The Handmaid’s Tale irl. Hence why there’s been a massive brain drain for years.
Weather in Panama is muggy, cloudy, misty, rainy. Look at a map of Panama. Look at the east side of the country, the part on the east side of the continental divide. Notice there are NO CITIES there at all except for Colón. That's because it rains all the time east of the CD.
Yes it does
Explored Panama and Portugal. Panama is only great on paper. The decent houses are very expensive, the cheap ones need security 24/7. Panama city has nice buildings, but they can be surrounded by real junk ones. The ocean is not clear and beautiful, but warm. The drivers are one of the worst on the planet. Police is super bad. In 2 weeks we were shaken by police 3 times and each time they ask for $150, but agreed for $50 (we did not break any rules, just were random stopped while driving. Once in Panama, once on highway, once on small road in rural area). A lot of petty crime. Bocas del Toro is very dirty and undeveloped. "Most people speak English" is total fake. Even in the biggest mall in Panama, we often had issue to find English speaking staff. When you go out from Panama City, even less. We found that local people look at you as a walking wallet. We had been in over 50 countries and found that we like Panama the least. We had a great expectations for the country and nothing on the list we could "check in", except the beautiful nature. You can live in Panama cheaply if you live like local, which is very difficult to do. If you want secure and nice surrounding, Panama is very expensive. We picked Portugal and we are here now for almost 2 years. We are in Algarve. Did not regret it for a second. Portugal is not perfect, but real close to it.
Thank you for your perspective.
Enjoy your 35-45% taxes on any and all income. You sound rich and spoiled so I'm sure you don't care if you give away almost half your income....
Costs I care about: How much is a 2 liter bottle of Coke or Pepsi? How much is a dozen extra large eggs? How much is a kilo of rib eye? How much is a kilo of chicken breast? How much are avocados? How much is a pound of extra sharp cheddar cheese? How much is a liter of extra virgin olive oil? Cheese in Panama is criminally expensive. Imported beef is worse. Haas avocados cost over $4/lb most of the time; in the US midwest they are often less than a dollar each. How much are they in Portugal?
Those are good questions.
No culture in Panama 🇵🇦 is the only thing I don’t like it
Less cul
expat = immigrant...
No, immigrants are usually defined as people who have come to a different country in order to live there permanently, whereas expats move abroad for a limited amount of time or have not yet decided upon the length of their stay.
@@beasleyfinds hmmmm 100% of the so called expats in Panama live there permanently yet they call themselves "Expats". Expat is just a nice name for immigrant but they seem to be ashamed of being called immigrants.
@@CharlieBrown0507 interesting perspective, thanks for your comment
No, an immigrant comes to a place with an expectation to to stay permanently and put down roots.
An ex-pat knows they are there for a short amount of time and will not be putting down permanent roots.
Great video! Thank you