These neighboring countries have been stealing the hearts and addresses of foreigners for years and for good reason. Both are blessed with warm weather, breathtaking landscapes, and a tropical lifestyle that is coveted by many and attained by the luckiest. Though similar in many ways, Panama and Costa Rica have their fair share of differences with pros and cons on both sides of the border.

REAL ESTATE

Advantage: Panama

Originally, real estate was more likely to be pricier in Panama. Those who got into Costa Rica early enough were rewarded with beautiful properties at an appealing price. Certainly, many have found their fortunes, or their dream homes, in Costa Rica.

Today the market has changed. The word has long been out about Costa Rica’s “Pura Vida” lifestyle, and publicity comes with a price. In fact, as of December 2013, the Central America Data report announced that Panama had actually surpassed Costa Rica as a retirement destination, and rising prices in Costa Rica were cited as the primary reason.

The announcement may be misleading, however, as Panama real estate isn’t the bargain it once was. While you may get more bang for your buck in Panama, don’t come here expecting to snag a beachfront condo for under $200,000. Not as expensive as Miami, surely, but not exactly chump change, either.

Perhaps the greatest distinction between Panama and Costa Rica real estate is less about the price and more related to quality. Foreigner-friendly homes in Panama are of a different caliber- in construction, luxury, security, and long-term value. The quality is much more aligned with what foreigners are accustomed to and expect.

From an investment standpoint, Panama properties are also more likely to deepen in value when compared to those in Costa Rica. This is thanks to Panama’s rapidly growing economy- with the country’s 2012 GDP growth rate at a booming 10.7% verses Costa Rica’s 5.1% (Source: World Bank.) Consequently, Panama’s middle and upper class is growing at an astounding rate, as is the influx of foreigners.

As you’re well aware, a strong middle class is the backbone of any country, and a key player in the trends of the real estate market. Combine that with Panama’s vast significance on the global scale, and the market is as stable as you could hope for.

SAFETY

Winner: Panama

As a foreigner, you are more likely to be targeted in Costa Rica than in Panama. The tourism sector in Costa Rica took off long before Panama’s, and crime against tourists is an all too common offense. The cost of living in Costa Rica rose significantly, partly as a result of foreigners, leaving many locals resentful of outsiders. Countless Panamanians have found jobs and opportunities within Panama’s tourism and expat market, leaving less hostility between the two groups. Not all Panamanians like the presence of expats, but at worst you’ll find them to be indifferent.

Luckily, the crimes against foreigners in Costa Rica tend to be theft-related as opposed to violent, with car robberies and pick-pocketing being the most common of complaints. While Panama is not completely barren of crime, foreigners are rarely the victims. Besides the tendency of Panamanians and expats to co-exist peacefully, the areas that foreigners visit and live are kept especially safe, with security measures and police presence keeping any rogue criminals away.

BEAUTY

Winner: Costa Rica

Beauty is in the eye of the beholder, but probably Costa Rica wins the title. Tourism has long been Costa Rica’s primary source of revenue, and the government has done well to preserve the natural zones that keep visitors flocking in.

That’s not to say Panama isn’t beautiful - many of its beaches, mountains, islands, and rainforests could be (and are) postcard material. But Panama has only recently surfaced as an international destination - and the government has some catching up to do on maintaining the lesser-visited areas.

Trash, for example, is a serious problem in Panama, especially in the city and some of the poorer communities. It’s not uncommon to be driving and see someone toss a soda can out the window. This is partly due to negligence and partly to lack of education. It seems the government has finally caught onto the problem and is beginning to take action - but they’ve still got a long way to go.

HEALTHCARE

Winner: Panama, but close call

Panama wins this one, though only slightly. Panama City has a variety of modernized hospitals, many of which are affiliated with hospitals in the U.S. Doctors in Panama are trained according to international health standards, and many of them are fluent in English. Healthcare costs in Panama are substantially lower than in North America.

Healthcare in Costa Rica is also modern and quite affordable. Still, it isn’t quite as technologically advanced as in Panama. For instance, the most technologically advanced hospital in Latin America in located in Panama City. Panama also offers retirement benefits and insurance plans that bring the cost of health care even lower.

COST OF LIVING

Winner: Panama, hands-down

Cost of living is subjective in nature, depending much on habits and lifestyle. Still, given the same set of each one would venture to say that a person living in Costa Rica would spend more money than if living in Panama.

When it comes to daily expenses like food, retail items, and especially imported products, Costa Rica is more expensive. The famous Panama Canal is largely to thank for keeping the cost of “things” in Panama down - often the same or even less than in North America. Costa Rica, on the other hand, gets many of its products through the Panama Canal and are hit with an additional import tax at the border.

Keep in mind that, for either country, the more expensive items tend to be discretionary ones. Staple foods like rice, beans, coffee, locally grown produce, and certain meats are inexpensive whether you’re in Costa Rica or Panama. It’s when you start to buy imported good and specialty items (think Doritos, frozen meals, ham from Spain, and brand name clothes) that the price goes up.

All in all, both Panama and Costa Rica are phenomenal places to live. The advantages and disadvantages each of them pose are of varying importance, depending largely on where you’re at in life. Therefore, it’s impossible to say which is the “best,” as there is no best, only different. Some individuals are perfect for Panama, and others are more suited for Costa Rica. Which one are you?