~3h
Flight from Miami
USD
No currency exchange
180 days
Typical US tourist entry stamp
0%
Panama tax on foreign-source income
Welcome, Americans
In short: Americans can buy titled property in Panama on the same footing as Panamanians, without a foreign-buyer tax or residency requirement. Panama uses the US dollar, is about a three-hour flight from Miami, and typically admits US passport holders for up to 180 days as tourists. Panama taxes Panama-sourced income; US tax obligations are separate.
Panama is warm twelve months a year, runs on the US dollar, sits about three hours from Miami and keeps the same clock as the East Coast for much of the year. Americans have been buying here for decades, and the practical friction is lower than almost anywhere else you could move.
The friction that remains is mostly the IRS, and most Panama websites won’t discuss it. Panama Properties is a licensed Panamanian brokerage that represents buyers. We’ll show you what your money actually buys, tell you when a property is wrong for you, and point you to the professionals who handle the parts we don’t.
Why Panama Is the Easiest Move an American Can Make
The Dollar Is the Dollar
Panama uses the US dollar as legal tender. Your purchase price, property tax, maintenance fees and eventual sale proceeds are all in the currency you already earn, with no conversion and no exchange-rate risk.
The Flight Is Short
Copa’s Hub of the Americas at Tocumen connects nonstop to more than a dozen US cities. Miami is about three hours away, with direct service from Houston, Atlanta, New York, Los Angeles, Chicago, Orlando, Dallas and Denver.
The Clock Barely Moves
Panama is on UTC-5 all year with no daylight saving. From November to March you share New York’s clock, and from March to November you share Chicago’s.
The Infrastructure Is Familiar
110-volt power and US-style plugs, US-style appliances, American brands in the city, and first-rate private hospitals in Panama City with US-trained, English-speaking doctors.
Foreigners Own Outright
Americans hold titled property on the same footing as Panamanians, registered in the Public Registry, with no foreign buyer tax, vacancy tax or residency requirement. The exception is land within 10 km of an international border.
Territorial Taxation
Panama taxes only Panama-sourced income, so your US pension, Social Security and investment income are not taxed here. That says nothing about the IRS, so read the IRS section below.
Getting Here and Staying a While
Panama is one of the easiest countries for Americans to visit often and try out before committing.
Flights From the US
Copa flies nonstop from more than a dozen US cities to Tocumen International Airport (PTY)
Miami is about three hours; most US hubs are four to six hours
From Panama City, domestic flights and good highways reach Pedasí, Boquete, Bocas del Toro and the beach towns
Your Entry Stamp: Up to 180 Days
US passport holders are typically admitted as tourists for up to 180 days
Always check what the officer writes on your stamp, because the stamp sets your legal stay
Living in Panama on back-to-back tourist stamps is increasingly refused at re-entry, so plan for residency if you are moving here
Spend a full season here before you buy. The Americans who regret a Panama purchase are almost always the ones who bought on a four-day trip.
FEATURED LISTINGS
Top-quality Panama real estate.
Ocean Reef Island
3-Bedroom Residence with Private Patio in Ocean Reef Park OCEAN REEF ISLAND 3583
$1,745,000 USD
Size:
Rooms
Bathrooms
3
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3
Floors
Ocean Reef Island
Luxury 4-Bedroom Apartment with Private Pool in Skyhomes OCEAN REEF ISLAND 3589
$2,950,000 USD
Size:
536 M2
Rooms
Bathrooms
4
4
Floors
1
How We Help Americans Buy
01
A Call First
Before any property tour, we talk about what you actually want and whether Panama delivers it. Some conversations end here, and that is a good outcome.
02
A Season, Not a Weekend
Pick your area of Panama first, then the property. Too many buyers fall for a beautiful home and quickly discover the community around it is not for them.
03
Independent Representation
We represent you, not the developer. That includes telling you when a project’s numbers do not work, when an ROI projection is fiction, or when a beautiful lot is rights of possession rather than titled land.
04
The Right Professionals
A Panamanian attorney for title and closing, an immigration attorney for residency and a US cross-border CPA for the IRS. We introduce them; we do not pretend to be all three.
05
After Closing
Property management, rental setup, contractor introductions and utilities. The part where most brokerages stop answering the phone.
06
No Commission for Buyers
Buyers pay no agent commission when they buy with us. You pay your own attorney plus small notary and registration fees.
See every buying and closing cost.
Direct Words From Our Clients
“
We had an exceptional experience working with Ken Norton. His deep knowledge and thoughtful advice helped us find the perfect piece of land and move confidently into building our retirement home. He also has an impressive network of contacts, from lawyers to licenses and shippers, that he graciously shared with us. He is not just a realtor to us, but a trusted partner.
Michel
“
We tried to contact several realtors in Panama. Ken was the only one that answered back. On top of that he is very knowledgeable and helpful, from helping us find an immigration lawyer to advice on what vehicle to purchase and everything in between.
Lacey
“
If you’re looking for a realtor who is trustworthy, responsive and genuinely cares about delivering excellent results, I highly recommend Ken Norton. His expertise and customer service are second to none. Thank you, Ken, for going above and beyond!
Nestor and Monica Sadler
Residency Options for Americans
The United States is on Panama’s Friendly Nations list. Your visa application belongs with a licensed Panamanian immigration attorney; we work alongside several and can introduce you. Here is the landscape as of September 2026. See our Visa and Residency Guide for more.
Friendly Nations Visa
Qualify through titled real estate with a registered value of at least $200,000, a $200,000 fixed-term deposit, or a Panamanian employment contract
Two years of provisional residency first, then you apply for permanent residency
The qualifying property must be held throughout the provisional period
Pensionado (Retiree) Visa
A verifiable lifetime pension of at least $1,000 a month
Social Security and US government and corporate pensions generally qualify with the right documents
Well-known discounts on flights, medical care, restaurants and utilities
No property purchase required
Full details: Pensionado Visa guide.
Qualified Investor Visa
Immediate permanent residency, with no provisional stage
A qualifying investment held for five years
Real estate, as of September 2026: from $300,000 for a new or first-sale property, and $500,000 for a resale property
Rules change, so confirm the current thresholds with an immigration attorney
Where Americans Are Buying
Pedasí and the Azuero Peninsula
A working Panamanian town on the Pacific with an established foreign community, not a resort development. Surf, sport fishing and a pace that suits people leaving an American city rather than recreating one. Our home base.
Boquete
A highland town in Chiriquí, spring-like all year in the 60s and low 70s Fahrenheit, with the longest-standing North American retiree community in the country. Warmth without tropical heat.
Panama City and Casco Viejo
A real capital with a real skyline, first-rate private hospitals, international schools and direct flights everywhere. Casco Viejo is the restored colonial quarter, with character property rather than tower condos.
Coronado
A Pacific beach corridor about ninety minutes from the city, with the country’s deepest concentration of services for foreign residents. The easiest place to land softly.
Bocas del Toro
A Caribbean archipelago with water-access properties, strong short-term rental demand and higher due diligence requirements. Rewarding when done carefully.
Not Sure Yet?
Most Americans compare two or three areas before deciding. Our Panama Info Guide covers each region, and we are happy to talk it through.
Explore the Panama Info Guide →
The IRS, Medicare and What the Brochures Skip
We’re a brokerage, not a tax or immigration firm. This is context so you know what to bring to a cross-border CPA, and we’ll introduce you to one.
Your Filing Obligation Follows Your Passport
The US taxes its citizens on worldwide income wherever they live, and Panamanian residency does not change that. You will file a US return every year you live here, whether or not you owe anything. Anyone implying Panama residency makes you tax-free is careless or selling.
There Is No US–Panama Tax Treaty
The two countries have a tax information exchange agreement and a FATCA arrangement, but no income tax treaty and no totalization agreement. That matters little for most retirees, but if you work for yourself here you can face US self-employment tax and Panamanian social security on the same earnings.
The FEIE Probably Doesn’t Help You
The Foreign Earned Income Exclusion lets qualifying taxpayers exclude up to $132,900 of foreign earned income for 2026. Note the word earned: it does nothing for Social Security, pensions, rental income, dividends or capital gains, which is most retiree income.
How You Hold the Property Matters
Real estate held directly in your own name is not reported on an FBAR or Form 8938. Hold it through a Panamanian corporation and your interest becomes reportable, typically on Form 5471, where a missed filing starts at a $10,000 penalty. Decide with your CPA before closing.
FBAR Catches More People Than Expected
If your Panamanian bank accounts total more than $10,000 at any point in the year, you file an FBAR with FinCEN. Wiring purchase funds through a Panamanian account, even briefly, can trigger it.
Medicare Does Not Travel
Original Medicare generally pays nothing for care outside the US. You’ll need international or local private coverage, and a decision about whether to keep paying Part B premiums, because dropping it and re-enrolling later carries permanent penalties.
Your State May Not Let Go Quietly
Leaving the country doesn’t automatically end state tax residency. California and New York in particular apply domicile tests that can follow you abroad if you keep a house, a driver’s license or voter registration. Plan your exit deliberately.
Social Security Keeps Paying
Social Security benefits can generally be paid to you while you live in Panama, and many retirees have them deposited directly. Panama does not tax them, but the IRS still treats them as part of your US income.
This is general information, not tax or legal advice. Rules and figures change every year, so speak with a qualified US cross-border CPA before you move or buy.
FAQ for Americans Looking at Panama
Can an American legally own property in Panama?
Yes, outright and in your own name. Foreigners hold titled property on the same legal footing as Panamanian citizens, registered in the Public Registry. No foreign buyer tax, no vacancy tax, no residency requirement. The main restriction is land within ten kilometres of an international border.
Do I need residency or a visa to buy?
No. Ownership and immigration status are completely separate. Many Americans own here for years while entering on a tourist stamp.
How long can I stay in Panama as an American tourist?
US passport holders are typically admitted for up to 180 days. Check the stamp, because it sets your legal stay, and plan for residency if you intend to live here.
Should I buy in my own name or through a Panamanian corporation?
This is the single most consequential structural decision an American makes here, and local advice often doesn’t account for the US side. Direct ownership keeps the property off your FBAR and Form 8938 entirely. Corporate ownership makes your interest in the corporation reportable, typically on Form 5471, with penalties starting at $10,000 for a missed filing, plus annual franchise tax and registered agent fees. There are legitimate reasons to use a corporation. Make the call with your US CPA before you close.
What’s the difference between titled property and rights of possession?
Titled property is registered in the Public Registry with a clear ownership chain. Rights of possession, or derecho posesorio, is an occupancy claim over untitled land — common in rural and coastal areas, cheaper, and carrying real risk. Conversion to title is possible but slow and not guaranteed. If a broker doesn’t volunteer that distinction, find another broker.
Is title insurance available in Panama?
Yes, through international underwriters, and for a significant purchase it is usually worth the cost. A proper title search by your own attorney is the non-negotiable part. Title insurance is the backstop, not the substitute.
What are typical closing costs for a buyer?
Buyers pay no commission to their real estate agent. Budget about 1% to 1.5% of the price for your attorney, plus small notary and Public Registry registration fees. The transfer tax and advance capital gains payment fall on the seller in a standard Panamanian transaction, though everything is negotiable.
What should make me walk away from a deal?
Unclear title, a seller who cannot produce a current paz y salvo tax clearance, pressure to wire funds before your attorney has completed due diligence, guaranteed return projections in writing, and any request to under-declare the purchase price on the deed.
Is there an escrow system like in the States?
Not in the form you’re used to. Funds are typically held by a law firm’s escrow account or through an international escrow service. Structure this properly in the purchase agreement — it’s one of the places where American expectations and Panamanian practice diverge most.
Do I have to be in Panama to close?
Not necessarily. A properly drafted power of attorney allows your attorney to sign on your behalf, which is how many Americans handle closings around work schedules. That said, we strongly prefer you have seen the property in person, whatever the closing logistics.
What happens tax-wise when I sell?
The seller pays a 2% transfer tax and a capital gains payment of 3% of the sale price or registered value, whichever is higher. Most sellers accept the 3% as the final tax, or you can file on your actual profit with the 3% credited. Foreign sellers who have never been resident may need a non-resident taxpayer number. Build this into your return expectations from the start.
Is there a reliable MLS in Panama?
There is an MLS, but coverage is incomplete and listing data quality varies widely. A meaningful share of good inventory never appears online at all. This is one of the real arguments for working with a brokerage that is physically present in the market you are shopping.
Can I get a mortgage in Panama as an American?
Yes. Through our mortgage partner, loan programs are available for non-residents to buy homes, condos and land, or to build, with up to 75% financing and terms up to 25 to 30 years. Many Americans also pay cash or borrow in the States against existing assets. See our Mortgages and Loans page for details.
Do I have exchange rate risk?
No. This is the standout advantage of Panama for Americans. The country uses the US dollar, so there’s no conversion, no spread, and no currency exposure anywhere in the transaction or in ongoing ownership.
Can I open a Panamanian bank account?
Yes, though it takes work. Panamanian banks apply thorough know-your-customer requirements, typically wanting bank references, a professional reference, proof of income, and an in-person interview. Having residency makes it substantially easier. Budget several weeks and expect to provide more documentation than you would at home.
Does owning property make me a Panamanian tax resident?
No. Ownership alone doesn’t create tax residency, and Panama doesn’t tax foreign-source income regardless.
Do I still file a US tax return living in Panama?
Yes, every year, on worldwide income. US taxation follows citizenship, not residence. Panamanian residency changes nothing about that obligation. Expats get an automatic extension to June 15, with a further extension available to October 15.
Do I have to report my Panama property to the IRS?
Foreign real estate held directly in your own name is not a specified foreign financial asset — it doesn’t go on Form 8938 or an FBAR. What does trigger reporting: Panamanian bank accounts above $10,000 aggregate at any point in the year, and any interest in a Panamanian corporation, partnership or trust holding the property.
Do I report Panamanian rental income?
Yes, on Schedule E, even if it’s a few hundred dollars and even if Panama taxed it. A foreign tax credit may offset the Panamanian tax paid. Keep clean records on both sides from day one.
Does Medicare cover me in Panama?
Generally no. Original Medicare pays for almost nothing outside the US, so you will need international or local private health insurance. Talk through whether to keep Part B before you move, because re-enrolling later carries permanent penalties.
How do I ship my household goods from the US to Panama?
Our first choice is ContenedorPro, the moving and container shipping company we recommend most to Americans relocating here. They are licensed in Panama and manage everything: full or shared containers from any US port, customs clearance and paperwork, supervised container opening, cargo insurance, and cars and machinery. One personal agent stays with you from start to finish, and you get an all-inclusive quote within 24 hours, with no surprise fees at the port.
Ready to Start the Conversation?
Most Americans who end up owning here started the same way: a conversation, months before they were ready to buy. Before you look at a single listing, it is worth working out what you want from Panama, which part of the country delivers it, and whether the numbers hold up against your situation at home.
We represent you, not the developer, and we will connect you with the Panamanian attorney, immigration lawyer and US cross-border CPA you need. Buyers pay no agent commission.
Panama Properties
Unit 1 Plaza Pedasí (Super Pedasí Plaza)
Avenida Dr. Belisario Porras
Pedasí, Los Santos 7401, Panama
WhatsApp: +507 6169-2453
Email: ken@panama-properties.com