Best Panama City Neighborhoods: Where to Live as an Expat

Casco Viejo is the best neighborhood for expats seeking walkable urban living with colonial charm, while El Cangrejo suits business professionals, and Amador Causeway is ideal for families wanting modern waterfront amenities. Rent ranges from $800/month in El Cangrejo to $2,500/month in premium Casco Viejo apartments. Each Panama City neighborhood offers a distinct lifestyle - here's how to choose the right one for you.

Overview of Panama City

Panama City is a dynamic metropolis with distinct neighborhoods, each offering unique characteristics. Whether you prefer historic charm, modern amenities, beachfront living, or quiet residential areas, Panama City has options for every lifestyle and budget.

Casco Viejo (Historic District)

Best for: Those seeking walkable urban living with cultural richness.

Casco Viejo is Panama City's most charming neighborhood. Restored colonial architecture, cobblestone streets, trendy restaurants, art galleries, and vibrant nightlife characterize this UNESCO World Heritage site.

• Cost: $1,200-$2,500/month (higher than other areas)
• Amenities: Restaurants, bars, galleries, waterfront views
• Walkability: Excellent—most errands on foot
• Lifestyle: Urban, social, cultural

Panama Viejo (Modern District)

Best for: Those wanting modern amenities and upscale residential living.

Panama Viejo represents modern Panama with contemporary architecture, shopping malls, fine dining, and professional office spaces. It's more upscale and car-dependent than Casco Viejo.

• Cost: $1,000-$2,000/month
• Amenities: Malls, restaurants, office parks, modern infrastructure
• Walkability: Moderate—some areas walkable, others require transportation
• Lifestyle: Modern, professional, suburban feel within the city

El Cangrejo (Central Business District)

Best for: Business professionals seeking central location near offices.

El Cangrejo is Panama City's business hub with commercial offices, restaurants, and banking services. It's convenient for work but less atmospheric than Casco Viejo.

• Cost: $800-$1,500/month
• Amenities: Office buildings, restaurants, banks, services
• Walkability: Good—many services within walking distance
• Lifestyle: Professional, convenient, less residential character

Amador Causeway

Best for: Those wanting modern waterfront living with family-friendly atmosphere.

The Amador Causeway is a scenic development connecting three islands with parks, restaurants, and modern residential buildings. It offers a relaxed vibe while remaining close to the city.

• Cost: $1,200-$2,000/month
• Amenities: Parks, waterfront, restaurants, modern buildings
• Walkability: Good—can walk along the causeway
• Lifestyle: Relaxed, modern, family-friendly

Clayton

Best for: Those seeking quiet, residential living near nature.

Clayton is a quiet, upscale residential neighborhood near the rainforest with excellent access to nature activities and parks while remaining close to the city.

• Cost: $900-$1,500/month
• Amenities: Parks, nature trails, quiet streets
• Walkability: Moderate—some areas walkable
• Lifestyle: Quiet, nature-oriented, residential

San Blas (Tocumen Area)

Best for: Budget-conscious expats and those seeking authentic local life.

This neighborhood offers authentic Panama with local restaurants, markets, and affordable living. It's less touristy but requires more comfort with local culture.

• Cost: $500-$900/month
• Amenities: Local restaurants, markets, services
• Walkability: Good—local neighborhood feel
• Lifestyle: Authentic, local, less expat-focused

Beach Communities Near Panama City

Coronado (Pacific Coast, 2 hours west)

A beach town with Caribbean atmosphere, moderate development, and better internet than some beach areas. Popular with digital nomads and those seeking beach living with infrastructure.

• Cost: $600-$1,200/month
• Lifestyle: Beachfront, relaxed, growing expat community

Bocas del Toro (Caribbean, flight/ferry required)

Island paradise with laid-back Caribbean vibe, excellent diving, and water activities. Internet can be challenging for remote workers. Best for those prioritizing lifestyle over work connectivity.

• Cost: $700-$1,500/month
• Lifestyle: Caribbean island, very relaxed, adventure-focused

Mountain Communities

Boquete (Mountain Highland, 4 hours by car)

Cool mountain climate, stunning natural beauty, excellent hiking, and lower costs than Panama City. Popular with retirees and nature lovers. Good internet infrastructure.

• Cost: $600-$1,200/month
• Lifestyle: Mountain, nature-focused, cool climate, outdoor activities

Choosing Your Neighborhood: Key Considerations

• Walkability: Do you prefer walking or driving?
• Lifestyle: Urban, suburban, beach, or mountain?
• Work: Proximity to office or remote?
• Family: Schools, parks, family amenities?
• Cost: Budget constraints?
• Internet: Reliability for remote work?
• Nightlife: Restaurants, bars, entertainment?
• Community: Expat presence or local culture preference?

Recommendation: Visit Before Committing

Different neighborhoods appeal to different people. Spend time in each area—stay 1-2 weeks if possible—before deciding. Rent before buying. Your perfect neighborhood depends on personal preferences and lifestyle priorities.

Related Panama Living Guides

• Panama City Housing & Relocation Services
• Panama City Legal & Financial Services
• Boquete, Panama - mountain alternative to city living

Looking for a place in Panama City? Browse Panama City classifieds or list your rental property.