• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Layer Culture

Latin America Travel & Culture Blog

  • Start Here
    • About
    • My Story
    • Travel Bible
  • Travel Tips
    • Travel Gear
    • Dan’s Checklist
    • Medellin Tips
    • Culture Shock
    • Travel Safety
  • Destinations
    • Mexico
    • Colombia
    • Central America
    • South America
    • Jamaica
    • Brazil
  • Resources
    • Safety Gear
    • Learn Spanish
    • Travel Journals
    • Backpacking
    • Latin Culture
Home / Travel Tips

Costa Rica vs Panama

Travel Tips Last Updated · Jan 20th, 2023 · Layer Culture

zapatilla island panama

Let’s compare Costa Rica vs Panama below to see which suits you.

When backpacking one of the most popular areas to backpack in the world, it’s difficult to make the right decisions when it comes to the safe spots and the dangerous ones.

Researching the necessary information is what we would advise, as there are many bits of information one can learn.

Table of Contents

  • Costa Rica vs Panama
  • Costa Rica
    • Is Costa Rica Expensive?
    • Is Costa Rica Safe?
    • Beaches in Costa Rica
    • Best time to visit Costa Rica?
    • Cost of Living in Costa Rica
  • Panama
    • Is Panama Safe?
    • Is Panama Expensive?
    • Best Time to Visit Panama
    • Living in Panama vs. Costa Rica
    • How far is Panama from Costa Rica?
    • Got Travel Insurance for Central America?
  • Costa Rica vs. Panama

Costa Rica vs Panama

A trip through Central America may come with many compromises to the planning of the journey, surprises whilst you’re there, and overall some downright awesome places to visit.

is costa rica safe

Panama and Costa Rica are two of the top countries visited in the Central America region, as they both lie on the coastal paths between both American continents.

Panama is often visited for its strategic position, with the canal connecting two major oceans and sitting on the border with South America and the North.

They border each other, so they have a lot in common in terms of dialect, cuisine, and biodiversity. However, there are some differences that may make tourists and backpackers choose one above the other.

Costa Rica

The name ‘la costa rica’, meaning “rich coast” in Spanish, was to most expert estimations first applied by Christopher Columbus.

Columbus sailed to the eastern shores of Costa Rica during his final voyage in 1502, but he wasn’t exactly the most accommodating. Learn about the culture of Costa Rica before visiting, you won’t regret it!

Is Costa Rica Expensive?

Costa Rica is more expensive than most other Central American countries, but you can still experience the country on a backpacker’s budget. Read the tips from my Central America travel route for more.

san jose costa rica at night
San Jose, Costa Rica at night

That is if you take the time to investigate low-cost sleeping options such as camping, hostels, and small eco guest houses.

Budget travelers that are experienced in backpacking can potentially last the trip on around $30 – $50 USD per day. Costa Rica’s unit of currency is the Colon (about 520-550 colones = $1 USD).

While US dollars are widely accepted, changing your currency to colones is recommended to avoid overpaying for amenities in dollars.

On a budget of $43 USD a day, you can afford cheap rooms, mostly local food, and some Western meals. This can include going out and many outdoor activities which would be considered touristy.

The least cost-effective method of traveling is by taxi, but it is admittedly the most convenient.

Is Costa Rica Safe?

Costa Rica is a largely safe country, but petty crimes such as bag snatchings and car break-ins are common.

san jose streets
A typical street in San Jose

It’s not as dangerous as neighboring countries, but you still need to stay vigilant. Many of Costa Rica’s dangers are nature-related.

Naturally occurring events such as riptides, earthquakes, and volcanic eruptions are more common than tourist-related petty crime.

Costa Rica, just like most countries in Central America, is a major transit country for drug trafficking.

get to cabo from cancun

Thousands of migrants from poorer neighboring Central American countries have flooded into Costa Rica, mostly seeking work.

While some have found it troublesome, many others do not have regular employment and are desperate enough to join gangs without the option of fleeing to Rica.

Be sure to read this comprehensive guide to safety in Costa Rica for more up-to-date info on keeping yourself safe in the country.

Beaches in Costa Rica

Manuel Antonio Beach is one of the most popular beach destinations in the whole country.

It’s considered a coastal gem since it borders Manuel Antonio National Park, a coastal rainforest teeming with wildlife. Another one of the top locations for tourists is the Tabacon Hot Springs.

costa rica lodge
A lodge in Costa Rica I stayed in for the night

It’s the largest accessible network of natural hot springs in all of Costa Rica. The pools are located within a private rainforest reserve and part of the Tabacon Thermal Resort, so booking ahead is advised.

In 1945, by a total accident, the Venado Caves were discovered by a farmer who fell into them.

There are eight magnificent chambers that make up a maze of limestone deep down in the earth, making it an essential spot to visit.

Best time to visit Costa Rica?

Just like Panama, there isn’t really a specific time of year to recommend. The best time to visit Costa Rica for most people is from mid-December to April (the dry season).

This is peak tourist season, however, so the prices are very high. That being said, the dry season boasts plenty of sunshine making it an ideal time for exploring rainforests and chilling on the beach all day.

costa rica resort

Many book rooms and tours three months in advance to secure a spot since there are limited numbers for this type of peak season traveling.

If you don’t mind getting a little wet, visit between May and November when prices are at their lowest and you can enjoy many activities in small numbers. This way you won’t have to book far in advance.

If you’re in the middle of planning a trip to Costa Rica for the very near future be sure to take all this into account.

Cost of Living in Costa Rica

Most Americans or other nationality ex-pats in Costa Rica spend less money on day-to-day expenses than they do in their home countries.

The cost of living in Costa Rica, of course, depends purely on your lifestyle and how good you are at setting yourself a budget.

However, in many ways, Costa Rica is much more affordable than back home. A single person can live on between $1,400 and $1,700 a month including all bills you can consider.

plane to costa rica
Arriving to Costa Rica by plane

Some single people scrape by on much less, and others spend hundreds of dollars more, depending on their lifestyle.

Many retired couples live well on $2,000 a month and even better on $2,500 to $3,000. Those learning Spanish get more for their money.

That includes all costs, including housing, transportation, medical care, utilities, food, and other factors such as entertainment.

Real estate, whether you rent or buy, is more affordable in Costa Rica, with North American-style homes keeping to reasonable prices even in amazing locations.

Panama

Your trip to Panama could be a thrilling adventure through the cloud forests of Chiriqui or relaxing on gorgeous beaches.

panama

But the main question tourists may have before visiting, will primarily be, is Panama as safe as people say it is?

Also, is it a country that’s only glorified due to the canal? This guide is designed to give you only the facts.

Is Panama Safe?

Definitely. The UK’s travel advice page states that most visits to Panama are ‘trouble-free.’ Read this safety in Panama guide for more.

surfing in panama
Surfing in Panama

You just need to read this guide, as well as others like it online and you need to be prepared.

Just like other countries that are nearby to Panama, crime is quite an issue within the bustling city centers.

Tourists aren’t particularly targeted. But obviously, if you’re flashing jewelry or gadgets all the time, you may fall victim to petty crime.

bocas del toro

Panama is an incredible country that sits right on the precipice of so many geographical barriers. Stay in one of the many eco-lodges here.

Many backpackers pass through this country, so you’ll definitely find tourists and travelers if you find yourself stuck or lost.

Is Panama Expensive?

The official currency in Panama is the Panamanian Balboa.

This currency is very strange compared to what you may be used to, as it is only available in coins.

It just so happens that 1 Balboa = 1 US $ though, so the exchange isn’t a complicated maths game. If you get cash out of the ATM it will be in dollars and also everything will be paid in dollars.

panama food vendor
Polite food vendor in Panama

Most places do not accept cards so make sure to always carry around enough cash, whether it’s dollar notes or Balboa coins.

Since Panama is unsuccessful in fully implementing an income tax system and does not make any revenue from foreign export, almost everything is imported on which Panama collects a large duty.

There is a 7% sales tax on almost everything except edible groceries, and there is a steep gasoline tax.

This is why traveling or the cost of living in Panama is noticeably more expensive than in Costa Rica.

Best Time to Visit Panama

There may be peak times to visit around the Summer, but there is no best time to visit Panama; it has the advantage of being extremely visitable all year round.

panama city church
Church in Panama City

The dry season is from November to April and the wet season May to October.

In the rainy season, the Caribbean is wetter than the Pacific, where afternoon showers last an hour or two.

Easter week is very busy, but as local people head to the coast or lakes, the towns are empty.

Living in Panama vs. Costa Rica

Bear in mind, in Costa Rica imported goods are eye-wateringly expensive. Items aren’t as cheap as you’d find in Colombia.

The high import duties make everything that isn’t local expensive, which in a way is no different to Panama.

panama flag

If you’re looking to live on a budget in either of these countries, you’ll have to embrace the lifestyle. Luckily, the fresh, local fruits and vegetables are cheap.

Costa Rica produces a range of organic food and drinks to feast on, as does Panama. In Costa Rica however, public transport and taxis are cheap, as is entertainment.

In Panama, it is quite expensive. The cost of living in Panama has increased in recent years, but some Public transport is still cheap.

Tickets for Panama City’s metro cost 35 cents per journey, which is common in some European cities but is sometimes rare here.

Uber does exist here, and many ex-pats swear by the use of Uber over taxi services as taxi drivers can inflate the prices if they guess you to be a tourist.

This is another one of the great reasons to get up to speed with basic Spanish conversation if you’ll be spending any length of time.

How far is Panama from Costa Rica?

Panama and Costa Rica are bordering countries in Central America, which are often passed through as travelers go from one continent to the other. Many people like to compare Nicaragua vs Costa Rica too.

panama road
panama road

The countries in Central America typically have unstable regions, typically around borders with neighboring countries.

The border between Panama and Costa Rica however, is quite safe. There are a few entry points, and travelers going from Costa Rica into Panama need to remember that there is a tax for leaving the country.

Another important nugget of information is that Panama is one hour ahead of Costa Rica, so set your clocks ahead one hour is advised.

Got Travel Insurance for Central America?

travel insurance
🔒 World Nomads provides Travel Insurance

Designed by travelers, for travelers, World Nomads covers more than 150 adventure sports and activities so you can explore your boundaries.

Costa Rica vs. Panama

When it comes to these two countries, they both have their strengths and they both have their weaknesses.

The main difference between the two really is the price of living. Panama is more expensive in general.

For us, if we were forced to choose just one location, we would say that Costa Rica has all the facilities and a better economy to ensure a better quality vacation.

What do you think? Why not read more on safety in Central America if you are still concerned about which destination to choose?

📌 Like this article? Pin it…

buses in mexico
mexico bus travel
When comparing Costa Rica vs Panama, did this guide help you?

💬 Leave a comment below or let’s start a meaningful conversation…

“Dear friend! Some links in this post contain affiliate links. Meaning, if you click through and make a purchase, book a hostel or sign up for a tour, I may earn a small commission at no additional cost to you. Your support means a lot and helps me to keep traveling and maintaining the quality of this site for you.”

Filed Under: Travel Tips Tagged With: Central America

Layer Culture

Helping thousands of people worldwide to learn more about Latin America. Layer Culture means to dig deeper into the ideas, customs, and behavior of a group of people.

Primary Sidebar

Meet Dan 👋🏽

south america travel with dan

After spending years on the road Dan is now offering to help you find your feet in Latin America; inspire you to learn Spanish and get you started on your adventures. Learn how to travel longer and stronger!

Yes Dan, help me!

Need something specific?

Recent Posts

  • Is Costa Maya Safe? 2023 Travel Guide
  • Safest States in Mexico 2023 Guide
  • Is Punta Cana safe? 2023 Travel Guide
  • Is Guatemala safer than Mexico?
  • Tulum vs Cancun

Footer

  • South America Safety
  • Connect with locals
  • Dan’s Travel Bible

Work with Dan

  • Be a Travelpreneur
  • About This Blog
  • Ask Me Anything

Travel Tips

  • South America Safety
  • Connect with locals
  • Dan’s Travel Bible

Get Inspired

  • South America Itinerary
  • Central America Safety
  • Solo Travel Tips

Learn Spanish

  • Learn Spanish Conversation
  • Become Fluent in Spanish
  • Top Places to Learn Spanish

© 2023 · Daniel James · Built on Genesis · See my site Policies

Layerculture is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com Other affiliate programs linking to other recommended products and services are also used. World Nomads provides travel insurance for travelers in over 100 countries. As an affiliate, I receive a fee when you get a quote from World Nomads using this link. I do not represent World Nomads. This is information only and not a recommendation to buy travel insurance.

This website uses cookies to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
4 shares