How to Buy Property in Panama as a Foreigner (2026 Guide)
By Gustavo Szuchman, Papaya Holdings · Published · Last updated
Buying property in Panama as a foreigner takes four steps: reservation, due diligence, a binding promise-to-purchase contract, and the public deed. Expect 30–60 days and 3–6% in costs.
Before you start
- Hire your own Panamanian real estate attorney before you reserve anything. Not the seller's, developer's or broker's.
- Decide how you will hold title: in your own name (simplest) or through a Panamanian corporation. See the Buyer's Guide.
- Plan the money: how funds will reach Panama, and a budget of 3–6% above the price for taxes and fees.
- Visit the property, or at least do a live video walkthrough.
You do not need residency or a visa to buy. A valid passport is enough.
Step 1: Reservation
You agree the property, price and main terms, often in a short reservation agreement or letter of intent. A small deposit may be paid and should be held in escrow. Reservations are usually non-binding on the price until the contract is signed.
Step 2: Due diligence (7–14 days)
Your attorney:
- obtains a Public Registry certificate from the Registro Público and verifies the finca number;
- confirms the seller is the registered owner and has the right to sell;
- checks for liens, mortgages, claims and unpaid property tax;
- confirms the property is titled, not Right of Possession;
- for land, checks legal road access, zoning and environmental restrictions;
- for pre-construction, checks permits, escrow and the construction contract.
Work through our 27-point pre-purchase checklist in parallel.
Step 3: Promise to purchase (promesa de compraventa)
The binding contract. It sets the price, payment schedule, closing date, conditions and penalties. A deposit of around 10% is typical, held in escrow. For pre-construction, it also fixes the specification, delivery date and what happens if delivery is late. Read every clause with your attorney; ambiguity usually favours the seller.
Step 4: Deed and registration
The public deed (escritura pública) is signed before a notary, the balance is paid (normally through escrow) and the deed is filed at the Public Registry. Once registered, the property is legally yours. For pre-construction, keys are handed over at completion.
Costs and taxes
| Item | Typical amount | Notes |
|---|---|---|
| Transfer tax (ITBI) | 2% | Commonly paid by the seller; your contract decides |
| Advance capital-gains tax | 3% of the price | Paid by the seller as an advance on their tax |
| Legal fees | $1,500–3,500 | For your own attorney |
| Notary and registry fees | A few hundred to a few thousand dollars | Depends on the price |
| Corporation setup (optional) | $1,500–2,500 | Only if you buy through an S.A. |
Budget 3–6% above the price to be safe, then confirm with your attorney who pays what. Details in Panama property taxes and closing costs.
Timeline
| Stage | Typical time |
|---|---|
| Reservation | Days |
| Due diligence | 7–14 days |
| Contract to deed | 2–6 weeks |
| Total | 30–60 days |
Frequently asked questions
Can a foreigner buy property in Panama without residency?
Yes. Foreigners can buy titled property with only a valid passport.
How long does it take to buy property in Panama?
Typically 30–60 days from accepted offer to registered title.
Do I need a lawyer to buy property in Panama?
Yes. Hire your own Panamanian real estate attorney before signing anything.
Can I buy property in Panama remotely?
Yes. With a properly formalised power of attorney (apostilled if signed abroad), your attorney can sign on your behalf.
Who pays the transfer tax in Panama?
The 2% transfer tax and the 3% advance capital-gains tax are commonly paid by the seller, but it is negotiable. Check your contract.
Continue reading
- Chapter 1The Playa Venao + Playa Raya Buyer's GuideHow foreigners buy property in Playa Venao and Playa Raya: titled land vs ROP, the steps, taxes and costs, red flags and realistic yields. 2026 edition.
- Chapter 2Turnkey vs Pre-Construction vs Land in Panama: Which Is Right for You?Turnkey home, pre-construction villa or land in Panama? Honest comparison of cost, risk, timeline and which option fits which buyer in Playa Venao.
- Chapter 3The Pre-Purchase Checklist for Playa Venao + Playa Raya Real EstateA 27-point checklist for buying property in Panama: title, location, permits, money and contracts. Work through it before you sign in Playa Venao.
- Chapter 4Panama Pre-Construction Risk: What Buyers Need to Verify Before SigningBuying pre-construction in Panama? The risks that matter, how often projects stall, and a 7-point verification checklist to use before you sign.
- Chapter 5Can Foreigners Own Property in Panama? Rules & Verification StepsHow foreigners can legally own property in Panama: titled land vs Right of Possession, the Public Registry, the buying steps and the mistakes to avoid.
- Chapter 6How to Get Panama Permanent Residency with a Playa Venao VillaGet Panama permanent residency with a $500,000 real estate investment under the Qualified Investor Visa. Requirements, steps, family and timelines.
