When you think about living full or part time in Central America, Costa Rica seems to be the first country that comes to mind. Having spent a fair amount of time in both Costa Rica and Panama, I may be able to offer a somewhat unique perspective when comparing the two countries. While both countries are similar in many respects, there are some major differences between Panama real estate versus Costa Rica real estate that you should be aware of.

First of all, there are many similarities. Both Panama and Costa Rica have mountains, oceans, beaches, volcanoes, tropical rain forests, zip line tours, hot springs and exotic wildlife. Both countries have more residents who speak English in the bigger cities, while very little English is spoken in the more remote areas. Both countries have similar temperate climates, and both are quite beautiful. I honestly can’t think of a single good thing about Costa Rica that you can’t also find in Panama.

The differences between the two countries are significant. Lets begin with the Panama roads that are well maintained in comparison to the terrible pot hole roads in Costa Rica. Not only that the cost of living in Panama is much more inexpensive than in Costa Rica because of the Panama canal and its huge port advantages. When thinking of visiting or living in Panama, the currency exchange rate is less of a frustration. Even traveling into the capital cities are a different experience from one another. You can feel much safer with lower crime rates in Panama than in Costa Rica. Finally, the ultimate winner, purchasing real estate in Panama is at a fraction of the cost of what it would be for the same piece of land in Costa Rica.

Costa Rica is famous for its bad roads, and they are terrible. Every time I’m in Costa Rica I can’t believe how bad the roads are, while the main roads in Panama are all paved and relatively pothole-free. Why are the roads in Costa Rica so bad? I have no idea, but trust me, they are horrendous.

Panama is a big winner here. Thanks to the Panama Canal and its huge port, manufactured goods are much less expensive on Panama land. Household appliances, electronics, building materials, almost everything is more expensive on Costa Rica. I haven’t had a lot of experience buying cars down there, but I’ve heard from reliable sources that Costa Rica has a huge tax on automobiles that I know for a fact Panama doesn’t have. Apparently a $20,000 car in Panama would cost over $35,000 in Costa Rica.