Panama Safety and Cost of Living [2026]: Dangerous Areas, Where Japanese Residents Live, Rent and Prices

October 19, 2026

Taiga Sato

Panama is clearly less safe than Japan: in 2024, its homicide rate per capita was about 15 times Japan's, and its robbery rate about 114 times (Japan's Ministry of Foreign Affairs). However, most violent crime consists of clashes between gangs and is concentrated in specific neighborhoods of Panama City such as El Chorrillo and Curundú, in the city of San Miguelito and in Colón Province. Crimes against Japanese residents are mainly robberies at night or in quiet areas, and you can reduce the risk by choosing where you live and how you get around. Living costs are in US dollars, and rent for a one-bedroom apartment in Panama City is around US$1,100–1,900 a month. On tax, Panama does not tax income earned abroad, but because there is no tax treaty between Japan and Panama, Japanese public pensions are subject to 20.42% withholding tax in Japan.

*Safety information and amounts are as of October 9, 2026. This article is an English version of our Japanese guide, adapted for foreign residents of Japan and international investors. Check the latest safety information on the overseas safety website of Japan's Ministry of Foreign Affairs and your own government's travel advice.

For an overview of moving to Panama and a list of related articles, see The complete guide to Panama permanent residency and citizenship.

Contents

Summary: key points on safety and living costs in Panama
Safety in Panama: about 15 times Japan's homicide rate, mostly gang clashes
Dangerous areas and where Japanese residents live
Crimes against Japanese residents and how to stay safe
Prices and living costs: in US dollars, with rent as the biggest expense
Healthcare: a shortage of specialists in the public system, so private insurance is essential
Tax and pensions: foreign income is tax-free, but Japanese pensions are taxed at source in Japan
Visas for moving to Panama: pension, investment and Friendly Nations
FAQ
Summary

Summary: key points on safety and living costs in Panama

Item	The situation in numbers	What to check before moving
Safety	537 homicides and 5,636 robberies in 2024 (population about 4.2 million). The homicide rate is about 15.4 times Japan's	Which neighborhood you will live in and how you will travel at night
Dangerous areas	Central and southern Darién Province and other areas are Level 3 (avoid all travel). Panama City, Colón City and others are Level 1 (exercise caution)	Japan's Ministry of Foreign Affairs travel advisories and the embassy's "special caution areas"
Rent	One-bedroom apartment in Panama City: US$1,100–1,900 a month	Whether the building has security guards
Food	Basic food basket (59 items): US$365.88 a month (March 2026)	Imported goods and Japanese food are expensive
Healthcare	At least 71 specialist vacancies at the Social Security Fund (CSS) (March 2026, mainly in rural areas)	Private health insurance and private hospitals
Tax	Income earned abroad is not taxed (territorial system)	Japanese pensions are subject to 20.42% withholding in Japan (no tax treaty)

Panama uses the US dollar, actively welcomes foreign residents, and offers an accessible visa for retirees living on a pension (the Pensionado visa). To avoid regrets, the two keys are choosing where to live while avoiding high-crime neighborhoods and estimating your living costs in US dollars, including rent and health insurance.

Safety in Panama: about 15 times Japan's homicide rate, mostly gang clashes

According to the overseas safety website of Japan's Ministry of Foreign Affairs, 114,070 crimes were recorded in Panama (population about 4.2 million) in 2024. The figures for homicide and robbery, the usual benchmarks for safety, are as follows.

Crime	2024	Previous year	Per capita compared with Japan
Homicide	537	541	about 15.4 times
Robbery	5,636	5,444	about 114.2 times

Homicides have fallen from the record high of 818 in 2009 but remain at a high level. In 2026, 230 homicides had already occurred by May 19, exceeding the 229 recorded by the end of May the previous year (Public Prosecutor's Office of Panama).

Much of Panama's violent crime consists of clashes between youth gangs known as "pandillas". Firearms are used in about 80% of homicides, and people unconnected with the conflicts can be hit by stray bullets. Panama is also a transit point for drugs, and clashes over drug trafficking have occurred even in neighborhoods where many Japanese residents live. In addition, sporadic protests such as road blockades by labor unions and students can disrupt daily life.

Dangerous areas and where Japanese residents live

Japan's Ministry of Foreign Affairs has issued travel advisories for parts of Panama (October 18, 2024, still in effect).

Risk level	Area
Level 3: Avoid all travel	Central and southern parts of Darién Province and the Emberá comarca, and the southern part of the Guna Yala comarca (jungle along the Colombian border)
Level 1: Exercise caution	Panama City (Panamá Province), San Miguelito, Colón City (Colón Province), La Chorrera and Arraiján (Panamá Oeste Province), and David (Chiriquí Province)

Within Panama City, the Embassy of Japan in Panama designates four neighborhoods with frequent gang shootings and drug-related crime, El Chorrillo, Santa Ana, Calidonia and Curundú, as "special caution areas" and advises people to avoid entering them. Japan's Ministry of Foreign Affairs warns that Japanese travelers have been victimized in the special caution areas lying between the Albrook long-distance bus terminal and the historic old town (Casco Antiguo).

Many Japanese residents live in Panama City's San Francisco and Bella Vista neighborhoods, among others. There is a Japanese school in the Marbella neighborhood. These are considered relatively safe residential areas, but the Ministry of Foreign Affairs warns that robberies at night occur even in neighborhoods with many Japanese residents. There are 330 Japanese nationals living in Panama (Japan's Ministry of Foreign Affairs, Annual Report of Statistics on Japanese Nationals Overseas, as of October 1, 2025).

Crimes against Japanese residents and how to stay safe

According to Japan's Ministry of Foreign Affairs, crimes against Japanese nationals in Panama are fewer than in neighboring Latin American countries, but several robberies have been reported.

A person walking alone at night on a main street in San Francisco was attacked by two people trying to snatch their bag, and was punched after resisting
A person walking at night in Marbella while looking at their phone had it stolen by two people armed with a gun and a knife
A person who hailed a taxi on the street at the Albrook bus terminal was taken somewhere other than their destination, threatened by the driver with a knife and robbed
A group of five burst into a restaurant at night and took money from the customers

Most incidents happen when people walk alone at night, hail taxis on the street, or go to quiet places. The precautions recommended by the Ministry of Foreign Affairs and the embassy are as follows.

Avoid walking at night; use ride-hailing apps or trusted taxis
Do not look at your phone while walking. Do not carry expensive watches or bags
If you are robbed, do not resist; comply with the demands
Do not leave belongings in a parked car (even briefly)
If you encounter gunfire, get down, take cover and do not move until it is safe

For housing, choosing an apartment building with security guards on duty around the clock and controlled entry gives peace of mind.

Prices and living costs: in US dollars, with rent as the biggest expense

Panama's currency is effectively the US dollar, so living costs should be calculated in dollars. Your costs are directly affected by exchange rates, so if you will live on a pension or assets in Japanese yen, be careful about currency fluctuations.

Item	Typical monthly amount	Source / period
Rent (studio)	US$800–1,300	Local real estate agency Panama Home Realty, 2026
Rent (one-bedroom)	US$1,100–1,900	Same as above
Rent (two-bedroom)	US$1,500–3,200	Same as above
Basic food basket (59 items)	US$365.88	Ministry of Economy and Finance of Panama, March 2026 (Panama City and San Miguelito)

The rents are typical for long-term rentals in Panama City; high-rise apartments with sea views and popular areas such as Punta Pacífica and Costa del Este cost more. Imported goods such as Japanese food are expensive. Because of the hot and humid climate, electricity bills for air conditioning also add up.

The safer the neighborhood, the higher the rent. If you move on the assumption that you will "live in a country with low prices", you are likely to find that it costs more than you expected.

Healthcare: a shortage of specialists in the public system, so private insurance is essential

Public healthcare in Panama is provided by hospitals of the Social Security Fund (CSS) and the Ministry of Health. The CSS had about 2.8 million members in 2025, but as of March 2026 it had at least 71 vacancies for specialists in gastroenterology, neurology, orthopedics, pediatrics, cardiology and other fields, and was preparing to recruit doctors from abroad. Medicine shortages have also been reported.

Panama City has well-equipped private hospitals, and most foreign residents take out private health insurance and use private hospitals. Holders of the Pensionado visa for retirees receive discounts on medical costs (for example, 20% on consultation fees). There are almost no medical facilities where you can be seen in Japanese, so you will need to communicate in Spanish or English.

Tax and pensions: foreign income is tax-free, but Japanese pensions are taxed at source in Japan

Panama has a "territorial" tax system: it taxes only income earned in Panama and does not tax income earned abroad. Japanese pensions, rental income from Japan and foreign dividends are, in principle, not taxed in Panama. An amendment in May 2026 (Law No. 526) introduced an exception from 2027 that taxes passive income received from abroad by entities belonging to multinational groups, but it applies only to companies and does not cover pensions or individuals' income.

On the other hand, there is no tax treaty between Japan and Panama to prevent double taxation. The two countries have only an agreement for the exchange of tax information between their tax authorities (in force since 2017). Panama also participates in the international framework for the automatic exchange of financial account information between tax authorities (CRS).

For this reason, Japanese public pensions remain subject to withholding tax in Japan even if you live in Panama and become a non-resident of Japan. The rate is 20.42%, applied (for those aged 65 or over) to the pension amount minus JPY 95,000 per month (National Tax Agency). Unlike in countries that have a tax treaty with Japan, you cannot obtain an exemption by filing a form.

Procedures for resident registration and tax before and after leaving Japan are explained in Tax when moving abroad from Japan, and the overall picture of moving abroad on a pension in Retiring abroad on a Japanese pension.

Visas for moving to Panama: pension, investment and Friendly Nations

The main residence options used by Japanese nationals moving to Panama are as follows. Japanese passport holders can stay up to 90 days without a visa as tourists, but living in Panama requires a residence status.

Visa	Main requirements	Residence status
Pensionado (pension)	A lifetime pension of at least US$1,000 a month. At least US$750 a month if you own real estate worth US$100,000 or more	Permanent from the start
Qualified Investor (investment)	New or first-sale real estate of US$300,000, resale real estate of US$500,000, securities of US$500,000, or a fixed-term deposit of US$750,000 (US$500,000 at a state-owned bank). Must be held for 5 years	Permanent from the start
Friendly Nations	Japan is an eligible country. An employment contract with a local company and a work permit, real estate worth US$200,000 or more, or a US$200,000 fixed-term deposit (3 years)	Apply for permanent residence after 2 years of temporary residence
Remote Worker (short-term)	Income from abroad of at least US$36,000 a year	Short-term stay of up to 18 months (does not grant residence rights)

The Qualified Investor program was amended by Executive Decree No. 17 of September 8, 2026: new or first-sale real estate remains at US$300,000, while resale real estate was set at US$500,000. After obtaining permanent residence, you can apply for naturalization after living in Panama for 5 years. However, under Article 10 of the Constitution of Panama, you must declare that you renounce your original nationality when naturalizing. For Japanese nationals: under Japan's Nationality Act (Article 11), you also lose Japanese nationality as soon as you voluntarily acquire a foreign nationality.

Procedures for each visa and the path to citizenship are explained in The complete guide to Panama permanent residency and citizenship.

FAQ

Which neighborhoods are best for living in Panama?

Many Japanese residents live in Panama City's San Francisco and Bella Vista neighborhoods, among others, and there is a Japanese school in Marbella. Choose an apartment building with security guards on duty and travel by car rather than on foot at night. The embassy advises avoiding the four neighborhoods of El Chorrillo, Santa Ana, Calidonia and Curundú.

How much do I need per month to live in Panama?

For a single person in a one-bedroom apartment in Panama City, rent alone is around US$1,100–1,900 a month. Add food, electricity (air conditioning), phone and internet, and private health insurance. The Pensionado visa requires at least US$1,000 a month, but that is only the threshold for the assessment; if you want to live in a safe neighborhood of Panama City, plan for a higher income.

Can I live in Panama without speaking Spanish?

The official language is Spanish. English is understood in some situations at private hospitals and banks in Panama City and in neighborhoods with many foreign residents, but Spanish is often needed for government procedures and everyday shopping. Immigration procedures are usually handled through a local lawyer.

Are there direct flights from Japan to Panama?

There are no direct flights between Japan and Panama; you change planes in the United States, Mexico or elsewhere. The time difference is 14 hours (Panama does not observe summer time).

Can I receive my Japanese pension in Panama?

Yes. If you register an overseas bank account with the Japan Pension Service, you can receive your Japanese pension while living in Panama. Because there is no tax treaty between Japan and Panama, 20.42% is withheld in Japan, but Panama does not tax it as it is foreign-source income.

Summary

Per capita, Panama's homicide rate is about 15 times Japan's and its robbery rate about 114 times (2024). Most violent crime stems from gang clashes and is concentrated in specific neighborhoods of Panama City, San Miguelito and Colón Province
The embassy designates El Chorrillo, Santa Ana, Calidonia and Curundú as special caution areas. Many Japanese residents live in San Francisco, Bella Vista and similar neighborhoods
Rent for a one-bedroom apartment in Panama City is US$1,100–1,900 a month. Costs are in US dollars, and rent is the largest expense
The public healthcare system is short of specialists, so private health insurance is essential
Income earned abroad is not taxed, but Japanese pensions are subject to 20.42% withholding tax in Japan

Our office offers consultations comparing permanent residence and long-stay visas in various countries, including Panama, and handles apostilles and translations of the Japanese documents needed for applications. If you would like to find out whether a Panamanian visa would work for you based on your pension, assets and family situation, please use our free consultation. We never use pushy sales tactics. We can assist in English and Japanese.