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
Foreigners can legally buy most types of real estate in Panama with ownership rights nearly equal to Panamanian citizens.
Panama offers one of the most open and secure property markets in Latin America for international buyers, with only a few location-based restrictions primarily affecting border zones and indigenous territories. The purchase process is well-structured and typically takes 30-60 days to complete.
If you want to go deeper, you can check our pack of documents related to the real estate market in Panama, based on reliable facts and data, not opinions or rumors.
Foreigners can purchase titled properties including houses, condos, commercial buildings, and land in Panama.
Main restrictions include the 10-kilometer border zone rule and prohibition in indigenous territories.
| Aspect | Details | Timeline/Cost |
|---|---|---|
| Property Types Allowed | Houses, condos, apartments, commercial buildings, farms, titled land | No restrictions on most property types |
| Restricted Areas | 10km from borders, indigenous territories, first 22m of beachfront | Immediate exclusion |
| Purchase Process | 9-step process from property identification to title registration | 30-60 days typical timeline |
| Total Costs | Agent fees (5%), transfer tax (2%), legal fees, notarial fees | Approximately 8-10% of purchase price |
| Financing Options | Panamanian bank mortgages available for foreigners | Up to 70% financing, 30% down payment |
| Annual Property Tax | Progressive rates based on property value | 0.5% to 2% annually |
| Residency Benefits | Property investment can qualify for investor visas | Usually requires $200,000+ investment |
What types of properties can foreigners legally buy in Panama?
Foreigners can legally purchase most types of real estate in Panama with ownership rights nearly identical to Panamanian citizens.
Titled properties available to foreign buyers include houses, condominiums, apartments, commercial buildings, farms, and undeveloped land with clear titles. As of September 2025, Panama maintains one of the most open property ownership policies in Latin America for international investors.
Right of Possession (ROP) land exists in Panama but carries significant legal risks due to unclear ownership documentation. Foreign buyers should avoid ROP properties and focus exclusively on titled properties that provide full legal protection and clear ownership rights.
Islands can be purchased by foreigners but require government approval and may involve concessions rather than direct ownership. The approval process for island purchases typically takes longer and involves additional regulatory scrutiny.
It's something we develop in our Panama property pack.
Are there any restrictions on where foreigners can own property?
Panama imposes specific geographic restrictions on foreign property ownership primarily focused on national security and indigenous rights protection.
The 10-kilometer border zone rule prohibits foreigners from owning titled land within 10 kilometers of international borders with Costa Rica or Colombia. This restriction affects properties in border provinces including Chiriquà near Costa Rica and Darién near Colombia.
Indigenous territories, known as Comarcas, are completely off-limits to foreign ownership to protect indigenous community rights. These areas include Guna Yala, Emberá-Wounaan, Buglé, and Ngöbé-Buglé territories.
Beachfront properties face maritime zone restrictions where the first 22 meters from the high tide line constitute public domain. Properties in subsequent coastal zones may have additional development restrictions or require special permits.
Urban areas including Panama City, David, Boquete, and other major cities have no ownership restrictions for foreigners, making these locations the most accessible for international buyers.
What are the main steps to buying real estate in Panama as a foreigner?
The Panama property purchase process follows nine structured steps typically completed within 30-60 days.
Step 1 involves identifying your target region and property type while engaging licensed real estate agents who specialize in foreign buyer transactions. Step 2 requires thorough property inspection including physical condition, neighborhood assessment, and utility verification.
Step 3 involves submitting a purchase offer typically accompanied by a 5-10% deposit held in escrow. Step 4 requires signing a detailed purchase agreement outlining terms, conditions, and timelines for completion.
Step 5 encompasses the due diligence period lasting 30-60 days where title searches, surveys, legal checks, and environmental assessments are conducted. Step 6 involves arranging financing through Panamanian banks or transferring funds from abroad.
Step 7 requires preparing all required legal documents including notarized passport copies, proof of funds, and legal certificates. Step 8 involves closing the transaction at a notary office and paying all applicable taxes and fees. Step 9 completes the process by registering new ownership with Panama's Public Registry to secure legal title.
How do I find a trustworthy real estate agent or lawyer in Panama?
Finding reliable professionals requires verification of credentials and experience with foreign buyer transactions.
Licensed Panamanian real estate agents must hold valid licenses issued by the Ministry of Commerce and Industries. Verify agent credentials through official registry databases and request references from recent foreign clients who completed successful transactions.
Panamanian attorneys specializing in real estate law should be members of the National Bar Association with demonstrated experience in foreign buyer transactions. Request case studies, client testimonials, and verification of successful property purchase completions.
Expat forums, professional directories, and reputable real estate agencies provide valuable recommendations and reviews from previous clients. Popular resources include Panama expat Facebook groups, International Living forums, and established agencies with multi-year track records.
Interview multiple professionals before making final selections, ensuring they provide transparent fee structures, clear communication in your preferred language, and detailed explanations of the purchase process timeline and requirements.
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What legal documents and permits do I need to purchase property?
Property purchases in Panama require specific documentation to establish buyer identity, financial capacity, and legal standing.
Primary identification documents include notarized copies of passport and government-issued identification apostilled by your home country's foreign ministry. Financial documentation requires proof of funds showing legitimate income sources and sufficient capital for the purchase.
The contract of sale (contrato de compraventa) forms the central legal document outlining purchase terms, payment schedules, and completion deadlines. Property title documentation must be verified through Public Registry searches to confirm clear ownership and absence of liens or encumbrances.
Tax certificates demonstrating current property tax payments and municipal compliance must be obtained from local authorities. For corporate purchases, additional documents including power of attorney, corporate resolutions, and entity registration certificates are required.
Foreign buyers may need to provide additional documentation including background checks, financial statements, and source of funds declarations depending on purchase amount and financing arrangements.
How does the property title and registration process work in Panama?
Panama's property title system operates through the Public Registry which maintains comprehensive records of all titled properties.
The title search process begins with your attorney conducting thorough searches in the Public Registry to verify current ownership, identify any liens or encumbrances, and confirm property boundaries match official records. This search typically takes 1-2 weeks to complete thoroughly.
Title deed signing occurs at a notary office where both buyer and seller execute the transfer documents in the presence of a licensed notary public. The notary verifies all documentation, confirms payment of required taxes, and prepares the official transfer deed.
Registration completion takes 2-3 weeks after deed signing as the Public Registry processes the ownership transfer and issues the new title deed. The buyer receives the official deed after registration, confirming legal ownership and providing protection against future claims.
It's something we develop in our Panama property pack.
What are the typical costs and taxes involved in buying property as a foreigner?
Property purchase costs in Panama typically total 8-10% of the purchase price across various fees and taxes.
| Cost Category | Rate/Amount | Paid By |
|---|---|---|
| Real Estate Agent Commission | 5% of sale price | Typically seller |
| Transfer Tax | 2% of sale price | Seller |
| Income Tax Advance | 3% of sale price | Seller (capital gains) |
| Notarial Fees | 0.3% of sale price | Buyer |
| Public Registry Fees | 0.3% of sale price | Buyer |
| Legal Representation | $1,000-$3,000 | Buyer |
| Property Appraisal | $300-$800 | Buyer |
Additional costs may include surveying fees, environmental assessments, and title insurance depending on property complexity and buyer preferences. Foreign buyers should budget an additional 1-2% for currency exchange fees and international wire transfer costs.
Can foreigners get a mortgage or financing in Panama?
Panamanian banks offer mortgage financing to qualified foreign buyers with stricter requirements than domestic borrowers.
Financing availability extends up to 70% of the property purchase price for qualified applicants, requiring minimum down payments of 30%. Interest rates for foreign borrowers typically range 6-8% annually depending on loan terms and borrower qualifications.
Documentation requirements for foreign borrowers include income verification from home country employers, bank statements covering 6-12 months, credit reports from home countries, and proof of employment stability. Banks may require additional collateral or co-signers for larger loan amounts.
Major Panamanian banks offering foreign buyer mortgages include Banco Nacional, Banco General, and Multibank. Processing times typically extend 4-8 weeks from application to approval depending on documentation completeness and property evaluation.
Alternative financing options include seller financing arrangements and private lenders specializing in foreign buyer transactions, though these typically carry higher interest rates and shorter terms than traditional bank mortgages.
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What should I check during due diligence before finalizing the purchase?
Due diligence in Panama requires comprehensive verification of legal, physical, and financial aspects of the property.
Title verification forms the foundation of due diligence, requiring complete Public Registry searches to confirm clear ownership, absence of liens or debts, and proper boundary documentation. Verify the seller's identity matches property registration records and confirm their legal authority to sell.
Physical property inspection should include structural assessments, utility connections verification, boundary surveys, and neighborhood evaluation for future development plans. Environmental assessments may be required for properties near protected areas or with development restrictions.
Legal compliance verification includes confirming current property tax payments, municipal permits for existing construction, zoning compliance, and absence of environmental violations. Review homeowners association bylaws and fee structures for condominium purchases.
Financial verification includes property valuation assessments, market comparison studies, and analysis of carrying costs including property taxes, insurance, and maintenance fees. This comprehensive approach typically requires 30-60 days to complete thoroughly.
Are there residency or visa benefits linked to buying property in Panama?
Property ownership in Panama can qualify buyers for various residency programs though purchase alone doesn't grant automatic residency status.
The Friendly Nations Visa program allows citizens from designated countries to obtain permanent residency by demonstrating economic ties to Panama, which can include property ownership combined with other investments. Qualifying countries include the United States, Canada, most European Union nations, and several others.
The Investor Visa requires minimum investments of $200,000 in Panamanian real estate or other approved investment categories. This program provides a pathway to permanent residency for qualifying investors regardless of nationality.
Property ownership simplifies future residency applications by demonstrating economic ties and commitment to Panama. Owners can use property addresses for residency applications and benefit from established local banking relationships.
It's something we develop in our Panama property pack.
What are the ongoing property taxes, maintenance fees, or ownership costs?
Annual property ownership costs in Panama include taxes, maintenance, insurance, and utility expenses.
Property taxes in Panama follow progressive rates typically ranging from 0.5% to 2% annually based on property value and title type. Properties valued under $30,000 are exempt from property taxes, while higher-value properties face increasing rates.
Condominium properties incur homeowners association fees covering building maintenance, security, common area upkeep, and shared utilities. Monthly HOA fees typically range $50-$300 depending on building amenities and location.
Property insurance costs vary by location and coverage levels, typically ranging $300-$1,500 annually for standard coverage. Properties in coastal areas may require additional hurricane or flood insurance coverage.
Utility costs including electricity, water, internet, and cable television typically total $100-$300 monthly depending on property size and usage patterns. Properties with swimming pools or extensive landscaping may incur higher maintenance costs.
How do I handle money transfers and payments safely from abroad?
Safe money transfers for Panama property purchases require secure channels and compliance with banking regulations.
Bank wire transfers through established international banks provide the most secure method for large property payments. Use reputable banks in your home country that maintain correspondent relationships with major Panamanian banks to ensure smooth processing.
Escrow services offered by licensed attorneys or established real estate agencies provide additional security for deposit and final payments. Escrow accounts protect buyer funds until all purchase conditions are satisfied and title transfer is completed.
Compliance with Panama's anti-money laundering (AML) requirements includes providing detailed source of funds documentation for transfers exceeding $10,000. Banks may require additional documentation including employment verification, tax returns, and business ownership records.
Avoid cash transactions or informal money transfer services which may violate banking regulations and provide no protection against fraud. Maintain detailed records of all transfers and payments for tax reporting purposes in both Panama and your home country.
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.
Panama offers one of the most accessible and secure real estate markets in Latin America for foreign buyers.
With proper legal guidance, thorough due diligence, and secure payment methods, foreigners can successfully purchase property in Panama with confidence and legal protection.
Sources
- The LatinVestor - Panama Real Estate for Foreigners
- Multilaw - Panama Real Estate Guide
- Taxes for Expats - Panama Property Guide
- Global Property Guide - Panama
- BrightTax - Buy Property in Panama
- Kraemer Law - Panama Title Process
- Business Panama - Real Estate FAQs
- The LatinVestor - Foreigners Buy Land Panama