PanamaCasco Viejo, Boquete, Bocas del Toro, Miraflores

Bocas del Toro — Caribbean Islands & Jungle — Panama's most visited Caribbean destination, accessible by domestic flight from Panama City or by bus and water taxi from the Costa Rica border. The Bocas del Toro archipelago is a cluster of islands and channels in the Caribbean, with mangrove forests, coral reefs, surf breaks, and an Afro-Caribbean culture that feels entirely different from Pacific Panama. Isla Colón is the main island, with Bocas Town — its main settlement of brightly painted wooden houses on stilts over the water — functioning as the social hub. But the real draws are the beaches: Red Frog Beach (accessible only by boat), Starfish Beach (named for the extraordinary number of large sea stars in the shallows), and the surf breaks at Bluff Beach. The surrounding channels offer excellent snorkelling, dolphin watching, and kayaking through mangroves. Bocas is also where Panama's eco-lodge and yoga retreat scene is most concentrated — more on this below.

Boquete & the Chiriquí Highlands — a mountain town at 1,200 metres altitude in the shadow of Volcán Barú (3,474m — the highest point in Panama, and the only place in the world from which both the Pacific and Atlantic oceans are theoretically visible on a clear day). Boquete is everything that Panama City is not: cool, misty, slow, surrounded by coffee farms and cloud forest, and deeply attractive to a large and settled international expat community. The Boquete flower and coffee festival in January is one of Panama's great events. White water rafting on the Chiriquí Viejo river (Class III–IV) is among the finest in Central America. The Los Quetzales Trail through the cloud forest offers opportunities to see the resplendent quetzal — one of the most beautiful birds in the Americas. Boquete's coffee scene is excellent — the Geisha variety, developed here, is arguably the most expensive specialty coffee in the world.

San Blas Islands (Guna Yala) — an archipelago of over 360 coral islands off Panama's Caribbean coast, almost all of them in the autonomous territory governed by the Guna people. These are among the most extraordinary islands in the Americas — low-lying coral cays of white sand and palm trees, turquoise water above pristine reefs, and an indigenous community that has maintained genuine political self-determination. The Guna are one of the few indigenous peoples in the Americas to have successfully resisted land appropriation and preserved both their territory and their traditional culture. Women wear the extraordinary mola textiles — layered reverse-appliqué panels of geometric patterns in vivid colours — and the social fabric of the islands is visibly intact in a way that is rare and moving. San Blas is reached by 4WD road over the Continental Divide from Panama City (2.5–3 hours) plus a boat to whichever island you're staying on. There are no luxury hotels — accommodation is basic; the experience is extraordinary.

Coiba National Park & Pacific Islands — a UNESCO World Heritage Site, Coiba Island is the largest island in Central America and one of the most biologically diverse marine environments in the Eastern Pacific. Former prison island (political prisoners were sent here from the 1920s to 2004 — the remoteness that made it a prison is what preserved its ecosystem), Coiba has more fish species, whale sharks, hammerhead sharks, and cetaceans than almost anywhere in the Pacific. Day trips and multi-day expeditions are available from Santa Catalina — a surf town on the Pacific coast that also has some of the finest Pacific surf in Central America.

El Valle de Antón — a small town in the crater of an extinct volcano, 2 hours from Panama City, surrounded by cloud forest and home to the famous golden frogs (a national symbol, now extinct in the wild due to the chytrid fungus but maintained in captivity programs). El Valle has a Sunday craft market, thermal hot springs, waterfalls, and a pace of life that makes it an excellent short escape from the capital.

The Darién Gap — the 160km of roadless jungle between Panama and Colombia is one of the most notorious geographical concepts in the world. There is no road. There is extraordinary biodiversity. There are also very serious safety concerns involving criminal groups operating in the area — the Darién Gap receives a Do Not Travel advisory from the US State Department, and the recent mass migration of hundreds of thousands of people crossing it on foot has made the situation more unpredictable. Organised expeditions with experienced guides do operate, but this is genuinely extreme travel territory and should be researched very carefully by anyone considering it.

Panamanian cuisine reflects the country's extraordinary cultural mixing: Spanish colonial foundations, indigenous ingredients and techniques, African influences from the Caribbean coast, Chinese immigration from the 19th-century canal construction workers, and the ongoing American presence since the Canal Zone. The result is a food culture that is genuinely its own — not as internationally celebrated as Peruvian or Mexican cuisine, but deeply satisfying and more complex than most visitors expect.

Sancocho de gallina — the national dish, and a good place to start understanding Panama. A slow-simmered chicken soup with yucca, corn, green plantains, and the herb culantro (similar to but more pungent than cilantro), it is comforting in the way that only dishes that have been refined over generations can be. It is eaten for lunch, for hangovers, at family gatherings, and at every celebration. Finding it in a proper fonda (a family-run local restaurant) rather than a tourist restaurant is the difference between a good bowl and an extraordinary one.

Ceviche — Panama's ceviche is among the finest in Latin America, and the Pacific coast gives it an ingredient advantage. Made with corvina (sea bass) or shrimp, cured in lime juice with habanero, red onion, and cilantro, it is bright, punchy, and served with patacones or crackers. The fish market at the Mercado de Mariscos in Panama City has a ceviche bar on the first floor that is one of the best informal food experiences in Central America — you eat it while watching the fishing boats unload below you.

Patacones — twice-fried green plantain discs, crisp and salty, served with everything and as a vehicle for guacamole, ceviche, or beans. They are one of the great Central American staple foods and are available in every restaurant, at every price level, at every hour.

Ropa vieja — shredded beef braised in tomatoes, peppers, and onions until it falls apart into silky strands. A dish with both Spanish and Afro-Caribbean roots, it is served with rice and beans throughout the country. The name — "old clothes" — refers to the texture of the meat.

Carimañolas — yuca fritters stuffed with seasoned ground beef or chicken, deep-fried until golden. A popular street food and breakfast item throughout Panama, originally from the Caribbean coast.

Hojaldres — fried dough puffs, similar to a light, savoury doughnut, eaten for breakfast with everything from cheese to saltfish. A distinctly Panamanian morning institution.

Caribbean Coast food (Bocas del Toro & Colón) — the Caribbean side of Panama has an entirely different food culture shaped by Afro-Caribbean immigration from Jamaica and Barbados. Rice and beans cooked in coconut milk, fried fish with plantain, rondon (a Caribbean seafood stew with coconut milk, root vegetables, and whatever fish was caught that day) — these dishes are richer, spicier, and less well-known than the Pacific side's cuisine, and are worth seeking out.

Chinese-Panamanian food — Chinese workers were brought to Panama in the 1850s for canal construction, and their descendants have deeply influenced the food culture. Panama City has Chinatown (El Barrio Chino) and Chinese-Panamanian fusion food — chow mein with patacones, rice dishes with tropical ingredients — is entirely mainstream. The Chinese influence on Panamanian rice culture (rice accompanies virtually every meal) is direct and permanent.

Coffee — Boquete's Geisha coffee variety is grown at high altitude in the Chiriquí highlands and has repeatedly won the world's best specialty coffee awards. It sells at auction for prices that would make Parisian café owners weep. In Boquete itself, you can visit the farms — Café Ruiz, Finca Lerida, Kotowa — that produce it, and buy it at the source at a fraction of the international auction price. Panama produces modest volumes of coffee but extraordinary quality.

Is Panama Really a Tax Haven? The Honest Answer.

Panama is not technically a "tax haven" in the offshore secrecy sense — the days of anonymous bearer shares and untraceable bank accounts largely ended after the Panama Papers scandal of 2016 and subsequent international regulatory pressure. But it is, in a very specific and entirely legal sense, one of the most tax-advantageous places in the world to live as a foreign resident — and that advantage is built into the law, not into grey areas.

The territorial tax system — Panama taxes only income earned within Panama's borders. Income earned from anywhere else in the world — a foreign pension, a remote salary from a company outside Panama, rental income on a property in Europe, investment dividends from foreign portfolios — is completely exempt from Panamanian tax, regardless of your residency status. This is not a loophole. It is the law, confirmed by KPMG's 2024 tax guide and consistently upheld. The system applies to all legal residents.

In practical terms: if you live in Panama and work remotely for a company based outside Panama (with no Panamanian clients or operations), your income is treated as foreign-sourced and is not taxed by Panama at all. If you receive a foreign pension, it is not taxed. If you have investments abroad, the returns are not taxed. The first $11,000 of any Panama-sourced income is also tax-free, with rates of 15% and 25% above that — progressive rates that are substantially lower than most European or North American equivalents.

VAT is 7% — compared to 13% in Costa Rica and 20%+ in most European countries. Property taxes are low. There is no inheritance tax on property left to family members. Capital gains on Panama real estate are taxed at a flat 10%, with exemptions available for primary residences.

Important caveats — US citizens living anywhere in the world are still required to file US tax returns (the US taxes on citizenship, not residence). However, the Foreign Earned Income Exclusion (FEIE) allows Americans to exclude up to approximately $130,000 (2025 figure) of foreign-earned income from US federal tax — meaning many Americans in Panama owe effectively zero to both countries. European citizens generally have no obligation to their home country once they establish genuine residency abroad, though rules vary by nationality and should be checked with a tax professional. The Panama Papers fallout means Panama now participates in international financial transparency standards (FATCA, CRS) — it is not a place to hide money, but it is a perfectly legal place to pay less tax on money you earn legitimately abroad.

The Pensionado Visa — one of the world's most generous retirement visa programmes, and arguably Panama's single greatest draw for international residents. Any person aged 18 or over with a lifetime guaranteed income of $1,000/month (from a government pension, private pension, or annuity) qualifies for immediate permanent residency. The $1,000 threshold drops to $750/month if you purchase real estate in Panama worth at least $100,000. Processing time is typically 2–4 months, the approval rate is reportedly 97%, and the residency requires only one day in Panama per year to maintain. Benefits attached to the Pensionado visa include: 50% discount on hotel stays, 25% discount on airline tickets, 25% discount on restaurants, 50% discount on entertainment, 20% discount on medical consultations, 15% discount on hospital bills, and exemption from import tax on a new car every two years. Citizenship is possible after 5 years.

The Friendly Nations Visa — for citizens of 50 specific "friendly nations" (which includes most EU countries, the UK, US, Canada, and Australia), Panama offers an expedited path to permanent residency either by proving economic ties (employment, property ownership, or investment) or by depositing $5,000 in a Panamanian bank account. It is one of the fastest legal permanent residency pathways available anywhere in the Americas.

Panama vs Costa Rica — the honest comparison

Panama has emerged as one of the most practical bases for digital nomads in the Americas — not because of a single compelling feature, but because of an unusual combination of advantages that add up to something genuinely useful: USD economy (no currency risk), excellent and fast internet (186 Mbps average — one of the fastest in Latin America), a formal Digital Nomad Visa, low taxes on foreign income, Central America's best international flight hub, and a rapidly developing coworking infrastructure.

The Digital Nomad Visa (Short Stay Remote Worker Visa) — introduced in 2021, this visa allows remote workers employed by foreign companies to live in Panama for up to 9 months, renewable once for a total of 18 months. Requirements: minimum income of $3,000/month (or $4,000 with dependants), proof of employment or self-employment with clients outside Panama, and health insurance. Processing takes 2–3 weeks. It does not count toward permanent residency — for that, you need the Friendly Nations or Pensionado visa. But for a 6–18 month base, it is clean and practical.

Where digital nomads live in Panama

Casco Viejo / Panama City — the default base for urban-oriented remote workers. Casco has Selina (the global nomad hospitality chain) with its dedicated coworking space and rooftop community, plus independent spaces like Flexo Coworking and Works. The neighbourhood's walkability, café culture, restaurant scene, and proximity to the airport make it the obvious first choice. The downside: cost is higher than the rest of Panama and the historic district has occasional security concerns on its edges.

Boquete — the highlands alternative, popular with those who want cooler temperatures (18–22°C year-round), a close-knit expat community, excellent hiking, and a slower pace. Coworking options exist (Dekobe) but the community itself is the real asset — Boquete has a large population of long-term foreign residents who have built businesses, farms, and community institutions here. For those working in European or North American time zones, the time difference (Panama is UTC-5 year-round, with no daylight saving) works well.

Bocas del Toro — for those who want the tropical island experience with their remote work. Selina has a property in Bocas Town, and the Nowhere coworking space offers the improbable combination of decent internet, Caribbean views, and howler monkeys in the trees above. The trade-off is reliable connectivity (can be patchy on the outer islands) and a more party-oriented social culture.

Community and networking — Panama City's expat and nomad community is well-organised around Facebook groups (Digital Nomads Panama, Expats in Panama City), Internations events, and regular meetups at Casco Viejo venues. The financial industry presence means the city has an unusual density of internationally experienced professionals — networking events tend to be substantive rather than purely social. For Spanish learners, Panama City offers excellent language schools and a population that speaks relatively clearly and slowly compared to some other Spanish-speaking countries.

Panama contains roughly 10,000 plant species, 950 bird species, 218 species of mammals, and two major coastlines on different oceans — all within a country smaller than Scotland. Around 30% of its territory is under some form of protected status. It is, by any objective measure, one of the most biodiverse places on Earth per square kilometre. And yet it is significantly less visited by eco-tourists than Costa Rica, which lies directly next door. This is largely a branding issue: Costa Rica has spent 30 years building an eco-tourism identity, while Panama has spent the same period focused on its financial sector and canal. The consequence for travellers is significant: the same quality of rainforest, cloud forest, reef, and wildlife, with substantially fewer crowds and lower prices.

Where to stay — eco lodges worth knowing

Bocas del Toro is the heartland of eco-accommodation in Panama. La Loma Jungle Lodge on Isla Bastimentos — accessible only by boat — is built entirely on stilts in the jungle, runs on solar power, grows much of its own food, and offers yoga, permaculture tours, cacao experiences, and direct access to Red Frog Beach and the surrounding reef. The sound at night — frogs, birds, and the sea — is extraordinary. Nomad Tree Lodge (La Selva) offers a similar combination: jungle-meets-ocean, morning yoga, surf breaks in the front yard, and a genuine connection to the landscape. Casa Cayuco, on the remote Caribbean coast of Bocas, offers sea kayaking, forest hiking, and the rare experience of watching leatherback sea turtles lay eggs on a beach at night (in season).

Boquete & Chiriquí — the cloud forest eco-lodges here combine altitude, extraordinary birdwatching (resplendent quetzal, three-wattled bellbird), coffee farm experiences, and genuinely cool temperatures. Lost and Found Hostel, high in the cloud forest above Boquete, is something of a backpacker legend — its location in the jungle, the howler monkeys, and the community it attracts have made it one of the most memorable stays in Central America for a generation of travellers.

Volunteering in Panama

Panama has a well-developed volunteer infrastructure, largely built around three platforms: Workaway, HelpX, and Worldpackers. The range of placements reflects the country's diversity: jungle eco-lodges in Bocas del Toro looking for help with breakfast service, maintenance, and guiding guests in exchange for accommodation and meals; reforestation and permaculture projects in the interior; sea turtle conservation programmes on the Caribbean coast (leatherback and hawksbill turtles nest on Bocas del Toro beaches); language teaching in rural communities; and organic farm placements throughout the Chiriquí province. Typical exchange: 4–5 hours of work per day in exchange for accommodation and two meals. Most placements require a minimum commitment of 2–3 weeks.

Wildlife conservation organisations — particularly those working on herpetology (Panama's amphibian diversity is extraordinary, and the chytrid fungus crisis has been devastating) and marine turtle protection — also welcome volunteers. Panama Amphibian Rescue and Conservation is one of the most active in the region.

Retreats — yoga, wellness & immersive stays

Bocas del Toro has become, somewhat unexpectedly, one of Central America's finest retreat destinations. The combination of Caribbean island setting, accessible wilderness, and a community of wellness-oriented long-term residents has created a genuine retreat ecosystem. Tranquil Eco Lodge offers multi-day silent retreats combining meditation and yoga with farm-to-table food grown on-site and at the neighbouring organic farm in Boquete. La Loma runs yoga and permaculture retreats with an emphasis on cacao ceremony and sustainable living practices. Palmar Tent Lodge works with Give & Surf, a non-profit that uses yoga retreats to fund surf lessons and community programmes for local children.

For those seeking something more immersive and less structured, the volunteer-based Workaway placements at eco-lodges effectively function as live-in retreats — you work mornings, swim in the Caribbean in the afternoons, and are surrounded by jungle, wildlife, and like-minded travellers.

Is Panama better than Costa Rica for eco-travel?

The honest answer depends on what you want. Costa Rica has better national park infrastructure, clearer hiking trail networks, and more established eco-lodge options across the country. But Panama has several advantages that are becoming more widely recognised: Coiba National Park is arguably the best marine environment in the Eastern Pacific and receives a fraction of Galápagos visitor numbers. The Darién is the largest primary rainforest in Central America (albeit inaccessible to casual travellers). San Blas combines indigenous cultural tourism with pristine marine environment in a way that has no equivalent in Costa Rica. Bocas del Toro's Caribbean ecosystems include some of the best-preserved coral reefs and mangrove systems in the region. And across all of it, the crowd levels are lower, the prices are more reasonable, and the sense of discovery remains intact in a way that some of Costa Rica's more visited parks have lost.