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
Panama remains one of the most foreigner-friendly real estate markets in Latin America, with ownership rights nearly identical to those of local citizens.
This guide covers everything you need to know about buying property in Panama as a foreigner in 2026, from legal restrictions to taxes and mortgages.
We constantly update this blog post with the latest rules, rates, and market conditions so you always have accurate information.
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 $300,000 Qualified Investor Visa threshold is set to remain until at least October 2026, before potentially rising to $500,000, creating a window for investors seeking faster residency.
- The 10-kilometer border restriction applies to both Costa Rica and Colombia borders, but popular areas like Panama City, Boquete, Coronado, and Pedasi are completely unaffected.
- Right of Possession properties in Panama carry significant legal risks because the government technically holds the title, yet many foreigners unknowingly purchase these in coastal and rural areas.
- Panama property taxes can be as low as 0% for primary residences valued under $120,000, making it one of the most tax-efficient markets for homeowners in Latin America.
- Mortgage rates for foreigners in Panama typically range from 6.5% to 8.5% in January 2026, with down payments of 30% or more commonly required by local banks.
- The 2% transfer tax in Panama is calculated on the higher value between the sale price and cadastral value, and it is typically paid by the seller at closing.
- Panama's territorial tax system means rental income from Panama properties is taxable locally, but income earned outside Panama is generally not taxed at all.
- Closing costs for buyers in Panama typically run between 3% and 6% of the purchase price, covering legal fees, notary costs, and registry fees.
- The entire purchase process in Panama usually takes 30 to 60 days from accepted offer to title registration, making it faster than many other Latin American countries.
- Foreigners do not need any visa or residency to buy property in Panama, and tourists can purchase using only a valid passport.
What can I legally buy and truly own as a foreigner in Panama?
What property types can foreigners legally buy in Panama right now?
Foreigners can legally buy condos, houses, townhouses, villas, and titled land in Panama with nearly identical ownership rights to Panamanian citizens, making Panama one of the most open real estate markets in Latin America.
The main legal condition is that you cannot own titled property within 10 kilometers of international borders with Costa Rica or Colombia, and you cannot purchase land in indigenous territories known as Comarcas.
Beyond these geographic restrictions, there are no nationality-based quotas, caps, or special approval requirements for most residential property purchases in Panama, and you can hold property in your personal name or through a Panamanian corporation.
One critical distinction to understand is the difference between titled property (registered in Panama's Public Registry with full legal protection) and Right of Possession land (where the government technically holds the title), and foreigners should strongly prioritize titled properties to avoid legal complications.
Finally, please note that our pack about the property market in Panama is specifically tailored to foreigners.
Can I own land in my own name in Panama right now?
Yes, foreigners can own titled land directly in their own name in Panama, with the same legal protections as Panamanian citizens, and there is no requirement to use a local partner or corporate structure.
This applies to virtually all types of titled land in Panama except for properties within the 10-kilometer border zones, indigenous territories, and the first 22 meters from the high tide line on beaches, which is considered public domain.
Many foreigners choose to hold property through a Panamanian corporation for estate planning purposes, as this can simplify inheritance by allowing shares to transfer without going through Panamanian probate, but this is optional rather than required.
By the way, we cover everything there is to know about the land buying process in Panama here.
As of 2026, what other key foreign-ownership rules or limits should I know in Panama?
As of January 2026, the most significant rule foreigners should know is that beachfront properties are subject to a 22-meter public domain strip from the high tide line, which remains under government control even if you own the adjacent land.
There is no foreign ownership quota for apartments or condos in Panama, meaning buildings can be 100% foreign-owned, which is more permissive than many other countries in the region.
Foreign buyers do not need any special government approval or registration to purchase residential property in Panama, and the process is handled through standard notarial and Public Registry procedures.
As for recent regulatory changes, Law 468 of April 2025 eliminated certain property tax exemptions for first sales of residential properties after December 31, 2025, which may slightly increase closing costs compared to previous years.
If you're interested, we go much more into details about the foreign ownership rights in Panama here.
What's the biggest ownership mistake foreigners make in Panama right now?
The single biggest mistake foreigners make when buying property in Panama is purchasing Right of Possession (ROP) land thinking it carries the same legal protections as titled property, when in fact the government technically holds the title.
If you buy ROP property, you may face disputes over boundaries, difficulty selling to future buyers, and potential challenges if someone else claims possession rights, which can result in losing your entire investment.
Other classic pitfalls in Panama include buying beachfront property without verifying exactly where the 22-meter public domain ends, failing to check for unpaid property taxes or HOA fees before closing, and not confirming that the seller's registry records match the cadastral boundaries held by ANATI.
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.
Which visa or residency status changes what I can do in Panama?
Do I need a specific visa to buy property in Panama right now?
No, you do not need any visa or residency status to buy property in Panama, and tourists can purchase using only a valid passport, making Panama one of the most accessible markets in Latin America for foreign buyers.
The most common administrative hurdle for non-residents is opening a local bank account to transfer funds, which can require additional documentation and sometimes residency, though many buyers wire funds directly through escrow or their lawyer's trust account.
You will need to obtain a Panamanian tax identification number (NIT) at some point during the purchase process, which your lawyer typically handles as part of the closing paperwork.
Standard documents foreign buyers must present include a notarized and apostilled passport copy, proof of funds (bank statements), and a clean criminal background check from your home country if you are also applying for residency.
Does buying property help me get residency and citizenship in Panama in 2026?
As of January 2026, yes, buying property can help you obtain permanent residency in Panama through specific investment visa programs, though property ownership alone does not automatically grant residency or citizenship.
The Qualified Investor Visa (also called the Panama Golden Visa) grants immediate permanent residency to foreigners who invest at least $300,000 in real estate, with processing times as fast as 30 days, and this threshold is expected to remain until at least October 2026.
For citizens of Friendly Nations (including the USA, Canada, UK, and most European countries), the Friendly Nations Visa offers a lower entry point at $200,000 in real estate, leading to a two-year provisional residency that can convert to permanent status.
Citizenship is available after five years of maintaining permanent residency and meeting naturalization requirements, including demonstrating knowledge of Spanish, Panamanian history, and geography.
We give you all the details you need about the different pathways to get residency and citizenship in Panama here.
Can I legally rent out property on my visa in Panama right now?
Your visa status does not restrict your ability to own and rent out property in Panama, meaning even tourists and non-residents can legally earn rental income from Panama properties.
You do not need to live in Panama to rent out your property, and many foreign owners manage rentals remotely through local property managers, though you must comply with Panamanian tax filing requirements.
The key obligation for foreign landlords is that Panama-source rental income is taxable in Panama under the territorial tax system, typically through withholding mechanisms or annual filing depending on how you structure the rental arrangement.
We cover everything there is to know about buying and renting out in Panama here.
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How does the buying process actually work step-by-step in Panama?
What are the exact steps to buy property in Panama right now?
The standard sequence to buy property in Panama involves making an offer with a 5% to 10% deposit, signing a purchase agreement, conducting due diligence (title search, cadastral verification, tax checks), arranging financing or fund transfer, closing at a notary, and registering the deed with the Public Registry.
You do not need to be physically present for most steps because Panama allows purchases through a properly drafted power of attorney, though visiting in person before deciding on a property is strongly recommended.
The deal typically becomes legally binding when both parties sign the formal purchase agreement (promesa de compraventa) and the buyer pays a non-refundable deposit, usually 10% to 20% of the purchase price.
The typical end-to-end timeline from accepted offer to final title registration in Panama ranges from 30 to 60 days, which is faster than many other Latin American countries.
We have a document entirely dedicated to the whole buying process our pack about properties in Panama.
Is it mandatory to get a lawyer or a notary to buy a property in Panama right now?
A notary is effectively mandatory in Panama because all property deeds must be notarized as a public deed (escritura pública) before they can be registered, making notarial involvement unavoidable.
The key difference is that the notary certifies the transaction and verifies identities but does not represent your interests, while a lawyer advocates for you, conducts due diligence, negotiates terms, and ensures the deal protects your investment.
One critical item to include in your lawyer's scope is a full title search and lien verification at the Public Registry, plus cadastral boundary confirmation with ANATI, because these checks are not automatically done by the notary.
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 checks should I run so I don't buy a problem property in Panama?
How do I verify title and ownership history in Panama right now?
The official registry to verify title and ownership history in Panama is the Public Registry (Registro Público), which maintains digital records of all titled properties including current owners, legal descriptions, and recorded encumbrances.
The key document to request is a certified ownership and encumbrance certificate (certificación de dominio y gravámenes) from the Public Registry, which confirms the current owner matches the seller and shows any mortgages or annotations.
A realistic look-back period for ownership history checks in Panama is typically 10 to 20 years, which helps identify any irregular transfers, disputes, or patterns that could signal title problems.
One clear red flag that should pause a purchase is any active legal annotation (anotación) on the title, unexplained gaps in ownership chain, or mismatches between the registry description and what you believe you are buying.
You will find here the list of classic mistakes people make when buying a property in Panama.
How do I confirm there are no liens in Panama right now?
The standard way to confirm there are no liens or encumbrances in Panama is to request a certified encumbrance search (gravámenes) from the Public Registry, which your lawyer typically obtains as part of due diligence.
One common type of lien to specifically ask about is unpaid property taxes, as these can attach to the property and become the buyer's responsibility if not cleared before closing.
The best written proof of lien status is a recent Public Registry certificate (certificación) dated within 30 days of closing, combined with a tax clearance statement from DGI and, for condos, a statement of account from the building's HOA showing no outstanding fees.
How do I check zoning and permitted use in Panama right now?
The authority for zoning and permitted use in Panama depends on location, but ANATI handles cadastral boundaries and land classification, while municipal governments (like MUPA in Panama City) control urban zoning regulations.
The document that confirms zoning classification is typically a cadastral certification from ANATI showing the property's official boundaries and classification, combined with a municipal zoning verification for urban properties.
A common zoning pitfall foreigners miss in Panama is buying a condo intending to use it for short-term rentals without checking the building's PH (Propiedad Horizontal) regulations, which may prohibit or restrict Airbnb-style rentals regardless of municipal zoning.
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.
Can I get a mortgage as a foreigner in Panama, and on what terms?
Do banks lend to foreigners for homes in Panama in 2026?
As of January 2026, yes, several Panamanian banks lend to foreigners for residential property purchases, though approval requirements are stricter and terms less favorable than for residents.
Foreign borrowers in Panama typically see loan-to-value ratios between 50% and 70%, meaning down payments of 30% to 50% are commonly required, compared to 10% to 20% often required for residents.
The most common eligibility requirement that determines whether a foreigner qualifies is documented proof of income, with banks requiring comprehensive evidence of earnings, assets, and sometimes an established local banking relationship.
You can also read our latest update about mortgage and interest rates in Panama.
Which banks are most foreigner-friendly in Panama in 2026?
As of January 2026, the most foreigner-friendly banks for mortgages in Panama include Banco General, Banistmo, and Global Bank, all of which have established processes for handling non-resident applications.
The key feature that makes these banks more foreigner-friendly is their willingness to accept foreign income documentation, their English-speaking staff, and their experience processing international transactions.
These banks will lend to non-residents (buyers without local residency), though you should expect more documentation requirements, higher interest rates, and larger down payments compared to resident borrowers.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Panama.
What mortgage rates are foreigners offered in Panama in 2026?
As of January 2026, mortgage interest rates for foreigners in Panama typically range from 6.5% to 8.5%, depending on the bank, your down payment size, income documentation, and whether you have local residency or banking history.
Panama's mortgage market offers primarily variable-rate products tied to a reference rate, with fixed-rate options less common and typically priced 0.5% to 1% higher than variable rates when available.
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 will taxes, fees, and ongoing costs look like in Panama?
What are the total closing costs as a percent in Panama in 2026?
The typical total closing cost for buyers in Panama in 2026 is around 3% to 5% of the purchase price, though this can vary based on property value and whether you use financing.
The realistic low-to-high closing cost range for most standard transactions in Panama is 3% to 6%, with higher costs occurring when bank fees, appraisals, or complex legal work are involved.
The specific fee categories that make up closing costs in Panama include legal fees (typically 0.5% to 1%), notary fees (0.1% to 0.25%), Public Registry fees (approximately 0.2% to 0.3%), and various certificates and administrative costs.
The single biggest contributor to buyer closing costs in Panama is usually legal fees, as a thorough due diligence process and contract drafting require significant professional work.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Panama.
What annual property tax should I budget in Panama in 2026?
As of January 2026, annual property tax for a standard owner-occupied home in Panama ranges from $0 for properties under $120,000 (primary residence exemption) to approximately $1,000 to $2,500 for mid-market homes valued between $200,000 and $400,000, with all amounts in USD (Panama uses the US dollar).
Panama's annual property tax is assessed using progressive rates on the property's cadastral value, with different brackets for primary residences (more favorable) versus investment properties (higher rates starting at lower thresholds).
How is rental income taxed for foreigners in Panama in 2026?
As of January 2026, rental income from Panama properties is taxed at progressive rates from 0% to 25% on net taxable income for individuals, though many landlords use simplified calculations or withholding arrangements that result in effective rates closer to 5% to 15% for typical rental situations.
Foreign owners must either have rental income taxes withheld by a local property manager or file an annual tax return with DGI, and the specific approach depends on whether you have a local representative or manage directly from abroad.
What insurance is common and how much in Panama in 2026?
As of January 2026, annual insurance premiums for a standard home policy in Panama typically range from $300 to $900 USD for most residential properties, with exact costs depending on property value, location, and coverage level.
The most common type of property insurance coverage in Panama is fire insurance with catastrophic extension, which covers fire damage, natural disasters, and related perils, and is often required by mortgage lenders.
The biggest factor that makes insurance premiums higher or lower in Panama is the property's location and construction type, with coastal properties facing higher premiums due to hurricane and flood exposure, and older construction materials affecting rates as well.
Get the full checklist for your due diligence in Panama
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 |
|---|---|---|
| Dirección General de Ingresos (DGI) | Panama's official tax authority publishing official property tax brackets and rules. | We used it to state official annual property tax rates and exemption thresholds. We also built concrete yearly tax examples for typical homes and condos. |
| ANATI (National Land Authority) | The national land authority responsible for cadastre and land administration in Panama. | We used it to explain cadastral verification steps and boundary documentation. We designed the due diligence checklist based on their official services. |
| Superintendencia de Bancos de Panamá | Panama's banking regulator publishing official system interest rate statistics. | We used it to anchor mortgage rate discussions to regulator data. We framed the normal rate range before adding foreigner premium estimates. |
| PwC Tax Summaries | Global tax firm with reviewed and dated summaries widely used as reference. | We used it to confirm Panama's territorial taxation principle. We supported rental income and non-resident treatment explanations. |
| Panama Constitution (Electoral Tribunal) | Official hosted constitution text used for civic and legal reference. | We used it as the highest-level legal anchor for foreigner restrictions. We justified why border zone restrictions apply even if sellers claim otherwise. |
| MICI (Ministry of Commerce) | Panamanian ministry publishing the decree creating the Qualified Investor residency. | We used it to define the investment visa program and its requirements. We avoided relying on marketing summaries alone. |
| ProPanamá | Official investment promotion agency summarizing residency programs. | We used it to confirm the 5-year investment holding requirement. We cross-checked against private law firm writeups. |
| Global Property Guide | Long-running international property research publisher with transparent cost tables. | We used it to triangulate typical transaction cost ranges. We treated it as a quantitative sanity check against local practice notes. |
| Banco Nacional de Panamá | Major state-owned bank describing its mortgage products publicly. | We used it to illustrate how mainstream banks describe mortgages. We grounded bank requirements and fee discussions in real bank documentation. |
| Gaceta Oficial Digital | Government's official publication system for laws and decrees. | We used it as the authoritative reference for where laws are published. We explained how buyers can verify decrees by publication. |
| Business Panama | Long-established expat information site citing constitution and legal constraints. | We used it to cross-check the 10km border limitation and beachfront setback concepts. We treated it as secondary support behind legal references. |
| Organo Judicial (Judicial Organ) | Panama's judicial documentation repository hosting official law texts. | We used it to support how coastal zones are legally defined. We warned buyers about confusing marketing versus legal coastal boundaries. |
| Multilaw Real Estate Guide | International law firm network providing jurisdiction-specific legal guides. | We used it for registry fee estimates and closing cost breakdowns. We referenced their explanation of transfer tax calculations. |
| Panama Sovereign Realty | Licensed real estate agency with detailed guides on foreign buyer processes. | We used it to verify typical transaction timelines and lawyer roles. We cross-checked common buyer mistakes and ROP warnings. |
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.