Margarita Island Drivers on the island are more ‘laid-back’.  They will let you change lanes or let you in/out of parking places, and you will seldom hear honking horns - except at traffic lights if you don’t move quickly enough.  During the holiday seasons (Christmas, Easter, July & August) there are a lot more vehicles coming to the island by ferry from the mainland.  These people tend to drive more aggressively but still not nearly as maniacally as the drivers in Panama City.  Many of the buses here look pretty decrepit, but don’t emit the black smoke like those in Panama City.  Taxis range from about $1.75 to $2.00 in town. A taxi to the airport is about $9.00. Daily rate is about the same as in Panama.

The People
Panama City.  The people are a mixture of various races with a lot of African influence.  They are quite friendly and helpful, and many people speak English in addition to Spanish.  Go to almost any restaurant or bar and you will most likely hear someone speaking English.  Panama City is an International business center and English is the business language in most of the world.

Margarita Island has little African influence in the gene pool primarily because use of slave labor was never as predominant here as it was on many other Caribbean islands.  Spanish is the official language, but even some people fluent in Spanish find Margariteño Spanish a little difficult to understand.

There is actually no comparison between the women of Venezuela and those in Panama.  As I write this I am reminded of the skit from “Cabaret” where Joel Gray was dancing with the Gorilla (it's dressed in ladies clothes) and he's singing “If You Could See Her Through My Eyes”- 
(I guess beauty is in the eye of the beer-holder.)
Beauty is very important in Venezuela and the women are proud of their appearance.  Here you see more pretty women than just about any place I’ve been.  Some are absolutely stunning and the style of dress is sexy - tight pants or short skirts and low-cut tops plus high heels.  They look like they just walked off the pages of a sexy fashion magazine.
This comparison is not only in my mind…get into a conversation about women with any bartender, taxi driver, etc., in Panama City and they'll immediately mention the beauty of Venezuelan or Colombian women.

The Countryside
Panama City. The area near the airport looks a lot like the bayous in southern Louisiana.  Driving across the Canal Zone toward Costa Rica, there's nothing to see but vegetation for miles.  Just outside Panama City proper there are some beautiful neighborhoods with mature trees, lawns and flowers.  Fort Clayton and Balboa Heights, to name two.  The former military base grounds are like a golf course, not as well-maintained as when the United States had control, but nice nonetheless.

Margarita Island is a fairly small island - (934 square kilometers - almost 600 sq. miles) and you will find everything from desert to semi-tropical ecosystems.  There are no tropical jungles here as there are in Panama.   La Restinga is a jungle-like Natural Park located between the eastern side of the island and Macanao on the west. Porlamar and Pampatar, the main cities,  have green areas, beautiful homes, and a nice climate.

Climate
Panama is a beautiful tropical country with jungles and mountains…unfortunately the jungles are closer to the city and the cooler mountains further away.

Panama City is rainy, hot, and humid.  Annual rainfall average is 64.7 inches.  The humidity after a rain shower is intense.  So much so that if you walk for only about 30 minutes you will have to peel your clothes off when you get home - if you can wait that long!  If your electric bill goes over $50 you must pay it - no discount.  You’re A/C bill alone can run to $200-$300 per month.  To escape the heat and humidity it is necessary to drive more than an hour away from the city into the mountains (more likely 2 hours considering the traffic).  Once you get there, you will be cooler but there is little to do but admire the beautiful scenery, hike, and bird-watch.

Margarita Island’s average annual rainfall is 22 inches.  From Macanao, the “Arizona-like” western part of the island, to the mountains around El Copey - highest mountain at 890 meters - you can find almost any environment you seek.  There are over 100 beaches and coves just a few minutes from anywhere on the island.  Trade winds make ‘beaching’ a pleasant experience.  It’s slightly cooler in the mountain area just 15 or 20 minutes from the beach.  The island is much less tropical than Panama and humidity is usually not as high.  We use our air conditioner when needed, cook with electricity, and have a washer/dryer.  Our bill has never been over $65 a month.
 

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Medical
Panama City has some impressive medical facilities . There are a couple of new hospitals that are as modern as many in the U.S., including a new Johns Hopkins Hospital. I saw a dermatologist whose office was located in one of the better areas of town.  The exam was $40.  My taxi driver said that in the less affluent areas it could cost between $5 and $15 to see a doctor.  Medical insurance is very affordable.  The premium is $130 a month to age 64 and $202 to age 75.  A $35 deductible and $8 per office visit.  Under age 64 the cost is $62 per month or $112 for a couple.  Some dental work (like extractions) is covered.

Margarita Island has very good medical facilities.  A visit to a specialist will usually cost about 50,000 or $20.  Clinics downtown are cheaper, $5 to $10 per visit.  There are also free hospitals and several free clinics.  The island has several well-equipped hospitals (not as impressive as those in Panama City but adequate.)  Medical insurance costs are about the same as in Panama, again depending on your age and any pre-existing conditions.  Dental care is excellent and reasonable.

Banking
Panama City is an international business and banking center, and most other countries have at least a branch bank there.
Opening a bank account - in some banks you will need a residence visa, in others you may need 2 forms of I.D, 2 letters of reference from 2 banks where you have an account or have business relations, a copy of your latest tax return, and oddly enough, a copy of a current utility bill for your current residence. 
In other banks, all you need is the I.D. and one letter of reference from your bank.
The main advantage to banking in Panama is that the banks are sound. 
Let’s say that you live in a country that uses other currencies than the dollar or Euro.  There is an exchange rate that can fluctuate.  For instance, if you live in Colombia or Venezuela and sell your house, you are much better off putting your money in a Panama bank than a national bank.  Bank transactions in Panama are private and an ex-spouse or lawyer, etc. can’t find any information about your holdings - even the U.S. government must obtain special permission to view your records and only if they can prove money laundering or terrorist activities.  Your financial information is safe from prying eyes.

Margarita Island Banking in Venezuela is risky, so it is wise to only keep a minimum basic amount in a national bank here.  To open a bank account in Venezuela you need to show a Cedula (Venezuela I.D.), a couple of local references and a utility bill.

Real Estate
Panama City has some beautiful and very expensive high-rise Condos and apartments.  These also have a “high-rise” price tag.  Starting at about $1600 per square meter and up.  That's about $152 a square foot.  Apartments in older buildings can be had for about $1000 per square meter.  Homes in better neighborhoods are in the $100,000 to $200,000 up price range.  By shopping aggressively you can find something for less, but it will usually need work.

Margarita Island Condo high-rises on are generally not as tall or as elegant as those I saw in Panama City.  There's an abundance of apartments and condos here and more are being built as of this writing.  The average cost is between $800 and $1000 per square meter.  Homes in good areas inland can be found for around $40,000 up to whatever you are willing to pay.  Ocean view property is naturally much more expensive.  It seems building costs in both Panama City and on Margarita Island are generally comparable.  Both places are experiencing a building boom - more so in Panama City as it is larger, they encourage new residents, and ex-pats can get bank financing.  Bank financing is not available to ex-pats here on Margarita yet, but it might be available soon.  There is some short term financing on some new construction.

A foreigner can own real estate in either country.

Beaches
Panama City.  You have to drive 2 to 3½ hours or more to find a nice beach depending on whether you prefer the Atlantic or Caribbean side.  If you want to live close to a beach the properties are expensive and there is not much else to do but go to the beach.  Colon on the Caribbean side is a pigsty and very dangerous. There are some beautiful islands accessible only by boat. Bocas Del Toro is touted as being very popular, but it is 6-7 hours from Panama City and there is little infrastructure in place there. 
Household electricity is expensive (15 cents per kilowatt hour). but necessary as the areas near the beaches are hot and humid.

Margarita Island has any kind of beach you seek.  Everything from large, busy, family-oriented to small and secluded.  Playa El Yague is famous worldwide for Windsurfing. 
There are also dive tours and excursions to nearby Coche & Los Frailes Islands.

Recreation
Panama City wins simply because it’s a big city.  You can find lots of ex-pat oriented activities, museums, bars, restaurants and cultural diversity in a city this large.

Margarita Island offers all the usual tourist activities, but the bars and restaurants here are not as nice or elegant as those in Panama City. 
There are a few bars where ex-pats meet but there are seldom any planned activities or gatherings.  Most hotels here have casinos.  This is even true for hotels located in the older sections downtown.  The casinos offer a good variety of entertainment and the odds (gambling) are more advantageous than those in casinos in Panama, i.e., only one zero on the roulette wheel.
A really “classy” event here would be a ‘wet tee-shirt contest’ at a beach bar!

So, what's the bottom line?  Which is the best deal for living within your means?
I believe that depends on individual tastes, income, and priorities.
If you are more comfortable in a big, busy city, Panama City has a lot to offer.  On the other hand, if you prefer a slower-paced, more Caribbean lifestyle that still offers all the modern amenities, Margarita Island might be more to your liking.  At present Margarita Island is one of the least expensive islands in the Caribbean. Other contenders might be the Dominican Republic or San Andreas Island (owned by Columbia).  Both the Dominican Republic and San Andreas are in the hurricane zone, and the Dominican Republic is reputed to have a high crime rate.

Margarita Island is only 25 km. off the Venezuelan coast, and 45 minutes to Caracas by air.  From Caracas you can travel to the world's highest waterfall-”Angel Falls”, take an Amazon tour, trek through the foothills of the Andes Mountains near Merida, or try your skill at some of the best “Grand Slam” Sport Fishing grounds in the world.

Thanks for your attention and....Viva Margarita!!
 

You will find more information about Margarita Island,Venezuela at my website www.discovermargaritaisland.com