Can foreigners buy beachfront property in Panama?

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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.

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At The Latinvestor, we explore the Panama 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, Coronado, and Bocas del Toro. 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 foreigners legally own beachfront property in Panama?

Yes, foreigners can legally own beachfront property in Panama with the same ownership rights as Panamanian citizens.

Panama's constitution guarantees property rights to both nationals and foreigners, making it one of the most foreigner-friendly real estate markets in Latin America. As of September 2025, there are no nationality restrictions for property ownership in most areas of the country.

However, foreign ownership is prohibited within 10 kilometers of any international border and within the first 22 meters from the high tide line on Pacific beaches (10 meters on Atlantic coasts). These restrictions apply equally to Panamanian citizens and foreigners.

Most popular beachfront destinations like Coronado, Pedasí, and Bocas del Toro are located outside these restricted zones, allowing full foreign ownership of titled beachfront properties.

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

Are there any restrictions on the type of property foreigners can buy near the beach?

Foreigners can purchase most types of beachfront residential property in Panama, including condominiums, single-family homes, and development land.

The main restriction applies to the location rather than the property type - foreigners cannot own property within the maritime zone (first 22 meters from high tide on Pacific beaches, 10 meters on Atlantic coasts) as this area is considered public domain under Panamanian law.

Properties within indigenous comarcas (autonomous reservation zones) may have special restrictions or require additional permits for foreign buyers. These areas have their own governance systems and property regulations.

Commercial beachfront properties, vacation rentals, and investment properties are all permitted for foreign ownership, provided they are located outside the restricted coastal and border zones. There are no limitations on the number of properties a foreigner can own.

What are the legal differences between titled land and rights of possession in Panama?

Titled land provides full legal ownership with registration in Panama's Public Registry, while rights of possession (ROP) grants use and occupation rights over government-owned land.

Aspect	Titled Land	Rights of Possession (ROP)
Legal Status	Full ownership registered in Public Registry	Use rights over government-owned land
Security Level	Highest legal protection	Lower security, subject to challenge
Bank Financing	Eligible for mortgages and loans	Difficult or impossible to finance
Resale Process	Standard property transfer procedures	Complex transfer process
Annual Taxes	Property tax 0.5-1% of registered value	Usually no taxes, but no legal protection
Documentation	Public Registry deed ("Escritura Pública")	Local government award documents
Investment Risk	Low risk with proper due diligence	High risk of government expropriation

Can foreigners buy titled beachfront land, or are they limited to certain zones?

Foreigners can buy titled beachfront land throughout Panama except in specifically restricted zones.

The prohibited areas for foreign ownership include the 10-kilometer strip along all international borders and indigenous comarcas where special regulations may apply. These restrictions are constitutional and apply to all buyers regardless of nationality.

Prime beachfront areas like Coronado (45 minutes from Panama City), the Azuero Peninsula including Pedasí, and Bocas del Toro province are all available for foreign purchase of titled land. These locations offer established infrastructure and clear title processes.

Foreign buyers should verify the exact location of any beachfront property relative to border restrictions and ensure the land has proper title registration rather than just rights of possession documentation.

Are there restrictions on buying property within a certain distance of the shoreline?

Yes, no one can privately own property within 22 meters of the high tide line on Pacific beaches or 10 meters on Atlantic coasts - this area is public domain.

This maritime zone restriction applies to both Panamanian citizens and foreigners equally. The area is legally defined as public space that cannot be titled or privately owned under any circumstances.

However, the government may issue concessions for limited use of portions of this public zone, allowing temporary structures like beach clubs or restaurants, but permanent residential buildings are generally prohibited. These concessions do not constitute property ownership.

Properties located immediately behind this public zone (beyond the 22-meter mark on Pacific coasts) can be fully owned by foreigners with proper titles, providing direct beach access while maintaining legal ownership rights.

What role does the Panamanian constitution play in regulating beachfront ownership?

Panama's constitution establishes the legal framework that guarantees property rights to both citizens and foreigners while defining specific restrictions for coastal and border areas.

The constitutional provisions explicitly protect foreign investment and property ownership rights, making Panama one of the most secure countries in Latin America for international real estate investment. These guarantees have remained stable since the country's transition to democracy.

However, the constitution also designates the maritime zone (first 22 meters from shoreline) and border areas (10 kilometers from international borders) as restricted for national security and public access reasons. These restrictions cannot be changed through normal legislation.

Constitutional protections ensure that properly titled foreign-owned beachfront property cannot be arbitrarily seized or nationalized, providing long-term security for international investors in Panama's coastal real estate market.

Do foreigners need a Panamanian corporation or trust to hold beachfront property?

No, foreigners do not need a Panamanian corporation or trust to own beachfront property - they can purchase directly as individuals.

Foreign buyers can choose to purchase property in their personal name, through a foreign corporation, or by establishing a Panamanian legal entity, but there is no legal requirement for any specific structure. The choice typically depends on privacy preferences, tax planning, and estate planning considerations.

Some buyers prefer using a Panamanian corporation for privacy reasons, as corporate ownership can keep the buyer's name out of public records. Others use trusts or foundations for estate planning purposes, especially when the property will be inherited by family members in different countries.

Direct individual ownership is often the simplest approach for buyers who prioritize straightforward transactions and don't require additional privacy or tax structuring benefits.

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

What taxes or fees apply when buying beachfront property as a foreigner?

Foreign buyers pay the same taxes and fees as Panamanian citizens when purchasing beachfront property.

Tax/Fee Type	Rate	When Paid
Transfer Tax	2% of registered property value	At time of purchase
Annual Property Tax (Primary Residence)	0.5-1% of registered value	Annually
Annual Property Tax (Investment Property)	0.6-1% of registered value	Annually
Capital Gains Tax	10% on profits	When selling
Capital Gains Withholding	3-5% withheld at sale	Applied against final tax
Legal Fees	1-2% of purchase price	At closing
Notary and Registry Fees	$500-$2,000 depending on value	At closing

Are there special permits required for foreigners to buy near the coast?

No special permits are required for foreigners to purchase titled beachfront property in unrestricted coastal areas.

The purchase process for titled beachfront land follows the same procedures as any other real estate transaction in Panama, with standard requirements for due diligence, title verification, and legal documentation through a Panamanian attorney.

However, if considering rights of possession land or concession areas within the public maritime zone, buyers may need to obtain specific government permits and approvals. These situations require careful legal review and vary significantly by location and land history.

Properties in certain environmentally sensitive coastal areas or near protected zones may require additional environmental assessments or permits, but these apply to all buyers regardless of nationality and are property-specific rather than based on foreign status.

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 the risks of buying rights of possession land compared to titled land?

Rights of possession land carries significantly higher risks than titled property, including potential loss of the property without compensation.

The primary risks include lack of formal legal protection since ROP properties are not registered in Panama's Public Registry, making ownership claims difficult to defend in court. Government authorities can challenge or revoke rights of possession if the original award was improper or if the land is needed for public purposes.

Banking and financing risks are substantial as most banks will not provide mortgages for ROP properties, limiting resale opportunities and making it difficult for future buyers to finance purchases. The informal nature of ROP transfers also creates uncertainty about the legal validity of ownership chains.

Third-party claims pose ongoing threats, as other individuals or entities may challenge ROP holdings based on competing claims or historical land disputes that are difficult to resolve without formal title registration. These risks make ROP properties unsuitable for most serious real estate investments despite their lower initial costs.

How can a foreigner verify the legal status of a beachfront property before buying?

Foreign buyers should conduct comprehensive due diligence through Panama's Public Registry and professional legal assistance to verify property status.

1. **Obtain official property documents** including the title deed ("Escritura Pública de Compraventa") and request a current registry report ("informe registral") from Panama's Public Registry 2. **Hire a licensed Panamanian attorney** specializing in real estate to review all documentation and verify the complete ownership chain 3. **Conduct a physical survey** to confirm exact property boundaries and verify the property is located outside restricted zones (22 meters from shoreline, 10 kilometers from borders) 4. **Check for encumbrances** including mortgages, liens, easements, or other legal claims against the property through registry searches 5. **Verify tax compliance** by confirming all property taxes are current and no outstanding government obligations exist against the property

For rights of possession properties, additional verification requires confirming the original government award documentation, verifying boundaries through certified blueprints, and checking local government permits and compliance records.

What's the safest process for a foreigner to purchase beachfront property in Panama?

The safest purchase process involves working with licensed professionals and following established legal procedures for property transfers.

1. **Engage qualified professionals** including a licensed Panamanian real estate agent and attorney experienced in beachfront property transactions 2. **Complete comprehensive title search** through Panama's Public Registry to verify ownership, boundaries, and legal compliance 3. **Confirm regulatory compliance** ensuring the property meets all location restrictions regarding coastal zones and border areas 4. **Secure proper financing** through established banks or verified escrow services for fund transfers 5. **Execute proper legal documentation** with all contracts, transfers, and registrations completed through licensed notaries 6. **Register the property** officially in the Public Registry under the buyer's name or chosen legal entity 7. **Obtain comprehensive insurance** covering the property and potential title issues through reputable insurance providers

Throughout the process, all fund transfers should be conducted through official banking channels with proper documentation, and buyers should never proceed with purchases that cannot be properly registered in the Public Registry or lack clear title documentation.

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

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. Global Property Guide Panama Buying Guide
2. The Latinvestor Panama Real Estate Guide
3. Veles Club Panama Property Guide
4. Business Panama Real Estate FAQs
5. Casa Solution Panama Guide 2025
6. Panama Sovereign Real Estate Laws
7. Chambers Real Estate Investment Guide
8. Living in Panama 10K Rule
9. Taxes for Expats Panama Guide
10. Panama Real Estate Island Title Law