Cost of Living 2025: Panama City vs Rome

One of the most important expenses for anyone who decides to live abroad is renting. In 2025, both Panama City and Rome present very different realities in terms of prices and what you can get for your money.

Average rent in Panama City in 2025

The Panamanian capital is still considered an attractive option for foreigners and companies, thanks to its stable economic growth and lower costs than other capital cities. On average:

• A 1-bedroom apartment in the center of Panama City costs between USD 850 and USD 1,200 per month.
• In more remote or residential areas, the cost drops to USD 550—750 for a similar apartment.
• 2-3 bedroom apartments in central areas are between USD 1,500 and 2,500, depending on amenities such as security, pool and parking.

Many expatriates also benefit from lower rents by signing long-term contracts, especially if they are processing residence permit in Panama.

Average rent in Rome in 2025

In Rome, prices are significantly higher, partly due to historic tourist and residential demand. Although there is an abundant supply, rents are still a significant burden on the cost of living for foreigners in Italy:

• A small 1-bedroom apartment in the center of Rome is around the EUR 1,300 to EUR 1,800 per month.
• In peripheral neighborhoods, such as Monteverde or Tiburtina, you can find options between EUR 850 and EUR 1,200.
• 2-3 bedroom homes in premium areas (such as Trastevere or Prati) easily exceed EUR 2,000 per month.

In addition to the gross amount, in Italy many rental contracts include additional costs such as building maintenance or contributions to common expenses.

Where is it more affordable to rent in 2025?

Comparing both markets, Average rent in Panama City in 2025 is considerably lower, in addition to offering *more square meters* and modern services in many cases. For people who work remotely, entrepreneurs or retirees, this can translate into a marked improvement in quality of life for less money.

This doesn't mean that one is “better” than the other. Instead, it depends on your priorities: if you're looking for history, architecture, and a classic European environment, Rome has a lot to offer... but if you're looking for efficiency, competitive costs and greater access to modern properties, Panama City could be the ideal option.

After the rental, the food expenses represent one of the most consistent monthly items. Both Panama City and Rome offer a wide variety of foods and restaurants, but they differ greatly in prices and type of consumption.

Supermarket prices in Panama City 2025

In Panama, it's common to shop weekly at chains such as Riba Smith, Super 99 and Rey. Although there are expensive imported products, in general the cost of living for foreigners in Panama remains relatively accessible thanks to access to local products. Some average prices in 2025 are:

• 1 liter of milk: USD 1.40
• 1 kg of domestic rice: USD 1.25
• Dozen eggs: USD 2.40
• 1 kg of fresh chicken: USD 3.50
• Sliced bread: USD 2.10

Many expatriates also choose to shop at local markets, where tropical fruits, vegetables and fresh fish can be considerably cheaper than in traditional supermarkets.

Prices in supermarkets in Rome in 2025

Rome has a food culture rich in fresh and seasonal products. While it's possible to spend less cooking at home, base prices are generally higher, especially for non-Italian products. These are the most common prices in supermarkets such as Coop, Conad and Carrefour:

• 1 liter of milk: EUR 1.50
• 1 kg of rice: EUR 2.00
• Dozen eggs: EUR 3.20
• 1 kg of chicken breast: EUR 8.50
• Fresh bread (1 kg): EUR 3.00

Neighborhood fairs and traditional markets such as Campo de' Fiori or Testaccio allow access to competitive prices, but still the Average cost of food in Rome in 2025 It is higher than in Panama.

Where is it best to buy food?

Comparatively, living as an expat in Rome 2025 implies a higher expenditure on basic food consumption. This is due to both the cost of products and the overall standard of living. On the other hand, in Panama City it is possible to maintain a varied and healthy diet at a lower cost, especially if local products are used.

For an adult with average eating habits, basic expenses in Panama for foreigners range from USD 250 to 400 per month, while in Rome they can easily exceed EUR 500, especially if combined with occasional dinners or purchases in premium supermarkets.

One of the key factors when evaluating the cost of living International is healthcare. Both Panama and Italy offer accessible health systems for locals and foreigners, but they differ significantly in their structure, costs and time of care.

Access to the public vs private system

In Panama, the public health system is managed by the Social Security Fund (CSS), but many expatriates choose private hospitals and clinics because of the speed of service and the quality of the facilities. Although costs in the private sector are not subsidized, they are still considerably lower than in the United States or Western Europe.

Instead, Italy has a national public health system (Servizio Sanitario Nazionale or SSN). This system provides almost free care for all residents, including foreigners with residence permits or European citizenship. Although wait times are sometimes long, basic and hospital health care is covered by the state.

How much does healthcare cost in each country?

• In Panama City, a private medical consultation can cost between 30 and 60 USD, and private health insurance costs between 900 and 1,800 USD annually per person, depending on age and coverage.
• In Rome, if you are registered with the SSN, most consultations and treatments have no additional cost. Private insurance isn't mandatory, but some expatriates take it out to reduce waiting times. In 2025, international policies can be around 700 to 1,200 EUR per year.

Both countries have quality medical services, but their approaches differ: Panama operates on a mixed model that favors flexibility, while Italy is committed to universal coverage. This directly affects how it impacts the Health in the cost of living for foreigners.

Common medications and treatments

In Panama, brand-name drugs tend to have higher prices, but there are many generic alternatives available. In Rome, many drugs are subsidized if they are prescribed through the NHS, which represents clear savings for those who reside legally in the country.

If you're considering live in Panama or Rome In 2025 and you have specific medical needs (such as chronic treatments or frequent access to specialists), it's worth taking a good look at what each system offers according to your profile.

When evaluating the monthly expenses in Rome for expatriates Or the cost of living in Panama City, it's easy to focus on numbers such as rent, supermarket or transport. But there is one category that often goes unnoticed: hidden expenses that directly affect your real budget.

Costs associated with immigration procedures

In both Panama and Italy, managing a legal residence involves initial costs that are rarely mentioned in general guidelines. In Panama City, foreigners need to process permits such as “permanent resident” or “resident by investment”. Although some procedures are quick, they may include:

• Legal fees (between 800 and 2,000 USD depending on the type of visa)
• Translation and legalization of documents
• Additional administrative expenses

In Italy, the process may seem more bureaucratic. Expats often face costs such as:

• Fees for apostille and official translations
• Request for a Residence Permit (temporary residence card)
• Tax or health registration certificates

These expenses can easily add up to 500 to 1,500 EUR in the first year.

Cost of furniture and initial services

Another point that increases the real budget is equipping a home. In Rome, many apartments are rented without furniture, while in Panama City it is common to get fully furnished rentals, which can reduce initial expenses.

In addition, the cost of installing internet, water, electricity and other services may vary. For example, in Panama, an additional security deposit is usually required the first month in advance, and services may take a few days to activate. In Rome, the process of connecting to some public services can take weeks, with additional activation charges depending on the provider.

Rental insurance and guarantees

In Italy, particularly in large cities like Rome, many landlords require additional guarantees such as guarantors or deposits equivalent to several months' rent. This affects the Average rent in Rome if we consider the initial disbursement. In Panama, this requirement is less common in short- or medium-term leases.

Municipal taxes and specific fees

Both cities apply municipal taxes or fees that may come as a surprise. In Rome, there is a waste collection fee (TARI) that is paid annually, while in Panama some buildings charge maintenance or administration fees separately from rent.

In short: beyond the visible amounts, these hidden expenses They are key to truly calculating How much does it take to live in Rome or in Panama without financial shocks. Making sure to include them in your planning will allow you to make a more realistic comparison between options.

Understanding these details also paves the way for evaluating in detail. Which city offers the best cost/quality of life ratio based on your personal priorities.

Choosing between living in Panama City or Rome in 2025 goes beyond comparing prices. The real question that many expats ask themselves is: Which city offers a better balance between what you spend and the quality of life you receive in return?

Based on the data analyzed, Panama City shows a clear advantage in terms of monthly costs. El Average rent in Panama City 2025 is more affordable, especially in central areas comparable to residential neighborhoods in Rome. In addition, the basic expenses in Panama for foreigners are usually minor, from public services to transportation.

However, Rome tends to offer a richer experience in terms of culture, history and entertainment options. Although these benefits usually come with higher costs, mainly for food, rent and living expenses, for many expatriates that is part of the Italian appeal.

Comparative advantages of Panama City

If your priority is financial optimization, living in Panama it may be more convenient:

• Lower rental prices in 2025 compared to Rome, even in central areas.
• Supermarkets with local and regional products at more affordable prices.
• Efficient and more affordable health system for foreign residents and retirees.
• Tax options and expatriate-friendly immigration programs.

Strengths of living in Rome

However, living as an expat in Rome 2025 offers certain hard-to-quantify but highly valued benefits:

• Globally recognized gastronomic quality and access to fresh ingredients.
• Unique cultural and historical environment, with museums, squares and iconic architecture.
• More structured transportation system throughout the city.
• Inclusion within the European Union, which may benefit some international citizens.

So which is the best option?

The decision will depend on your personal priorities and lifestyle. If you're looking to reduce costs without sacrificing access to modern services and a warm climate all year round, Panama City offers a more favorable cost/benefit equation. On the other hand, if you value access to European culture, gastronomy and connection with the rest of the continent, Rome can justify its higher costs.

In short, in 2025, the cost of living for foreigners in Panama it is still more accessible than in Italy, and especially attractive for those who plan to establish themselves in the long term or start a regional venture from Central America.