New Video: Why Panama Is The Best Place To Invest In 2026

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Panama was just named the best place to retire in 2026…

But what’s really interesting is why.

This country isn’t just about beaches and good weather.

Panama has quietly built one of the strongest economic engines in the region—powered by global trade, the Panama Canal, and a services economy that keeps expanding year after year.

And then there’s the part investors can’t ignore: A territorial tax system that means foreign income isn’t taxed… plus free zones, incentives, and exemptions designed to attract international capital.

Add to that:

• A real estate market fueled by logistics, finance, and tourism demand
• A dollar-based economy (no currency risk)
• One of the easiest paths to residency through investment
• A strategic location connecting North and South America

Suddenly, it’s not just a retirement destination.

It’s a place where people are going to live, invest, and build wealth.

Panama is one of the most compelling opportunities in the world right now.

Strong economic growth. A booming real estate market. Tax incentives that are hard to ignore. And a surprisingly easy path to residency.

In this video, Alexandra Brauer, Real Estate Vice President at Empresas Bern, a prominent real estate developer here in Panama, breaks down why this little country has been and will continue to be a serious investment hotspot.

Got a question? Want to see us cover a particular topic? Write to me here.

Happy trails,

Kat Kalashian

Kat Kalashian,
Editor LIOS Confidential

Video Transcript

Introduction

All right. We’re going to bring up Alexandra Brauer. She’s going to come up here and tell you just a little bit more about what’s going on in Panama and the market and just some interesting factoids about the economy.

Good morning everyone. My name is Alexandra Brauer. And I’m very happy to be here today and share some of the insights of Panama and our company.

Panama’s Economic Growth

So, now talking a little bit more about Panama. Why Panama now? The GDP growth of Panama in 2025 was 4.2%. That’s an increase of 110% from 2024. So, we are an economy that’s growing. We’ve been growing for the last ten years, a constant growth, and we are expected to grow in 2026 about 6%.

So, it’s a very interesting perspective right now. The real estate market, the construction market is growing. There are a lot of projects, developments that are being developed right now, and it has given a very interesting movement to the economy of Panama.

We also have transport and everything that has to do with logistics, especially the Panama Canal, that supports a lot of this growth of the economy. The Panama Canal has also grown over the past year and constantly.

Hotels and restaurants: last year was one of the best years for the hotel industry ever. We had a boom in Panama a few years ago, and we didn’t reach the hotel occupancy that we reached last year. So, that talks a lot about the growth that Panama is experiencing, especially in the tourism sector.

Panama is the Best Place to Retire

So, Panama has been ranked as one of the best places to retire. As mentioned before, Boquete specifically was ranked as the best place to retire in the world. It’s a great place to retire.

There are a lot of positive things around Boquete. For example, the weather, and we have a lot of tourism that goes for sightseeing, birdwatching, and coffee. Geisha coffee was ranked number one and the most expensive coffee in the world, and it’s located in Boquete, in one of the coffee farms. That brings a lot of tourism.

We have a U.S. dollar economy. This is something that helps us a lot in the region. And we have warm weather year-round.

The Weather in Panama

Weather here in Panama versus weather in Boquete or Playa Bonita can vary.

In Playa Bonita, you have the coastal breeze because it’s oceanfront. You have the beach, and during the summer, if you go right now, you’re going to feel a very nice breeze.

In Boquete, it’s cooler. So if you go, you’re going to experience a nice, very cool mountain weather. During mid-June and July, the weather is a little bit warmer, but it still always maintains a cool, very nice breeze.

We have low natural disaster exposure, thankfully due to our location. We don’t have many natural disasters. Hurricanes—we haven’t had those, I think ever. And earthquakes—maybe near areas close to Costa Rica, there are slight tremors sometimes. But overall, we don’t have natural disasters here in Panama due to our location.

Beach and Mountain: Panama Has it All

We have the benefit of having beach and mountain very nearby. If you want to go to Boquete, you just have to take a flight. It’s a 40-minute flight, and then a 30-minute drive, and you get to Boquete. It’s the highest point of Panama, where you have all the mountains and Volcán Barú, which many people hike because it’s the highest point in the country.

You also have the beach just 15 minutes from the city center. Playa Bonita is not a Caribbean beach, but if you want to go to the Caribbean and experience clear water and more of a Caribbean vibe, it’s about 30 to 40 minutes away.

You can also take boats from Panama and go to different islands. The nearest island for tourism is Taboga. You can take a boat from the Trump Tower, and it’s about a one-hour boat ride. Then you are at the island where you can go to restaurants, enjoy the beach, and get in the water. Many boats go there during weekends for day trips.

Panama Stands Out in the Region

If you compare Panama to the region, we have many positive and competitive advantages. For example, the currency risk is low, and there is strong legal certainty for foreign investors.

We have multiple laws that benefit investors and expats, such as SEM law benefits for international companies. That’s why major brands like Estee Lauder, Unilever, and L’Oreal have established their regional headquarters here in Panama.

Our logistics and infrastructure are leading. We have first-class roads, metro systems, trains, and bridges. This is very positive compared to the rest of the region.

We also have an investor-friendly tax framework. Taxes are relatively low compared to the region.

In terms of global connectivity, Panama is the hub of the Americas. We have connections to 36 countries and 86 destinations worldwide, with around 370 daily flights through Copa Airlines. Recently, the airport expanded with a second terminal, which is now Copa’s hub terminal for the Americas.

How To Get Permanent Residency in Panama

We have legal incentives such as permanent residency options. If you are not part of the friendly nations countries, you can still obtain permanent residency with an investment of $300,000.

You can obtain permanent residency in about 30 days, without going through temporary residency steps or waiting two or three years. After that, you can apply for citizenship and a passport.

This is a very interesting law for investors.

The Real Estate Trend in Panama

Looking at branded residences in Panama and worldwide, this is one of the biggest trends in real estate right now.

You can have a local brand or an international brand, and there is a noticeable difference. Buyers from Canada, the U.S., and around the world recognize brands like Marriott. They want to own something that provides certainty and trust.

This market has been growing impressively over the last two years worldwide.

The Rental Market in Panama

Another major trend is short-term rentals. We started seeing this movement worldwide and in Panama. Developers noticed the growth and began incorporating short-term rental models into projects.

However, not all projects have proper permits. Many marketed short-term rentals without necessarily having the legal backing.

What makes our projects different is that we have the legal permits from the Ministry of Tourism to properly rent units for short-term stays.

There is a law that does not allow rentals of less than 45 days in Panama City without proper permits. So, if a developer offers short-term rentals below that threshold, they must have the correct authorization. This is very important.

Key Takeaways

In conclusion, Panama offers a stable, investor-friendly environment.

Playa Bonita and Boquete are both very attractive, though very different, and present strong opportunities for investors looking to benefit from long-term growth.

Panama is ranked as one of the best places to retire worldwide, especially Boquete.

Panama stands out compared to the region. Investors will compare options, and many will likely choose Panama, which adds confidence in property investment security.

If you’re looking for permanent residency, with an investment of $300,000, you can obtain it relatively quickly under the current law.

Thank you very much.