A new life in paradise… it’s a dream many of us share. But when it comes to Central America, two countries often come up in the conversation--Panama and Guatemala. Both have vibrant cultures, stunning landscapes, good weather, and a much lower cost of living than North America or Europe.
But which country is really better for English-speaking expats?
As someone who’s lived in Panama for years and explored other parts of the region, I’ve got some first-hand insight that might just help you make that all-important decision. From affordability and healthcare to retiree benefits and lifestyle, we’re comparing these two Central American gems in a head-to-head countdown.
By the end of this video, you’ll have a crystal-clear picture of which country might be your future home.
#10 – Weather
Both Panama and Guatemala offer great weather, but they’re very different climates. Panama is tropical—think warm, sunny, and humid along the coast, with cooler temps in the mountain towns like Boquete.
Guatemala, on the other hand, has a more temperate climate in its highland regions, such as Antigua, which appeals to people who want a spring-like feel year-round.
If you're sensitive to heat, you might lean toward Guatemala. But if you want access to both beach and mountain weather within a few hours’ drive, Panama gives you more variety and flexibility. Having just been to Antigua on vacation, one thing I didn’t like is that you can’t find air conditioning … anywhere! Not in private rental homes, not in shops, and not in restaurants. Mornings and evenings are comfortable, but the afternoons can be hot, and without air conditioning to cool things off, it can be a little uncomfortable. I was tempted to give this one to Panama just for this reason, but the category is “weather” and not comfort… so for this reason, I’m going to consider it a tie.
✔️ TIE
#9 – Cost of Living
Because Guatemala uses the Guatemalan Quetzal as its currency, I thought it would be less expensive than Panama. Imagine how SHOCKED I was when just about everything was MORE expensive. Everything from grocery store staples to restaurants to the all-important bottles of wine. In fact, a bottle of wine from Spain that I like, Marques de Riscal Rueda, is about $12 per bottle in Panama. This same bottle was 140 Quetzals, which converts to more than 18 US Dollars. That’s a 50% increase in price… for the exact same bottle of wine!
According to expats who live in Guatemala, you can live comfortably there for under $2,000 a month if you’re on a budget…. But Panama offers a better value for the price—especially considering the infrastructure, healthcare, and overall quality of services you get for your money.
Plus, Panama uses the US dollar, so you don’t have to worry about currency fluctuations or constant conversions.
✔️ Score one for Panama on value and simplicity.
#8 – Healthcare
Guatemala has decent healthcare in larger cities like Guatemala City, but it can be hit or miss in smaller towns. Panama, on the other hand, has a world-class private healthcare system with internationally trained doctors, modern hospitals, and fast access to specialists.
As a retiree, access to reliable, affordable healthcare is critical—and Panama absolutely delivers.
✔️ Another win for Panama.
#7 – Strength of the Economy
Panama’s economy is one of the strongest and most stable in all Latin America, thanks in large part to the Panama Canal and its role as a global logistics hub. But Panama’s economy doesn’t depend solely on its canal. It has a well-rounded economy and includes diverse sectors, such as financial services, mining, agriculture, real estate, logistics, tourism… and even fishing.
Guatemala’s economy is still very focused on agriculture and manufacturing. It has less international investment and fewer financial safeguards. You can see this as you compare the downtown areas of each capital city--Panama City looks very cosmopolitan … while Guatemala City doesn’t.
✔️ For economic strength and long-term peace of mind, Panama wins again.
#6 – Retiree benefits
Panama offers one of the most generous retiree programs in the world—the Pensionado Visa. This visa is available to anyone with a lifetime pension of just $1,000 per month, and it comes with a host of perks: 25% off airline tickets, 20% off medical consultations, 15% off hospital bills, 25% discounts at restaurants, Half off of movie theaters, and even discounts on your utility bills. Guatemala, on the other hand, doesn’t offer a specific retiree visa or built-in benefits for pensioners. While the cost of living in Guatemala is lower than in North America, retirees won’t find the same kind of formal incentives that make daily life in Panama more affordable and enjoyable for seniors.
✔️ When it comes to retiree benefits, Panama is the clear winner.
#5 – Access to Goods and Services
If you're used to shopping for certain brands, modern conveniences, or importing products, Panama wins hands-down. From international malls and reliable Amazon delivery, Panama City offers first-world access to goods and services.
Guatemala, while charming and culturally rich, doesn’t have the same infrastructure or variety.
✔️ Easy win for Panama.
#4 – Ease of Travel to Major Cities
Panama’s Tocumen International Airport is the busiest and best-connected airport in Central America, with direct flights to the U.S., South America, Europe, and beyond.
Guatemala’s airport is more limited, with fewer direct international connections and longer layovers. If frequent travel is on your radar—whether for family visits or adventure--Panama makes it much easier.
✔️ Another clear win for Panama.
#3 – Food
Both countries offer great cuisine, but they’re very different. Guatemalan food is hearty and traditional—lots of corn, beans, stews, and grilled meats.
Panama, thanks to its international population, has a wider variety of culinary options, especially in Panama City. From fresh seafood and sushi to gourmet Italian and Peruvian restaurants, Panama is a foodie’s paradise.
Plus, access to both the Atlantic and Pacific oceans means fresh fish and shellfish are always on the menu.
✔️ Panama wins for food diversity and freshness.
#2 – Clean Drinking Water
Let’s talk about something we often take for granted--clean, drinkable water. In most parts of Panama, you can drink water, straight from the faucet. Whether you’re filling a glass from your kitchen sink or brushing your teeth, it’s safe, clean, and hassle-free.
Guatemala? Not so much. In Guatemala, you can’t drink the tap water. You’ll need to buy bottled water, boil the water, or install a filtration system—and that’s just the beginning. Many expats in Guatemala even soak their fruits and vegetables in a mixture of purified water, vinegar, and a few drops of bleach to kill off harmful bacteria. When staying at our vacation villa, I didn’t even brush my teeth tap water. Sounds like a lot of work, right? That’s because it is.
One of the small-but-mighty luxuries of living in Panama is not having to worry about your water—because peace of mind is part of living well.
✔️ Panama doesn’t just win this one by a trickle …but by a tsunami.
#1 – Infrastructure
Infrastructure is one of those things you don’t always think about—until it becomes a daily frustration. In Panama, you’ll find modern roads, reliable utilities, high-speed internet, and clean, well-maintained public spaces, especially in and around Panama City and the major beach communities.
In contrast, Guatemala’s infrastructure can be hit or miss. In popular expat hubs like Antigua, the charm of cobblestone streets quickly wears off when you’re dodging potholes and bruising your body parts just to go to the grocery store. It doesn’t take long to realize that roads in Antigua weren’t built for cars, let alone modern traffic. And if the roads aren’t bad enough, you also have to deal with frequent water outages, and antiquated Internet speeds. This was actually the most frustrating thing for me during my recent trip. In Panama, I have 1 gigabyte download speed, which makes surfing the net or streaming a movie easy peasy. In Antigua, the speed was about 30 megabytes… on a good day, while on a bad day, there was just no signal. For the most part, two people couldn’t be on the Internet at the same time, or any request would just time out.
Panama simply delivers a smoother, more reliable living experience when it comes to infrastructure—and that makes a huge difference in day-to-day comfort and convenience.
✔️ This final point goes to Panama.
Closing
So there you have it--Panama vs. Guatemala! While both countries offer incredible experiences, Panama comes out on top in 9 out of 10 categories in this countdown.
From world-class healthcare and modern infrastructure to international airports and clean drinking water, Panama is built for a lifestyle that’s not just affordable—but truly enjoyable.
If you’re dreaming of life in paradise withjust the right mix of luxury and simplicity, Panama might be exactly what you’re looking for.
Got questions? Drop them in the comments—or check out one of my other episodes where we dive deeper into healthcare, real estate, water…and daily life in Panama.
Thanks for tuning in. See you in Panama!
But which country is really better for English-speaking expats?
As someone who’s lived in Panama for years and explored other parts of the region, I’ve got some first-hand insight that might just help you make that all-important decision. From affordability and healthcare to retiree benefits and lifestyle, we’re comparing these two Central American gems in a head-to-head countdown.
By the end of this video, you’ll have a crystal-clear picture of which country might be your future home.
#10 – Weather
Both Panama and Guatemala offer great weather, but they’re very different climates. Panama is tropical—think warm, sunny, and humid along the coast, with cooler temps in the mountain towns like Boquete.
Guatemala, on the other hand, has a more temperate climate in its highland regions, such as Antigua, which appeals to people who want a spring-like feel year-round.
If you're sensitive to heat, you might lean toward Guatemala. But if you want access to both beach and mountain weather within a few hours’ drive, Panama gives you more variety and flexibility. Having just been to Antigua on vacation, one thing I didn’t like is that you can’t find air conditioning … anywhere! Not in private rental homes, not in shops, and not in restaurants. Mornings and evenings are comfortable, but the afternoons can be hot, and without air conditioning to cool things off, it can be a little uncomfortable. I was tempted to give this one to Panama just for this reason, but the category is “weather” and not comfort… so for this reason, I’m going to consider it a tie.
✔️ TIE
#9 – Cost of Living
Because Guatemala uses the Guatemalan Quetzal as its currency, I thought it would be less expensive than Panama. Imagine how SHOCKED I was when just about everything was MORE expensive. Everything from grocery store staples to restaurants to the all-important bottles of wine. In fact, a bottle of wine from Spain that I like, Marques de Riscal Rueda, is about $12 per bottle in Panama. This same bottle was 140 Quetzals, which converts to more than 18 US Dollars. That’s a 50% increase in price… for the exact same bottle of wine!
According to expats who live in Guatemala, you can live comfortably there for under $2,000 a month if you’re on a budget…. But Panama offers a better value for the price—especially considering the infrastructure, healthcare, and overall quality of services you get for your money.
Plus, Panama uses the US dollar, so you don’t have to worry about currency fluctuations or constant conversions.
✔️ Score one for Panama on value and simplicity.
#8 – Healthcare
Guatemala has decent healthcare in larger cities like Guatemala City, but it can be hit or miss in smaller towns. Panama, on the other hand, has a world-class private healthcare system with internationally trained doctors, modern hospitals, and fast access to specialists.
As a retiree, access to reliable, affordable healthcare is critical—and Panama absolutely delivers.
✔️ Another win for Panama.
#7 – Strength of the Economy
Panama’s economy is one of the strongest and most stable in all Latin America, thanks in large part to the Panama Canal and its role as a global logistics hub. But Panama’s economy doesn’t depend solely on its canal. It has a well-rounded economy and includes diverse sectors, such as financial services, mining, agriculture, real estate, logistics, tourism… and even fishing.
Guatemala’s economy is still very focused on agriculture and manufacturing. It has less international investment and fewer financial safeguards. You can see this as you compare the downtown areas of each capital city--Panama City looks very cosmopolitan … while Guatemala City doesn’t.
✔️ For economic strength and long-term peace of mind, Panama wins again.
#6 – Retiree benefits
Panama offers one of the most generous retiree programs in the world—the Pensionado Visa. This visa is available to anyone with a lifetime pension of just $1,000 per month, and it comes with a host of perks: 25% off airline tickets, 20% off medical consultations, 15% off hospital bills, 25% discounts at restaurants, Half off of movie theaters, and even discounts on your utility bills. Guatemala, on the other hand, doesn’t offer a specific retiree visa or built-in benefits for pensioners. While the cost of living in Guatemala is lower than in North America, retirees won’t find the same kind of formal incentives that make daily life in Panama more affordable and enjoyable for seniors.
✔️ When it comes to retiree benefits, Panama is the clear winner.
#5 – Access to Goods and Services
If you're used to shopping for certain brands, modern conveniences, or importing products, Panama wins hands-down. From international malls and reliable Amazon delivery, Panama City offers first-world access to goods and services.
Guatemala, while charming and culturally rich, doesn’t have the same infrastructure or variety.
✔️ Easy win for Panama.
#4 – Ease of Travel to Major Cities
Panama’s Tocumen International Airport is the busiest and best-connected airport in Central America, with direct flights to the U.S., South America, Europe, and beyond.
Guatemala’s airport is more limited, with fewer direct international connections and longer layovers. If frequent travel is on your radar—whether for family visits or adventure--Panama makes it much easier.
✔️ Another clear win for Panama.
#3 – Food
Both countries offer great cuisine, but they’re very different. Guatemalan food is hearty and traditional—lots of corn, beans, stews, and grilled meats.
Panama, thanks to its international population, has a wider variety of culinary options, especially in Panama City. From fresh seafood and sushi to gourmet Italian and Peruvian restaurants, Panama is a foodie’s paradise.
Plus, access to both the Atlantic and Pacific oceans means fresh fish and shellfish are always on the menu.
✔️ Panama wins for food diversity and freshness.
#2 – Clean Drinking Water
Let’s talk about something we often take for granted--clean, drinkable water. In most parts of Panama, you can drink water, straight from the faucet. Whether you’re filling a glass from your kitchen sink or brushing your teeth, it’s safe, clean, and hassle-free.
Guatemala? Not so much. In Guatemala, you can’t drink the tap water. You’ll need to buy bottled water, boil the water, or install a filtration system—and that’s just the beginning. Many expats in Guatemala even soak their fruits and vegetables in a mixture of purified water, vinegar, and a few drops of bleach to kill off harmful bacteria. When staying at our vacation villa, I didn’t even brush my teeth tap water. Sounds like a lot of work, right? That’s because it is.
One of the small-but-mighty luxuries of living in Panama is not having to worry about your water—because peace of mind is part of living well.
✔️ Panama doesn’t just win this one by a trickle …but by a tsunami.
#1 – Infrastructure
Infrastructure is one of those things you don’t always think about—until it becomes a daily frustration. In Panama, you’ll find modern roads, reliable utilities, high-speed internet, and clean, well-maintained public spaces, especially in and around Panama City and the major beach communities.
In contrast, Guatemala’s infrastructure can be hit or miss. In popular expat hubs like Antigua, the charm of cobblestone streets quickly wears off when you’re dodging potholes and bruising your body parts just to go to the grocery store. It doesn’t take long to realize that roads in Antigua weren’t built for cars, let alone modern traffic. And if the roads aren’t bad enough, you also have to deal with frequent water outages, and antiquated Internet speeds. This was actually the most frustrating thing for me during my recent trip. In Panama, I have 1 gigabyte download speed, which makes surfing the net or streaming a movie easy peasy. In Antigua, the speed was about 30 megabytes… on a good day, while on a bad day, there was just no signal. For the most part, two people couldn’t be on the Internet at the same time, or any request would just time out.
Panama simply delivers a smoother, more reliable living experience when it comes to infrastructure—and that makes a huge difference in day-to-day comfort and convenience.
✔️ This final point goes to Panama.
Closing
So there you have it--Panama vs. Guatemala! While both countries offer incredible experiences, Panama comes out on top in 9 out of 10 categories in this countdown.
From world-class healthcare and modern infrastructure to international airports and clean drinking water, Panama is built for a lifestyle that’s not just affordable—but truly enjoyable.
If you’re dreaming of life in paradise withjust the right mix of luxury and simplicity, Panama might be exactly what you’re looking for.
Got questions? Drop them in the comments—or check out one of my other episodes where we dive deeper into healthcare, real estate, water…and daily life in Panama.
Thanks for tuning in. See you in Panama!
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