$0
Agent commission for buyers with us
15
Steps from first call to registered title
10%
Typical deposit, held in escrow
30–60
Days to close a typical cash purchase of titled property
How Buying Works in Panama
In short: Foreigners can own property outright in Panama with the same rights as Panamanians. A typical purchase follows 15 steps: agree a price, sign a Promise to Purchase, pay a 10% deposit into escrow, complete due diligence, sign the deed and register title. Cash purchases of titled property usually close in 30–60 days, with legal fees around 1% and no buyer agent commission with Panama Properties.
Foreigners can own property in Panama outright, with the same rights as Panamanians, and most purchases follow the same simple path.
You agree a price, sign a Promise to Purchase Agreement, pay a deposit into escrow, let your attorney complete due diligence, then sign the deed at a notary and register it in the Public Registry. Most foreign buyers pay cash by international wire, and buyer costs are low: no agent commission with us, legal fees of about 1%, and small notary and registry fees.
This guide is split into three parts: Plan Your Purchase (steps 1 to 4), The Buying Process (steps 5 to 10) and Costs, Taxes and Ownership (steps 11 to 15). When you are ready, start the buying process and we will guide you through every step.
PART 1
Plan Your Purchase
Steps 1 to 4: choosing an agent, an area, a budget and a property type.
STEP 1
Find a Reputable Real Estate Agent
Panama has no centralised MLS, so not every property is publicly listed. An agent with a strong local network and market knowledge is essential.
At Panama Properties we work across Pedasí, Boquete, Bocas del Toro and Panama City, and we help you find real opportunities that match your lifestyle and budget, not just listings.
Tip: ask for referrals, check reviews, and make sure your agent is legally registered and familiar with expat transactions. Read more on why professional help matters.
STEP 2
Find the Right Area First, Then the Right Home
A common mistake is falling in love with a property before understanding the community and climate. Panama has everything from tropical beaches to cool mountain towns, and each region has its own rhythm, weather and culture.
Do you prefer the ocean breeze or the mountain mist?
Is year-round heat comfortable for you?
Are you close enough to schools, hospitals and grocery stores?
Our Panama Info Guide covers each of the main expat areas, and our Pedasí Area Guide goes into detail on everyday life on the Azuero Peninsula.
STEP 3
Research and Plan Your Budget
Define your total budget, not just the purchase price. Include:
Closing costs
Legal and notary fees
Property registration
Taxes and ongoing maintenance
We can help you set a realistic budget for your goals, whether that is retirement living, rental income or a holiday home. See our property tax guide and closing costs guide.
STEP 4
Choose the Right Property Type
Condos: convenience, security and amenities, popular with expats and retirees.
Single-family homes: privacy and outdoor space for families.
Land: for investors, or for building your own home.
We explain the pros and cons of each type based on location, legal status and resale value.
IF YOU BUY A CONDO
HOA Fees and Building Rules
Most condos fall under the horizontal property regime (Propiedad Horizontal, Law 284 of 2022). You pay a monthly maintenance (HOA) fee and follow the building’s bylaws. Before you offer, ask for:
The monthly fee and any planned special assessments
The bylaws, including rules on rentals, pets and renovations
Recent financial statements and the reserve fund balance
Confirmation that the unit’s HOA fees are paid up to date
IF YOU BUY OFF-PLAN
Buying Pre-Construction
Buying before a project is finished can mean a lower price and a choice of units, but it carries more risk. Before you sign, check:
The developer’s track record and finished projects you can visit
How your payments are protected, such as a bank guarantee or escrow
The promised delivery date and what happens if it is late
Exactly which finishes, appliances and amenities are included
Have your attorney review the contract before you pay anything.
PART 2
The Buying Process
Steps 5 to 10: from viewing properties to registering your title.
STEP 5
Visit Properties
Schedule visits once you have narrowed your search. Take notes and photos, and ask:
Does the property have a clean, registered title?
Is there a valid listing contract with the seller?
Has any due diligence already been done?
Check utilities, community amenities, access and safety.
STEP 6
Make an Offer
We help you set a fair offer based on local market data. Negotiation is normal in Panama.
We start with a verbal offer to confirm the basic terms, then prepare a written offer letter for buyer and seller to sign, which goes to both lawyers to start the legal work.
STEP 7
Sign the Promise to Purchase Agreement
Your lawyers draft the Promise to Purchase Agreement (PPA). Check with your attorney:
Property details and legal description
Price and payment terms
Deposit and timeline
A 10% deposit is usually paid into a trust or escrow account when the PPA is signed. It becomes non-refundable and is released to the seller once due diligence is complete.
STEP 8
Conduct Due Diligence
Your lawyer confirms the property is free of debts, liens and ownership disputes, and checks the title, the chain of ownership and municipal taxes.
Never skip this step. It is your protection as a buyer. See our title and due diligence guide.
STEP 9
Arrange Payment or Financing
Most foreign buyers pay cash by international wire. The 10% deposit goes to the lawyer or escrow company, and the remaining 90% is paid to the seller at closing.
If you need financing, we work with local mortgage brokers and lenders who lend to foreigners. See Mortgages & Loans, or browse our owner-financed listings.
STEP 10
Complete the Closing
The deed (Escritura Pública) is signed at a Notary Public and then registered in the Public Registry. You can sign:
In person
Through your lawyer with a power of attorney
Through your corporation’s or foundation’s legal representative
Once registered, the title is officially in your name or your entity’s.
Know Before You Sign
The checks and practical details that protect you during the purchase.
Inspections and Surveys
Panama does not require a home inspection, so arrange one yourself. We recommend:
An independent engineer or inspector for the structure, roof, plumbing and electrics
A survey to confirm the boundaries match the registered plan, especially for land and rural homes
Checking the water source, power connection and that the access road is legal and usable all year
Titled Land vs Rights of Possession
Titled property is registered in the Public Registry (Registro Público) and gives you the strongest protection. Some land, especially in rural and beach areas such as the Azuero Peninsula, is held only under rights of possession (derechos posesorios): the right to use the land, with no registered title.
ROP land is often cheaper but harder to finance, resell and protect, and titling it through ANATI can take a long time with no guaranteed result. Most of our clients choose titled property, and we always tell you clearly which type a property is.
Where Foreigners Can’t Buy Freely
Foreigners have the same rights as Panamanians for almost all homes, condos and lots. The main exceptions are land within 10 kilometres of the national borders, some island and coastal land, and the beach itself, which is public. Some of these areas can only be held through government concessions. Your attorney will confirm whether any of these rules apply.
Moving Money and Bank Accounts
All property in Panama is priced and paid in US dollars. Banks and escrow companies follow strict anti-money-laundering rules, so expect to show where your funds come from, for example bank statements, a sale contract or tax returns.
You do not need a Panamanian bank account to buy, and opening one can take several weeks, so start early if you want one.
Paz y Salvo Certificates
Before closing, the seller must show the property is paid up. Your attorney checks the paz y salvo (good standing) certificates for property tax and, where they apply, water and condo HOA fees. Make sure electricity and other utilities are settled or transferred at closing, so you do not inherit the seller’s debts.
Buying Remotely
Many clients buy without being in Panama for every step. We offer live video tours, and you can sign a power of attorney so your lawyer can sign the deed for you. A power of attorney signed abroad usually needs an apostille (or consular legalisation) to be valid here. Ask us how this works from your country.
Typical Timeline
The Usual Order
Offer accepted and offer letter signed
Promise to Purchase Agreement signed and 10% deposit paid into escrow
Due diligence by your attorney
Final payment and signing of the deed at a notary
Registration in the Public Registry
How Long It Takes
A cash purchase of titled property often closes within about 30 to 60 days of signing the Promise to Purchase Agreement.
Financing, pre-construction, rights-of-possession land or missing paperwork can add time. We will give you a realistic timeline for your property at the offer stage.
PART 3
Costs, Taxes and Ownership
Steps 11 to 15: ownership structures, fees, taxes, residency and life after you buy.
STEP 11
Choose Your Ownership Structure
Panama is one of the most foreign-friendly property markets in Latin America. You can own in your own name, or through:
A private interest foundation: holds the title for asset protection and estate planning. We often suggest this for long-term owners.
A corporation (sociedad anónima): can offer tax flexibility and easier transfer.
Always ask your lawyer which structure fits your goals.
STEP 12
What Fees Does a Buyer Pay?
Attorney’s fees: usually about 1% of the price
Notary and registration: a few hundred dollars, depending on value
Escrow or trust fees, if used: a small administrative cost
Sellers, not buyers, typically pay the transfer tax and capital gains tax.
Example on a $300,000 home: agent commission $0, attorney about $3,000, notary and registration a few hundred dollars. Estimated total roughly $3,500 to $4,000, plus mortgage costs if you finance. Your attorney will confirm the exact figures. Full detail in our closing costs guide.
STEP 13
Understand Property Taxes
Primary residence (Law 66): up to $120,000 exempt, $120,001 to $700,000 at 0.5%, above $700,000 at 0.7%. Register the home with the DGI to qualify.
Rentals, second homes and investment property: up to $30,000 exempt, $30,001 to $250,000 at 0.6%, $250,001 to $500,000 at 0.8%, over $500,000 at 1.0%.
See our property tax guide for payment dates and exemptions.
STEP 14
Residency Through Property
Buying property does not automatically give you residency, but real estate can help you qualify for some programmes, such as the Qualified Investor visa or the Friendly Nations visa. Minimum investments and rules change, so check with an immigration attorney before you buy.
Learn more on Residency Through Investment.
STEP 15
After You Buy
Register a primary residence with the DGI for the tax exemption
Pay property tax by April 30, August 31 and December 31, or once a year
Insure the property against fire, storms and liability
Arrange property management if you will be away or plan to rent
Declare any rental income and pay income tax on it in Panama
For condos, keep HOA fees up to date
PLANNING AHEAD
Costs When You Sell Later
When you sell, you pay the 2% transfer tax (on the sale price or the registered value, whichever is higher) and capital gains tax of 10% of your gain, with 3% of the sale price withheld at closing as an advance.
Keep receipts for improvements, as they can reduce your taxable gain. Your attorney can confirm current rates.
Ready to Start Your Search?
Buying in Panama is smooth and rewarding with experienced people beside you. From choosing the area to the final paperwork, we guide you at every step, and buyers pay no commission. Start the buying process or message us on WhatsApp at +507 6169-2453.
Our office is at Unit 1 Plaza Pedasí (Super Pedasí Plaza), Pedasí, Los Santos 7401.
Frequently Asked Questions
Can foreigners buy property in Panama?
Yes. Foreigners can own property outright with the same rights as Panamanians, either in their own name or through a foundation or corporation.
Do I need to be in Panama to close?
No. Closing can be done in person, through your lawyer with a power of attorney, or through your corporation’s or foundation’s legal representative.
How much is the deposit?
Typically 10% of the price, paid into a trust or escrow account when the Promise to Purchase Agreement is signed. It becomes non-refundable and is released to the seller once due diligence is complete.
What fees does a buyer pay in Panama?
Buyers pay no commission to their agent with us. Typical buyer costs are attorney’s fees of about 1% of the price, notary and registration fees of a few hundred dollars, and a small fee if you use escrow. Sellers typically pay the transfer tax and capital gains tax.
How do most foreign buyers pay?
Most pay cash by international wire. The 10% deposit goes to the lawyer or escrow company, and the remaining 90% is paid to the seller at closing. Mortgage options for foreigners are also available through our lending partners.
How long does it take to buy property in Panama?
A cash purchase of titled property often closes within about 30 to 60 days of signing the Promise to Purchase Agreement. Financing, pre-construction, rights-of-possession land or missing paperwork can take longer.
What is rights-of-possession (ROP) land?
Land where the holder has the right to use it but no registered title in the Public Registry. It is often cheaper but harder to finance, resell and protect, and titling it through ANATI takes time with no guaranteed result.
Do I need title insurance in Panama?
It is not required. Your attorney’s title search in the Public Registry is the main protection, but title insurance is available and some buyers choose it for extra peace of mind.
Can I buy through a corporation or foundation?
Yes. Many foreign buyers hold property through a Panamanian corporation (sociedad anónima) or a private interest foundation for estate planning, privacy or easier transfer. Your attorney can advise which suits you.