Take care where you invest in Panama. Avoid investments in places such as Bocas del Toro where it would probably be problematic for its legalization since it is designated as an independent and sovereign state.Some people have tried to associate with the Indians to buy properties here, without success. You can not easily acquire property title (formal title ownership) to any of these properties. On the other hand foreign ownership of property within 10 kilometers of an international border is forbidden (Article 286 of the constitution).
There are restrictions on foreign ownership of waterfront and island property. Such restrictions may be avoided if you are investing in one of the tourism zones. By law, all beachfront properties must provide a public right of way starting from the highest tide to the property line. (This distance may vary.) Permits to build over the water require a concession from the maritime authority and the Ministry of Finance. (One exception to this restriction is Contadora in the Pearl Islands, where there is no restriction on foreign ownership.)