Panama is quietly becoming one of the top destinations in Central America for luxury resorts, hotels and even overwater bungalows. As Costa Rica becomes too expensive, over-developed, and touristy, Panama is rising as a more authentic and affordable travel destination.
We have lived in Panama since 2015 and are in the luxury hotel business as the owners of Sol Bungalows, an overwater bungalow B&B in Bocas del Toro. In just the last few years alone, we have seen a boom in the development of unique luxury places to stay all over the country.
This article details Panama’s best luxury resorts, hotels, and overwater bungalows, many of which we know from first-hand experience!
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Best Luxury Overwater Bungalows in Panama
Panama is becoming the western hemisphere’s answer to the Maldives with the number of overwater bungalows sprouting up along its coasts.
The Bocas del Toro archipelago in particular is geographically perfect for overwater bungalows, with an abundance of calm and protected bays where they can be built.
Panama is also outside of the Atlantic Hurricane Zone and does not get hit by hurricanes, so the bungalows can be built more freely and less like concrete bunkers that can withstand a hurricane. Here are the best luxury overwater bungalows in Panama:
Read about the 13 Most Bucket List Things To Do In Panama
Sol Bungalows
We are the owners of Sol Bungalows in Bocas del Toro and we are the best-rated affordable overwater bungalow hotel in Panama. We feature 4 luxury overwater bungalows and offer an authentic and cultural island experience.
Our bungalows are sustainably run with solar power and rainwater catchment systems, food for our restaurant is grown on our farm, and our entire staff comes from our small local community.
The bungalows have glass floors, stairs to the water, catamaran nets, hammocks, and memory foam king-size beds. If you’re planning a trip to Panama, you don’t want to miss out on a few nights at our bungalows!
BOOK SOL BUNGALOWS
Nayara Bocas del Toro
Nayara Bocas del Toro is an overwater bungalow resort located in Panama’s Bocas del Toro Archipelago that features bungalows with private pools and others with glass floors. They also have tree houses available for rent.
The resort is built with materials and intricate wood workings shipped in all the way from Bali, and the architecture is modeled after the Balinese style. Nayara Bocas del Toro is an all-inclusive resort, and guests have the option to hire their own private boat captain for the day. With prices of upwards of $1,000 per night, these are the most expensive and luxurious overwater bungalows in Panama.
Book Nayara Bocas del Toro
Check out our Ultimate Guide to Bocas del Toro
Punta Caracol Aqua Lodge
Punta Caracol Aqua Lodge is located off Isla Colón, the main island of the Bocas del Toro Archipelago. The resort features 9 rustic overwater bungalows that stand along a beautiful coral reef. Although these bungalows are more on the rustic side with authentic thatch roofing, the surrounding nature is breathtaking and makes up for any shortcomings in the quality of construction.
Guests love snorkeling the reef around the bungalows and the views of the mountains of mainland Panama that tower in the distance across the bay of Almirante.
Book Punta Caracol Aqua Lodge
Check out our post: 13 Bucket List Things To Do in Panama
Eclypse del Mar Aqua Lodge
Eclypse del Mar is a boutique overwater bungalow resort located on Isla Bastimentos, just across the bay from the cultural Afro-Caribbean town of Old Bank, also in the Bocas del Toro Archipelago.
Eclypse features 7 bright orange bungalows built in the local Caribbean style with real thatch roofs and stairs that lead right into the water. The property also features a private nature reserve and walking trail.
Book Eclypse del Mar
Discover the Top 10 Reasons Bocas del Toro is Worth Visiting
How to Get to Panama
Getting to Panama is easy as Panama City is home to the region’s largest and most connected international airport: Tocumen International Airport (PTY).
There are several direct flights from across the USA to PTY, as well as direct flights from all over the world. It’s only a 3-hour flight from Maimi to Panama City.
Once you’ve arrived in Panama, you can use the local airline called Air Panama to fly to either David or Bocas del Toro which are both about 50 minutes away. To get to other parts of Panama you can use the bus or private shuttle system. Some hotels also offer airport pickup.
Check for flights to PTY with Cheapo Air Below!
Learn more about How to Get to Panama
Best Luxury Hotels in Panama
Panama is home to some incredible new luxury hotels, especially in the historic Casco Viejo neighborhood, which is famous for its colonial architecture and old-world charm. Casco Viejo was originally settled in 1519. It’s the oldest European settlement on the Pacific Coast of the Americas and is also a UNESCO World Heritage site.
Many of the hotels here are built in refurbished buildings from the early 1900’s. The colonial architecture throughout the neighborhood is stunning, and the culture here makes you feel like you’ve stepped back in time.
Discover an exciting 10 Day Panama Itinerary for Your Next Vacation
American Trade Hotel
The American Trade Hotel is located in Panama City’s stylish and trendy Casco Viejo neighborhood. It is one of the oldest and most famous luxury hotels in Panama, built in the classic colonial style. The hotel also features a modern restaurant, rooftop swimming pool, banquet hall, and is frequently the location of destination weddings.
Book American Trade Hotel
Sofitel Legend
Sofitel Legend is a luxury hotel in Panama’s Casco Viejo neighborhood. This neighborhood is famous for its colonial architecture, and the Sofitel Legend is a shining example of it. The hotel features 5 different bar and restaurant areas, a spa, a fitness gym, and a swimming pool.
BOOK SOFITEL LEGEND CASCO VIEJO
Electronic Sim Card for Travel in Panama: Airalo is the world’s leading E-Sim brand and they offer a 30-day, 3GB plan for $18 that covers all of Panama. We use Airalo whenever we travel abroad!
Amarla Boutique Hotel
Amarla is an adults-only boutique luxury hotel, also located in Panama City’s Casco Viejo Neighborhood. Casco Viejo is simply the place to be if you are looking for luxury hotels in Panama! The Amarla features a restaurant, rooftop jacuzzi, inhouse wellness professional that teaches yoga and breathework, and a massage studio. They also offer a tasting menu of Panama’s best coffees.
BOOK AMARLA BOUTIQUE HOTEL
Villa Caprichosa
Villa Caprichosa is a luxury villa located on Panama’s Isla Taboga, the most popular island located near Panama City. The Villa features several private rooms to rent, or you can rent the entire villa that sleeps 16 total guests for a starting price of $2,420 per night. Each room features it’s own private swimming pool, and the Villa is designed with stunning colonial architecture.
BOOK VILLA CAPRICHOSa
Read More about Panama City: The 5 Best Hotels and Things to Do in Panama City
Best Time to Visit Panama’s Luxury Resorts
The best time to visit Panama is during the dry season from December to April. This is the high season for tourism and statistically the driest months of the year. However, Panama has a tropical rainforest climate and that means there is a high amount of rainfall throughout the entire year.
Best Luxury Resorts in Panama
Panama is home to some amazing luxury resorts, but they aren’t the kind you are used to. These are mostly boutique properties that offer bespoke experiences, luxury, and adventure without the hordes of package deal tourists. They emphasize the beauty of the surrounding environment, especially the ocean and rainforest. Scuba Diving, Surfing, Snorkeling, and even whale watching are possibilities at these resorts.
Islas Secas
Islas Secas is our favorite Luxury Resort in Panama. It’s located off of Panama’s Pacific coast, near the city of David, in an archipelago known as the Islas Secas (or Dry Islands). The resort sprawls over it’s own private island, with the surrounding 13 islands being totally uninhabited. This is a nature lover’s pristine paradise, offering world-class scuba diving, snorkeling, surfing, hiking, and beach lounging.
BOOK ISLAS SECAS
La Coralina Island House
La Coralina Island House is a boutique luxury resort located in Bocas del Toro, Panama, in the Paunch area of Isla Colón. The resort is built with Balinese architecture and their goal is to make you feel as if you have been transported to Bali, after only a 3-hour flight from the USA! They feature several beach houses for rent, with a huge luxurious pool, and restaurant.
Book La Coralina Island House
Isla Palenque Island Resort
Isla Palenque is a 400-acre luxury island resort located in the Gulf of Chiriqui, on Panama’s Pacific coast. They aspire to be a resort that is straight out of a tropical island fantasy novel, where all of your wildest Tarzan dreams can come true. And they definitely offer plenty of wild activities, like whale watching, bird spotting, snorkeling, paddle boarding, and kayaking. There’s also 7 different beaches on the island, so you can pick a new beach every day of the week!
Book Isla Palenque Resort
Sansara Surf and Yoga Resort
Sansara Surf and Yoga Retreat is a luxury resort located on Panama’s Pacific coast in an area called Cambutal. Cambutal is known for its lush rainforests, beautiful beaches, and great surf. The resort features 13 luxury beach houses designed with bohemian style, and some even have small private plunge pools. They are also a great place to host surf and yoga retreats or for larger groups of friends and families looking for adventure in Panama!
BOOK SANSARA RESORT
La Loma Jungle Lodge
La Loma Jungle Lodge is the ultimate rainforest experience and rustic luxury resort in Panama. They are an all-inclusive lodge hidden in the dense jungles of Isla Bastimentos, with an emphasis on permaculture and sustainability. Their restaurant is farm-to-table, and they also operate a functioning cacao farm. The rooms feature an open design that very much leaves you exposed to the rainforest, with just a mosquito net keeping you safe at night. A highlight is the completely wall-less showers, where you can wash yourself while completely exposed to the elements – it’s an amazing experience!
Red Frog Beach Resort
Red Frog Beach Resort is located on Isla Bastimentos in Bocas del Toro. It’s one of the original luxury resorts in the islands and features luxury homes that are scattered throughout the rainforest-covered hillside above Red Frog Beach and Turtle Beach. Sloths and monkeys are common sightings on the resort property, as are the strawberry poison dart frogs from which the beach gets its name. Most of the houses also have private swimming pools, and they also have a beach club with a restaurant and swimming pool open to all guests. A bonus is that each house gets its own golf cart to drive around in!
BOOK RED FROG BEACH RESORT
Sweet Bocas
Sweet Bocas is a sprawling private estate in Bocas del Toro that is known to be visited by the world’s top celebrities, businessmen, and generally very wealthy people. A trip here can easily cost in the hundreds of thousands, and for the price tag you get an incredible over-the-water mansion that is beautifully designed with hints of Moroccan influence and lots of bright Caribbean colors. The property sprawls across 15 acres, and includes multiple guest houses, a swimming pool and fitness gym, a permaculture farm, a sport fishing boat, and even its own lake – fully equipped with a private island that has a restaurant!
BOOK SWEET BOCAS
Is Panama Safe for Tourists?
Yes, Panama is generally considered to be a safe destination for tourists. However, like any other country, it is important to take some precautions to ensure your safety. Here are some tips to have a safe visit to Panama:
- Be cautious in Panama City: Panama City is generally safe, but like any large city, it has areas that can be dangerous, especially at night. Be cautious when walking around at night and avoid wearing flashy jewelry or carrying expensive electronics.
- Avoid isolated areas: If you are traveling outside of Panama City, it is best to stick to well-traveled areas and avoid isolated or rural regions. Crime rates tend to be higher in less populated areas.
- Be careful with your belongings: Keep an eye on your belongings, especially in crowded areas such as markets and public transportation. Pickpocketing can be a problem in some areas.
- Use reputable transportation: Use only reputable transportation services in Panama, especially if you are traveling alone or at night. And it is always a good idea to confirm the fare before getting into a taxi or UBER.
- Learn some Spanish: Knowing some Spanish can help you communicate better with locals and make your trip easier and safer.
By following these tips and using common sense, you can have a safe and enjoyable trip to Panama.
These are the Best Luxury Resorts, Hotels, and Overwater Bungalows in Panama
We hope you enjoyed our guide and that it helps you plan your next luxury vacation to Panama!
Check out More of Our Guides Below:
Getting from Panama City to Bocas del Toro (Quick Guide)
7 Best Affordable Overwater Bungalows in the Caribbean
Bocas del Toro Surfing Guide: Surf Spots, Seasons & Lessons (2024)
Surfing in Panama: Travel Guide & Best Surf Spots
10 Day Panama Itinerary for Bocas del Toro (With Costs)
