Guide · Real estate
Buying Property in Panama as a Foreigner
What a foreigner can buy in Panama, how to check the title in the Public Registry, the steps of the purchase and the taxes you pay.
- Foreigners
- Can buy, with exceptions
- Check
- Title registered in the Public Registry
- Residency
- Not needed to buy
- Updated
On this page
In short
A foreigner can buy property in Panama with the same rights as a Panamanian, except in specific areas such as those near the borders. The key is to check in the Public Registry that the property has a registered title deed and is free of encumbrances before you sign.
Title deed or possessory rights?
In Panama there are properties with a title deed registered in the Public Registry and land held under possessory rights (derechos posesorios), which only prove occupation. Buying possessory rights is much riskier: before you pay, confirm what you are buying. It is very common on the coast and the islands (see buying property in Bocas del Toro).
What can't a foreigner buy?
The Constitution restricts foreign ownership in areas near the borders, and some islands and coastal areas have special rules. In the rest of the country, a foreigner can buy in their own name or through a company.
What does the purchase look like, step by step?
01
Public Registry check
Ownership, encumbrances, mortgages and debts on the property.
02
Promise of sale agreement
It sets the price, deadlines and conditions; it usually comes with a deposit, sometimes held in escrow.
03
Public deed before a notary
Signing of the sale and payment of the price.
04
Registration in the Public Registry
From registration, the property is yours as against third parties.
We explain the last step, registration, in detail in registering the purchase in the Public Registry.
What taxes and costs does the purchase involve?
- Real estate transfer tax: 2 %, generally paid by the seller.
- Notary and Public Registry registration costs.
- Annual property tax, with an exemption for your main home up to USD 120,000.
Frequently asked questions
Does buying a home give me residency?
Not on its own. Some residency options, such as economic solvency or Qualified Investor, accept a real estate investment if it reaches the minimum amount and meets their requirements.
Can I buy through a company?
Yes, it is common. It has advantages and maintenance costs: decide before you sign, because changing ownership later triggers taxes.
What if I don't know the area yet?
Consider renting for a few months before buying: you will get to know the services, access and real prices before committing.