22 m
Pacific beach strip above high tide that stays public
200 m
Coastal zone measured inland from the high-tide line
10 km
Border zone where foreigners cannot own land
$0
Agent commission for buyers with Panama Properties
Start with one question: titled or not?
Every property in Panama falls into one of two camps, and the difference shapes price, financing, resale and risk.
Foreigners can generally own property in Panama on the same terms as Panamanians. The exceptions are narrow but important: the beach itself, land near the borders and some island land. Outside those, the real question is what kind of right the seller actually holds.
Titled property is registered in the Public Registry (Registro Público) and is the strongest form of ownership available. Rights of possession (derechos posesorios) are a recognised right to occupy and use land that has never been titled. Both are legal and common in rural Azuero and on the coast, but they should not be priced or checked the same way.
Due diligence is the work your lawyer does to confirm the seller can deliver what is being sold, free of debts and disputes. It happens after you sign the promise to purchase and before the deposit is released. Our step-by-step buyers guide shows where it fits in the full timeline.
Titled property vs rights of possession
Titled property (finca / folio real)
Each titled property has its own number in the Public Registry, called the finca or folio real. The registry entry shows the current owner, the surface area, the registered value and every annotation against it, such as mortgages, usufructs or court orders.
Ownership is public and searchable online
Banks will lend against it
Transfers are made by public deed before a notary and then registered
Easiest to resell and to use for a Friendly Nations visa application
Through our lending partner, qualified foreign buyers can finance up to 75% of titled property. Banks require proof of income. See Mortgages & Loans.
Rights of possession (derechos posesorios)
Possession land has no registry entry. The seller's right rests on documents: a notarised assignment of rights, surveyor plans, statements from neighbouring landholders, local authority certifications and evidence of long, peaceful use.
Often cheaper per hectare
Not accepted by banks as security
Harder to verify, protect and resell
Possession can be converted to title through ANATI, the National Land Administration Authority, under Law 80 of 2009 and related rules. Titling commonly takes many months to several years, involves a survey, public notice and a purchase price set by ANATI's tables, and there is no promise of success. Price the land as possession land, not as if the title were already in hand.
Beach and coastal land
Law 80 of 2009 sets out how land along the coast is measured and which parts can be privately titled.
The beach is public
The beach itself, the strip between the high- and low-tide lines, belongs to the State and cannot be owned privately. The Constitution also places the shores of the sea and navigable rivers in public use. Anyone may walk the beach in front of any house.
The 22 m strip (10 m on the Atlantic)
Above the high-tide line, a strip called the ribera de playa also stays public. Under Law 80 of 2009 it runs 22 metres inland on the Pacific coast and 10 metres inland on the Caribbean (Atlantic) coast. Nothing in this strip can be titled to you, so check where the line falls before you plan a deck or pool.
The 200 m coastal zone
The law defines a coastal zone 200 metres wide from the high-tide line. Behind the public strip, the remaining land can be titled: the 178 metres beyond the 22 m line on the Pacific, or 190 metres beyond the 10 m line on the Atlantic. Titling here has its own rules and price tables.
Public beach access
Coastal titles must respect public access paths to the beach, and the law treats transfers as invalid where the required beach access easements are missing from the cadastral plans. Your lawyer and surveyor should confirm the access is shown on the approved plan.
Border zones and island land
Article 291 of Panama's Constitution sets the two biggest location limits on foreign buyers.
The 10 km border zone. Foreign individuals and companies, and Panamanian companies with any foreign capital, may not acquire national or private land within ten kilometres of Panama's borders with Costa Rica or Colombia. Buying through a Panamanian corporation does not get around this rule if any of the shareholders are foreign. If a property is anywhere near the Costa Rica border in Chiriquí or Bocas del Toro, have your lawyer confirm the distance from the border on the survey plan.
Islands. The same article says island land may be transferred only for specific national development purposes, in areas that are not strategic or reserved for government programs and that have been declared special development areas. Law 80 of 2009 adds that island titling generally requires more than five years of proven possession. In areas not open to titling, the State can grant possessors a use concession, which the law sets at 20 years and renewable.
In practice, much of the land in Bocas del Toro and other islands is sold as rights of possession or under concession rather than title. That can still be a sound purchase, but you are buying a right to use land and financing is unlikely. Have your lawyer read the concession or titling file before you commit.
Debts that can follow a property
Most problems we see are not fraud but money owed by the seller. These are the main things your lawyer clears before closing.
Mortgages and liens
Registered mortgages appear as annotations on the folio real. If the seller still has a mortgage, the bank must issue a release at closing, usually paid out of your purchase funds through an irrevocable payment arrangement so the debt is cleared before the new title is registered.
Embargos and court orders
A court seizure (embargo) or other judicial order is also noted in the registry and can block a transfer. Your lawyer should search both the property and the seller, and check for pending entries that have been filed but not yet recorded.
HOA fees
In condos and gated communities under Panama's horizontal property law, ask the administration for a paz y salvo confirming the unit is current on fees, plus the latest budget, minutes and any approved special assessments.
Property tax and utilities
The seller must provide a property tax paz y salvo from the DGI (the tax authority) before the deed can be registered, and usually a water paz y salvo too. Electricity and other accounts should be settled or transferred at closing. Our Property Tax Guide explains how the tax and its exemptions work.
Permits, surveys and boundaries
Building and occupation permits
A house needs a municipal building permit before construction and a permiso de ocupación once finished, issued after inspections that include the fire department. Without it, a home may be hard to register, insure or finance.
Ask for both permits for every structure, including later additions and pools
Compare what was approved with what was actually built
For new builds, confirm the developer's permits and the project's registry status
Survey and boundaries
Every titled lot should have an approved cadastral plan (plano catastrado). Fences and hedges are not proof of boundaries.
Compare the plan, the registry area and what is on the ground
For larger, rural or possession land, hire an independent surveyor to walk the corners
Check legal road access, easements, rivers and any coastal or border lines
Building on the land later? Our Build With Us page covers permits from the start.
Buying through a corporation, and using escrow
Personal name or corporation
Many buyers hold property in a Panamanian corporation (sociedad anónima) or private interest foundation for estate planning or privacy. A company has yearly costs: a state franchise fee of about $300 plus registered agent fees, and beneficial owners must be reported to the registered agent.
Buying the shares of a company that already owns property means you inherit its whole history, including debts and lawsuits, so it needs its own due diligence.
Escrow
The usual pattern is a 10% deposit held in escrow when the promise to purchase is signed, with the balance paid at closing. Use a bank, a licensed trust company or an attorney's escrow account under a written escrow agreement, never a payment straight to the seller.
The agreement should say exactly when funds are released, normally against registration of the deed in your name.
Due diligence checklist
Hand this list to your lawyer and ask for a written report on each point.
Registry certificate for the folio real: owner, area, registered value, all annotations and pending entries
Seller's identity and authority to sign, including company resolutions and powers of attorney
No mortgages, embargos, usufructs or lawsuits, or a written plan to release them at closing
Property tax paz y salvo from the DGI and a water paz y salvo
HOA paz y salvo, budget, rules and any special assessments
Approved cadastral plan, matched against the land and checked by a surveyor where needed
Building permit and permiso de ocupación for every structure
Coastal line, beach access easement, border distance and island status confirmed
For possession land: full chain of assignments, neighbour statements, local certifications and any ANATI titling file
Zoning, legal road access, water source and power
Escrow agreement with clear release conditions
Closing costs for the buyer are usually legal fees of about 1% to 1.5% plus small notary and Public Registry fees. The 2% transfer tax is customarily paid by the seller. See Buying & Closing Costs for the full breakdown.
Buy with clear title and clear eyes
We represent buyers, not sellers. We flag possession land, coastal and border issues and missing permits early, and work alongside your independent lawyer.
Visit us at Unit 1 Plaza Pedasí (Super Pedasí Plaza), Pedasí, Los Santos 7401, or message us on WhatsApp at +507 6169-2453. Start the buying process or browse our listings.
Frequently Asked Questions
Can foreigners own property in Panama?
Yes. Foreigners generally have the same ownership rights as Panamanians. The exceptions are land within 10 km of the borders, some island land and the public beach strip.
What is the difference between title and rights of possession?
Titled property is registered in the Public Registry under its own finca or folio real number. Rights of possession are a recognised right to use untitled land, documented privately rather than registered. Titled land is easier to finance, protect and resell.
Can I get a mortgage on rights-of-possession land?
Generally no. Banks lend against titled property. Through our lending partner, qualified foreign buyers can finance up to 75% of titled property. Banks require proof of income.
How long does it take to title possession land?
There is no fixed timeline. ANATI titling commonly takes many months to several years, depends on the location and paperwork, and is not certain. Budget for the survey, ANATI's price and legal fees.
Can I own beachfront property?
You can own titled land behind the beach, but not the beach itself or the strip of about 22 metres above the high-tide line on the Pacific (10 metres on the Caribbean). The public must keep access to the beach.
Can I buy land on an island?
Sometimes. Island land can only be titled in areas declared for special development, usually after more than five years of proven possession. Elsewhere it is sold as possession rights or held under a State concession.
Does buying through a corporation get around the border rule?
No. The Constitution also bars Panamanian companies with any foreign capital from owning land within 10 km of the borders.
Do I pay a commission to Panama Properties?
No. Buyers pay no agent commission when they buy with Panama Properties. Your costs are your own lawyer plus small notary and registry fees.