How to make a good property investment in Panama City

Last updated on January 18, 2024

Yes, the analysis of Panama City's property market is included in our pack

Panama City, the capital of Panama, is a city known for its thriving economy and real estate investment opportunities. Explore the potential for investment in this Central American metropolis that serves as a bridge between North and South America.

How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Panama, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So we thought it would be a good idea to add some information about it in our pack.

Investing in real estate in Panama City

Is Panama City an attractive destination for property investment?

Panama City has become an attractive destination for property investment for several reasons.

Its strategic location as a bridge between North and South America, along with the presence of the Panama Canal, has turned it into a global business hub. This has led to a consistent demand for both residential and commercial real estate.

The real estate market in Panama City is indeed dynamic.

For instance, the expansion of the Panama Canal, completed in 2016, brought in a wave of economic activity, which in turn increased the demand for real estate. A data point that illustrates the dynamism of the market is the significant investment in infrastructure and property development, with a reported $13.5 billion invested in the Panama Canal expansion project alone.

Historically, the real estate market in Panama City has seen periods of rapid growth, particularly in the early 2000s when the country's economy was booming and real estate prices soared.

However, like many global markets, it faced challenges during the 2008 financial crisis, which saw a temporary slowdown in the real estate sector. Despite this, the market has shown resilience and has continued to grow in the years following the crisis, with a steady increase in property values and investment opportunities.

Investments that tend to perform well in Panama City are diverse. The city has a range of options from luxury high-rise condominiums in the cosmopolitan areas like Punta Pacifica and Costa del Este, to commercial properties in the bustling business districts. The budget for these investments can vary greatly, with high-end properties in prime locations commanding premium prices, while more affordable options are available in up-and-coming neighborhoods.

One very specific and positive aspect of properties in Panama City is the advantage of the "Panama Canal Zone." This area, which was once governed by the United States, has a number of properties that were built to high standards and are now sought after for their quality and historical value.

Additionally, Panama offers attractive incentives for foreign investors, such as the Friendly Nations Visa, which can lead to permanent residency and various tax benefits.

When it comes to the safety of investing in traditional places in Panama City, it is generally considered stable. The country uses the US dollar as its currency, which provides a level of economic stability and reduces the currency risk for foreign investors.

Moreover, Panama has a track record of steady economic growth and has policies in place that are welcoming to foreign investment.

Regarding the local language, while it is not absolutely necessary to know Spanish to invest in Panama City, it can be beneficial. English is widely spoken in business circles and by real estate professionals, but having a grasp of the local language can facilitate negotiations and help in understanding legal documents. It is always advisable to work with a reputable local attorney or a real estate agent who can guide you through the process and ensure that all transactions comply with local laws and regulations.

What are the trends forecasts for the real estate market in Panama City?

When you're looking at the housing market in Panama City, you have to consider several factors that are shaping current trends and could influence future developments.

Panama has been a hotspot for real estate investment for a number of years, thanks to its strategic location, robust economy, and attractive incentives for foreign investors.

One of the trends you might notice is the increasing demand for luxury properties, especially in areas like Punta Pacifica and Costa del Este. These neighborhoods are known for their high-end condos and amenities that appeal to both expatriates and wealthy locals. The ongoing demand for luxury properties suggests that there's confidence in the market's stability and growth potential.

Another trend is the rise in the development of mixed-use projects that combine residential, commercial, and retail spaces. This reflects a shift towards urban living preferences, where convenience and accessibility are highly valued. These types of developments are likely to remain popular, as they cater to the needs of a growing urban population and the increasing number of international businesses setting up in Panama City.

Looking ahead, there are several factors that could influence the real estate market. Panama's economy has been one of the fastest-growing in the region, and if this growth continues, it could lead to increased demand for both residential and commercial properties. The expansion of the Panama Canal has also boosted the country's logistics and transport sectors, making it an even more attractive destination for international trade and investment.

However, it's also important to consider potential challenges. Political stability is crucial for maintaining investor confidence. Any significant changes in government policies, especially those related to property ownership or taxation, could have an impact on the real estate market.

For instance, changes in visa regulations or incentives for retirees and foreign investors could either stimulate or dampen the market.

Moreover, economic factors such as inflation rates, interest rates, and currency fluctuations can affect property investment decisions. A stable or strengthening currency can make Panama more attractive to foreign investors, while high inflation or interest rates could potentially slow down the market.

In terms of legislation, it's worth keeping an eye on any changes to laws that affect property rights, construction regulations, or environmental policies. Panama has been working on improving its infrastructure, which includes not only transportation but also utilities and services. Improvements in these areas can increase property values and investment potential.

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What types of property can you buy in Panama City? What are the prices and yields?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Panama.

When considering investment in Panama City's real estate market, you have a variety of property types to choose from, including residential apartments, luxury condos, beachfront properties, and commercial real estate.

Building a property is certainly an option, and many investors are attracted to Panama for its relatively straightforward process of purchasing land and constructing new buildings.

However, you have to work with reputable local developers and legal experts to navigate the regulations and ensure a smooth process.

The average cost of residential properties in Panama City can vary widely based on location, amenities, and property type. Upscale neighborhoods like Punta Pacifica may command higher prices, while more affordable options can be found in areas like El Cangrejo or San Francisco. Prices can range from around $2,000 to $3,000 per square meter in these areas, but these are rough estimates and actual prices can differ.

In Panama City, there's a healthy mix of renters and owners, with a significant portion of the population choosing to rent due to the flexibility it offers. This is particularly true for expatriates and professionals who may be in the country for work on a temporary basis. The buy-to-let market is active, with many investors purchasing properties specifically to rent them out. Rental yield potential can be attractive, especially in neighborhoods popular with expats and professionals. Yields can vary, but you might expect anywhere from 4% to 8% annually, depending on the property and its location.

Rental demand in Panama City is generally strong, bolstered by the city's status as a business and financial hub in Latin America. The presence of multinational companies, a growing expatriate community, and the Panama Canal all contribute to a steady demand for rental properties.

Tourism also plays a significant role in the property market, particularly for short-term rental demand. Properties in areas with high tourist traffic, such as Casco Viejo or along the waterfront, can be particularly lucrative for short-term rentals. During peak tourist seasons, short-term rental pricing can surge, offering the potential for higher returns, although this can be balanced by off-season dips.

Reselling property in Panama City can be relatively easy, especially if the property is well-located and maintained.

However, market conditions can fluctuate, so timing can be a critical factor. Typical holding periods before resale can range from a few years to a decade or more, depending on the investor's strategy and market dynamics.

Capital gains prospects are tied to the economic health of the country and the real estate market's performance. While historical trends have shown growth, predicting future capital gains involves uncertainty. Investors may see capital gains in the range of modest single digits to more robust double-digit percentages over several years, but these are speculative and can be influenced by a multitude of factors, including economic policies, global economic conditions, and local market trends.

Which areas in Panama City offer the best investment opportunities?

When you're looking at Panama City as a foreigner interested in buying property, you'll find that certain areas tend to attract international buyers due to their amenities, location, and lifestyle offerings.

Areas like Punta Pacifica, Balboa Avenue, and Costa del Este are popular among expatriates and foreign investors. These neighborhoods offer modern conveniences, high-end shopping, and stunning ocean views, which appeal to those looking for luxury living or a lucrative rental market.

Foreigners are drawn to Panama City for various reasons, including its stable economy, attractive retiree benefits, and the use of the US dollar. The city attracts a diverse group of foreigners, including retirees from North America and Europe, business professionals, and investors from Latin America and beyond.

If you're looking for budget-friendly yet promising areas for investment, you might want to consider neighborhoods like El Cangrejo or San Francisco. These areas offer a more local feel with a mix of residential and commercial properties, restaurants, and shops. They are still centrally located and have good amenities, making them attractive for both living and renting out.

Neighborhoods that are trending up and becoming more popular include areas like Obarrio and Casco Viejo. Obarrio is gaining attention for its central location and mix of residential and commercial developments, while Casco Viejo, the historic district, is popular for its colonial architecture, vibrant nightlife, and cultural offerings. Although Casco Viejo can be more expensive, it has a unique charm that can command higher rental prices.

When it comes to the pros and cons of these areas, luxury neighborhoods like Punta Pacifica offer high-end living but come with a higher price tag and can be less culturally immersive. Budget-friendly areas like El Cangrejo provide a more authentic Panamanian experience but may lack some of the amenities found in more upscale neighborhoods.

Looking ahead, areas that could see an increase in property prices and rental demand are those undergoing infrastructure improvements or new developments.

For example, neighborhoods that are seeing new metro lines or stations could become more accessible and, therefore, more desirable.

Additionally, areas adjacent to the trending neighborhoods could benefit from the overflow of demand, as prices in the popular areas rise and people look for more affordable options nearby.

As for regions to avoid, it's wise to be cautious about areas that are known for higher crime rates or that lack infrastructure and amenities. It's also important to be wary of areas that are prone to flooding or other natural disasters. Doing thorough research and possibly consulting with a local real estate expert can help you identify which areas might be less desirable for investment.

Remember, real estate markets can be unpredictable, and while educated guesses can be made, there are no guarantees. Factors such as political stability, global economic trends, and local developments can all influence property prices and rental demand. It's essential to do your due diligence, consider your long-term goals, and if possible, spend some time in the area before making any investment decisions.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Panama.

Area	Attractiveness	Characteristics	Investment Potential
Punta Pacifica, Balboa Avenue, Costa del Este	High	Luxury living, modern conveniences, high-end shopping, ocean views	Luxury market, lucrative rental market
El Cangrejo, San Francisco	Moderate	Local feel, mix of residential/commercial, good amenities	Budget-friendly, good for living and renting out
Obarrio, Casco Viejo	Increasing	Obarrio: Central, mixed developments; Casco Viejo: Historic, cultural, nightlife	Obarrio: Central appeal; Casco Viejo: High rental prices due to charm
Areas with infrastructure improvements	Variable	New metro lines/stations, adjacent to trending neighborhoods	Potential increase in property prices and rental demand
Areas to avoid	Low	High crime rates, lack of infrastructure, prone to natural disasters	Less desirable for investment

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Who can invest in real estate in Panama City?

Investing in property as a foreigner in Panama City

If you're considering investing in housing property in Panama City as a foreigner, you'll be pleased to know that Panama is one of the more open countries when it comes to foreign property ownership.

In general, foreigners have the same rights as Panamanian citizens to own property, with a few exceptions.

You can indeed own land and property in Panama. There are no differences according to the country you're from; the rules apply equally to all foreigners. You don't need to live in Panama to purchase and own property, which makes it an attractive option for investors and those looking for a second home or retirement destination.

However, there are some restrictions you should be aware of.

For instance, foreigners cannot own property within 10 kilometers of the international borders. Also, there are certain areas, mainly islands and some coastal areas, that are considered to be "rights of possession" areas, which means they cannot be titled. In these cases, you can still have rights to the land, but it's a less secure form of ownership than a full title.

You don't need a residence permit to buy property; a tourist visa is sufficient. There are no restrictions on how long a foreigner can own property in the country, and you can indeed pass on the property to your heirs or sell it to another foreigner without additional restrictions.

When it comes to the documentation needed, you will require a Tax ID number, known as a RUC (Registro Único de Contribuyente) for the transaction. This is necessary for the payment of property taxes and for registering the property in your name. You don't need specific authorization from a governmental institution to buy property, but you will need to go through the standard legal process, which involves a public deed and registration in the Public Registry.

Having a local bank account is not strictly necessary, but it can facilitate the process, especially when it comes to transferring funds and paying for utilities or property taxes. While you can hold property and make payments in foreign currencies, such as US dollars (which is actually the currency used in Panama), it's often more practical to have a local account.

Foreigners are subject to the same tax rates as locals when it comes to property taxes.

However, there are tax incentives available, such as a property tax exemption for up to 20 years for new constructions or improvements on existing properties, depending on when the construction permit was issued.

Residency in Panama City

Yes, Panama offers a residency program for individuals who invest in real estate in the country.

This program is often referred to as the Friendly Nations Visa or the Panama Residency by Investment program. By purchasing property in Panama, you can indeed apply for residency, and if you meet all the requirements, you may eventually qualify for permanent residency and even citizenship.

To begin the process, you would need to purchase property in Panama. The minimum investment amount has historically been around $300,000, but this figure can change, so you have to check the current requirements with a local attorney or the Panamanian immigration authorities. The investment must be free of any liens or mortgages and must be maintained for a certain period, typically for as long as you wish to keep your residency status.

Once you have made your investment, you will need to gather a series of documents, including a police record from your home country, a health certificate from a Panamanian clinic, and proof of your investment. You will also need to provide a passport-sized photo and complete various forms for the Panamanian immigration authorities.

After submitting your application, you will be issued a temporary residency permit while your application is being processed. During this time, you may be required to stay in Panama or make periodic visits to maintain your status. The processing time can vary, but it generally takes a few months to receive your permanent residency.

Once you have permanent residency, you are allowed to live in Panama indefinitely, and you will have most of the rights of a Panamanian citizen, except for the right to vote. After a certain period of permanent residency, typically five years, you may be eligible to apply for Panamanian citizenship, provided you meet other criteria such as proficiency in Spanish and knowledge of Panamanian culture and history.

The number of people who have used this scheme varies from year to year, and it's difficult to provide an exact figure without access to the latest immigration statistics.

However, the program has been popular among expatriates, especially those from countries that have friendly relations with Panama.

Remember, immigration laws and policies can change, and the success of your application will depend on meeting the current legal requirements and providing the necessary documentation. It's always advisable to consult with a legal expert in Panamanian immigration law to guide you through the process and ensure that you are complying with all the latest regulations.

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How to get started to invest in real estate in Panama City?

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

We'll give her a brief overview. However, there is a detailed and dedicated document to the buying process in our property pack for Panama.

When you decide to buy a property in Panama City, you'll start by making an offer on the house or apartment you're interested in.

This is usually done through a real estate agent, who will help you negotiate the terms with the seller. Once your offer is accepted, you'll sign a Promise to Purchase Agreement, which is a legally binding contract that outlines the terms of the sale, including the price, deposit amount, and closing date.

The next step involves due diligence, where you or your lawyer will check the property's title and any outstanding debts or liens. This is a critical phase because it ensures that the property you're buying has a clear title, and you won't inherit any legal issues from the previous owner. This part of the process can be complicated and error-prone if not done thoroughly, so it's often recommended to work with a reputable lawyer who is familiar with Panamanian real estate law.

After due diligence is successfully completed, you'll move on to securing financing if you're not paying cash. This might involve applying for a mortgage from a local bank, which can be a time-consuming process, especially if you're a foreigner. Banks in Panama may require a lot of documentation and proof of income, and the approval process can take several weeks or even months.

Once financing is in place, you'll proceed to the closing, where the final sale documents are signed, and the property is officially transferred to you. This usually takes place at a notary's office, and it's at this point that you'll pay the remaining balance of the purchase price, along with any additional fees and taxes. One unusual aspect of buying property in Panama is that you might encounter a "right of possession" property, which is not the same as having a property title. This can be a complex area and is unique to Panama, so you have to understand the difference and the risks involved.

The entire process, from finding a house to having full ownership, can take anywhere from a few weeks to several months, depending on how quickly you can complete each step and whether there are any complications along the way. The most time-consuming parts are usually the due diligence and financing stages.

While you don't absolutely need to know Spanish to navigate the process, it can be extremely helpful. Many legal documents and contracts will be in Spanish, and while your lawyer or real estate agent can provide translations, understanding the language will help you feel more in control of the process. If you don't speak Spanish, you have to work with professionals who are bilingual and can communicate effectively on your behalf.

As for cultural norms, you have to be aware that things in Panama may move at a different pace than you're used to, and patience is often required. Building relationships and trust is key in business dealings, and a more personal approach is often favored over a strictly professional one. Being respectful and understanding of these cultural differences can help ensure a smoother transaction and avoid any major issues.

Looking for property in Panama City

Please note that there is a list of contacts (real estate agencies, lawyers, notaries, etc.) and websites in our property pack for Panama.

When you're looking to find a house in Panama City, you have several avenues to explore.

Many people start their search online, using housing portals such as Encuentra24, CompreOAlquile, and Panama Realtor. These websites are quite comprehensive and user-friendly, allowing you to filter properties by location, price, size, and other criteria. They are a good starting point to get an idea of what's available and at what price.

Real estate agents are also a common resource for house hunters in Panama City. They often have listings ready and can provide valuable assistance throughout the buying process. Agents have in-depth knowledge of the local market and can offer insights that you might not find online. They can also help you navigate the legal and administrative aspects of buying a property in Panama.

Social media platforms, particularly Facebook groups, are another resource where people connect to share listings and ask for recommendations. There are groups specifically dedicated to real estate in Panama where members post properties for sale or rent. These can be a good place to find deals or get advice from locals and expats.

In Panama, it's not uncommon for real estate agents to have exclusive listings, meaning that they are the only ones authorized to show and sell certain properties. This can sometimes limit direct access to the full range of available properties for buyers.

However, working with a real estate agent can provide you with access to these exclusive listings.

While many real estate agents in Panama are reliable and professional, as with any country, you have to be cautious. Red flags to watch out for include agents who are unwilling to provide references or proof of their credentials, those who pressure you to make quick decisions, or those who are not transparent about fees and commissions.

Speaking of commissions, they are not standardized in Panama and can vary. It's typically the seller who pays the commission, but this is something that can sometimes be negotiated. When you're working with an agent, you have to clarify the commission structure upfront.

The roles and responsibilities of a buyer's agent and a seller's agent do differ. A seller's agent works on behalf of the seller to get the best possible price and terms for their client, while a buyer's agent is tasked with representing the buyer's interests, helping them to find the best property at the lowest price and with the best terms.

When it comes to negotiation strategies, building a good relationship with your real estate agent can be beneficial. Be clear about what you're looking for and your budget constraints. A good agent will respect your position and work to find a property that meets your needs. Don't be afraid to ask questions and request to see a variety of properties. It's also wise to be informed about the local market so you can negotiate from a position of strength.

Remember, buying a house is a significant investment, and you have to take your time, do your research, and work with professionals you trust to ensure that you make the best decision for your circumstances.

Buying property in Panama City

When you're looking to buy a house in Panama City, it's quite common to negotiate the price.

The amount you can negotiate off the selling price can vary widely depending on the property's location, condition, and how long it's been on the market. Typically, buyers might start by offering 5% to 10% below the asking price, but this is very situational. Some sellers price their homes with negotiation in mind, while others may list at their bottom dollar.

Conducting due diligence is a critical step in the home-buying process. You'll want to ensure that the property you're interested in has a clear title, meaning there are no liens, encumbrances, or legal issues that could impede your ownership. To conduct a title search, you can visit the Public Registry of Panama, where all property records are stored. This will allow you to verify the property's history, ownership details, and any registered burdens.

While hiring a lawyer or a notary is not mandatory in Panama, it is highly recommended, especially if you're not familiar with the local real estate laws and processes. A lawyer can help you navigate the complexities of the transaction, ensure that all necessary due diligence is performed, and that your interests are protected. The cost of hiring a lawyer can vary, but you can expect to pay a fee based on a percentage of the property's purchase price, often around 1% to 2%.

As for the specific documents required, you'll need to obtain a promesa de compraventa, which is a promise to sell/buy agreement. This document outlines the terms and conditions of the sale, including the price, deposit amount, and closing date. You'll also need to provide your personal identification, such as a passport, and if applicable, your residency documents.

Once you've completed your due diligence, agreed on a price, and have your financing in order, you'll move on to closing the deal. The transfer of property ownership in Panama is formalized through a deed of sale (escritura de compraventa) which must be signed by both parties in front of a public notary. The notary will then register the sale with the Public Registry, officially transferring the title to your name. This process ensures that the government recognizes you as the new owner of the property.

Remember, throughout this process, you have to have a trusted real estate agent and a lawyer by your side to guide you, ensure that all the paperwork is in order, and help you understand the implications of each step. Buying a house is a significant investment, and taking the right precautions will help you make a safe and successful purchase in Panama City.

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Financing a property acquisition in Panama City

If you're looking to finance your property investment in Panama City as a foreign investor, there are several options available to you.

Typically, financing can be obtained through local banks, and it's worth noting that while it's possible for foreigners to get a loan, the process can be more complex and the requirements more stringent compared to local buyers.

When it comes to the payment structure, generally, you would pay a deposit when you sign the promise to purchase agreement, which is a contract that outlines the terms and conditions of the sale. This deposit is often around 10% of the purchase price, but it can vary. The full price of the house is usually paid at the time of closing, when the final purchase agreement is signed and the property title is transferred to you.

In practice, while some foreigners do obtain loans for property purchases in Panama, many opt to pay in cash because securing financing can be more challenging for non-residents. Banks may require a higher down payment, additional documentation, and proof of income. Interest rates for mortgages in Panama are competitive, and while they can fluctuate, they have historically been lower than in many other countries. As a foreigner, you might encounter interest rates that are slightly higher than those offered to residents.

The deposit required can range widely, but typically, you might expect to put down anywhere from 30% to 50% of the property's value if you're obtaining a loan from a Panamanian bank. This is significantly higher than what is typically required of Panamanian residents.

Closing costs and fees associated with buying property in Panama City can include legal fees, transfer taxes, and other administrative costs. These are usually around 2% to 5% of the property's purchase price. It's important to budget for these additional costs when planning your investment.

When buying a house in Panama, you will also need to consider the property transfer tax, which is 2% of the registered value of the property or the purchase price, whichever is higher. There is also an annual property tax which can range from 0.5% to 1% of the property's assessed value, depending on various factors, including the property's location and value.

However, there are exemptions and reduced rates available for properties below certain values.

Capital gains tax is another consideration, and while it's not paid at the time of purchase, it's something to keep in mind for the future. In Panama, capital gains tax is typically 10% of the gain, but if the property is sold through a corporation, it could be treated as income and taxed at the standard corporate rate.

Additional fees can include costs for setting up utilities, homeowners' association fees if applicable, and maintenance costs. It's also advisable to work with a reputable real estate agent and a lawyer who are experienced in dealing with foreign buyers to ensure that all legal requirements are met and that the transaction goes smoothly.

Remember, while the process of buying property in Panama City as a foreign investor can be straightforward, you have to do thorough due diligence and understand all the financial implications before proceeding with your investment.

What are the risks and pitfalls when buying property in Panama City?

When you're considering property investment in Panama City, you have to be aware of the risks involved, just as you would with any real estate venture.

While Panama has been a popular destination for foreign investors, thanks to its relatively stable economy and attractive retiree benefits, there are certain challenges and risks that you should be aware of.

One of the primary concerns for foreign investors is the security of property rights. In Panama, property rights for foreigners are generally secure, and the law allows foreigners the same property ownership rights as Panamanian citizens.

However, there have been instances where property titles were not clear or were disputed, leading to legal complications for investors. To mitigate this risk, you have to conduct thorough due diligence, ensuring that the property you're interested in has a clear title and that you're dealing with reputable agents or sellers.

Another pitfall specific to Panama City is the issue of "right of possession" (ROP) properties. These properties do not have a registered title, only a right to occupy the land, which can be a precarious situation for foreign investors. ROP properties are often cheaper, but they come with higher risks, as the legal process to secure a title can be lengthy and uncertain. It's generally advisable to avoid ROP properties unless you're experienced in the Panamanian real estate market and have legal assistance.

Environmental risks are also a factor to consider. Panama City, like many coastal cities, is susceptible to flooding, especially in low-lying areas. Climate change implications, such as rising sea levels and increased frequency of severe weather events, could exacerbate these risks, potentially affecting property values.

Additionally, while Panama is not as prone to earthquakes as some of its neighbors, seismic activity can occur, so it's wise to consider the construction standards and location of the property you're interested in.

Regarding case studies of foreign investment failures, there have been instances where investors have faced challenges due to lack of due diligence or falling victim to fraudulent schemes. Some have purchased properties on disputed land or without proper permits, leading to legal battles and financial losses. It's essential to work with reputable professionals and seek legal advice before making any investment.

Insurance is an important consideration for protecting your investment. In Panama, insurance options for property owners include coverage for fire, earthquake, flood, and liability. It's advisable to obtain comprehensive insurance that covers the specific risks associated with your property's location. This can provide peace of mind and financial protection in the event of unforeseen circumstances.

Liability concerns are also something to think about, especially if you're planning to rent out your property. You'll want to ensure that you have adequate liability coverage to protect yourself in case someone is injured on your property.

To mitigate these risks, investors should engage with experienced local attorneys who specialize in real estate transactions. They can help navigate the complexities of the Panamanian legal system and ensure that all necessary due diligence is performed.

Additionally, working with a reputable real estate agent who has experience with foreign buyers can be invaluable.

In case of conflicts, Panama has legal protections in place for foreign property buyers, including laws that are designed to promote and protect foreign investment. The judicial system can be relied upon to enforce property rights, although it's worth noting that legal proceedings can be slow. It's important to have all legal agreements and contracts in order to provide the best protection for your investment.