This development of the country and its potential has led to an influx of overseas property investors seeking to take advantage of the growth of international business and also the tourism opportunities that are available in a country that has coastlines on both the Caribbean Sea and the Pacific Ocean.

For UK buyers in Panama, the first forays into the market were ubiquitously in Panama City, where the safest investments were available and where the market for rentals had the highest potential returns. Since then more resort-based developments have come onto the market, and Panama is now seen as much as a lifestyle destination as an investment one.

That said, Panama City is still a great hub for the overseas property buyer to explore initially, and many expats are choosing to settle there as well. The capital has the business drive that has welcomed large numbers of multinational companies to the city, and with that builders have developed high-end apartment complexes to cater for the workforce. This was the initial investment opportunity spotted by overseas investors.

The development of more tourist resorts in the coastal areas has since spread outwards from Panama City, combining properties on the sandy beaches of both the Caribbean and Pacific coastlines. Amador, just outside of Panama City on the Pacific side of the country, and the towns of Portobelo and Maria Chiquita on the Caribbean Sea are resorts to watch out for.

With the focus of property in Panama now shifting towards lifestyle alongside the investment angle, there are a number of retirement developments now on the market. Given that the tax breaks for private investors in Panama are valid on any property purchase, the incentives for US and even UK retirees to move to Panama are stronger than ever.