90 days
Typical UK tourist entry stamp
1 stop
From London, about 13–16 hours
5–6h
Behind the UK, no daylight saving
Since 2013
UK–Panama double taxation treaty
Welcome, UK Buyers
In short: UK buyers can own titled property in Panama on the same footing as Panamanians, with no foreign buyer surcharge or second-home levy, and a UK–Panama double taxation treaty has applied since 2013. British passport holders typically get a 90-day tourist stamp, flights from London take 13–16 hours with one stop, and Panama is 5–6 hours behind the UK year-round.
Panama is warm twelve months a year, dollarised, and considerably cheaper than the Costa del Sol or the Algarve for what you get. It has no foreign ownership restrictions, no second-home penalties, and a proper double taxation treaty with the UK, which several popular British retirement destinations still lack.
It is also further away than Spain, and the practicalities differ from what you know. Panama Properties is a licensed Panamanian brokerage that represents buyers. We will 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 rest.
Why Britons Are Looking at Panama
Full Ownership, No Foreign Buyer Penalties
Britons hold titled property on the same legal footing as Panamanian citizens, registered in the Public Registry. No foreign buyer surcharge, no second-home levy and no residency requirement. The main exception is land within ten kilometres of an international border.
A UK Double Taxation Treaty
The UK–Panama Double Taxation Convention entered into force in December 2013 and has applied to UK income tax and capital gains tax since April 2014. That is more than British buyers get in several comparable destinations.
Property Tax That Does Not Climb
Property tax is charged on registered value, not an annually reassessed market value. A primary residence is fully exempt on its first $120,000, with modest progressive rates above that.
Territorial Taxation
Panama taxes Panama-sourced income only. Your UK pension, investment income and UK rental income are not taxed by Panama. Whether HMRC taxes them depends on your UK residence status.
A Dollarised Economy
Panama uses the US dollar at a fixed one-to-one peg with the balboa, with no capital controls. For a British buyer this cuts both ways, because your sterling exposure is real.
Climate and Cost
The coast sits around 26–32°C all year, while the highlands around Boquete run in the mid-teens to low twenties. A couple can live comfortably on considerably less than the same lifestyle in southern Spain.
The Honest Trade-Offs
We would rather you hear these from us than discover them after completion.
No Direct Flights From the UK
Panama City is one stop from London, usually via Amsterdam, Paris, Madrid, Frankfurt or a US hub. Realistically that is 13 to 16 hours door to door. This is not Málaga.
Your Stamp Is 90 Days, Not 180
Americans and Canadians typically get 180 days. British passport holders generally receive 90. Websites written for the US market often get this wrong. The stamp governs, and overstaying brings fines.
The Time Difference Is Real
Panama is on UTC-5 all year with no daylight saving, so you are five hours behind the UK in winter and six in summer. Calls home mean afternoons here and evenings there.
Your Appliances Will Not Work
Panama uses 110-volt power and US-style plugs. British electricals need transformers, not just adapters, and tropical humidity is hard on UK furniture. Ship less than you think.
They Drive on the Right
Obvious when stated, less obvious when you are tired at Tocumen collecting a hire car. A right-hand-drive car from home is impractical here.
Sterling Exposure Is Real
Your price, property tax, service charges and sale proceeds are all in dollars, while your income may be in sterling. A move in GBP/USD changes your real cost. Compare currency brokers before you transfer.
Getting Here From the UK
Panama is a long-haul trip from Britain, but a simple one, and your first visit should be long enough to see more than one area.
Flights From London
There are no nonstop flights from the UK. The usual one-stop routes run via Amsterdam with KLM, Paris with Air France, Madrid with Iberia or Frankfurt with Lufthansa, or through a US hub, into Tocumen International Airport in Panama City.
Plan on 13 to 16 hours door to door. From Panama City, FlyTrip and road transfers connect you to Pedasí, Boquete and the beaches.
Your Entry Stamp: Usually 90 Days
British passport holders are generally admitted as tourists for up to 90 days. Check what the officer writes in your stamp, because the stamp sets your legal stay, and overstaying brings fines.
Carry proof of onward travel, and make sure your passport has plenty of validity left. If you plan to spend more than a season here each year, a residency visa is the way to do it.
FEATURED LISTINGS
Top-quality Panama real estate.
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How We Work With British Buyers
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 Fortnight
Given the distance, we would rather you rent here for a month than buy after a ten-day trip. Your 90-day stamp gives you room to do it properly.
03
Independent Representation
We represent you, not the developer. That includes telling you when a project’s numbers do not work, when a yield projection is fiction, and when a plot has rights of possession rather than registered title.
04
The Right Professionals
A Panamanian attorney for title and completion, an immigration lawyer for residency, and a UK cross-border adviser for HMRC. We introduce them; we do not pretend to be all three.
05
After Completion
Property management, letting setup, contractor introductions and utilities. The part where most agencies stop answering the phone.
06
No Commission for Buyers
Buyers pay no agent commission. Your main costs are your attorney, typically 1% to 1.5% of the price, plus notary and Public Registry fees.
See every buying and closing cost.
Direct Words From Our Clients
“
Ken was great! He helped us find our home, guided us through the purchasing process and put us in touch with an excellent lawyer. He is still our go-to guy in Pedasí. We consider him more than just our realtor. If you want straightforward and honest service, he is your man!
Ron & Suzie
“
Ken is extremely knowledgeable about the area and has a real passion for helping people make a smooth transition from their own country to Panama. He has been patient answering our many questions, and has a wealth of connections for any service you may need. I highly recommend him!
Christina Bucknell
“
Ken Norton has been straightforward and honest from the start, which is what you need when dealing with real estate in Panama. He has gone out of his way to make sure we have everything we need, months after closing. If you are looking to move to or purchase property in the Pedasí area, Panama Properties is the way to go.
Nicole Charles
Residency Options for UK Citizens
The United Kingdom is on Panama’s Friendly Nations list. Your application belongs with a licensed Panamanian immigration lawyer; we work alongside several and can introduce you.
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 temporary residency come first, then permanent residency, with the qualifying asset held throughout.
Pensionado (Retiree) Visa
A verifiable lifetime pension of at least $1,000 a month, or $750 if you also own Panamanian property worth over $100,000. UK state and occupational pensions generally qualify with the right documents. It grants permanent residency plus Law 6 discounts on restaurants, travel, medical bills and more.
Full details: Pensionado Visa guide.
Qualified Investor Visa
Immediate permanent residency with no temporary stage, in exchange for a qualifying investment held for five years. As of September 2026, the real estate threshold is $300,000 for a new or first-sale property and $500,000 for a resale property.
Where Britons Are Buying
Pedasí and the Azuero Peninsula
A working Panamanian town on the Pacific with an established foreign community rather than a resort development. Surf, sportfishing and a pace that suits people leaving British life rather than recreating it. Our home base.
Boquete
A highland town in Chiriquí, spring-like all year in the mid-teens to low twenties, with the longest-established foreign retiree community in the country and serious coffee farms.
Panama City and Casco Viejo
A real capital with a modern skyline, internationally accredited private hospitals, international schools and connections everywhere. Casco Viejo offers restored colonial character property, closer in feel to Lisbon or Seville.
Coronado
A Pacific beach corridor about ninety minutes from the city, with the deepest concentration of services aimed at foreign residents. The easiest place to land softly.
Bocas del Toro
A Caribbean archipelago with water-access properties, strong short-term rental demand and correspondingly higher due diligence requirements.
Not Sure Yet?
Most Britons compare two or three areas before deciding. Our Panama Info Guide covers each region, and we are happy to talk it through.
HMRC, Pensions and What the Brochures Skip
We are a brokerage, not a law firm or tax practice. This is context so you know what to take to a UK cross-border adviser, and we will introduce you to one.
The State Pension Freezes in Panama
The UK uprates the state pension abroad only in the EEA, Switzerland, Gibraltar and countries with a qualifying reciprocal agreement. Panama is not one of them. Move here permanently and your state pension stays at the rate you were first paid abroad, with no annual increases. Model it before you commit.
The NHS Is Not Portable
Free NHS treatment depends on being ordinarily resident in the UK, so it ends when you move permanently. There is no reciprocal healthcare agreement with Panama, and a GHIC does not cover you here. Arrange private cover before you move.
Residence Is Decided by the Statutory Residence Test
Buying in Panama does not make you non-UK-resident. The test turns on day counts and UK ties, not on where you own property. If you do leave, the temporary non-residence rules can tax gains if you return within five years.
Inheritance Tax Now Follows Residence
Since 6 April 2025, if you have been UK resident for at least ten of the previous twenty tax years, your worldwide estate, Panamanian property included, is within UK inheritance tax. A tail of up to ten years can apply after you leave.
Buying Abroad Can Affect a Later UK Purchase
The higher rates of stamp duty for additional dwellings count property owned anywhere in the world. Own in Panama and buy in England without selling your UK home, and the Panamanian property can trigger the surcharge.
Reporting to HMRC
There is no UK equivalent of the American FBAR. While you remain UK resident, you report foreign income and gains on the foreign pages of your Self Assessment return, with treaty relief for Panamanian tax paid.
The Non-Dom Rules Have Gone
The remittance basis ended on 6 April 2025. The new four-year foreign income and gains regime is only for people who were non-UK-resident for the previous ten years. Older planning needs revisiting.
Pension Transfers Need Care
Overseas pension transfers can carry a 25% overseas transfer charge, and Panama has no established QROPS market. Be sceptical of anyone selling pension transfers alongside property, and take UK-regulated advice.
This is general information, not tax or legal advice. Rules and figures change every year, so speak with a qualified UK cross-border adviser before you move or buy.
Leaving the UK: A Practical Checklist
If you plan to make Panama your main home, these are the UK loose ends our British clients most often ask about. Check each one on GOV.UK before you go.
01
Tell HMRC You Are Leaving
Most people use form P85 to tell HMRC they are leaving the UK and to claim back any tax overpaid in the year they go. Self Assessment filers report it on their return instead.
02
Tell the International Pension Centre
If you receive, or will soon claim, the UK state pension, let the International Pension Centre know your new address and how you want to be paid.
03
Check Your National Insurance Record
Since 6 April 2026, voluntary Class 2 contributions are no longer available for periods abroad. Class 3 remains, but new applicants need ten years of UK residence or contributions. Check your record and options before you leave.
04
Register as an Overseas Voter
The old 15-year limit was removed in January 2024, so British citizens abroad can stay registered to vote in UK general elections. Registration needs renewing every few years.
05
Keep a UK Bank Account
Some UK banks restrict or close accounts once you are non-resident. Ask your bank before you move, because opening a Panamanian account also takes time and paperwork.
06
Make a Panamanian Will
Panamanian property is generally governed by Panamanian succession rules. Many owners make a separate Panamanian will for local assets, drafted so it does not revoke their UK will.
FAQ for UK Buyers Looking at Panama
We are a licensed Panamanian brokerage, not a law firm or tax practice. Anything touching HMRC, residence status or immigration belongs with a qualified professional, and we will introduce you to ones we trust.
OWNERSHIP AND THE BUYING PROCESS
Can a British citizen 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 surcharge, no second-home levy, no residency requirement. The main restriction is land within ten kilometres of an international border.
Is Panamanian ownership freehold or leasehold?
Titled property is closest to British freehold: full registered ownership without a lease or ground rent. Flats are held under propiedad horizontal, the local condominium system, which carries service charges much as a British block would.
Do I need residency or a visa to buy?
No. Ownership and immigration status are entirely separate. Many British clients own here for years while entering on a tourist stamp.
Should I buy in my own name or through a Panamanian company?
Both are common. Corporate ownership carries annual franchise tax and registered agent fees of several hundred dollars, and adds complexity to your UK reporting. Some visa routes require personal ownership. Decide with your Panamanian lawyer and a UK adviser before signing.
What is the difference between titled property and rights of possession?
Titled property is registered in the Public Registry with a clear chain of ownership. Rights of possession (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.
Is there title insurance?
Yes, through international underwriters, and for a significant purchase it is usually worth the cost. A thorough title search by your own lawyer is the non-negotiable part.
How does the conveyancing process compare to England?
Faster and less fraught. There is no chain and no gazumping culture. A promise-to-purchase agreement with a deposit is followed by due diligence and then the public deed. Funds are usually held in a law firm’s escrow account, so make sure that arrangement is properly documented.
What are typical purchase costs?
Buyers pay no commission to their real estate agent. Budget about 1% to 1.5% of the price for your attorney, plus notary and Public Registry fees. Transfer tax and the advance capital gains payment fall on the seller in a standard sale. There is no buyer’s stamp duty.
How long does a purchase take?
Typically four to eight weeks for a straightforward titled resale, longer with title complications, financing or a developer contract.
Do I have to be in Panama to complete?
Not necessarily. A properly drafted power of attorney lets your lawyer sign on your behalf, which is how many British buyers manage the distance. We still strongly prefer that you see the property in person.
Is there a reliable property portal?
There is an MLS, but coverage is incomplete and data quality varies. A meaningful share of good stock never appears online, which is the real argument for an agency on the ground in the market you are searching.
What should make me walk away?
Unclear title, a seller who cannot produce a current paz y salvo tax clearance, pressure to transfer funds before due diligence is complete, guaranteed yields in writing, and any request to under-declare the price on the deed.
MONEY AND CURRENCY
Do I have currency risk?
Yes, and it is the most underestimated factor for British buyers. Your purchase price, property tax, service charges and sale proceeds are all in US dollars while your income may be in sterling, so a move in GBP/USD changes your real cost.
How should I move the money?
By international transfer, but compare before accepting your high street bank’s rate. On a £300,000 purchase, the spread between a retail bank and a specialist currency broker can run to several thousand pounds. Ask about forward contracts to fix a rate before completion.
Can I get a mortgage in Panama?
Yes. Through our mortgage partner, non-residents can borrow up to 75% of the property’s value, with approval based on your income. Rates are higher than you may be used to and the paperwork is thorough. Many British buyers pay cash or release equity from UK property instead. See our Mortgages & Loans guide.
Can I open a Panamanian bank account?
Yes, though it takes work. Banks apply thorough know-your-customer checks: bank and professional references, proof of income and an in-person interview. Residency makes it easier. Budget several weeks.
Are there foreign buyer taxes or restrictions?
No. Panama has no equivalent of the surcharges and restrictions that have spread across Europe and Britain. You are treated the same as a citizen for titled property.
PANAMANIAN TAXES
What is property tax in Panama?
It is charged on registered value rather than market value. A primary residence registered as family patrimony is fully exempt on its first $120,000, with modest progressive rates above. Second homes and investment property have a lower exemption, with rates capped at 1%. Read our Property Tax Guide.
Is there anything like council tax?
No. Municipal charges are minimal, and property tax is the main annual cost. Service charges on a flat range from roughly $120 a month for a modest unit to $800 or more in a full-amenity tower.
Do I pay Panamanian tax on rental income?
Yes. Panama-sourced rental income is taxed on a progressive scale with a nil band on the first tranche, and legitimate expenses are deductible with proper invoices. Panamanian tax paid can generally be relieved against UK tax under the treaty.
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. You can instead file on your actual profit, with the 3% credited.
Does owning property make me a Panamanian tax resident?
No. Ownership alone does not create tax residency, and Panama does not tax foreign-source income in any case.
UK TAXES AND HMRC
Is there a double taxation treaty between the UK and Panama?
Yes. The UK–Panama Double Taxation Convention was signed on 29 July 2013, entered into force on 12 December 2013, and has applied to UK income tax and capital gains tax since 6 April 2014. It has since been modified by the Multilateral Instrument.
Do I have to report my Panamanian property to HMRC?
There is no UK equivalent of the American FBAR or the Canadian T1135 for the asset itself. While UK resident, you report foreign income and gains on the foreign pages of your Self Assessment return, with treaty and foreign tax credit relief available.
Will I pay UK capital gains tax when I sell?
If you are UK resident when you sell, yes, on the gain, with relief for Panamanian tax paid under the treaty. If you have broken UK residence the position differs, but the temporary non-residence rules can bring gains back into charge if you return within five years.
Does buying in Panama make me non-UK-resident?
No. The Statutory Residence Test turns on day counts and UK ties, not on where you own property. Owning here and remaining UK resident is entirely normal.
What happened to the non-dom rules?
The remittance basis was abolished on 6 April 2025 and replaced with a residence-based system, including a four-year foreign income and gains regime for people who were non-UK-resident for the previous ten years.
How does inheritance tax work now?
Since 6 April 2025 it follows residence rather than domicile. If you have been UK resident for at least ten of the previous twenty tax years, your worldwide estate, Panamanian property included, falls within UK inheritance tax at 40% above the nil-rate band, with a tail of up to ten years after you leave.
What happens to my Panamanian property when I die?
Panamanian assets are generally governed by Panamanian succession rules, and an English or Scottish will may not deal with them efficiently. Many owners make a separate Panamanian will for Panamanian assets only, drafted so the two wills do not revoke one another.
Can I keep my ISAs?
You can keep existing ISAs, but you cannot pay into them once you are no longer UK resident. Panama does not tax foreign income, so the wrapper matters less here than in some countries.
What about transferring my pension?
Overseas pension transfers can carry a 25% overseas transfer charge, and Panama has no established QROPS market. Be sceptical of anyone marketing pension transfers alongside property, and take independent, UK-regulated advice.
PENSIONS AND HEALTHCARE
Will my state pension increase if I live in Panama?
No. The UK uprates the state pension abroad only in the EEA, Switzerland, Gibraltar and countries with a qualifying reciprocal agreement. Panama is not one of them, so your state pension is frozen at the rate you receive when you move. Model the long-term effect before you commit.
Can I still receive my UK pension in Panama?
Yes. State and private pensions can be paid into an overseas account. Tell the International Pension Centre and HMRC when you move. How the pension is taxed depends on your residence status and the treaty.
Does the NHS cover me abroad?
No. Free NHS treatment depends on being ordinarily resident in the UK, and that ends when you move permanently. There is no reciprocal healthcare agreement with Panama, and a GHIC does not apply here.
Is healthcare in Panama any good?
In Panama City, very good. Several private hospitals hold international accreditation, with English-speaking specialists and short waits, at costs well below British private rates. Outside the capital quality varies, so factor hospital distance into your location choice.
Can I get private health insurance here?
Yes, and it is inexpensive by British standards. Age and pre-existing conditions matter, and some insurers decline new applicants past a certain age, so arrange it before you move. Many Britons carry an international policy.
What about my prescriptions?
Many medicines cost far less than UK private rates, with a further discount under pensionado status. Specific brands may not be available, so check your own medications before committing.
RESIDENCY AND IMMIGRATION
How long can a British citizen stay without a visa?
Typically 90 days, not the 180 that American and Canadian visitors receive. Much online advice gets this wrong because it was written for the US market. Check your stamp, because it governs, and overstaying brings fines.
Which residency route suits me?
With a lifetime pension of at least $1,000 a month, Pensionado is usually the most cost-effective, dropping to $750 with Panamanian property over $100,000. Buying anyway? Friendly Nations through a $200,000+ property. For immediate permanent residency, the Qualified Investor visa: as of September 2026, $300,000 for a new or first-sale property, $500,000 for a resale.
Does a UK pension count for the Pensionado visa?
Generally yes, provided the documents show the income is for life. Both state and occupational pensions are commonly used. Your immigration lawyer will tell you what evidence is needed.
Do I have to live here to keep residency?
Requirements are light. Pensionado generally requires a visit roughly once every couple of years. Panama does not demand that you actually live here.
Can I work in Panama?
Generally not as an employee of a Panamanian company without a separate work permit, and some professions are reserved for citizens. Working remotely for UK employers or clients is a different matter.
Can I become a Panamanian citizen?
After five years of permanent residency you may be eligible to apply. The UK permits dual citizenship, and naturalisation in Panama is a real process with language and integration components.
LIVING IN PANAMA
Do I need Spanish?
In Panama City, Coronado and Boquete you can function in English. In Pedasí, Bocas and the interior you will manage day to day but miss a great deal. Even basic Spanish changes your experience.
Is Panama safe?
Panama City and the areas where foreigners usually live and buy are broadly safe with normal precautions. Rural Azuero and Boquete are quiet. The Darién region near the Colombian border is not somewhere to buy property.
What is the weather actually like?
Coastal Panama is hot and humid all year, around 26–32°C, with a dry season from about December to April and afternoon downpours the rest of the year. The highlands sit in the mid-teens to low twenties. Humidity is what most Britons underestimate.
Do hurricanes hit Panama?
Panama sits south of the main hurricane belt and direct strikes are extremely rare. Heavy seasonal rain, flooding and landslides are the real risks, and they are location-specific.
Can I drive on my UK licence?
Visitors can generally drive on a valid UK licence for an initial period, commonly cited as ninety days, after which a Panamanian licence is expected. And they drive on the right.
Can I bring my car?
Pensionado residents can import one vehicle duty-free every two years, plus household goods up to $10,000. For British buyers it is rarely worth it, because right-hand-drive cars are impractical here. Sell at home and buy locally.
Can I bring my dog or cat?
Yes, and Panama allows home quarantine. You will need a veterinary health certificate with the right UK endorsement, authentication by the Panamanian consulate, current rabies vaccination and a home quarantine request sent ahead of arrival. Confirm current rules with the consulate.
What about shipping household goods?
Container shipping from UK ports is available, and residents can use the household goods exemption. Most people bring far too much: British furniture suffers in tropical humidity, and electricals need transformers. When you do ship, ContenedorPro is the company we recommend most. They are licensed in Panama, bring full or shared containers from UK ports, clear customs and handle the paperwork for you, and give you one personal agent and an all-inclusive quote within 24 hours.
Are there schools for my children?
Panama City has established international schools offering IB and British or American curricula. Outside the capital, options narrow sharply, so school availability should drive your location choice.
How is the internet?
Fibre is widely available in Panama City and the established expat areas, and remote work is practical. Rural coverage varies, with Starlink filling many gaps. Test the connection at the specific property.
Is there a British community?
Smaller than the American and Canadian communities, but present, particularly in Boquete and Panama City. The British Embassy is in Panama City.
LETTING AND INVESTMENT RETURNS
Can I let the property when I am not using it?
Usually, but short-term letting rules vary by municipality and building, and some condominium regulations prohibit short lets. If rental income is part of the plan, check the building’s rules before you buy.
What yields should I expect?
It depends on location, property type and management, and outcomes range from solid to negative. Anyone quoting a guaranteed double-digit yield is selling something. We will show you real comparables and achieved rents.
What does management cost?
Typically a percentage of rental income, higher for short lets with guest management. For a property you are not living in, competent local management is the difference between an asset and a liability.
How liquid is the resale market?
Less liquid than the UK. The buyer pool is thinner and marketing periods run longer. Price that in when you buy rather than discovering it when you sell.
How does Panama compare to Spain or Portugal?
Panama is cheaper to buy and own, has no foreign buyer restrictions and taxes property lightly. Spain and Portugal are a short flight away, uprate your state pension and have larger British communities. Neither answer is right for everyone.
Ready to Start the Conversation?
Most British buyers 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 how the pension and healthcare picture looks for you. Sometimes the honest answer is that Panama is not the right fit, and that is still a good outcome.
Message us on WhatsApp at +507 6169-2453. We are five hours behind the UK in winter and six in summer, so expect a reply in your afternoon. 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