Panama has become the country of choice for many Americans seeking a second home for vacation, retirement, or investment. This tropical paradise in Central America has great appeal because of its proximity to the U.S. and its value-priced real estate.

Panama boasts a hospitable attitude toward foreigners, low population density, and almost zero violent crime. The U.S. dollar is used as the currency, making currency exchange a non-issue. And many major cities in the U.S. offer direct flights to Panama, including Atlanta, Houston, Los Angeles, Raleigh-Durham, Orlando and Miami.

Perhaps most enticing of all are the low prices for homes in Panama. Highly-desirable real estate can be purchased for less than one third or one half what they might pay for comparable property in the U.S.

For retirees, Panama is particularly attractive because of the outstanding incentives offered to seniors. Retirees are eligible for substantial discounts of 10% to 50% on a variety of services and necessities, including utility bills, airline tickets, doctor’s bills, dental and eye exams, medicines, hotels, restaurants, transportation, movie theaters, and cultural and sporting events. Panama also has excellent health care with many of its doctors U.S. trained.

For younger buyers, such as baby boomers looking for vacation homes or professionals who utilize global technology as they work from remote offices, Panama offers an attractive infrastructure similar to that of North America. It boasts modern airports and roads, Internet access, cable television, good cell phone reception, and availability of many American-style products and services. In Central America it is the most industrialized country.

The wide array of properties offered in Panama suits all tastes, from luxurious high-rise apartments to tropical beachfront condos, to breezy mountain retreats. Because the country borders both the Caribbean Sea and the Pacific Ocean, much of the real estate promoted as second homes offers desirable waterfront views and beach access.

In addition, developers in Panama are embracing the condo hotel concept, which allows investors to have deeded ownership to condominium suites located within four- and five-star resorts. These resorts offer amenities such as spas, pools, restaurants, concierge services and more. If the owners choose not to live in their units year round, the hotel management can assist with renting the unit out, enabling the owner to generate revenue from the property.

A $5.2 billion expansion of the Panama Canal currently underway has created a sudden surge of interest in Panamanian property. The entire country will likely benefit from this expansion, and it’s also speculated that real estate—especially property near the canal—will appreciate significantly.

With a low cost of living, high quality of life and tempting real estate values, Panama is fast establishing itself as one of the premier places to own a second home.