TROPICAL LIVING IN PANAMA

Yes, foreigners have the same property rights as Panamanians. You can own property in your own name with full title.

Qualified Investor Visa (QIV) offers immediate permanent residency for larger investments (for example $300k+ real estate), requiring a 5-year hold, while the Friendly Nations Visa (FNV) is for citizens of specific countries, offers a faster path to permanent residency after a 2-year temporary permit with lower investment ($200k real estate).

Panama has strong laws that protect beaches, islands, forests, and indigenous lands, and they directly affect what can and cannot be bought.

When selling a property in Panama, the seller is responsible for several standard closing expenses. A 2% transfer tax is paid based on the higher of the sale price or the registered value of the property and must be settled before closing. Capital gains tax also applies and is calculated as either 3% of the sale price or 10% of the actual profit, whichever is lower. Property taxes must also be verified, which is typically done for a small fee by a trusted accountant, as unresolved taxes can delay the closing process. Sellers must also provide "paz y salvo" certificates confirming that utilities and HOA fees are fully paid. Legal fees for contract preparation and notary services vary depending on the attorney and the complexity of the transaction. Since every sale is different, costs typically range between $1,200 and $2,000. Finally, the seller pays the real estate commission, which is typically 5% of the sale price.

When purchasing a property in Panama, buyers should budget for professional legal and registration expenses. Attorney fees cover contract preparation, due diligence, closing coordination, and notary services, and typically range from $1,500 to $3,000 on a $300,000 purchase, depending on the attorney and complexity of the transaction. In addition, the buyer pays a Public Registry fee to officially record the new title, which is based on the property value and is approximately $600 to $750 for a $300,000 property. These costs ensure the transaction is properly documented and the ownership is securely registered.

If you plan to offer your property as a short-term rental, professional management can simplify the entire process. We work directly with Hôte Saison, a trusted property management company based in Canada and now operating in Panama. Their full-service management typically starts at around 20% and includes listing management across rental platforms, guest communication, cleaning coordination, and ongoing property care.

For more details and a personalized estimate, feel free to contact us for additional information.

The purchase process in Panama is clear, secure, and well structured to protect both buyer and seller.

First, the buyer submits a formal offer. Once the terms are accepted, both parties sign a Promise to Purchase and Sale Agreement. At this stage, the buyer makes an initial deposit, typically 10% of the purchase price. This deposit allows the seller to settle all matters related to the property, including property taxes, HOA fees, and required clearances, known as "paz y salvo" certificates.

Once the seller's documentation is complete, the full file is delivered to the buyer's attorney for final legal review. The attorney verifies the title and prepares the transaction for registration under the buyer's name in the Public Registry. The public deed of sale is normally signed within 90 days of the contract, although this period can be extended by mutual agreement if needed.

The remaining 90% of the purchase price is usually secured through an irrevocable bank payment guarantee issued by a licensed Panamanian bank. This guarantee is released to the seller only once the public deed transferring ownership is officially registered in the Public Registry, ensuring that payment and title transfer occur safely and simultaneously.

Once registration is complete, the funds are released, ownership is legally transferred, and the buyer receives the keys, completing the transaction with full legal security.

Yes! You can grant a power of attorney to your attorney or me to sign documents on your behalf. Many of my clients complete purchases remotely. We use secure video calls, digital document signing, and escrow services to make the process smooth from anywhere in the world.

Popular expat-friendly areas include: Casco Viejo (historic, walkable), Costa del Este (modern, safe), Punta Paitilla (beachfront, established), and El Cangrejo (central, affordable). Each offers different lifestyles—I'll help you find the best fit based on your preferences. Check out our neighborhood guide for detailed information.