In recent years Panama has been growing in popularity among retirees, expats, and investors. In fact, International Living rates it as the No. 1 place to retire in the world, and not without good reason. Panama offers a higher quality of living at a lower cost and with less crime than typical Central American destinations although Panama City is rapidly getting to first world pricing. 
The stable government is pushing the economy, and sees its future in the way of foreign investment. Tourism investments receive certain tax exemptions from import duties and residents pay no tax on foreign earned income. To encourage buying property, foreigners are given the same rights and protection as citizens over land. Add to that the fact that the US Dollar is the legal currency and English is widely spoken, and the landscape is prime for continued growth.
The caveat is you must be careful. Get a good attorney, build banking relationships and avoid middle men who tend to increase the price of a potential real estate or investment through a string of deals. Use your common sense to build a team of advisors you can trust this aint exactly Kansas Dorothy!
