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
Buying property in Panama as a foreigner is one of the most straightforward processes in Latin America, but there are specific rules and traps you need to know before putting down any money.
Panama's Constitution guarantees private property rights to foreigners with almost the same protections as locals, yet border zones, coastal concessions, and untitled "possession rights" can turn your dream purchase into a legal nightmare.
We constantly update this blog post to reflect the latest rules and market conditions in Panama.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Panama.
Insights
- Panama's 2% property transfer tax (ITBI) is one of the lowest in Latin America, making total closing costs for foreign buyers typically range between 4% and 7% of the purchase price in early 2026.
- The 10-kilometer border restriction near Costa Rica and Colombia affects areas like parts of Chiriquí and Darién provinces, but popular destinations such as Panama City, Boquete, Coronado, and Pedasí remain fully open to foreign ownership.
- Right of Possession (ROP) land in Panama cannot be registered in the Public Registry, and foreigners who buy ROP thinking it is titled property risk losing their entire investment to overlapping claims.
- Beachfront buyers in Panama must understand that the first 22 meters from the high tide line is public domain, and what is often marketed as "beachfront ownership" may actually be a concession or possession right.
- Panama uses the US dollar as its official currency, eliminating exchange rate risk for American buyers and simplifying international transactions in the property market.
- A clean titled property purchase in Panama typically takes 4 to 10 weeks from initial offer to final registration at the Registro Público when all parties are responsive.
- The "paz y salvo" tax clearance certificate from Panama's DGI is mandatory before any property transfer can be registered, and missing this step can block your purchase entirely.
- Property ownership in Panama can qualify foreigners for residency programs like the Friendly Nations Visa (requiring $200,000 investment) or the Qualified Investor Visa (requiring $300,000).
- Bocas del Toro has earned a reputation among legal experts as a high-risk area for property scams, with cases of the same land being sold to multiple foreign buyers simultaneously.
Can a foreigner legally own land in Panama right now?
Can foreigners own land in Panama in 2026?
As of early 2026, foreigners can legally buy and own titled residential land in Panama with essentially the same property rights as Panamanian citizens, making Panama one of the most foreigner-friendly real estate markets in Latin America.
The main restriction you need to watch for is the "10-kilometer rule" near international borders, which prohibits foreigners from owning titled property within roughly 10 kilometers of the Costa Rica or Colombia borders for national security reasons.
If you want property in a restricted zone, the closest legal alternative is usually buying outside the restricted perimeter, or in some cases acquiring a concession or lease-type right on state-controlled land, though this is not equivalent to private ownership and carries different risks.
Panama does not have nationality-based restrictions that treat certain foreign nationalities differently from others, so whether you are American, European, Asian, or from anywhere else, the rules for buying titled residential property are the same across the board.
Can I own a house but not the land in Panama in 2026?
As of early 2026, Panama's legal framework allows you to own a building or house separately from the land in two main situations: through condominium ownership (Propiedad Horizontal) where you own a unit plus a share of common areas, or in coastal and state-related situations where the underlying land is not privately titled.
In a condominium, your ownership right is recorded and secured through the formal Registro Público system, giving you a title certificate (Escritura Pública) for your unit and your proportional interest in the shared land and common areas.
For coastal or state concession situations, when a lease or concession expires, you may lose your right to the building entirely depending on the terms, which is why understanding whether you are buying titled property versus a concession is critical before signing anything in Panama.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Panama. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Do rules differ by region or city for land ownership in Panama right now?
The headline ownership rule for foreigners buying titled property is national, but the practical risk profile changes significantly depending on which region of Panama you are looking at.
Areas near international borders, particularly parts of Chiriquí province near Costa Rica and Darién province near Colombia, fall under the 10-kilometer restriction and are effectively off-limits for foreign buyers seeking titled land without a workaround.
These regional differences exist primarily for national security reasons related to border protection, but also because some areas like Bocas del Toro and rural beach zones have higher concentrations of untitled possession rights (ROP) land that can create ownership confusion for buyers unfamiliar with Panama's system.
We cover a lot of different regions and cities in our pack about the property market in Panama.
Can I buy land in Panama through marriage to a local in 2026?
As of early 2026, marrying a Panamanian citizen can change how property ownership is structured between spouses under Panama's marital property regime, but it does not automatically remove location-based restrictions like the 10-kilometer border zone rule or transform untitled possession rights into clean title.
If you buy property jointly with a Panamanian spouse, you should have a clear written agreement about ownership percentages, and ideally a prenuptial or postnuptial contract reviewed by a Panamanian lawyer to protect both parties' interests.
In the event of divorce, Panama's family courts will determine how marital property is divided, and a foreign spouse's interest in the land depends heavily on how ownership was registered, what agreements were signed, and whether proper documentation was maintained throughout the marriage.
There is a lot of mistakes you can make, we cover 99% of them in our list of risks and pitfalls people face when buying property in Panama.
We have made this infographic to give you a quick and clear snapshot of the property market in Panama. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What eligibility and status do I need to buy land in Panama?
Do I need residency to buy land in Panama in 2026?
As of early 2026, you do not need to be a resident of Panama to purchase titled residential property, and foreign individuals commonly buy real estate as non-residents using just their passport.
No specific visa or permit is required to complete a land transaction in Panama, though you will need to provide identification documents and may need to register with certain government systems as part of the closing process.
It is legally possible for a foreigner to buy land in Panama remotely without being physically present by using a Panamanian notarized Power of Attorney, which allows your lawyer or trusted representative to sign closing documents on your behalf.
Please note that we give you all the details you need about the different pathways to get residency and citizenship in Panama here.
Do I need a local tax number to buy lands in Panama?
In practice, you will often need to be registered with Panama's tax system as part of the property purchase process, since documents like the paz y salvo tax clearance certificate and forms for the transfer tax filing require proper identification in the DGI system.
The process to obtain tax identification as a foreigner in Panama typically involves working with your lawyer or notary, who can help register you with the DGI (tax authority), and this can usually be completed within a few days to a couple of weeks depending on responsiveness.
Opening a local bank account in Panama is not strictly required to complete a land purchase, but it is very common and practical for paying property taxes, utilities, HOA fees, and managing closing funds through escrow-like arrangements.
Is there a minimum investment to buy land in Panama as of 2026?
As of early 2026, there is no legal minimum investment amount required for foreigners to simply buy and own residential land in Panama, meaning you can purchase property at any price point the market offers.
The minimum investment thresholds you may hear about, such as $200,000 for the Friendly Nations Visa or $300,000 for the Qualified Investor Visa, apply only to residency programs and immigration benefits, not to the basic legal right to own property.
Are there restricted zones foreigners can't buy in Panama?
The most clearly defined restricted zone for foreign buyers in Panama is land within approximately 10 kilometers of the international borders with Costa Rica and Colombia, where foreigners are generally prohibited from owning titled property.
Beyond border zones, foreigners also cannot purchase land within Indigenous Territories (Comarcas) like Guna Yala, Emberá-Wounaan, and Ngöbé-Buglé, as these lands are collectively owned and protected from outside sale.
To verify whether a specific plot of land falls within a restricted zone, you should work with a Panamanian real estate lawyer who can check the property's Finca record at the Registro Público and request cadastral information from ANATI to confirm the exact location and any applicable restrictions.
Can foreigners buy agricultural, coastal or border land in Panama right now?
Foreigners can legally purchase titled agricultural land in Panama with full ownership rights, though rural properties often have higher rates of imperfect titling and boundary issues that require more thorough due diligence with registry and cadastral checks.
For agricultural land, there is no blanket restriction based on your nationality, but you should verify that the property has clean title registered at the Registro Público rather than being untitled possession rights, which are much riskier.
Coastal land in Panama comes with specific complications: the first 22 meters from the high tide line is public domain, and what is often marketed as "beachfront property" may actually be a state concession or possession right rather than private title, so always confirm the exact legal status before buying.
Border land within 10 kilometers of Costa Rica or Colombia is the most restricted category for foreigners, and you should treat any property in these zones as off-limits unless a qualified Panamanian lawyer confirms a lawful ownership path exists.
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What are the safest legal structures to control land in Panama?
Is a long-term lease equivalent to ownership in Panama right now?
A long-term lease in Panama is not equivalent to owning titled property, because your security depends entirely on the contract terms rather than having an ownership right recorded at the Registro Público that is enforceable against third parties.
Lease lengths in Panama are contract-dependent and can vary significantly, with some long-term leases running 30, 50, or even 99 years, though renewal rights depend on what is written in your agreement and whether the landowner honors those terms when the time comes.
You can sell, transfer, or bequeath lease rights in Panama if your contract explicitly allows it, but buyers will typically discount leasehold properties compared to titled land because of the inherent uncertainty and the fact that you are not the actual owner.
Can I buy land in Panama via a local company?
Yes, foreigners commonly purchase land in Panama through a locally registered company (Sociedad Anónima or S.A.), which can offer benefits for privacy, estate planning, and managing multi-owner situations, though it adds compliance requirements like registered agent fees and annual filings.
There is no minimum local shareholding requirement for a foreign-owned Panamanian company to hold land, meaning you can own 100% of the company that owns the property, and the key safety point remains the same: the company must have a properly registered right at the Registro Público.
What "grey-area" ownership setups get foreigners in trouble in Panama?
Grey-area ownership arrangements are unfortunately common in Panama, particularly in beach areas and rural zones where foreigners pay premium prices for what turns out to be untitled possession rights (derechos posesorios) rather than clean registered title.
The most common grey-area structures include buying ROP land as if it were titled property, using nominee arrangements where a Panamanian holds title "on your behalf," purchasing coastal concessions without understanding renewal risks, and relying on handshake deals without proper registry verification.
If Panamanian authorities or competing claimants discover you are using an illegal or grey-area ownership structure, you risk losing your entire investment, facing years of litigation with low success rates, and having no practical legal recourse to recover your money.
By the way, you can avoid most of these bad surprises if you go through our pack covering the property buying process in Panama.
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.
How does the land purchase process work in Panama, step-by-step?
What are the exact steps to buy land in Panama right now?
The typical process for buying titled residential land in Panama involves getting the property's Finca number, hiring an independent lawyer, running registry checks at the Registro Público, verifying tax status with a paz y salvo, confirming cadastral boundaries with ANATI, signing a promise-to-purchase agreement, executing the public deed before a notary, paying transfer taxes, and registering your ownership at the Registro Público.
For a clean titled property with responsive parties, the entire purchase process in Panama typically takes 4 to 10 weeks from initial offer to final registration, though rural properties, boundary issues, or missing paz y salvo certificates can extend this timeline significantly.
The key documents you will sign during a Panama land purchase include a promise-to-purchase agreement (which often includes deposit terms), and most importantly the Escritura Pública (public deed) which must be signed before a Panamanian notary who verifies identities and ensures formalities are met.
What scams are common when it comes to buying land in Panama right now?
What scams target foreign land buyers in Panama right now?
Scams targeting foreign land buyers in Panama are not as widespread as in some countries, but they do occur regularly, particularly in beach areas like Bocas del Toro, rural zones, and anywhere untitled possession rights land is common.
The most common scams include selling possession rights (derechos posesorios) as if they were titled property, selling the same property to multiple buyers simultaneously, using forged documents or fake Powers of Attorney, and marketing coastal concessions as private ownership when they are not.
Red flags that indicate a potential scam include pressure to close quickly without time for due diligence, reluctance to provide the Finca number for registry verification, prices significantly below market value, and sellers or agents who discourage you from hiring your own independent lawyer.
If you fall victim to a land scam in Panama, your legal recourse exists on paper, but enforcement is difficult, with court cases often taking years and recovery of funds from local defendants proving nearly impossible in many instances.
We cover all these things in length in our pack about the property market in Panama.
How do I verify the seller is legit in Panama right now?
The best method to verify a seller is legitimate in Panama is to pull the property's Finca record directly from the Registro Público and confirm that the person claiming to sell is actually the recorded owner, not just someone with a photocopy of an old deed.
To confirm the title is clean and free of disputes in Panama, your lawyer should request a full certification from the Registro Público showing the ownership chain, any mortgages, liens, annotations, easements, and litigation notes attached to the Finca number.
Checking for existing liens, mortgages, or debts involves reviewing the Registro Público encumbrances, obtaining the paz y salvo tax clearance from the DGI, and for condos, getting a written statement from the HOA administration about any outstanding maintenance fees.
The most essential professional for verifying seller legitimacy in Panama is an independent Panamanian real estate lawyer who works for you (not the seller), since they can navigate the registry system, authenticate Powers of Attorney, and spot problems that agents may overlook or ignore.
How do I confirm land boundaries in Panama right now?
The standard procedure for confirming land boundaries in Panama involves requesting a cadastral certification from ANATI (Autoridad Nacional de Administración de Tierras) and comparing it against the property description in the Registro Público and what the seller represents on the ground.
The official documents you should review include the Finca record from the Registro Público (which describes the property dimensions), the ANATI cadastral map showing the plot's official boundaries, and any survey documents (planos) that were filed when the property was originally subdivided.
Hiring a licensed surveyor is recommended rather than strictly required, but it becomes essential for rural properties, beachfront land, or any situation where the physical markers on the ground do not clearly match the paperwork.
Common boundary-related problems foreign buyers encounter in Panama include neighbors who have built over the property line, discrepancies between the registered size and actual size (especially in older rural titles), and access disputes where the road to your property crosses someone else's land.
Buying real estate in Panama can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will it cost me, all-in, to buy and hold land in Panama?
What purchase taxes and fees apply in Panama as of 2026?
As of early 2026, the primary purchase tax is the ITBI (Impuesto de Transferencia de Bienes Inmuebles) property transfer tax at 2% of the higher value between the sale price and the cadastral value, which is the hard floor for your transaction costs.
Total closing costs for foreign buyers purchasing titled residential property in Panama typically range from 4% to 7% of the purchase price, which includes the 2% transfer tax plus notary fees, registry fees, legal fees, and various certifications.
The main individual costs that make up your closing expenses include the 2% ITBI transfer tax, notary costs (typically 0.1% to 0.25%), registry inscription fees (around 0.2%), legal fees (often 1% to 2% depending on complexity), and document certifications and searches.
These taxes and fees do not differ for foreign buyers compared to Panamanian buyers when purchasing standard titled residential property, since Panama's system treats foreigners equally for most ownership rights and tax obligations.
What hidden fees surprise foreigners in Panama most often?
Hidden fees that surprise foreign buyers in Panama typically add an unexpected 1% to 3% to their budget, with the most common surprises being back property taxes the seller left unpaid, HOA arrears in condominiums, and cadastral certification costs for rural properties.
The specific hidden fees foreigners frequently overlook include paz y salvo clearance costs when back taxes exist, rush fees for expedited registry searches, notarized translations of documents, Power of Attorney preparation if buying remotely, and the seller's capital gains withholding sometimes being negotiated onto the buyer.
These hidden fees typically appear at three stages: during due diligence (when your lawyer discovers back taxes or liens), at the notary closing (when you see itemized costs for the first time), and after purchase (when HOA or municipal bills arrive).
The best protection against unexpected fees is to work with an independent lawyer who provides a detailed cost estimate upfront, insist on paz y salvo verification before signing any deposit agreement, and request written confirmation of all HOA and municipal charges before closing.
We made this infographic to show you how property prices in Panama compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Panama, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Gaceta Oficial (Constitution) | Panama's official legal gazette with binding constitutional text. | We used it to confirm foreigners' property rights under Panamanian law. We treated it as the definitive source when other summaries disagreed. |
| Registro Público | Panama's official Public Registry for property rights and liens. | We used it to describe title verification and clean title checks. We referenced their online consultation system for buyer due diligence steps. |
| DGI/MEF (Form 106) | Panama's tax authority under the Ministry of Economy and Finance. | We used it to confirm the 2% property transfer tax rate. We grounded our closing cost estimates in official tax language. |
| DGI Paz y Salvo Portal | Official DGI process page for tax clearance certificates. | We used it to explain the paz y salvo requirement for property transfers. We built our "verify title is clean" checklist around this requirement. |
| ANATI | State authority responsible for land administration and cadastre. | We used it to explain cadastral certification for boundary verification. We referenced their services for rural and beach property checks. |
| Autoridad Marítima de Panamá | Official authority managing maritime and coastal concessions. | We used it to explain why some beachfront is concession, not title. We flagged concession risks in our coastal property warnings. |
| Ministerio de Gobierno (MINGOB) | Government ministry explaining the notarial system framework. | We used it to describe why notaries matter in Panama closings. We referenced it for document signing and identity verification procedures. |
| Colegio Nacional de Abogados | National bar association publishing reference fee schedules. | We used it as a reality check on lawyer fee expectations. We kept our closing cost estimates credible using their published ranges. |
| PwC Tax Summaries Panama | Major accounting firm providing official tax rate summaries. | We used it to verify transfer tax and capital gains rates. We cross-checked government sources against their professional analysis. |
| Panama Sovereign Realty | Licensed real estate agency specializing in foreign buyers. | We used it to validate practical buying procedures. We referenced their ownership structure explanations and restriction summaries. |
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