Real Estate Investment in Panama with Confidence and Clarity

Frequently Asked Questions for Foreign Investors

• Can foreigners buy property in Panama?

  Yes. Foreigners have the same rights as nationals to purchase and title real estate in Panama: they can own 100% in their own name or through a Panamanian corporation. No prior residency is required to buy.

  There are restrictions in specific areas: titled property cannot be acquired within 10 km of international borders or in indigenous territories; in those cases there are legal alternatives (concessions, leases). We advise you in choosing properties and structures that comply with the law and your objectives.

• What tax advantages does real estate investment in Panama offer?

  Panama applies the territoriality principle: it only taxes income generated within its territory. Foreign-source income may be exempt from Panamanian income tax, depending on your situation.

  On purchase, the transfer tax (2% of the value) is usually the seller's responsibility; the buyer does not pay this tax. Rental income from a property in Panama is subject to local tax treatment. Capital gains on sale have specific rules (including a prepayment option). We recommend tax advice based on your residence and plans.

• How does the investment residence program work?

  The Permanent Resident as Qualified Investor program grants permanent residency by investing in real estate. The minimum real estate investment is set at USD 300,000 and remains in effect until October 15, 2026; after that date the amount increases to USD 500,000.

  Funds must be of foreign origin and certified. Co-ownership with a spouse or dependents is accepted and, under certain conditions, purchase agreements with escrow deposits. There is no minimum annual stay requirement in Panama. The process typically takes approximately 30 business days and includes spouse and dependent children. After five years, citizenship can be applied for. We guide you on documentation and steps.

• What should I verify before buying?

  It is essential to conduct due diligence before signing: verify that the title is free of liens, mortgages, and litigation; confirm that the seller is the registered owner; review boundaries and that the property matches what was offered; and verify zoning compliance and permits if applicable.

  We always recommend having an independent attorney (not recommended by the seller) to review contracts, manage registration, and certify the transaction through a public deed before a notary. We support you in identifying opportunities and coordinating with your legal advisor for a secure closing.

• Can I finance the purchase through a bank in Panama?

  Yes. Several Panamanian banks offer mortgage loans to foreigners for property purchases. Typical conditions include financing of 50% to 70% of the value (down payment of 30% to 50%), terms of up to 25 years, and rates that depend on the profile and market conditions.

  They usually require proof of income, bank references, and translated and authenticated documentation. We guide you on institutions that work with international investors and on the standard documentation to expedite the process.

• What additional costs are there when buying?

  In addition to the property price, you should consider closing costs. In a cash purchase, the total is usually between 2% and 5% of the value (notary, registration, legal fees); with mortgage financing it can reach 3%–7%.

  These include: notary fees (public deed), Public Registry inscription (approx. 1% of value with applicable minimum), legal fees (typically 1%–2.5% for due diligence, contract, and closing), and optionally escrow deposit and translations. The transfer tax (2%) is usually the seller's responsibility. We prepare an estimated breakdown for each property you're interested in.