Panama Property Purchase Checklist

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Fast Facts

• Capital: Panama City
• Currency: US Dollar (USD)
• Property Types Available: Condos, villas, beachfront lots, mountain homes, city apartments
• Foreign Ownership: 100% foreign ownership permitted, with minor restrictions in border/coastal security zones
• Closing Timeframe: Typically 30–60 days
• Title Registry: Public Registry of Panama (Registro Público de Panamá)

Real estate transactions in Panama are governed by the Civil Code and regulated by the Public Registry. All property transfers must be executed via a public deed, notarized, and registered to be legally binding. Foreigners enjoy equal rights to Panamanian citizens when purchasing titled land. The only major restriction applies to land within 10 kilometers of the national borders and certain protected coastal areas.

Ownership Options

Foreign buyers can hold property in their own name or through a legal entity such as a corporation or foundation. Holding through a corporation is common for privacy, inheritance, or tax planning purposes. Titled property offers full ownership rights, while Rights of Possession (ROP) properties—common in coastal and island areas—grant long-term use rights but require careful legal due diligence before purchase.

Residents vs. Non-Residents

There are no residency requirements for purchasing property in Panama. However, property ownership can help support a visa application, such as the Friendly Nations Visa or the Qualified Investor Visa. Non-residents must ensure funds for purchase are transferred through a Panamanian escrow or attorney trust account to maintain compliance and facilitate registration.

1. 1. Sign a Promise to Purchase Agreement (Contrato de Promesa) outlining price, terms, and timelines.

2. 2. Deposit earnest money—usually 10%—into a Panamanian escrow account.

3. 3. Conduct due diligence: confirm clear title, check for encumbrances, unpaid taxes, or boundary disputes.

4. 4. Draft and notarize the Purchase-Sale Agreement (Escritura Pública).

5. 5. Pay transfer tax (2%) and registration fees (approx. 0.3%).

6. 6. Register the deed at the Public Registry; upon registration, ownership is officially transferred.

7. 7. Obtain property tax ID (NIT) and update utility and HOA records as new owner.

Practical Insights

• Due diligence is critical for ROP properties or pre-construction projects.
• Always verify that property taxes are current before closing.
• Escrow and title insurance are not mandatory but highly recommended for foreign buyers.
• Expect closing costs of roughly 3–5% of the purchase price, including legal and registration fees.
• Realtors typically charge 5% commission (paid by seller).

Why Invest

Panama remains one of Latin America’s most stable economies with a strong services sector, dollarized currency, and favorable tax incentives for investors. Property values in coastal and mountain regions continue to rise, especially around Coronado, Boquete, Playa Venao, and Casco Viejo. Rental demand from expats, corporate travelers, and digital nomads adds solid income potential year-round.

This guide is for informational purposes only and does not constitute legal or financial advice. Laws and regulations may change, and readers should consult a licensed Panamanian attorney or notary before entering into any real estate transaction.