Costa Rica vs Panama through expat/immigrant eyes. Real experiences and honest comparisons from those who chose one country over the other for their new home.
Central America is a popular consideration for potential expats, emigres, immigrants, retirees, and digital nomads (I think we’ve covered the bases there). And in Central America, Costa Rica and Panama are still the most popular choices for North Americans and Europeans. Which one is better, though? Choosing between Costa Rica and Panama depends entirely on what you’re looking for out of your new life. Both countries offer established expat communities, warm weather, beautiful beaches, and natural beauty. But what makes people ultimately pick one over the other?
To help answer this question, we looked at recent discussions in some Facebook expat groups where members explained their choice between the two countries. While individual experiences vary, these firsthand perspectives reveal interesting patterns about what draws people to each location.
These insights come directly from expats in both countries, including some who have experienced life in both Panama and Costa Rica. Their observations include cost of living, healthcare, infrastructure, and cultural differences. Let’s examine what made them choose one country over the other.
Why These Expats/Immigrants Chose Panama Over Costa Rica
Infrastructure, Healthcare, and Visas
Cost and infrastructure are key factors in choosing Panama over Costa Rica. Many cite Panama’s use of the US dollar as a significant advantage over Costa Rica’s colón, eliminating currency exchange hassles. Infrastructure repeatedly comes up as a deciding factor, with expats noting Panama’s better roads and reliable utilities compared to what they found in Costa Rica. “Basic infrastructure such as roads and water is way better in Panama. Costa Rica is now expensive and you still can’t get anywhere in the country easily,” one expat explains.
Healthcare quality and affordability pushed many toward Panama. One resident described paying less than $700 for an emergency room visit that included lab work, x-rays, ultrasound, and four different medications – with treatment beginning within 10 minutes of arrival. Those who explored both countries often point to Panama’s medical system as superior and more cost-effective than Costa Rica’s.
The visa process also attracts many expats to Panama over Costa Rica. Panama’s pensionado visa program offers substantial benefits that many found more attractive than Costa Rica’s options, particularly for those over 60 who receive significant discounts. One expat described getting 25% off airfare when flying from Panama City, making business class travel to Europe significantly more affordable. Several commenters noted Panama’s simpler residency requirements compared to Costa Rica.
Living Costs and Lifestyle
Cost of living repeatedly surfaces as a major reason for choosing Panama. “Costa Rica is getting Westernized real quick,” notes one expat, adding that Panama offers more authentic culture and better access to city, beaches, and mountains. Others who compared pricing between the countries found Panama more affordable for housing and food. However, they note important nuances. One expat explains that you save money eating locally produced food and at fondas (local restaurants), but imported items cost more in both countries.
Several expats who experienced both countries explained their choice in terms of long-term livability. As one puts it: “If the two countries were brothers, Panama is the brother who went into banking and builds infrastructure. Costa Rica is the brother who went surfing.” Some chose Panama specifically because it feels less “Westernized” than Costa Rica.
Safety and Geography
Safety comparisons influenced many decisions. Multiple expats mention concerns about increasing petty crime in Costa Rica. Police interactions also swayed choices – several expats mention police “shakedowns” being more common in Costa Rica than in Panama (please note that these are comments are subjective, and no way reflect the reality). One expat who visited both countries shared, “Panama City was great… I HATED San Jose; too expensive/scary to go anywhere.”
Geographic diversity and accessibility played a role in the decision for many. While both countries offer beaches and mountains, expats found Panama’s locations more accessible due to better infrastructure. However, they caution that prime areas for expats like Coronado, Boquete, Bocas del Toro, and Pedasi command higher prices than local averages. “Panama has all that CR has to offer plus Panama City has everything and more that you need from a city,” explains one expat who had experienced both countries.
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Why These Expats/Immigrants Chose Costa Rica Over Panama
People, Culture, and Service
It’s the people and culture that emerge as the dominant factors for those who chose Costa Rica over Panama. “The people are much nicer here,” states one expat simply. Another describes Costa Ricans as “friendly and appreciative” compared to their experiences in Panama, where they “felt unwanted” as visitors (again, this is all subjective). This sentiment appears repeatedly in comparisons between the two countries.
Customer service also influenced decisions. Multiple expats say they found better service in Costa Rica, with one noting they “would rather pay more and get better service” than deal with what they experienced in Panama. Several mentioned difficulties getting basic tasks accomplished in Panama, finding Costa Rican service providers more responsive and willing to help.
Healthcare considerations swayed some toward Costa Rica. While both countries offer quality medical care, several expats insist Costa Rica’s medical staff show more willingness to care for patients than their Panamanian counterparts. Some found the overall medical experience more positive in Costa Rica despite potentially higher costs.
Climate and Environment
Several expats cite climate as a key factor in choosing Costa Rica. “Panama has too hot weather,” explains one, while others praise Costa Rica’s weather as more comfortable. The temperature difference particularly matters to those settling in or around Costa Rica’s and Panama’s capital cities, where San José’s elevation provides what many describe as far more pleasant year-round conditions than the constant heat and humidity of Panama City.
Weather isn’t the only environmental consideration. One long-term Costa Rica resident who spent considerable time exploring Panama noted that while Panama offered better roads and shopping, they “didn’t like the trash seemingly everywhere, all over the country.” They found Costa Rica generally cleaner and more environmentally conscious, a factor that outweighed Panama’s infrastructure advantages.
Location and Lifestyle
Location-specific experiences shaped many decisions. Costa Rica expats often emphasize that living away from tourist areas provides a more authentic and affordable experience than critics suggest. “I live in the Central Valley, where it is not a tourist economy by any means and nearly all of our roads are smooth, nice and fairly new if not completely new asphalt. Rents are cheap and the people are real,” says one expat.
Those who chose Costa Rica often acknowledge Panama’s advantages in infrastructure and cost but say the trade-offs were worth it. One expat points out that Panama’s superior infrastructure came largely from US investment during the Canal era, suggesting the difference isn’t necessarily due to better governance. Others mention that while Panama might offer more modern amenities, Costa Rica provides a more relaxed, pura vida lifestyle that better suits their preferences.
The tourist infrastructure, while sometimes criticized for raising costs, also offers advantages for some. English-speaking services are more readily available throughout Costa Rica, making the initial transition easier for some expats (Panama has the lowest English proficiency in Central America). Several note that Costa Rica’s well-developed tourism network provides more options for visiting family and friends, a factor that influenced their decision to choose Costa Rica over Panama.
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Making Sense of the Contrasts
These expat discussions show an interesting difference in experiences between the two countries. In Panama, people consistently mention practical advantages – reliable infrastructure, affordable living costs, straightforward use of the dollar, and significant retiree benefits. Costa Rica’s appeal emerges from a different set of priorities. While acknowledging higher costs and infrastructure challenges, expats in Costa Rica emphasize satisfaction with more social aspects. Several who chose Costa Rica note they consciously accepted higher expenses in exchange for what they considered better service and social connections.
Key Differences According to Expats:
Panama Advantages:
- Lower cost of living, especially for housing and food
- Better infrastructure including roads and utilities
- Use of US dollar eliminates currency concerns
- Easier residency options
- Modern amenities, especially in Panama City
- Generally lower healthcare costs
Costa Rica Advantages:
- Natural beauty and stronger focus on environmental protection
- Well-developed tourism infrastructure
- More widely available English-speaking services
- Better reported customer service experiences
- More established expat communities in various regions
- Frequently praised for local friendliness and culture
These perspectives highlight the intense development focus of Panama over the past few decades versus Costa Rica’s more tourism-oriented evolution. Each path has produced distinct advantages and challenges, creating two notably different expat experiences in neighboring countries. What’s most clear is that the choice between them often comes down to which aspects of daily life matter most to each individual.
