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 continues to attract American property buyers with its stable economy, favorable tax laws, and diverse lifestyle options.
As we reach mid-2025, the Panama residential market shows steady growth, particularly in expat-friendly areas like Panama City, Boquete, and the Pacific coast beaches. Whether you're looking for an investment property or planning to relocate, this guide answers the key questions American buyers face when entering the Panama property market.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.
Americans can buy property in Panama with the same rights as Panamanian citizens for most residential properties, without needing a visa or residency.
The typical purchase process takes 30-60 days with closing costs of 1.5-2% of property value, and while mortgages are available, Americans typically need 30-50% down payment.
| Category | Details |
|---|---|
| Property Rights | Americans have equal rights to Panamanians, except in restricted zones (10km from borders, certain coastal areas) |
| Visa/Residency Required | No visa or residency needed to buy property |
| Remote Purchase | Yes, possible through power of attorney |
| Typical Closing Costs | 1.5-2% of property value (buyer's side) |
| Property Tax | First $120,000 exempt; 0.5-0.7% above that |
| Mortgage Availability | Yes, but 30-50% down payment required |
| Popular Areas | Panama City ($150,000-$1M+), Boquete ($200,000-$600,000), Coronado ($180,000-$700,000) |
| Rental Yields | 5-7% gross in Panama City |
| Common Pitfalls | Buying untitled property, overpaying, skipping due diligence |
| Legal Representation | Highly recommended (almost essential) |
Can Americans buy property in Panama without restrictions?
Americans can buy and own property in Panama with the same rights as Panamanian citizens for most residential properties.
You can purchase condos, houses, and land without nationality-based restrictions. The Panamanian constitution guarantees equal property rights to foreigners, making it one of the most foreigner-friendly countries in Latin America for real estate investment.
However, three key exceptions apply to foreign ownership. Properties within 10 kilometers of Panama's borders with Costa Rica and Colombia are off-limits to foreigners due to national security considerations. The first 22 meters from the high-tide line on beaches is public domain and cannot be privately owned by anyone. The next 200 meters from beaches is often concession land, which you can lease but not own outright.
Foreigners also cannot buy land on islands in designated protected areas or indigenous territories. There's no limit on how many properties you can own, and you don't need any special permits beyond the standard purchase documentation.
The process is straightforward compared to many other countries, with no foreign investment board approvals or minimum investment requirements for property ownership.
Do Americans need a visa or residency to buy property in Panama?
You don't need any visa, residency, or special permit to buy and own property in Panama.
Property ownership is completely open to foreigners regardless of immigration status. You can buy property as a tourist on a 180-day visitor stamp, which Americans receive automatically upon arrival. This makes Panama exceptionally accessible for foreign investors who want to test the waters before committing to residency.
However, if you plan to live in Panama more than 180 days per year, you'll need residency. Owning property worth $200,000 or more can help you qualify for the Friendly Nations Visa or investment-based residency programs. The property ownership itself doesn't grant residency - it's just one way to meet the investment requirements for certain visa programs.
The Friendly Nations Visa, available to US citizens, requires either employment with a Panamanian company, starting a business, or making a qualifying investment. Real estate purchases count toward this investment requirement.
It's something we develop in our Panama property pack.
Can you buy Panama property remotely or must you be there in person?
You can complete the entire property purchase remotely through a Panamanian lawyer using power of attorney.
This is common practice for international buyers who can't travel to Panama multiple times during the purchase process. Your lawyer can sign all documents on your behalf, handle the closing, and register the property in your name. The power of attorney must be properly notarized and apostilled in your home country, then translated by an authorized Panamanian translator.
However, visiting the property before buying is strongly recommended. Photos and virtual tours don't capture everything - neighborhood noise levels, actual views, construction quality, and the general feel of an area. Many Americans who bought sight unseen during 2020-2021 later discovered issues they would have caught with an in-person visit.
If you must buy remotely, hire a trusted property inspector and request detailed video walkthroughs at different times of day. Ask your real estate agent to check factors like water pressure, internet speeds, and proximity to amenities that matter to you.
Some buyers make an initial trip to narrow down areas and view properties, then complete the purchase remotely once they've made their selection.
What's the complete process for buying property and what documents do you need?
The typical Panama property purchase takes 30-60 days from accepted offer to final registration.
The process begins when you find a property and negotiate the price with the seller, typically through a real estate agent. Once you agree on terms, you'll sign a Promise to Purchase Agreement (Promesa de Compraventa) and pay a deposit of 10-30% of the purchase price. This deposit is held in escrow by a third party, usually the real estate company or a law firm.
During the due diligence period of 2-3 weeks, your lawyer verifies the property has clean title, checks for liens or encumbrances, confirms property boundaries match the deed, and ensures all property taxes are current. If you need financing, this is when you'll complete your mortgage application with a Panamanian bank. The formal closing happens at a notary public's office, where both parties sign the Purchase and Sale Agreement (Contrato de Compraventa).
Your lawyer then registers the sale with the Public Registry, which typically takes 5-10 business days. Finally, you'll need to update the property tax records at the municipality to transfer tax obligations to your name.
| Required Document | Purpose |
|---|---|
| Valid passport | Primary identification for all transactions |
| Second form of ID | Driver's license or national ID as backup identification |
| Bank reference letters | Prove financial capability to complete purchase |
| Proof of income | Required if applying for mortgage financing |
| Power of Attorney | Needed only if buying remotely through representative |
| Sworn Declaration (Declaración Jurada) | Statement declaring the origin of funds for purchase |
Is a lawyer mandatory and how do you find a reliable one?
While not legally mandatory, hiring a Panamanian real estate lawyer is essential for protecting your interests.
The lawyer handles critical tasks including title searches to verify ownership history, reviewing contracts for unfavorable terms, identifying potential legal issues before they become problems, ensuring proper registration with authorities, and protecting you from common scams targeting foreign buyers. Legal fees typically run 1% of the property value, which is a small price for peace of mind on such a significant investment.
A notary public is mandatory for the transaction - they must witness the deed signing for the sale to be legally valid. The notary is a government-appointed official who ensures the transaction complies with Panamanian law. Unlike in the US, Panamanian notaries are lawyers with special appointments. Notary fees are regulated at about 0.1% of the property value.
To find a reliable lawyer, start by getting referrals from established expat communities in areas like Boquete or Coronado where Americans have been buying for decades. Use lawyers recommended by reputable real estate agencies with long track records and verifiable sales history. Choose firms specializing in real estate rather than general practice lawyers, as property law has specific complexities.
Red flags include lawyers who promise unusually fast closings, don't explain the process clearly, pressure you to skip due diligence steps, or offer to handle your money directly rather than using proper escrow accounts.
What are all the costs and taxes involved in owning Panama property?
Understanding the complete cost structure helps you budget accurately for your Panama property purchase.
Closing costs for buyers typically total 1.5-2% of the purchase price. This includes legal fees of 1%, notary fees of 0.1%, registration fees of 0.3%, due diligence costs of $500-$1,500, and property inspection fees of $300-$500. These are one-time costs paid at closing.
Sellers bear the heavier burden, paying transfer tax of 2% of the sale price or cadastral value (whichever is higher) and capital gains tax of either 10% of profit or 3% of total sale price (seller chooses). Understanding seller costs helps in negotiations, as motivated sellers might accept lower offers to offset their tax burden.
Annual property taxes in Panama are surprisingly low compared to the US. The first $120,000 of your primary residence value is completely exempt from property tax. For amounts above $120,000 up to $700,000, you pay 0.5% annually. Properties valued over $700,000 pay 0.7% on the amount exceeding that threshold. Second homes may not receive the exemption.
Ongoing costs vary by property type. Condo owners pay HOA fees ranging from $100-$500 monthly depending on amenities. Property insurance runs $500-$2,000 annually. Utilities average $150-$300 monthly for a typical home. If you rent out your property, management companies charge 10-15% of rental income.
It's something we develop in our Panama property pack.
Can Americans get mortgages in Panama?
Americans can get mortgages from Panamanian banks, but terms are less favorable than for residents or locals.
Several banks actively court foreign buyers, with Scotia Bank often being the most foreigner-friendly option. HSBC works well for clients with existing international relationships, while Banco General, Panama's largest bank, offers stability and extensive branch networks. Banistmo provides competitive rates for qualified buyers, and BAC Panama has been growing its foreign buyer program.
Mortgage terms for Americans require substantial down payments of 30-50%, sometimes reaching 60% for non-residents. Interest rates currently range from 7-9% including fees and taxes, significantly higher than US rates. Maximum loan terms are typically 15-20 years, shorter than the 30-year mortgages common in the US. Most banks set minimum loans at $100,000 and maximum loan-to-value ratios at 50-70%.
Age restrictions apply - you must typically repay the loan by age 70-75. Banks require extensive documentation including proof of income for the last 2 years, six months of bank statements, credit reports from your home country, employment verification letters, and professional references. Some banks also require proof of ties to Panama.
The approval process takes 4-8 weeks, and all documents must be apostilled and translated. Many Americans find it easier to buy cash or secure financing in the US against existing assets like home equity lines of credit.
What mistakes do Americans commonly make when buying in Panama?
Learning from others' mistakes can save you significant money and stress in your Panama property purchase.
The biggest mistake is buying "Right of Possession" (ROP) properties, which lack formal title and carry massive legal risk. These are common in beach areas and rural locations where land hasn't been properly surveyed or registered. While sellers may claim these properties are perfectly legal, you have no real protection if disputes arise. Always insist on titled property with clear registration in the Public Registry.
Overpaying due to lack of market knowledge affects many foreign buyers. Panama has no MLS system, making price comparisons difficult. Some agents quote "gringo prices" that are 20-40% above market rates. Combat this by getting independent appraisals, comparing multiple listings, and working with agents who show transparent pricing.
Skipping professional due diligence to save money often backfires spectacularly. This includes not checking for liens, back taxes, or ownership disputes, assuming the seller's documents are accurate, and failing to verify property boundaries. One couple discovered their "beachfront" lot was actually 50 meters inland after purchase.
Choosing the wrong area without sufficient research leads to buyer's remorse. Common issues include buying in areas with seasonal flooding, not checking actual internet speeds for remote work, underestimating distances from amenities, and not spending enough time in an area before buying.
Using unlicensed agents or trying to navigate without a lawyer puts your investment at risk. Many "agents" are just foreign residents with no credentials or legal standing.
Which Panama locations are most popular with American expats?
Panama offers diverse living options for American expats, each with distinct characteristics and communities.
Panama City hosts over 15,000 Americans and offers urban, modern living with a business-oriented atmosphere. Properties range from $150,000 to over $1 million. The city attracts younger professionals and business owners with its international schools, modern healthcare facilities, and urban amenities. Popular neighborhoods include Punta Pacifica for luxury high-rises, Costa del Este for newer developments, and Casco Viejo for historic charm.
Boquete, with 5,000+ Americans, provides mountain living with a cool climate and strong retiree focus. Properties typically cost $200,000-$600,000. The year-round spring-like weather (60-80°F) appeals to those escaping extreme temperatures. The Tuesday market and frequent expat gatherings create a tight-knit community where English is widely spoken.
Coronado beaches host 3,000+ Americans in a resort atmosphere just one hour from Panama City. The $180,000-$700,000 price range reflects varied options from condos to luxury homes. Multiple grocery stores, medical clinics, and restaurants cater specifically to American tastes. The 18-hole golf course and country club serve as social hubs.
El Valle offers mountain valley living focused on nature and weekend homes, with 1,000+ Americans paying $200,000-$500,000. Pedasí represents emerging rural beach living with authentic Panamanian culture, where 500+ Americans have found properties from $120,000-$400,000.
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Where should you buy for the best lifestyle and investment returns?
Different Panama regions offer distinct advantages depending on your priorities.
For rental income, Panama City leads with steady demand from business travelers and tourists, generating 5-7% gross yields. Coronado beaches attract strong weekend and vacation rental markets, while Boquete serves year-round tourists, especially those interested in eco-tourism and coffee farm tours.
Capital appreciation potential is strongest in Costa del Este, Panama City's new business district with ongoing development. Pacific beach towns benefit from infrastructure improvements driving values up, while Pedasí represents an early-stage market with significant upside potential as more expats discover this authentic area.
For the best investment-lifestyle balance, consider Punta Pacifica in Panama City where you can walk to restaurants, hospitals, and shopping while maintaining easy rentability when you're away. The strong resale market protects your investment. Central Coronado offers beach lifestyle with urban conveniences, established rental management companies, and just 90 minutes to the international airport.
Downtown Boquete requires no car in its walkable town center, maintains stable expat rental demand, and offers a lower cost of living than beach areas. Each location serves different lifestyle preferences while maintaining investment potential.
It's something we develop in our Panama property pack.
What do current statistics show about Panama's property market?
Panama's residential property market shows healthy growth and stability as of June 2025.
Tourist arrivals increased 15% year-over-year in Q1 2025, driving demand for vacation rentals and supporting property values in tourist areas. The completed Tocumen Airport expansion increased capacity by 40%, improving accessibility for international buyers and renters. New hotels in Panama City created over 2,000 jobs, strengthening the rental market for residential properties.
Real estate growth rates vary by region, with Panama City seeing 5-7% annual appreciation, beach communities growing at 8-10%, mountain towns at a steadier 3-5%, and emerging areas experiencing 10-15% growth. These rates reflect genuine demand rather than speculation.
| Location | Gross Rental Yield | Occupancy Rate |
|---|---|---|
| Panama City luxury | 4-5% | 70-80% |
| Panama City mid-range | 5-7% | 80-90% |
| Coronado | 6-8% | 60-70% |
| Boquete | 5-6% | 75-85% |
| Pedasí | 7-9% | 50-60% |
Livability rankings from 2025 expat surveys show Panama excelling in key areas: healthcare quality scores 8.5/10, cost of living rates 7/10 compared to the US, safety reaches 7.5/10, internet reliability achieves 8/10 in cities but drops to 6/10 in rural areas, and English prevalence rates 6/10 overall.
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 current property prices across Panama's regions?
Panama offers diverse price points across its various expat-friendly regions.
In Panama City's premium Punta Pacifica neighborhood, studio and one-bedroom condos range from $180,000-$300,000, while two-bedrooms cost $350,000-$500,000. Three-bedroom houses start at $600,000 and can exceed $1 million, with luxury properties ranging from $1 million to over $5 million for penthouses with ocean views.
El Cangrejo, a more established Panama City neighborhood, offers better value with studios from $120,000-$200,000 and family homes from $400,000-$700,000. Boquete's town center provides mountain living with two-bedrooms from $250,000-$400,000 and houses from $350,000-$600,000.
Coronado beachside properties command premium prices, with condos starting at $140,000 for studios and reaching $700,000 for three-bedroom houses. Pedasí represents the best value market, with studios from $80,000 and houses starting at $200,000.
Price factors include location premiums - ocean views add 30-50% to base prices, properties in gated communities cost 20-30% more, new construction commands 15-20% premium over resale, and furnished properties typically add $20,000-$50,000.
Best value areas in 2025 include Las Tablas, a growing town near beaches with prices 40% below Pedasí; Volcán, a mountain alternative to Boquete that's 30% cheaper; Playa Venao, a surf town with investment potential in early development; and San Carlos, a beach community between Coronado and Rio Hato.
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's real estate market offers American buyers unique advantages including equal property rights, no residency requirements, and favorable tax structures with the first $120,000 of primary residence value exempt from property tax.
Success in Panama real estate requires careful due diligence, proper legal representation, and avoiding common pitfalls like buying untitled property or overpaying due to lack of market knowledge - but with proper preparation, Americans can find excellent investment opportunities and lifestyle options across Panama's diverse regions.