BUYING PROPERTY IN BOCAS

The Complete Guide to Buying Property in Bocas del Toro, Panama (2026)

Everything you need to know about owning a home in Panama's Caribbean — from pricing and developments to visas, taxes, and rental income.

If you've been dreaming about owning a home in the Caribbean, you've probably already discovered that most island destinations come with eye-watering price tags. Bocas del Toro, Panama is the exception — and it's quickly becoming one of the most sought-after real estate markets in the region.

This guide covers everything you need to know about buying property here, whether you're a retiree looking for your next chapter, an investor chasing rental income, or someone who just wants to wake up to turquoise water and world-class surf.

Why Panama?

Panama consistently ranks among the top retirement and expat destinations in the world, and for good reason. Here's what draws people from the United States, Canada, the UK, Europe, and Australia.

It runs on the US dollar. Panama uses the US dollar as its official currency alongside the Panamanian balboa, which is pegged 1:1. There's no currency exchange risk for American buyers, and international transactions are straightforward.

Foreign income isn't taxed. Panama operates on a territorial tax system, meaning it only taxes income earned within Panama. Pensions, Social Security, investment returns, and remote work income from employers or clients outside Panama? Not taxed. This makes Panama one of the most tax-efficient countries in the world for retirees and remote workers.

The cost of living is genuinely low. Groceries, dining, healthcare, and household services are all substantially more affordable than the US, Canada, or Western Europe. Many expats report living well on $2,000–$3,000 per month.

Healthcare is excellent and affordable. Panama has modern hospitals and clinics, with many doctors trained in the US or Europe. Healthcare costs are a fraction of US prices, and most expats use a combination of Panama's public health system and affordable private insurance.

Getting residency is straightforward. Panama offers several clear paths to legal residency for foreign nationals, including through real estate investment, pension income, or economic ties. More on this below.

It's close to home. Direct flights from Panama City to Miami take about three hours, with connections to most major US cities. It's easy to visit family or keep business ties alive.

It's stable and safe. Panama is one of the most politically stable countries in Latin America. It abolished its military in 1990 and has maintained consistent democratic governance and economic growth ever since.

Why Bocas del Toro? Comparing Panama's Top Expat Destinations

People considering a move to Panama typically weigh a few different regions. Here's how they stack up.

Bocas del Toro

A Caribbean archipelago on Panama's northwestern coast. World-class surfing, snorkeling, diving, lush rainforest, and a laid-back island lifestyle. Bocas has a thriving international expat community, a growing tourism economy, and strong short-term rental demand. Water temperature averages 80°F year-round. The main island, Isla Colón, has an airport with daily flights to Panama City, plus restaurants, grocery stores, healthcare facilities, and reliable internet.

Bocas del Toro is ideal if you want an active, nature-oriented lifestyle — surfing, snorkeling, kayaking, hiking — in a welcoming international community, at a fraction of what other Caribbean islands cost.

Panama City

The capital. Modern, cosmopolitan, with skyscrapers, world-class dining, and urban amenities. Best for people who want a city lifestyle. Real estate is generally more expensive and urban. No beach or island feel.

Coronado and the Pacific Beaches

Pacific coast beach towns about one to two hours from Panama City. Popular with retirees seeking beach living with easy city access. The Pacific side has distinct dry and rainy seasons and a more resort-style feel — less jungle, less island culture than the Caribbean.

Boquete

A mountain town in the Chiriquí highlands. Cool climate, coffee country, popular with retirees who prefer cooler temperatures. Beautiful scenery but no beach access.

Pedasi and the Azuero Peninsula

A small Pacific coast town. Quiet, rural, very affordable. Limited infrastructure and amenities. Best for people seeking extreme simplicity.

For buyers who want Caribbean island living, world-class surfing and diving, strong rental income potential, and an established expat community, Bocas del Toro is the clear choice.

How Does Bocas del Toro Compare to Other Caribbean Markets?

vs. Costa Rica (Nosara, Tamarindo)

Similar appeal, but Costa Rica's prices are dramatically higher. A comparable 2-bedroom in Nosara or Tamarindo runs $400,000–$700,000+. Property taxes are higher and there's no equivalent to Panama's tax exemptions on new construction. Panama also offers easier residency pathways.

vs. Tulum, Mexico

Tulum has experienced overdevelopment, serious water infrastructure issues, and increasingly complex foreign ownership rules through the fideicomiso trust system. Bocas del Toro offers simpler direct ownership on titled land and much less market saturation.

vs. US Virgin Islands and Puerto Rico

Dramatically higher property prices and cost of living. A 2-bedroom in St. John starts at $800,000+.

vs. Belize

Comparable pricing in some areas, but Belize lacks Panama's banking infrastructure, dollarized economy, and robust residency visa programs.

New Construction Developments in Bocas del Toro

At Bocas Homes International, we design, build, and sell our own homes across three developments on Isla Colón. Every property is new construction on titled land registered in Panama's Public Registry, qualifies for Panama's property tax exemption, and qualifies for residency visa programs.

Las Molas — Big Creek Area

Las Molas is a boutique villa community in the highly desirable Big Creek area. It's walkable to beaches, restaurants, bars, and Bocas Town — the commercial and social hub of the archipelago. This location generates the strongest short-term rental demand due to its proximity to tourist infrastructure.

1-bedroom home: from $215,000
2-bedroom home: from $249,000
1-bedroom home + detached casita: from $259,000

Lots are approximately 600 square meters of titled land, with additional lots available for buyers who want more space.

Best for: First-time buyers, rental income investors, expats who want walkability to town and beaches, and buyers looking for the most accessible entry price.

Burn Brae Plantation

Burn Brae is a luxury villa community set on larger hilltop lots with ocean breezes, jungle views, and access to a private deep-water marina that can accommodate boats up to 55 feet. It's our most established community, offering privacy, seclusion, and a marina amenity that very few Caribbean developments anywhere can match.

1-bedroom home: from $339,000
2-bedroom home: from $380,000
3-bedroom luxury villa: from $480,000

Lots are approximately 1,800 square meters of titled land.

Best for: Boaters, privacy seekers, luxury buyers, families wanting larger lots, and investors targeting the premium niche.

Paunch Village

Paunch Village is a vibrant mixed-use community on the island's most iconic stretch of coastline, steps from the renowned Paunch surf break and world-class snorkeling reefs. The development includes lofts, condos, single-family homes, and retail spaces. Paunch commands premium nightly rental rates, especially from the surf and adventure travel crowd.

Loft: from $172,500
2-bedroom condo: from $373,500
2-bedroom house (luxury villa): from $445,000
3-bedroom house: from $545,000

Best for: Surfers, active lifestyle buyers, investors seeking premium positioning and high nightly rates, and anyone who wants to be at the heart of Bocas del Toro's most sought-after coastline.

Who's Buying in Bocas del Toro?

Our buyers typically fall into a few categories.

Retirees from the US, Canada, and Europe seeking an affordable Caribbean retirement with good healthcare, low taxes, and an active outdoor lifestyle. Many use the Pensionado or Friendly Nations Visa.

Investors looking for rental income in a growing Caribbean tourism market. Bocas del Toro has strong Airbnb and short-term rental demand. Many buyers live in the home part of the year and rent it out the rest.

Surfers and outdoor enthusiasts. Bocas is a world-class surf destination with consistent year-round waves. Paunch is one of the most famous breaks in Panama. The area also offers exceptional snorkeling, diving, kayaking, fishing, and hiking.

Remote workers and digital nomads. Panama's reliable internet, US dollar economy, and affordable cost of living make it a natural fit for location-independent professionals.

Expats seeking a lifestyle change. People from the US, Canada, UK, and Europe looking to relocate to a warm, affordable, welcoming community with an established international presence.

Rental Income Potential

Bocas del Toro has strong and growing short-term rental demand driven by tourism. For a well-managed 2-bedroom home, here's what realistic projections look like:

Nightly rates: $120–$200 depending on season, location, and finishes
High season (December–March): $160–$200+ per night
Conservative annual estimate (6 months rental at 60% occupancy, ~110 nights at $130/night): $14,000–$17,000 in gross rental income
Well-managed properties with quality finishes and professional listings can exceed $20,000 annually

New construction homes with modern amenities and strong photography consistently outperform the market average on Airbnb and Booking.com. Properties near Paunch surf break and in the Big Creek area tend to have the highest demand.

How to Buy Property in Panama as a Foreigner

Foreigners can own property in Panama with the same rights as Panamanian citizens. There are no restrictions on foreign ownership of titled land. Here's how the process works.

1. Select a property. Visit in person or arrange a virtual tour. We offer both.

2. Hire a Panamanian attorney. Your attorney conducts due diligence including a title search at the Public Registry, boundary verification, lien checks, and contract review. Budget $1,500–$3,000 for legal fees.

3. Sign a Promise to Purchase Agreement. You'll pay a deposit, typically 10–20% of the purchase price. For new construction, developers often offer structured payment plans tied to construction milestones.

4. Complete the transaction. Your attorney prepares the deed (escritura pública), which both parties sign before a Panamanian notary. Closing costs include transfer tax (2% of registered value or sale price), notarial fees, registration fees (approximately 0.3%), and legal fees.

5. Register at the Public Registry. Your purchase is finalized once filed, typically within 10 days to several weeks.

Titled Land vs. Rights of Possession: Why It Matters

This is one of the most critical things to understand when buying in Bocas del Toro.

Titled land is registered in Panama's Public Registry. It provides full legal ownership, can be mortgaged, qualifies for residency visas, and offers the strongest legal protections.

Rights of Possession (ROP) is not registered in the Public Registry. The occupant has usage rights but not full ownership. ROP land can't be mortgaged through traditional banks, doesn't qualify for residency visa programs, and carries significantly more legal risk. It's common in rural parts of Bocas del Toro and often explains why some properties look unusually cheap.

Every Bocas Homes property is built on titled land. If residency, bank financing, or legal security are part of your plan, titled land isn't optional — it's essential.

Panama Residency Visa Programs

Friendly Nations Visa

Available to citizens of 50+ countries including the US, Canada, UK, Australia, and all EU member states. Requires a real estate investment of at least $200,000 in titled property registered in Panama's Public Registry, plus establishing economic ties (such as opening a Panamanian bank account). Grants a two-year temporary residency permit, convertible to permanent residency. All Bocas Homes properties priced at $200,000+ qualify.

Qualified Investor Visa

Requires a $300,000 real estate investment. Grants immediate permanent residency with no two-year waiting period. The better option for buyers investing over $300,000 who want permanent status right away.

Pensionado (Retiree) Visa

Requires proof of $1,000/month in pension income (or $750/month combined with $100,000+ in Panama real estate). Grants permanent residency plus extensive local discounts on utilities, transportation, medical services, entertainment, and more. Very popular with retirees.

Self Economic Solvency Visa

For those who don't qualify under Friendly Nations. Requires a $300,000 fixed-term bank deposit or $300,000 in titled real estate.

Path to Citizenship

After holding permanent residency for five consecutive years, you can apply for Panamanian citizenship through naturalization.

Frequently Asked Questions

Can foreigners own property in Panama? Yes. Foreigners have the same property ownership rights as Panamanian citizens. There are no restrictions on foreign ownership of titled land.

What currency is used in Panama? The US dollar. Panama's official currencies are the US dollar and the Panamanian balboa, which is pegged 1:1.

Do I need to live in Panama to own property? No. Many of our buyers live in their home part of the year and rent it out the rest. Property management services are available locally.

Is Bocas del Toro safe? Yes. Bocas is a welcoming community with a low crime rate, an established international expat community, and is popular with families.

What's the weather like? Tropical Caribbean climate with average temperatures of 80–88°F year-round. Water temperature hovers around 80°F. There's rainfall throughout the year, with drier periods typically from February through May and September through October.

Does Bocas del Toro have good internet? Yes. Isla Colón has reliable internet sufficient for remote work and video calls. Many expats work remotely from Bocas.

How do I get there? Fly into Isla Colón International Airport (BOC) with daily flights from Panama City, about an hour. International visitors typically connect through Tocumen International Airport (PTY), which has direct flights to many US and European cities.

Can I get a mortgage? Panamanian banks do offer mortgages to foreigners on titled land. Requirements vary by bank. Bocas Homes also offers structured payment plans for new construction.

What are property taxes like? Property taxes in Panama are among the lowest in the Western Hemisphere. New construction receives exemptions from property taxes. Combined with the territorial tax system, property ownership in Bocas del Toro is extremely tax-efficient.

What's the cost of living? Significantly lower than the US, Canada, or Europe. Many expats live comfortably on $2,000–$3,000 per month.

Is Bocas del Toro a good real estate investment? Yes. Strong and growing tourism demand, limited supply of quality new construction, a dollarized economy, favorable tax treatment, and accessible residency programs all make it a compelling market. Short-term rental income from platforms like Airbnb provides consistent returns.

Does Bocas Homes have beachfront properties? We don't have beachfront villas, but our developments are located close to the beach and surfing areas. Las Molas is walkable to beaches and Bocas Town. Paunch Village is steps from the famous Paunch surf break and snorkeling reefs.

Ready to Learn More?

Whether you're just starting to explore the idea or you're ready to schedule a tour, we'd love to hear from you.

We offer both virtual and in-person tours. Schedule yours here.