Can Foreigners Own Property in Panama?

One of the most attractive aspects of Panama for foreign investors, retirees, and expats is its open and welcoming real estate market. If you're considering buying a home, investment property, or land in Panama, you're likely asking the key question:

Can foreigners legally own property in Panama?

The answer is a resounding yes—foreigners have the same legal property rights as Panamanian citizens in nearly all cases. Whether you're buying a condo in Panama City, beachfront land in Pedasí, or a mountain home in Boquete, owning property is not only legal, it's common.

✅ Equal Rights Under the Law

Under Panama’s Constitution and Civil Code, foreign nationals enjoy full property ownership rights. There are no nationality-based restrictions on:

• The type of property (residential, commercial, agricultural, etc.)

• The size of land you can own

• Your visa or residency status (you do not need to be a resident to purchase)

This has made Panama a hot spot for global real estate investment, and particularly appealing to retirees and digital nomads.

🚫 Exceptions: Restricted Border Areas

There is one major exception: Panama’s national security laws prohibit foreigners from owning land within 10 kilometers of international borders.

These restricted border zones include areas near:

• The Costa Rica border (like parts of Bocas del Toro, Chiriquí, and the Burica Peninsula)

• The Colombian border (like the Darién region)

Important: If you’re looking at land in these areas, ownership must be structured carefully (often in the name of a Panamanian corporation or through long-term leases), and legal advice is essential.

🏛️ Titled vs. Right of Possession (ROP) Property

Foreigners can legally purchase titled property—which is recorded in the Public Registry of Panama and offers full ownership rights.

However, some rural and coastal lands are "Right of Possession" (ROP) properties, meaning they are not officially titled. While ROP land can sometimes be used or sold with local permissions, it does not provide full legal ownership or the same level of protection. Titled property is strongly recommended.

🔑 How to Buy Property in Panama as a Foreigner

The buying process for foreigners is largely the same as for locals. Here's a simplified overview:

1. Find a Property – Through a real estate agent or private seller.

2. Make an Offer – Typically via a Promise to Purchase contract.

3. Hire a Lawyer – To conduct due diligence (title check, encumbrances, zoning, etc.)

4. Sign the Final Contract – Done at a public notary.

5. Register Title Transfer – The property title is transferred to your name at the Public Registry.

You can own property as an individual, jointly with a spouse, or through a Panamanian corporation or foundation.

💼 Should I Buy as a Person or Corporation?

Some foreign buyers choose to buy property through:

• Panamanian corporations (Sociedad Anónima)

• Private interest foundations

These structures can offer benefits for estate planning, asset protection, and tax efficiency, especially if you plan to rent or hold multiple properties. However, they also involve ongoing maintenance and costs. Consult a real estate attorney for personalized advice.

💡 Why Panama is Popular Among Foreign Buyers

Panama continues to attract foreign real estate buyers due to:

• Strong property rights and a transparent registry system

• U.S. dollar-based economy

• Low property taxes and generous exemptions

• Excellent retiree incentives (such as the Pensionado Visa)

• Modern infrastructure and ease of travel
  

📝 Final Thoughts

So, can foreigners own property in Panama?Absolutely. Foreigners can buy, sell, and inherit titled real estate with the same protections as Panamanian citizens. With proper legal guidance and due diligence, owning property in Panama is a secure and smart move—whether for living, vacationing, or investing.

Need help finding the right property in Panama or navigating the buying process as a foreigner?Contact us today for trusted representation and personalized service.

📞 WhatsApp: +507-6169-2453

📧 Email: ken@panama-properties.com