Panama Property Market for Overseas Buyers

Yes. Foreigners buy freehold property in their own name with the same rights as Panamanians, and no approval is needed. Titles are registered at the Public Registry. Land near borders and on some islands can need a local company or extra checks, so use a Panamanian lawyer for those.

Buying costs are low at about 3% in total: 2% transfer tax on resale, notary fees of 0.5% to 1% and a registry fee of 0.25%. New builds from a developer carry 5% VAT instead. Sellers pay 10% on the gain, with 3% withheld at closing. Annual property tax is nil on a home registered below USD 120,000.

For most mainland homes you buy freehold in your own name. On some islands, such as parts of Bocas del Toro, buyers often hold the property through a Panamanian corporation. A lawyer should confirm the title type and any border or coastal rules before you pay a deposit.

Yes, from banks such as Banco General, Banistmo and BAC. Non-residents usually borrow 50% to 70% of the value in US dollars at about 5.5% to 6.5%, over 15 to 25 years. Expect three to six months of paperwork and a bank account opened first.

The economy runs on the US dollar, so there is no currency risk against it. Panama City long-term rents yield about 4% to 6% gross, with higher short-term yields in Casco Viejo and Bocas del Toro. Some mid-range apartment blocks are oversupplied. Capital at risk.

Not by itself, but it can support a visa. The Friendly Nations Visa for citizens of listed countries accepts USD 200,000 in real estate and starts with a 2-year permit. The Qualified Investor Visa gives permanent residency for USD 300,000 in a new home bought from the developer, or USD 500,000 for resale property since September 2026.