Overview – The Panama Real Estate Market
Thanks to a business-friendly environment and a strategic location at the crossroads of North and South America, Panama’s US Dollar based economy grew by more than 8% per year from 2005 to 2010. While growth has slowed, the economy still achieved growth of 5.8% in 2015 and remains one of Latin America’s fastest growing economies. On-going expansion of the Panama Canal is expected to drive significant future growth. Economic growth has made Panama a very happy place. The country’s citizens were recently ranked first in a global survey of well-being and contentedness.
While the country’s breath-taking beaches, 1,800 islands and islets and vast rainforest are still considered off the beaten track and ripe for exploration, the capital, Panama City, is a vibrant, diverse city of over 880,000 people. With a low cost of living, low crime rate and good quality healthcare, it offers a very high standard of living. This mix of urban energy and laid back beach life has made Panama a popular tourist destination which attracted 2.3 million visitors in 2014 – an increase of nearly 5% on 2013.
Much like Central American neighbours Costa Rica, Belize and Nicaragua, as tourism has grown, so too has Panama’s real estate market. Contemporary developments of apartments and condos have sprung up in and around Panama City and luxury homes for sale are available in beachfront communities and private island resorts – ideal for a second home or investment property. As specialists in luxury Caribbean property, we can introduce you to the finest residential property, land for sale and commercial real estate in Panama, including Altos del Maria, Bocas del Toro, Contadora, El Valle de Anton, Isla Palenque, Rio Mar and Panama City. Working in close partnership with our trusted, expert partners on the ground in Panama, we can offer you unrivalled local insight into the property market and the most desirable investment opportunities.
Bocas del Toro
Discover Bocas del Toro – Read our Guide to Bocas del Toro Real Estate.
Discover Chiriquí – Read our Guide to Chiriqui Real Estate.
Discover Cocle – Read our Guide to Cocle Real Estate.
Discover Colon – Read our Guide to Colon Real Estate.
Discover Los Santos – Read our Guide to Los Santos Real Estate.
Discover Panama City – Read our Guide to Panama City Real Estate.
Discover Panama Oeste – Read our Guide to Panama Oeste Real Estate.
Discover Pearl Islands – Read our Guide to Pearl Islands Real Estate.
Buying Property in Panama
There are no restrictions on foreign buyers acquiring real estate in Panama. Foreign buyers enjoy the same rights as Panamanian citizens.
Once you have made an offer on a property and that offer has been accepted, you will need to pay a deposit. You should ensure that thorough due diligence is conducted. Both you and the seller will then need to review and sign a Purchase and Sale Agreement. Upon signing, title will be transferred and the balance of the payment should be paid.
The seller is responsible for paying a transfer tax of 2% of the updated registered value (registered value + 5% per year of ownership) of the property or the purchase price (whichever is higher).
There is an annual property tax which varies according to the assessed value of the property, as follows: ~$30,000: 0%, $30-50,000: 1.75%, $50-75,000: 1.95%, $75,000+: 2.1%. Some properties are exempt from property tax.
Panama actively encourages retirees and expats to move to Panama and offers a range of visa options with highly attractive incentives for investors and retirees with guaranteed income.
Panama – Land for Sale
Purchasing a lot of land provides you with a blank canvas and the opportunity to build your dream home in Panama.
Whether you are looking for beachfront land or a centrally located plot, we offer various lots of land for sale in Panama.
For larger parcels of land for commercial development, please see our commercial real estate listings.
Saving on Your Purchase
You could save money when investing in Panama real estate by using a foreign exchange expert to get the best rate for your property purchase. We have partnered with Halo Financial, a specialist in foreign exchange, to help you get the best exchange rates when making one-off or regular international payments for a property purchase in Panama. To see how you could save money, read more: Foreign Exchange.
There are direct flights to Panama’s Tocumen International Airport from various cities in North, Central and South America.
From North America, you can fly direct to Panama City from cities including Miami (American Airlines), Atlanta (Delta), New York, Boston, Toronto and Los Angeles (Copa).
From Europe, fly with Air France, Iberia or KLM.
Tocumen International Airport, which was recently expanded and renovated, is centrally located just 24km outside of Panama City.
Atlanta to Panama: 4 hours 05 mins
Boston to Panama: 5 hours 40 mins
Los Angeles to Panama: 6 hours 45 mins
Madrid to Panama: 10 hours 25 mins
Miami to Panama: 3 hours 00 mins
Toronto to Panama: 6 hours 50 mins