Panama offers overseas property investors a range of benefits and provides easy access to South America, it has been claimed.
According to the Daily Telegraph, the country is "booming" and is attracting a growing number of buyers, with the government offering incentives for those purchasing offshore homes.
Highlighting the "favourable climate" and the "abundance of flora and fauna", Richard McColl explained that Panama has been a "model of stability" since military dictator Manuel Noriega was overthrown in 1989.
He noted that a growing number of people are choosing to retire there and quoted estate agent Jaime Figueroa, who praised Panama's infrastructure, including Tocumen International airport.
Celebrities such as Mel Gibson and Sean Connery have bought properties in Panama and other stars are expected to do so, with a government recently elected that is "ambitious and overtly friendly and open to foreign investors".
Panama was settled by the Spanish in the 16th century, breaking away to join the Republic of Gran Colombia in 1821 and seceding from Colombia in 1903 with support from the US.