Can Americans buy and own property in Panama?

Authored by the expert who managed and guided the team behind the Panama Property Pack

Everything you need to know before buying real estate is included in our Panama Property Pack

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Panama. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Panamanian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Panama City, Boquete, and Coronado. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy and own property in Panama?

Yes, Americans can legally buy and own property in Panama with full ownership rights.

Panama's legal framework allows foreign nationals, including Americans, to purchase real estate without restrictions on most types of properties. You can own property in your individual name, hold multiple properties, and transfer ownership to heirs through inheritance or sale.

The only limitations apply to specific restricted zones including properties within 10 kilometers of international borders and the first 22 meters from the high tide line along beaches, which cannot be privately titled by anyone regardless of nationality. Additionally, certain islands and coastal areas may have special regulations, but these affect all buyers equally.

As of September 2025, Panama maintains one of the most foreigner-friendly property ownership systems in Latin America, with no quota restrictions, nationality preferences, or mandatory local partnerships required for real estate transactions.

It's something we develop in our Panama property pack.

Do Americans have the same property rights as Panamanian citizens?

Americans enjoy identical property rights to Panamanian citizens in virtually all aspects of real estate ownership.

Foreign property owners in Panama can buy, sell, rent, mortgage, and inherit real estate with the same legal protections as nationals. You can register properties in your name through the Public Registry, obtain clear title deeds, and access the court system for property disputes or enforcement of ownership rights.

The property registration system in Panama operates under a Torrens-style title registry, providing strong legal guarantees for ownership. Once registered, your property title receives full protection under Panamanian law, regardless of your citizenship status.

Americans can also use their Panama property as collateral for loans, lease it to tenants under standard landlord-tenant protections, and benefit from the same tax exemptions available to Panamanian citizens, including the property tax exemption for properties valued under $120,000.

Are there visa or residency requirements for Americans to buy property in Panama?

No visa or residency status is required for Americans to buy property in Panama.

You can purchase real estate as a tourist using only your valid U.S. passport during your visit. Panama allows property purchases by foreigners regardless of their immigration status, making it one of the most accessible markets for American buyers in the region.

However, property ownership can qualify you for various Panamanian residency programs if you choose to pursue them. The Friendly Nations Visa requires a minimum $200,000 real estate investment, while the Qualified Investor Visa currently requires $300,000 (increasing to $500,000 in late 2026). Retirees may also qualify for the Pensionado Visa program.

These residency options provide benefits like multiple-entry privileges, work authorization, and potential tax advantages, but they remain optional rather than mandatory for property ownership. Many Americans maintain their properties as vacation homes or rental investments without pursuing residency.

Do Americans need to be physically present in Panama to complete a purchase?

Physical presence is not required to complete a property purchase in Panama.

Americans can execute the entire transaction remotely by appointing a licensed Panamanian attorney as their Power of Attorney. This legal representative can sign documents, transfer funds, and complete the closing process on your behalf while you remain in the United States.

The Power of Attorney document must be properly notarized in the United States, apostilled by the Secretary of State in your state, and translated into Spanish by a certified translator in Panama. Once these requirements are met, your attorney can represent you throughout the entire purchase process.

Many American buyers choose this remote option for convenience, though some prefer to visit Panama during the final closing to personally inspect the property and meet with their legal team. Either approach is legally valid and commonly used in Panama's real estate market.

What is the step-by-step process for Americans to buy property in Panama?

The property purchase process in Panama follows a structured sequence requiring proper documentation and legal representation.

Step	Action Required	Timeline
1. Property Search	Engage licensed realtor and attorney	1-4 weeks
2. Offer & Contract	Sign Promise to Purchase, pay 10-20% deposit	1-2 days
3. Due Diligence	Title search, surveys, lien checks, tax clearance	2-4 weeks
4. Final Contract	Execute Escritura Pública at notary	1 day
5. Registration	Register deed with Public Registry	2-3 weeks
6. Post-Closing	Obtain RUC, transfer utilities, arrange insurance	1-2 weeks

Required documents include your valid passport, Power of Attorney (if needed), sales contract, title deed from Public Registry, tax clearance certificate (Paz y Salvo), property survey and plans, and proof of payment with fund origin documentation.

Is it mandatory for Americans to hire a lawyer when buying property in Panama?

Yes, hiring a licensed Panamanian attorney is legally required for all real estate transactions in Panama.

Only licensed lawyers can draft and execute the public deed (Escritura Pública) that transfers property ownership. Your attorney must be registered with the Panamanian Bar Association and authorized to practice real estate law in the jurisdiction where the property is located.

The attorney's responsibilities include conducting due diligence on the property title, verifying liens and encumbrances, reviewing all contracts, calculating taxes and fees, coordinating with the Public Registry, and ensuring compliance with all legal requirements. They also handle fund transfers and coordinate with banks, notaries, and government offices.

Legal fees typically range from $1,500 to $3,000 depending on the property value and transaction complexity. While this represents an additional cost, the attorney's role is essential for protecting your investment and ensuring a legally valid transfer of ownership.

It's something we develop in our Panama property pack.

What taxes do Americans face when buying, owning, or selling property in Panama?

American property buyers in Panama face several specific tax obligations throughout the ownership cycle.

At purchase, buyers pay a 2% transfer tax calculated on either the sale price or the official appraised value, whichever is higher. Additional costs include legal fees, notary fees, Public Registry registration fees, and municipal taxes, which combined typically add another 1-2% to the transaction cost.

During ownership, annual property taxes apply only to properties valued above $120,000. The tax rates are 0.6% for properties valued between $120,001-$250,000, 0.8% for $250,001-$500,000, and 1% for properties exceeding $500,000. Properties under $120,000 remain tax-exempt, making Panama attractive for modestly-priced investments.

When selling, owners pay a 3% capital gains advance on the sale price or cadastral value. This advance may substitute for the standard 10% tax on actual capital gains, depending on the circumstances. Rental income from Panama properties is taxed at 12% for both residents and non-residents.

Panama's territorial tax system means Americans only pay taxes on Panama-source income, not foreign-earned income, making it attractive for retirees and investors with diverse income sources.

Can Americans get mortgages in Panama and what are typical terms?

Americans can obtain mortgages from Panamanian banks, though terms differ from U.S. financing options.

Local banks typically require 30-40% down payments for non-resident foreigners, with loan-to-value ratios reaching up to 70% for qualified applicants. Interest rates currently range from 7-9% for American borrowers, significantly higher than U.S. rates but competitive within the Latin American market.

Loan terms generally extend 15-25 years maximum, with some banks offering 30-year mortgages for exceptional borrowers. Required documentation includes passport, proof of income for the past two years, international credit report, bank references from your U.S. bank, and often a Panamanian bank account or local co-signer.

Major banks serving foreign buyers include Banco General, Global Bank, and BAC International. Working with mortgage brokers experienced in expat lending can streamline the approval process and help secure better terms. Banks often prefer financing properties in established expat communities like Boquete, Coronado, or prime Panama City locations.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Panama versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are average property prices in Panama's popular regions?

Property prices in Panama vary significantly by location, with distinct markets for different buyer preferences and budgets.

Location	Property Type	Price Range
Panama City	Luxury condos	$180,000 - $1,000,000+
Boquete	Condos/Houses	$150,000 - $2,000,000+
Coronado	Beach properties	$300,000 - $2,650,000
Bocas del Toro	Island condos	$250,000 - $800,000
Pedasí	Beach/rural homes	$200,000 - $1,500,000
Playa Venao	Surf properties	$200,000 - $1,000,000

In Panama City, prime areas like Punta Pacífica and Costa del Este command $1,800-$4,150 per square meter for upmarket properties. Boquete offers the most diverse price range, with condos starting around $150,000 and luxury mountain homes exceeding $2 million.

Coronado represents the premium beach market with average prices around $2,200 per square meter, while Bocas del Toro appeals to budget-conscious buyers seeking Caribbean lifestyle properties. Pedasí and Playa Venao have experienced rapid price appreciation as tourism and expat interest has increased.

Which areas are most attractive for Americans based on different investment goals?

Different regions in Panama serve distinct American buyer objectives for living, rental income, and capital appreciation.

For permanent residence, Boquete leads with the largest North American expat community, temperate climate, established healthcare, and English-speaking services. Panama City offers urban conveniences, international schools, business opportunities, and modern infrastructure. Pedasí attracts those seeking rural beach lifestyle with growing amenities and strong community ties.

For rental income generation, Panama City provides the highest occupancy rates due to business travel and urban tourism. Coronado excels in vacation rental markets with consistent beach tourism and high Airbnb demand. Playa Venao benefits from surfing tourism and weekend rental demand from Panama City residents.

For capital appreciation potential, Casco Viejo in Panama City shows strong growth due to UNESCO World Heritage restoration projects and tourism development. Playa Venao demonstrates rising demand from surf tourism and international recognition. Boquete continues expanding its expat infrastructure, supporting steady property value increases.

Areas like El Valle and Santa Fe appeal to buyers seeking affordable mountain living with growth potential as infrastructure improves and expat communities develop.

What common mistakes should Americans avoid when buying Panama property?

Several recurring pitfalls can significantly impact American property buyers in Panama's real estate market.

1. **Inadequate due diligence on property titles** - Title disputes affect numerous properties, making comprehensive title searches through the Public Registry essential before purchase.2. **Using the seller's attorney** - This creates an inherent conflict of interest; always hire your own independent licensed Panamanian lawyer.3. **Underestimating total acquisition costs** - Budget beyond the purchase price for transfer taxes, legal fees, surveys, and unexpected expenses that can add 5-8% to the total cost.4. **Ignoring HOA and community fees** - Many developments have substantial monthly or annual fees that significantly impact ownership costs and rental yields.5. **Overestimating rental income potential** - Research actual occupancy rates and rental prices in your specific area rather than relying on optimistic projections.6. **Neglecting infrastructure verification** - Confirm road access, water systems, electrical connections, and proper permits before finalizing any purchase.7. **Overlooking coastal and border restrictions** - Verify the property isn't in restricted zones near borders or beaches where private ownership is prohibited.

It's something we develop in our Panama property pack.

Where do most Americans settle in Panama and why?

American expats concentrate in specific regions that offer established infrastructure, community support, and lifestyle advantages.

Boquete hosts the largest concentration of North American retirees and expats, with an estimated 3,000-5,000 Americans residing permanently. The cool mountain climate, English-speaking services, modern healthcare facilities, and strong expat community infrastructure make it the top choice for American retirees. The area offers familiar amenities like American-style restaurants, English-language churches, and social clubs.

Panama City attracts working professionals and business-oriented Americans who value urban amenities, international schools, modern hospitals, and business opportunities. The capital provides the most comprehensive infrastructure with direct flights to the U.S., international banking, and corporate headquarters.

Coronado appeals to Americans seeking beach lifestyle with golf courses, equestrian facilities, gated communities, and proximity to Panama City. The area has developed specifically for expat residents with American-standard amenities and services.

Bocas del Toro draws younger Americans and digital nomads attracted to Caribbean culture, lower living costs, eco-tourism opportunities, and relaxed island lifestyle. The region offers affordable housing and a growing expat community focused on sustainable living.

These locations succeed because they provide the cultural familiarity, healthcare access, and community support that Americans prioritize when relocating abroad.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Taxes for Expats - Buying Property in Panama Guide
2. Global Property Guide - Panama Buying Guide
3. Panama Properties - Foreign Ownership Guide
4. Panama Sovereign - Real Estate Laws for Foreign Buyers
5. The LatinVestor - Americans Buying Property in Panama
6. Limitless Legal - Property Purchase Migration Benefits
7. Kraemer Law - Secure Real Estate Transactions
8. Casa Solution - Mortgage Guide for Expats