Not many a capital city can boast a tropical rainforest on its environs but just 2km north of Panama (City)’s centre lies this enormous nature reserve with dozens of animal species including deer, monkeys and sloths; after all, the land bridge between Central and South America is historically one of the most biodiverse in the world. There are several well-marked trails to try.

For some of the best seafood in Central America, head to this fabled fish market. Full of sellers serving up the daily catch kept on ice, the mercado is an essential slice of local Panamanian life. Take a seat at one of the tables outside overlooking the bay and dine on the Caribbean-style dishes while drinking down the view.

Originally built in the late 17th century, the gleaming white presidential palace as it currently stands was largely rebuilt in 1922. It sports the elegant neo-Moorish style that was popular at the time, and is famed for its Darién herons.

Dedicated to the great Latin American liberator Simón Bolívar, this square is amongst the most beautiful in Panama. A couple of blocks east of the Palacio Presidencial, it features a statue of Bolívar, who came here for the first Panamerican Congress in 1826, and a handsome museum dedicated to the legend. There’s also the glamorous 17th-century Church of San Francisco.

The Panama Canal was one of the 20th century’s greatest engineering feats, but it was also a source of enormous controversy, with the US effectively running the Canal Zone until 1999. This museum tells the whole story behind the vital waterway, with exhibitions including the original canal treaties.

The highlight of the whole Casco Viejo, as the Old Town is called, is probably the cathedral of Panama. It was consecrated at the end of the 18th century, though work began more than a century before. It has a classic colonial facade, but its two mighty white bell towers make for a striking contrast.

Once a church, the Afro-Antillano museum celebrates Panama’s Caribbean community – who play an important part in Panamanian culture. Dedicated largely to the black workers who built the canal in dreadful conditions, there are photographs and tools from the period on display in the old wooden building.

In 1671, Sir Henry Morgan raided Panama (City), leaving no treasure behind except the glorious gold altar of this church, which was disguised so that the daring Brit wouldn’t plunder it. Plaza Herrera next to the church is also worth a look for its pretty 19th-century architecture.

One of the first buildings to be constructed in Panama, this former church and monastery was built in the late 17th century. It’s now a ruin, but the Arco Chato – an unsupported arch spanning the church interior – is famous for having been cited as evidence of Panama’s seismic stability while the US was considering building the canal here.

Taboga Island is also known as the Isla de las Flores (Island of Flowers): A blaze of tropical color and gloriously quiet beaches await visitors here – just 20 kilometers or so from the big-city noise. Day trippers will enjoy the leisurely boat ride, which takes roughly one hour and offers incomparable views of the city’s skyline and the Bridge of the Americas. The ferry makes the crossing several times daily from Calypso Dock on Isla Naos, on the Calzada de Amador causeway.

Part swanky restaurant, part café-bar, this two-faced locale is a favourite with Panama (City)’s trendsetters.

Whether it’s Wednesday or Saturday, international DJs keep the punters pulling shapes all night long at this popular dance club.

This poky venue is one of the local favourites for live music, named after Panama’s jazz legend, Danilo Pérez.

Hit the terrace of this Lebanese bar-restaurant for a drink and a spot of people watching. Hookah smoke clouds the venue most evenings, shrouding the nightly belly-dancing acts in an atmospheric wispy veil.

For something a little different, spend an evening at the Teatro Nacional, a glamorous 20th-century national theatre that puts on classical music performances and traditional Panamanian productions.

Sporting a minimalist design adorned with abstract artwork, it’s the food here that really inspires – Panamanian-influenced with a modern twist.

One of the finest restaurants in Panama (City), not only is the seafood spectacular, but it’s also a great spot for indulging in a bit of stargazing – this is the local celebrity hangout.

For an authentic Panamanian dining experience with a luxury tilt, head to ‘The Jars’, where exceptional seafood, tortillas and tangy tropical fruits are served up with a side of live entertainment.

Prepare to have your mind blown by this stylish restaurant that mixes Latin, Caribbean and Far-Eastern influences. The sea bass and garlic shrimp dishes both come highly recommended.

A laid-back option in a rustic setting, this renowned grill-house offers Panamanian sausages, Argentinian-style steaks and plenty more. If it’s meat you’re after, look no further.

This vast square, in which the declaration of Panama’s independence from Columbia was pronounced in 1903, hosts a bustling flea market and an array of food stalls on the first Sunday in the month. Several venerable buildings surround the square, of which the cathedral, which has an incongruously plain interior compared with its ornate facade, was completed in 1796 – after 108 years under construction. Since 1997, the Canal Museum has occupied the former headquarters of the French company engaged in building the canal, while the History Museum of Panama can be found in the Municipal Palace.

This modest café on Plaza Santa Ana is possibly the only café in the world bearing the name “Coca-Cola.” Since one of the first bottling plants for the popular beverage outside of the USA was built in Panama 110 years ago, the café, which opened in 1875, has been serving the brown lemonade.  The café has always been especially popular with workers and retains its character to this day: no frills, plain tables, a menu of hearty meals, and soccer on the TV screens. Its most illustrious guests include the revolutionary Ernesto “Che” Guevara and the Chilean poet Pablo Neruda.

The Relic bar is the most popular nighttime spot in the old town, and located in a cellar room beside the old city wall. It attracts a mixed crowd of young and old, including many foreigners, and features live bands on the weekends. Every Thursday, an artwork is created here live and later auctioned off.

The city’s most famous dance hall. The decor – red velvet curtains and armchairs – is very 1950s. Local salsa bands play here on weekends. If the dance floor doesn’t appeal, you can always take a seat on the first-floor balcony, order yourself a cocktail and watch the dancers in action.

It was the French, who – inspired by the success of the Suez Canal – in 1881 began building the canal through the Isthmus of Panama. They underestimated the financial requirements and technical challenges involved, however, and these drawbacks were compounded by the fact that at least seven laborers working on the canal died of malaria or yellow fever every day. After eight years of construction and 22 000 deaths, the French gave up on the project. This square commemorates their endeavors with a single obelisk topped by the French rooster.

The owner, Carlos Weil, collects and trades in the pictures and sculptures of well-known artists from Panama and the rest of Latin America, and he also exhibits the traditional crafts of ethnic Indian groups.

The Neo-Baroque national theater, which was built in 1908 on a former monastery site, shared the fate of the old town – a slow and steady decline over decades. Following elaborate restoration, the theater reopened in 2004 and the operas, plays and ballets staged here are generally well frequented. For the audience, however, it’s not just what’s on stage that’s interesting; the ceiling frescoes of Panamanian painter Robert Lewis are also definitely well worth a look: He has angels and cherubs flying through a sun-filled heaven.

The Panamanian pianist and composer Danilo Pérez, 49, has played with a host of jazz greats, including Dizzy Gillespie, Charlie Haden, Tito Puente, Wynton Marsalis and Wayne Shorter and received a Grammy for his work. Although he lives mainly in the USA these days, the musician has not forgotten his roots. In fact, he set up a foundation that has been supporting talented Panamanian musicians for many years and stages the annual Panama Jazz Festival, too. Danilo has also opened a jazz club with his name at the fine American Trade Hotel, where he provides a stage for top jazz musicians.

Every morning, the fishing boats bring fresh seafood to the fish market on the edge of the old town. Crawfish and prawn, fish and squid line the vendors’ booths. All around, dozens of open-air restaurants serve specialties, such as ceviche, vinegar-marinated seafood, grilled langostinos and frittered lulas. Tables and chairs are usually plastic and the plates a little scratched, but the food is fresh, the portions are large and the prices low. Very popular at lunchtime and early evening from around 6 to 9 pm. Best of all, you can enjoy views of the old town and the ocean while you eat.

Musicians and bands from all around the world have been performing here for ten years. Friday is Salsa day; rock music generally features on Saturdays. The bar is in the basement of an old colonial building that’s a good century old. The choice of cocktails is large and they are served with tapas from the S’cena restaurant next door.

All that Panama has to offer in the way of souvenirs can be bought at this small store: lovely Embera baskets from the Darien rainforest, brightly colored mola scarves made by the Kuna Indians of the Caribbean coast, and also carnival masks and wood carvings. Although they are usually made in Ecuador, the traditional white Panama hats enjoy pride of place here. They are so closely woven that not a drop of rainwater reaches the wearer’s head.

The boss here, Manuel Madueño, is actually Spanish and hails from Barbate in Andalusia. Before opening his restaurant in Panama (City), he worked as a porter, cook and art dealer. He established his culinary realm in a colonial building and filled it with old pictures and artworks. The menu offers ten courses and changes every day. Classics include tuna sashimi, Andalusian gazpacho, Caribbean sea bass, prawn in coconut sauce and lots of tropical fruit.