Panama is an emerging real estate hotspot for expats, retirees, and investors alike. With its dollar-based economy, tropical climate, and tax incentives, the country has become an attractive destination for owning property. But before you sign on the dotted line, here are 10 key things to know to avoid surprises and secure a smart deal.
1. Foreigners Can Own Property in Panama
Good news—foreigners have the same property rights as locals in most areas. You can buy, sell, and rent real estate freely, except for land within 10 kilometers of national borders, which is restricted.
2. You Don’t Need to Be a Resident
You don’t have to live in Panama or hold a visa to purchase real estate. However, owning property can support your residency application if you plan to stay long-term.
3. Always Work with a Licensed Real Estate Agent
The real estate industry in Panama is partially regulated. Protect yourself by working with a licensed broker registered with the Technical Board of Real Estate. Ask for credentials up front.
4. Get a Real Estate Attorney
Hiring a bilingual Panamanian attorney is a must. They’ll ensure your contract is legally binding, verify property titles, and handle the closing process correctly. Don’t rely solely on your agent for legal advice.
5. Title Verification Is Critical
Not all properties in Panama have clean or titled ownership. Some may be "possessory rights" or involve squatters’ claims. Always request a full title search to avoid legal headaches.
6. Closing Costs Add Up
Buyers typically pay around 3% to 5% of the property price in closing costs, including legal fees, transfer taxes, and notary expenses. Budget accordingly so you're not caught off guard.
7. Property Taxes Are Attractive
Panama offers generous tax incentives. Properties under $120,000 are often exempt from property taxes, and others may qualify for 5–20 year exemptions depending on location and use.
8. Location Determines Value and Liquidity
Beachfront, mountain, and urban properties can vary drastically in price and resale value. Research local market trends in areas like Panama City, Boquete, Coronado, and Bocas del Toro before choosing your spot.
9. Financing Can Be Tricky
Local banks may not offer financing to non-residents, and if they do, rates and terms might not be favorable. Many foreign buyers choose to pay in cash or secure financing in their home country.
10. Infrastructure May Vary by Region
While Panama City boasts modern amenities and infrastructure, rural or coastal areas might lack reliable internet, roads, or utilities. Visit multiple times before committing—and talk to locals.
Ready to Buy Smart in Panama?
Buying real estate in Panama can be a great move, but it pays to be prepared. Do your homework, work with professionals, and take your time before making a major investment.
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