How to Buy Property in Panama: Costs, Fees and Mistakes to Avoid
In short: Buyers in Panama pay no agent commission, because the seller pays our fee. Your own costs are your attorney (about 1% to 1.5% of the price) plus small notary and Public Registry fees, and the 2% transfer tax is customarily paid by the seller. Choose the right area before the right home, plan your exit from day one, and work with a buyer's agent who knows the local market.
Thinking about buying property in Panama? I'm Ken Norton, founder of Panama Properties, a licensed brokerage that represents buyers. In the video below I walk you through exactly how we work, what it costs you to buy, and how to buy safely as a foreigner.
Why I started Panama Properties
When I moved to Panama from Canada, I met agents who were only interested in selling me what they had listed, not what I actually needed. The moment I said no, they stopped returning my calls, even though I was a serious buyer with cash in hand.
So I built this company around one simple idea: treat every client the way I wish I'd been treated when I came to Panama. That means listening first, showing you properties that genuinely fit, and staying on your side of the table from the first search to the day you get the keys.
What does it cost to work with a buyer's agent in Panama?
Nothing. In Panama, buyers don't pay a commission to their agent. Our fee is paid by the seller from the sale, so having your own representation costs you nothing. You can read more about how we work on our Buy With Us page.
Closing costs when buying property in Panama
So what do you actually pay? Here are the main buyer costs:
Your own attorney: usually about 1% to 1.5% of the purchase price. This covers due diligence, contracts and closing.
Notary fees: small, and usually a few hundred dollars together with registry fees on a typical home.
Public Registry fees: to record the property in your name.
Transfer tax: 2% of the sale price or registered value, whichever is higher, and customarily paid by the seller.
Before you make any offer, we give you an estimate of your closing costs, so there are no surprises. For the full breakdown, including escrow and property tax, see our guide to buying and closing costs in Panama.
Find the right area first, then the right home
Here's my most important piece of advice. The biggest mistake buyers make is falling in love with a house before they understand the community around it.
Panama has ocean beaches, cool mountain towns, island life and big-city living. Before you look at a single listing, ask yourself:
Do you prefer the ocean breeze or the mountain mist?
Are you comfortable with heat all year round?
How close do you need to be to schools, hospitals and groceries?
Do you want a quiet small town or a busy city neighbourhood?
We'll help you answer those questions before you commit. If you're still deciding, our comparison of Pedasí vs Boquete vs Bocas del Toro is a good place to start.
Where we work in Panama
We help buyers across the country, in both English and Spanish:
Azuero Peninsula: Pedasí and Playa Venao
Chiriquí highlands: Boquete, where our agents live and work
Pacific coast: Coronado, San Carlos and Chame
Panama City: Panamá Pacífico, Panama City and Casco Viejo
Caribbean: Bocas del Toro
Plan your exit strategy from day one
Another thing we always talk about early is your exit plan. Whether you stay three years or thirty, buying at or below market value gives you flexibility if your plans ever change.
Our trusted network
Beyond the property itself, we connect you with people we trust completely:
Real estate attorneys
Builders and architects
Property inspectors
Movers and pet relocation specialists
Immigration lawyers for your visa or residency
We also help you understand legal structures such as corporations and foundations, which can protect your property and simplify estate planning. Before you buy, make sure the title has been checked properly. Our guide to property title and due diligence in Panama explains what to look for.
Quick facts about buying property in Panama as a foreigner
Foreign ownership: foreigners have essentially the same property rights as Panamanians, with limited exceptions such as land close to the national borders.
No residency needed: you don't need residency to buy property in Panama.
US dollars: prices and transactions are in US dollars.
No single MLS: Panama has no central MLS, so the same property is often listed by several agents at different prices. That's exactly why you want someone on your side who knows the local market.
How to get started
Fill out our client form with as much detail as you can: where you want to live, your budget and your goals.
We'll send you properties that match, and help you narrow down the right area.
Before any offer, we'll give you an estimate of your closing costs.
We'll introduce you to a trusted attorney for due diligence and guide you through to closing.
You can also follow our step-by-step guide to buying real estate in Panama, or browse current listings.
My goal isn't just to help you buy a home. It's to make sure you're happy living in it.
Frequently asked questions
Do buyers pay a real estate commission in Panama?
No. In Panama the seller pays the real estate commission, so working with a buyer's agent like Panama Properties costs you nothing.
What are the closing costs for buyers in Panama?
Buyers usually pay their own attorney, about 1% to 1.5% of the purchase price, plus small notary and Public Registry fees. The 2% transfer tax is customarily paid by the seller.
Can foreigners buy property in Panama?
Yes. Foreigners have essentially the same property rights as Panamanians, with limited exceptions such as land near the national borders, and you don't need residency to buy.
What currency is used to buy property in Panama?
Property in Panama is bought and sold in US dollars.
Does Panama have an MLS?
No. Panama has no single MLS, so the same property can be listed by several agents at different prices. A buyer's agent who knows the local market helps you avoid overpaying.
Start the buying process
Remember, buyers in Panama pay no agent fee, so having your own representation costs you nothing. Start the Buying Process and tell us where you'd like to live, your budget and your goals.
For English, WhatsApp Ken Norton on +507 6169-2453. Para español, escriba a Evelyn Díaz por WhatsApp al +507 6718-4140. Our office is at Unit 1 Plaza Pedasí (Super Pedasí Plaza), Pedasí, Los Santos 7401, Panama.
This article is general information only and is not legal, tax or financial advice. Costs and rules can change, so always confirm the details of your purchase with your own attorney.
