How to Buy Property in Panama as a Foreigner (2025 Guide)

Panama has firmly established itself as a top-tier destination for expats, retirees, and international investors. With a stable, dollar-based economy, a high quality of life, and a welcoming atmosphere, it’s no wonder so many are looking to plant roots in this tropical paradise.

But is buying property in Panama as a foreigner a smooth process? The answer is a resounding yes—and this comprehensive guide will walk you through every step.

At Expat-Tations, we specialize in helping foreigners buy, invest, and establish themselves legally in Panama with full confidence. Ready to begin? Schedule your initial consultation today.

Why Are So Many Foreigners Investing in Panama?

Before diving into the “how,” let’s look at the “why.” Panama offers a unique blend of benefits that are hard to find elsewhere:

• Stable Economy & Dollarization: Panama uses the US dollar as its official currency, eliminating exchange rate risk for American and other international investors.
• Strong Property Rights: Foreigners enjoy the same property rights as Panamanian citizens, providing immense legal security.
• Path to Residency: A real estate investment is one of the easiest pathways to obtaining Panamanian residency.
• High Quality of Life: From bustling Panama City to serene beach towns and cool mountain highlands, Panama offers a lifestyle for every preference.

Can Foreigners Really Own Property in Panama?

Absolutely. Panama law grants foreigners the same property rights as nationals. You can purchase property:

• In your personal name
• Jointly with a partner or spouse
• Through a Panamanian corporation or private foundation for added asset protection

Our legal team at Expat-Tations helps you structure your purchase in the safest and most tax-efficient way.

Most Popular Property Types for Foreign Buyers

Your ideal property depends on your lifestyle goals. The most sought-after options include:

• Luxury Apartments: In prime Panama City areas like Punta Pacifica, Coco del Mar, and Avenida Balboa.
• Beachfront Villas & Land: In hotspots like Coronado, Pedasí, Playa Blanca, and Bocas del Toro.
• Mountain Homes: For a cooler climate in charming towns like Boquete and El Valle de Antón.
• Commercial/Investment Properties: For those seeking rental income in Panama City’s growing market.

💡 Our local advisors have access to exclusive off-market listings. Contact us to receive a personalized property list.

The Step-by-Step Guide to Buying Property in Panama

Navigating a foreign real estate market can seem daunting, but with the right team, it’s a straightforward process.

Step 1: Define Your Investment Goals

Are you looking to relocate, generate rental income, or secure a vacation home? Your goal will influence your budget and location choice. We help you align your strategy with your objectives.

Step 2: Work with a Licensed Realtor

This is crucial. A licensed, reputable realtor protects you from fraud and legal pitfalls. All Expat-Tations agents are officially registered in Panama.

Step 3: Legal Due Diligence

Never skip this step. Our legal team conducts a thorough verification to ensure:

• The property is correctly registered in the Public Registry.
• There are no hidden liens, mortgages, or legal disputes.
• All property taxes and municipal fees are paid up to date.

Step 4: Sign the Promise to Purchase Agreement

Once you’ve chosen a property, you’ll sign a sales agreement and typically place a 10% deposit into a secure escrow account. We prepare bilingual contracts to protect your interests.

Step 5: Closing & Title Transfer

The final step! The remaining balance is paid, and the property title is transferred, notarized, and officially recorded in the Public Registry. Congratulations, you are now a property owner in Panama!

Understanding the Costs & Fees

Transparency is key. Here are the typical costs for buyers:

• Transfer Tax: Typically 2%, but this is usually paid by the seller.
• Legal Fees: Generally between 1% – 2% of the purchase price.
• Notary & Registration Fees: Approximately 0.5% of the purchase price.
• Real Estate Commission: This is customarily covered by the seller.

👉 Expat-Tations provides a full, transparent cost estimate upfront—no surprises.

From Property Investment to Panamanian Residency

A significant advantage of investing in Panama is the direct path to residency. Our in-house legal team can manage the entire process for visas such as:

• Friendly Nations Visa: Requires a minimum real estate investment of $200,000.
• Qualified Investor Visa: Requires a minimum real estate investment of $300,000.
• Pensionado Visa: A popular choice for retirees with a verifiable lifetime pension.

👉 Request a free residency eligibility evaluation to see which program is right for you.

Top Areas to Invest in Panama (2025 Price Guide)

• Punta Pacifica / Coco del Mar: Luxury high-rises with ocean views. (~$2,500 – $4,000/m²)
• Coronado / Playa Blanca: Gated beach communities. (~$1,500 – $2,800/m²)
• Boquete / El Valle: Charming mountain retreats. (~$1,200 – $2,000/m²)
• Bocas del Toro: Caribbean waterfront land and homes. (~$1,000 – $2,200/m²)

4 Expert Tips for a Successful Purchase

1. Always Use an Escrow Account: Protect your deposit by using a neutral third-party escrow or fiduciary service.
2. Verify Ongoing Costs: Understand the annual property taxes, HOA fees, and maintenance costs before you commit.
3. Know Rental Regulations: If you plan to rent your property, be aware of local laws and Airbnb requirements.
4. Consider a Corporation: For higher-value investments or asset protection, forming a Panamanian corporation can be a smart move.

Your Journey to Panama Starts Here

Buying property in Panama as a foreigner is not only 100% legal but can be one of the most secure and profitable decisions you’ll make—when you have the right experts by your side.

At Expat-Tations, we integrate real estate, legal, and immigration services to provide a seamless, stress-free experience from property search to closing, and beyond.

📩 Ready to find your dream property in Panama? Contact us for a personalized consultation today.