12 Breathtaking Overwater Bungalows in Panama

Dreaming of a relaxing trip to Central America?

There’s simply no better way to relax than waking up in an overwater bungalow in Panama.

There’s one main region where you’ll find Panama overwater bungalows, the Bocas del Toro region in the country’s northeast corner, a collection of islands tucked away along the sapphire-blue waters of the Caribbean Coast.

Bocas del Toro is an archipelago of islands in Panama known for its lively culture, surf breaks, and verdant rainforest — all juxtaposed against those brilliant blue Caribbean waters and so-soft-it’s-almost-dust sandy shores. 

It’s easy to hop between the islands by private boat or water taxi, and the laid-back feel is the perfect escape to recharge from your busy everyday life.  

Dock with buildings on it and a thatch roof building all on an over-the-water pier with a lagoon and palm tree
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And if you really, and I mean really, want to get away from it all, the best way to unwind is by staying in one of these overwater bungalows in Panama.

I should note, Panama’s overwater bungalows are gorgeous and comfortable, but they’re on the more rustic end of the overwater villa spectrum.

These aren’t the million-star resorts complete with butlers you’ll find in destinations like French Polynesia and the Maldives, but rather a more down-to-earth, budget-friendly alternative.

If this sounds like the perfect getaway for you, keep reading to discover our favorite overwater bungalows in Bocas del Toro!

My Top 3 Picks for OVerwater Bungalows in Panama


indonesian wooden house style of a joglo in bocas del toro at a resort called nayara with overwater bungalows

Nayara Bocas del Toro
✔️ Balinese style design meets overwater bungalows
✔️ Has world’s only “floating beach”


view of the magenta colorful panama overwater bungalows in urraca resort

Urraca Private Island Resort
✔️ Colorful magenta bungalows on a private island
✔️ Entire eco-friendly resort built 100% over the water!


brilliant colorful bungalows on turquoise and blue sea

Punta Caracol Acqua Lodge
✔️ More budget friendly bungalows
✔️ 10 two-story bungalows

Palm tree and coconuts on a beach in Bocas del Toro Panama with a pier leading out into the Caribbean Sea

The Best Panama Overwater Bungalows in Bocas del Toro

1. Punta Caracol Acqua Lodge

Brilliant waters and bungalows seen on a gorgeous shallow lagoon area
Photo Credit: Punta Caracol Acqua Lodge

🌟 Rating: 8.8/10 from 375+ reviews | 💸 Budget: $$ | Book Now

Unique Features:
🛖 Large two-story bungalows
Dolphins & marine life in the area
🕯️Candlelit dinners in an open-air restaurant

Check rates and availability at Punta Caracol here!

Punta Caracol is one of the top destinations for overwater bungalows in Bocas del Toro! 

It’s situated on the island of Colón, the main island of the archipelago, which draws in visitors to the gorgeous Starfish Beach and lively atmosphere of Bocas Town. 

This rustic lodge is a great place to relax with a good book, as there is limited WiFi availability… but with these views, we really doubt you’ll mind the break from screentime! 

These Panama overwater bungalows are two stories, making it easy to accommodate either a family or a bigger group. Not bad considering the price!

You can lounge on your patio area and watch the dolphins swim by, as sightings of them are common here – how magical does it get?!

The staff is able to help you arrange different excursions, like a boat trip or visiting the village of an Indigenous tribe

Aerial view of the punta caracol aqua lodge with lots of bungalows and bright yellow handrails on the raised boardwalk above the water
Photo Credit: Punta Caracol Acqua Lodge

“Our stay here was lovely. The property is beautiful. The rooms are not luxury which I feel is the expectation for overwater bungalows but people need to take into account both price and location when determining value… The bungalow is spacious and clean, no TV but you’re here to relax. The snorkeling was great fun and we enjoyed taking out the kayaks on an adventure.” – Maggie

Read more reviews here!

They are also extremely eco-conscious!

The ten bungalows of the Acqua Lodge are arranged in a careful formation around the coral reefs, so as not to disturb the beautiful surrounding ecosystem. 

After your adventures, end your day with a candlelit dinner in the open-air restaurant, also perched above the sea

It’s a lovely place to disconnect from the outside world, get off your phone, and make some memories with one hell of a backdrop! 

2. Sol Bungalows 

Two bungalows with hammock, net, deck chairs, perched over the water in Bocas del Toro with forest in the background
Photo credit: solbungalowsbocas.com

🌟 Rating: 9.9/10 from 25+ reviews | 💸 Budget: $$$ | Book Now

Unique Features:
🏝️ Very small and intimate – just two bungalows
🛖 Thatched bungalows and cataraman-style hammocks in the deck
🐠 Glass floor to watch sea life below you
🌿 Off-grid & eco-friendly with a rain catching system

Check availability and rates at Sol Bungalows here

Sol was started by an expat couple from Switzerland and the US, who have lived and worked in tourism in Panama for nearly a decade.

Sol Bungalows is a labor of love, the culmination of their expertise in tourism. This couple knows what travelers want, and they’ve not only taken the time to seek out the best spots in Bocas, but they are also ready to share their knowledge with you! 

The hotel is teeny and intimate, made up of two bungalows stilted above the Caribbean Sea

The bungalows are done in a traditional style, with thatch roofs and wood floors with glass panels to watch the sea life before you

They also have covered verandas complete with catamaran-style net hammocks, perfect for taking in the sunset from your bungalow! 

Woman sitting on net of a deck watching two paddle boarders in Panama
Photo credit: solbungalowsbocas.com

“I did a lot of research before choosing Sol Bungalows and came in with really high expectations.. those expectations were quickly exceeded across the board. I’m not kidding!! Easily the best food we’ve had on the entire trip… The accommodations are brand new and offer 5 star luxury right on the water. The location is perfect, extremely safe, and only 5 min boat taxi from everything.” – Marc

Read more reviews here!

Each bungalow has a bedroom separated from the living room, and can comfortably fit up to four guests. 

Sol has a great location – it’s located off of the less-populated Isla Solarte, so you’ll be able to soak in the private serenity and enjoy the beautiful sunsets without any crowds to detract from the views. 

This location isn’t on one of the three main islands of the archipelago, but it’s only a 5-minute water taxi ride from Bocas Town’s nightlife and shops, as well as famous surf and diving spots, so you are still well-connected. 

Plus, this more secluded island allows you to catch a glimpse of more wildlife on your jungle hikes – now that’s a win-win! 

Sol is an incredibly eco-friendly option with solar power and a rainwater harvesting system, so you can take a real rainwater shower!. 

They have an on-site restaurant, but if you get bored of eating at the same place or just want to mix it up, they are 5 minutes from popular eateries if you prefer to go into town. 

Included in your stay are two snorkeling masks – you can jump right off your deck and into the clear blue water! Free kayak and stand-up paddleboard use is also included.

The only downside is that with only two bungalows and such high popularity, this hotel is often booked up in advance — and by that, I mean many months in advance.

But if you see it, snap it up, because these Panama overwater bungalows go quickly!

3. Eclypse del Mar Acqua Lodge

red frog beach in bocas del toro in bastimentos island

🌟 Rating: 8.9/10 from 300+ reviews | 💸 Budget: $$ | Book Here

Unique Features:
🦥 Jungle garden with guides to see sloths and more!
💵 Relatively budget friendly compared to other Panama water villas
🌴 Treehouse stay also available

Check rates and availability at Eclypse Del Mar here!

Eclypse del Mar is especially exciting if you are a nature lover – the resort has its own private nature reserve and botanical garden area to aid the conservation effort of the area! 

You can explore the surrounding jungle area with a knowledgeable, bilingual guide for no additional charge. 

You’ll have the opportunity to see some incredible animals in the wild, such as sloths, monkeys, and tropical birds.

The small, colorful frogs unique to the region are fun to spot, and your guide’s expert eye will make sure no animal goes unnoticed!

One of the coolest things about Eclypse del Mar is how it blends the jungle with the sea.

“It was over the water!! Amazing experience. We loved that the team knocked on our doors to show us sloths. There is a whole amazing tropical garden area which you can access- we saw a caiman, red frog and sloths. The on-site restaurant served really excellent food (delicious and reasonably priced).” – Harriet

Check more reviews here!

You can choose to stay in one of seven overwater bungalows just off-shore, or even in a treehouse on the island! 

Best of all, it’s not extremely expensive unlike other overwater bungalows in Panama and elsewhere in the world.

A stay at this overwater bungalow is roughly the same cost as a chain hotel in a large American city.

Now that’s a deal!

They offer traditional hotel rooms as well if you want to be around overwater bungalows but don’t quite have the budget for a stay in one. 

The bungalows are two bedrooms, except for the larger special Honeymoon Suite, and made from local wood with palm roofs. 

The lodge is located on Bastimentos, a nice balance somewhere between the popular and secluded islands mentioned above. 

It’s one of the three main islands of the area, but doesn’t contain the capital area of Colón, so it’s a nice choice if you want the best of both worlds. 

4. Nayara Bocas del Toro

View of the gorgeous landscape of Nayara bocas del toro from the air with glimpse of pool and six bungalows floating over the sea
Photo Credit: Brice Ferre courtesy of Nayara

🌟 Rating: 9.2/10 from 10+ reviews | 💸 Budget: $$$ | Book Now

Unique Features:
🧖🏻‍♀️ All-inclusive and adults-only for a luxe stay
🏖️ World’s only “floating beach”
🌴 Stunning luxury treehouses also available
🎋 Balinese style design with water villas and temples

Learn more about Nayara Boca del Toro here!

The overwater villas at this Panama resort are actually coined as “water villas.” Why?

Because Nayara Bocas del Toro was designed in the style of Bali, Indonesia! 

Not exactly what you were expecting to find in Panama? Sure, but sometimes the most unexpected combinations make a beautiful thing. 

The joglo-style buildings definitely fit the island vibe, and you can relax in the paradise of a private oasis. 

indonesian wooden house style of a joglo in bocas del toro at a resort called nayara with overwater bungalows
Photo Credit: Brice Ferre courtesy of Nayara

Best of all is its privacy and seclusion: you’ll need to travel about 15 minutes on a boat from Bocas Town to reach the tiny, remote Frangipani island where the hotel is located. 

Nayara is a luxury, all-inclusive, adults-only resort with two five-star restaurants that are sure to blow your mind. 

“Staff is very kind and treat the guests by name. The hotel is very beautiful, pleasant, comfortable and clean. Food is out of this world. On top of that, Bocas Bali made my birthday very special and unforgettable!” – Isabela

Read more reviews here!

Some of the villas even include a private pool or a boat to use during the day! 

The rooms also have air conditioning –- a rare sight in this remote area, even in nicer Panama bungalow resorts!

a woman hanging out in the pool area of her luxury accommodations which is an overwater bungalow in panama
Photo Credit: Brice Ferre courtesy of Nayara

There’s no shortage of on-site amenities, either. You can bliss out during a massage treatment in the on-site spa or work up a sweat in the fitness center. 

The architecture of Naraya is uniquely thrilling, with treehouses as another accommodation option, and the world’s only ‘floating beach’ created on stilts above the water. 

The usual activities for the area of paddleboarding, kayaking, snorkeling, and more are included with your stay, and the staff can help you with organizing other excursions. 

One special offering is a day trip to Oreba Chocolate Farm, where the Ngäbe people cultivate some of the world’s best cacao and turn it into chocolate. 

On this outing, you can hike through the jungle, watch the traditional chocolate-making process (and sample the results, naturally), and enjoy a local meal. 

5. El Faro de Colibri 

Photo Credit: El Faro de Colibri

🌟 Rating: 9.5/10 from 250+ reviews | 💸 Budget: $$ | Book Now

Unique Features:
Centered around a lighthouse with colorful painted houses
Restaurants and beaches in walking distance
Small and intimate with only five bungalows

Check rates and availability at El Faro de Colibri here!

The styling of these brightly painted wooden houses situated over the sea (and centered around a lighthouse, after which the hotel is named) might remind you of Cape Cod.

That said, at El Faro de Colibri, the brilliant blue waters behind you will alleviate any doubt you’re on the Caribbean coast! 

The rustic cabins are sure to make you feel at home, no matter how far you’ve flown to be here. 

“Position over the sea was lovely. The views again lovely. Short ferry boat trip to Bocas Town. The lady who manages the property is very friendly.” – Martin

Read more reviews here!
Yellow bungalows and a boardwalk
Photo Credit: El Faro de Colibri

El Faro has just five bungalows available, giving it a private, intimate atmosphere.

And that homey feel is amplified by the tasty home cooked buffet breakfast guests rave about, as well as the friendliness of the owner and staff. 

Situated on Isla Carnero, El Faro de Colibri is convenient because you can walk to different restaurants and beaches on the shore. 

And if you want to venture into the popular Bocas Town yourself? It’s only a 3 minute boat ride away. 

You can fill your days with traditional water activities, such as kayaking or snorkeling. Or if you’re feeling really adventurous – give wind surfing a try!

bird island in Panama with natural double archway  with lots of nature and foliage on the island

6. Urraca Private Island Eco Resort

Magenta-colored overwater bungalows with high thatched roofs, on a greenish-blueish brackish water mangrove island, with just a few clouds in the beautiful sky.
Photo Credit: © Juan de Dios courtesy of Urraca Private Island

🌟 Rating: 9.6/10 from 15+ reviews | 💸 Budget: $$ | Book Now

Unique Features:
🏖️ Private island for ultra seclusion and luxury
Eco jungle surroundings for total nature immersion
🐒 Monkey sanctuary for rehabilitating wildlife
Only for those aged 12+ for peace and quiet

Check rates and availability at Urraca here!

If you’re looking for a special getaway off the beaten track, Urraca Private Island Resort could be the option for you

Keep in mind that it’s a 35 minute boat trip from Isla Colón, so you probably won’t be going to Bocas Town or other tourist hotspots frequently. 

But in return, you’ll receive an immersive nature experience unlike other areas of Bocas del Toro. 

This ‘island’ has no real walkable landmass; instead you’ll be nested off of a grove of mangrove trees in your own private oasis – does it get any more magical than that? 

The sea is crystal-clear and calm here, perfect for swimming, snorkeling, and kayaking. 

Tip: If you choose to plan your trip around the time of the full moon, the water lights up with bioluminescence in an otherworldly, beautiful way! 

A drone shot showcasing the landscape of this private island, which consists of a handful of private overwater bungalows and a bridge to another small island that has very minimal development. The water around the islands is dark colored where there is some reef, and then deep turquoise further out.
Photo Credit: © Juan de Dios courtesy of Urraca Private Island

The goal of Urraca is to get you out into nature – but in a sustainable way. 

The ‘island’ puts its money where its mouth is when it comes to being eco-friendly, providing a sanctuary for rescued monkeys and taking care of the coral reefs that surround the hotel. 

Urraca partners with the Monkey Life Foundation helps provide veterinary care and rehabilitation to those animals that need it, so you’ll know your primate neighbors are healthy (though don’t trust them not to steal your food!)

“What a paradise! Urraca is everything you’d want in a tropical eco lodge. The food is amazing, the water surrounding the island is calm and clear, and Francine (the owner) is lovely. We enjoyed kayaking around the island and of course the monkeys.” – Kathryn

Read more reviews here!

Being truly “eco-friendly” goes beyond environmentalism and animal welfare – it also includes working with the Indigenous communities who live, breathe, and know the region. 

Urraca works with the Indigenous community of the Ngabe people to include them in tourism, different from the many Bocas hotels run by expats.

You can meet the staff of local Ngabe people and learn a little more about their culture, and dine on fresh seafood caught by Ngabe fishermen as well. 

Delicious lobster seafood dish plated beautifully with sauce, and lobster head creating an ornamental aspect to this fine dining dish served at an overwater bungalow in Panama
Photo Credit: © Juan de Dios courtesy of Urraca Private Island

Need to unwind? There is a space to do yoga or read in the sun, and a retreat space perfect for larger groups.

The vibe here is small and intimate: there are ten bungalows here, as well as a special honeymoon suite

You can enjoy a complimentary breakfast on your terrace while watching the sunrise.

There are lunch and dinner options at the on-site restaurant if you so choose (and you probably will, given that getting into town can be such a pain – luckily, the food is great!). 

To maintain a quiet and peaceful atmosphere, note that Urraca is only for guests aged 12 and older, so families with younger children should look elsewhere. 

nature in Bocas del Toro on the beach, driftwood and palm trees, and clear water on a mostly sunny day

7. Aqui Hoy Cabanas

🌟 Rating: 8.1/10 from 80+ reviews | 💸 Budget: $ | Book Now

Unique Features:
🛖 Small, new property with just four overwater cabanas
Affordable prices for budget-conscious travelers
Dock launchpad for snorkeling, swimming, kayaking etc.

Check rates and availability of Aqui Hoy Cabanas here!

The wooden decks and hammocks of Aqui Hoy Cabanas are perfect for enjoying any kind of waterfront vacation

The property is pretty new, but already guests are really enjoying their experience, with a mountain of positive reviews. 

The four cabanas are situated off of Isla Solarte, so they sit in front of a peaceful lagoon with stunning ocean views. 

“Wow! Absolutely Wow! Gorgeous views of the sea from a beach front balcony. Wonderful service. Best check in ever. Very welcoming. Stunning sunset. Quiet and peaceful! Highly recommended!” – Lilia

Read more reviews here!

Jump off the dock and into the clear blue sea to swim, snorkel, kayak, and more! 

You can also experience their world-class restaurant, offering meat, pescatarian, and vegetarian options. 

Spend your days jet skiing or head over to Carneros Beach to lounge on the sand. 

people hanging out on a dock area in panama's boca del toro region with a palm tree showing up large in the foreground

8. El Clandestino 

🌟 Rating: 9.0/10 from 190+ reviews | 💸 Budget: $ | Book Now

Unique Features:
💻 Great WiFi for the area
🏝️ Remote from Bocas Town
💸 Affordable bungalows and rooms

Check rates and availability at El Clandestino here!

El Clandestino is run by a super friendly owner, Sebastian, who is accommodating to your needs (and bonus, he’s also a great cook!). 

Tucked away off Isla Cristobal, you can get to Bocas Town or Almirante in 30 minutes – far enough that you feel removed from it all, but close enough that you can get to town if you have a little island fever! 

The WiFi speed is one of the best in the area – so if you need to get a little work done in between all the fun, this is a great option for remote workers and digital nomads!

There are mostly normal rooms, but there are also two overwater bungalows that are offered at a great price.

They are rustic, but for this price, you truly can’t complain!

“Beautiful remote setting. Owner and staff are very friendly and welcoming. Free water was a plus. Free use of snorkelling gear, kayak and paddle boards was a brilliant extra. Food was excellent and drinks were reasonable priced. Would highly recommend for a tranquil few days.” – Leah

Read more reviews here!

 El Clandestino is family friendly, and accepts guests of all ages. They also take care of some local friendly dogs who live on the property, ready to welcome you home after your day out. 

The rooms are basic but clean, providing you with everything you need for a good price. 

When you’re in such a beautiful place, you won’t want to miss out on evenings spent watching the sunset, playing board games, and catching up over some good food and drinks. 

An overwater bungalow in Bocas del Toro with rope handrails on the walkway, clear water in the background

9. Cosmic Crab Resort

🌟 Rating: 7.4/10 from 25+ reviews | 💸 Budget: $$$ | Book Now

Unique Features:
🌊 Waterslide into the sea
24-hour gym, spa, dining, and A/C
Quiet but close to Bocas Town

Check rates and availability at Cosmic Crab here!

This casual, funky choice is sure to bring a smile to you and your family’s face!

Kids (and hey, adults too) will love the waterslide into the sea! 

Located on a marina in Carenero Island, you can enjoy casual comfort, and also some extra amenities like a 24 hour gym, spa, restaurant, and air conditioning to help you cool off on those hot Panamanian days. 

“Would absolutely recommend Cosmic Crab for your stay in Bocas del Toro! Opening up our door in the morning directly to the ocean was amazing, and the breakfast each morning was sooo delicious. The owners are always available on property and are super helpful in booking tours, making local recommendations, and making sure your stay is comfortable.” – Brianna

Read more reviews here!

It’s still central and well-connected (about a two minute boat ride to the main island) but allows you to enjoy quiet nights that you wouldn’t have in Bocas Town. 

There’s still some liveliness and fun though, since every weekend Cosmic Crab brings in local live music performers!

palm trees and water and brilliant blue sky in Bocas del Toro view on a boat

10. Azul Paradise Resort 

🌟 Rating: 8.2/10 from 65+ reviews | 💸 Budget: $$ | Book Here

Unique Features:
🛖 Overwater bungalows or beach villas — you choose
Glass panels in the bungalows to watch fish below you
Rooftop yoga and fun tiki bar

Check reviews and availability at Azul here!

Azul gives you options: choose from overwater bungalows or villas on the beach, and if you want to stay more central, they have a hotel in town as well. 

That said, we love the overwater cabins for a truly unique Panama experience (at a price that’s hard to beat elsewhere in the world)

The glass floor panels allow you to watch the colorful marine life from your room, and there is a two bedroom bungalow option if you’re traveling in a group. 

“We absolutely loved our stay here. The staff was amazing and made sure we got the full experience that we wanted, including taking us out on a snorkel and private island tour. The accommodations are truly beautiful and the water is perfect to swim or relax all day. The only thing to note is there are no nearby restaurants so all of your meals will be at the hotel, but the food there was great so we had no issue with that. ” – Riley

Read more reviews here!

There is air conditioning available, but it’s in the nighttime only (since you hopefully will be out and about enjoying the beautiful area during the day). 

Rooftop yoga is a huge hit with travelers, as well as the fun tiki bar to sip on something fruity and delicious!

view of the beach at sunrise with palm fronds and clouds lit up in pastel colors

12. Viceroy Bocas del Toro

🌟 Rating: Not Yet Available | 💸 Budget: $$$$ | Not Yet Available

Unique Features:
🍴 8 high-end restaurants for endless choice
Huge resort with ultimate selection of wellness facilities
Surrounded by the San Pond San wetlands

Be one of the first to experience the luxurious Viceroy resort – it opens in 2024! 

The beautiful resort-in-the-making will feature everything you could want, spanning eight high-end restaurants, 42 overwater villas, and a massive 457 acres of grounds. 

The focus on wellness and relaxation amenities is huge here: you can enjoy a spa, meditation rooms, on-site gym, and so much more. 

You’ll be in experienced hands, even with the grand opening pending – this is Viceroy’s 12th project around the globe, with lovely hotels and resorts in San Francisco, Portugal, and St. Lucia, just to name a few. 

The grounds are surrounded by natural wildlife in the San Pond Sak wetlands, which you can explore solo or with a guide through a hiking or cycling expedition. 

Alternately, you can stay closer to home and enjoy one of the many swimming pools on the property.

If you choose to stay in one of the pool villas, you’ll have your own private plunge pool out front

If you fall in love, you can even purchase one of the villas to own yourself, and come back to paradise whenever you wish. 

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