CASANOVAREALTY

Buying Property in Panama

Panama is one of the more straightforward places in Latin America to buy real estate as a foreigner — but straightforward is not the same as simple. This is what the process actually involves.

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  • Foreigners buy freely
  • Priced in US dollars
  • Registered title
Median asking, per m²
$2,331
Listings for sale
8,737
Sectors covered
57
Typical closing costs
2–5%

Who can buy

Foreigners buy titled property in Panama on the same terms as citizens. There is no special permit, no local partner requirement and no restriction on repatriating a sale. The one real exception is land within 10 km of a national border, which is restricted.

Two things are worth knowing before you start. First, not all Panamanian land is titled — some is held under derecho posesorio (rights of possession), which is weaker and harder to finance or resell. Every listing we publish states its ownership type. Second, you can hold property personally or through a Panamanian corporation; which is better depends on your tax residence, not on Panama, so take advice at home before you decide.

What it costs

Across the 8,737 properties for sale on this site, asking prices run at a median of $2,331 per square metre. Beyond the price itself, budget for:

Closing costs

roughly 2–5% of the price, covering legal fees, escrow, registry and notary.

Transfer tax

2%, plus 3% advance capital gains. Both are usually seller-side, but they are negotiable and they will come up.

Property tax

most new construction carries an exoneration on the improvements for its first years. The land portion stays taxable throughout. Ask the seller for the exoneration certificate and the date it expires; a listing states it only when the seller has.

HOA

quoted per m² per month. It is the cost people most often forget to annualise.

The process

  1. 1

    Shortlist.

    Choose the building before the unit. Fees, rules, management quality and the reglamento apply to every apartment in the tower and are much harder to change than a kitchen.

  2. 2

    Offer.

    Made in writing, usually with a small reservation deposit. Nothing is binding yet.

  3. 3

    Promesa de compraventa.

    The promise-to-buy contract. This is the binding one: it sets the price, the deposit, the timetable and the conditions you can walk away on. Have a lawyer read it before you sign.

  4. 4

    Due diligence.

    Title search, lien check, HOA account, and confirmation the seller can actually convey.

  5. 5

    Closing.

    Escrow funds, the public deed is signed before a notary, and the transfer is entered in the Public Registry. Registration — not signature — is what makes you the owner.

Due diligence

The single most important document is the finca and folio in the Public Registry. It shows the registered owner, the boundaries, and any mortgage, lien or embargo attached. Anyone can search it, and your lawyer will.

In a condominium, also read the reglamento. It governs pets, short-term letting, renovation approvals and how special assessments are levied. Buyers who plan to let their apartment on short stays are the ones most often caught out — Panama regulates stays under 45 days in Panama City, and many buildings additionally set a minimum term of their own.

Financing

Panamanian banks lend to non-residents, on tighter terms: typically 50–60% loan-to-value against 70% for residents, over 20–30 years. Expect a longer document list than at home — proof of income, bank references, and often an in-person interview. Approval commonly takes 30–60 days, so start it in parallel with your search, not after you have made an offer.

Open the financing guide

After closing

Register with the building administration, transfer the utility accounts, and set up your property-tax account with the DGI. If you are letting the apartment, agree the management arrangement before handover rather than after — the first tenant is much easier to place while the unit is empty and clean.

If you bought partly for residency, note that qualifying investment thresholds and the visa categories themselves change from time to time. Confirm the current rules with an immigration lawyer at the point of purchase, not from an article — including this one.

Buyer questions

Can foreigners own property in Panama?
Yes. Foreigners have the same ownership rights as Panamanians over titled property, with no residency requirement to buy. The one exception is land within 10 km of a national border, which is restricted.
What are the total closing costs?
Budget roughly 2–5% of the price: notary and registration, legal fees, and the transfer tax. The seller customarily pays the 2% transfer tax, but confirm who pays what in the promesa.
How long does a purchase take?
A cash purchase can close in 30 to 45 days from a signed promesa. With a mortgage, allow 45 to 60 days for approval, appraisal and registration.
What should due diligence cover?
A clean title search at the Public Registry, no liens or unpaid HOA or property tax, that the seller is the registered owner, and — in a building — the PH regulations and the state of the reserve fund.

Questions we have not answered here?

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Trusted, and countable

274
Buildings tracked
8,737
Listings published
57
Neighborhoods covered
3
Advisors on the team