Panama Buying Property in Panama

Buying Process, Fees & Taxes

Can foreigners buy property in Panama?

Yes, foreigners can buy property in Panama and the Government of Panama welcomes investment from overseas buyers. There are no restrictions on foreign buyers acquiring real estate in Panama and foreign buyers enjoy the same rights as Panamanian citizens.

Buying process

Buying property in Panama is a relatively simple process, which typically involves the following steps:

1. Begin your property search and find your perfect property
2. Search and find lawyer
3. Make offer
4. Offer accepted
5. Refundable reservation to secure unit for period of time (typically 14 days)
6. Lawyers review and iron out Promissory Purchase Contract
7. Both parties sign contract
8. Typically 10% is transferred to seller as a firm deposit
9. Remaining 90% is paid upon deed transfer with notary (typical closing period 45 to 60 days)
10. Buyer is responsible for registration fees and notary fees and their own legal expenses
11. Seller is responsible for broker commission / transfer taxes and their own legal expenses

Fees & taxes

Transfer Tax

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).

Property Tax

As of 2025, property tax on a property declared as a primary residence (Tributary Family Patrimony or Primary Residence) is payable according to the property’s declared value in the Panama Public Registry, as follows:

• $0 to $120,000: Exempt
• $120,001 to $700,000: 0.5% of the value
• Over $700,000: 0.7% of the value

For secondary residences, commercial property, or industrial property:

• $0 to $30,000: Exempt
• $30,001 to $250,000: 0.6% of the value
• $250,001 to $500,000: 0.8% of the value
• Over $500,000: 1.0% of the value

Property taxes can be paid in three installments (April 30th, August 30th, and December 31st) or with a 10% discount if paid in full before March 1st each year.

Tax on Secondary Residences, commercial property or industrial property is payable as follows:

• $0 to $30,000: Exempt,
• $30,001 to $250,000: 0.6% of the value,
• $250,001 to $500,000: 0.8% of the value,
• Over $500,000: 1.0% of the value.

Some properties are exempt from property taxes.

Residency & Citizenship

How long can a foreign citizen stay in Panama?

Citizens of the USA, Canada, UK, EU and many countries in the Caribbean and Latin America are permitted to visit Panama without a visa for up to 180 days.

How do you become a resident of Panama?

Panama actively encourages financially self-sufficient foreign citizens to move to the country and retire in Panama and offers a range of routes to residency, including:

Friendly Nations Visa

Friendly Nations Visa: Citizens of approximately 50 friendly nations (including the USA, Canada, UK, EU countries, Australia, Japan, South Korea, and others) who wish to relocate to Panama may qualify for the Friendly Nations Visa residency program.

Successful applicants receive a 2-year provisional residency, after which they can apply for permanent residency subject to continuing to meet requirements.

Current requirements include demonstrating economic ties through one of the following options:

• Employment with a Panamanian company (with formal labor contract and work permit)
• Purchase of real estate with minimum value of US $200,000 (bank financing permitted)
• Fixed-term deposit of at least US $200,000 in a Panamanian bank for 3 years

Government fees include $250 to the National Treasury and $800 to the National Immigration Service, plus legal and administrative costs.

Retirement Visa (Panama Pensionado Visa)

Retired individuals who can demonstrate a pension income guaranteed for life of at least $1,000 per month from a governmental or private source ($750 per month in the case of those who have purchased a property in Panama with a minimum value of $100,000) are eligible to apply for the Pensionado visa program. This program offers a range of benefits including discounts on entertainment, restaurants, medical care, airfares and utility bills.

How do you become a citizen of Panama?

Individuals who have lawfully resided in Panama for 5 years can apply for citizenship by naturalization.