Panama's cost of living is considered moderate compared to many Western countries. While costs can be higher in the capital city, especially for housing and entertainment, other areas offer more affordable living expenses.

Panama has a tropical maritime climate with a hot, humid, and rainy season from May to December and a short dry season from January to April. Temperatures are consistently high throughout the year, averaging around 27°C (81°F). Due to its geographical location, Panama experiences little variation in temperature but significant rainfall, particularly on the Caribbean coast.

The educational system in Panama is structured similarly to many other countries, with a mix of public and private institutions. Education is compulsory for children from ages 6 to 15, which includes primary and secondary schooling. The school year in Panama typically runs from March to December, with a long summer break from mid-December to late February. Primary education, known as educación primaria, consists of six grades and generally starts at age six. After completing primary school, students move on to pre-secondary (7th grade) and secondary education (8th to 11th grade), known as educación pre media and educación media, respectively. Secondary education culminates in a diploma de bachiller, which is necessary for university admission. The quality of education in Panama varies, with private schools often providing a higher standard of education, sometimes following international curriculums like the International Baccalaureate. Public schools are free, but they may lack resources compared to private institutions. For expatriate families, there are international schools that offer education in English and other languages, adhering to different national education systems or international standards.

Panama's healthcare system is a combination of public and private facilities. The public healthcare system is accessible to all citizens and legal residents, including expats who have obtained permanent residency. It is funded by the government and provides a range of services at a low cost. However, public hospitals and clinics may not offer the same level of comfort or advanced technology as private facilities. Private healthcare in Panama is known for its high quality and modern facilities, with many doctors trained in the US or Europe. It is more expensive than public healthcare but still affordable compared to North American standards. Expats and digital nomads can access public healthcare once they have residency status, but many opt for private health insurance to cover services at private hospitals. The quality of healthcare can vary depending on the region, with urban areas typically offering better services than rural ones.