Frequently Asked Questions

Yes! Panama has very favorable laws for foreign property ownership. Foreigners have the same property rights as Panamanian citizens and can own property in their own name with full title. The only restriction is on properties within 10 kilometers of international borders, which require special permits.

Typical closing costs in Panama range from 5-7% of the purchase price. This includes:

• Transfer tax (2% of registered value or sale price, whichever is higher)
• Registration fees (approximately 0.3%)
• Notary fees (varies based on property value)
• Legal fees (typically 1-2%)
• Title insurance (optional but recommended, about 0.5%)

While not legally required, we strongly recommend hiring a qualified Panamanian attorney for any real estate transaction. A lawyer will conduct due diligence, verify the title is clear, review contracts, and ensure all legal requirements are met. This typically costs 1-2% of the purchase price and provides essential protection for your investment.

A typical property closing in Panama takes 30-60 days from accepted offer to completion. This includes time for due diligence, title search, contract preparation, and registration. Cash purchases can close faster, while financed purchases may take longer. Having an experienced agent and lawyer can help expedite the process.

Yes, several Panamanian banks offer mortgages to foreigners, though terms differ from US mortgages. Typical requirements include:

• 20-30% down payment
• Income verification
• Residency visa (in some cases)

Interest rates are typically 6-8%. Some developers also offer in-house financing with more flexible terms for new construction.

Panama has very low property taxes compared to most countries. The progressive tax structure is:

• Properties valued under $120,000 are exempt from property tax
• 0.5% on value from $120,000 to $700,000
• 0.7% on value above $700,000

New construction may qualify for tax exemptions of up to 20 years.

The Friendly Nations Visa is a popular residency option for citizens of about 50 countries including the USA, Canada, UK, and most European nations. By purchasing property in Panama (no minimum value required) and establishing economic ties, you can obtain permanent residency. The process typically takes 3-6 months and allows you to live, work, and own businesses in Panama.

Top investment areas include:

• Panama City (Punta Pacifica, Costa del Este, San Francisco) - appreciation and rental income
• Beach areas (Coronado, Buenaventura, Pedasi) - vacation rentals
• Boquete - expat and retirement community
• Panama Pacifico - family living and growing development

Each area offers different lifestyle and investment opportunities. Contact us to discuss which area best fits your goals.

Panama has a strong rental market, particularly in Panama City. Rental yields typically range from 5-8% annually depending on location and property type. Popular rental areas include Punta Pacifica, San Francisco, Casco Viejo, and beach destinations like Coronado. Both long-term and vacation rentals are viable investment strategies.

Panama City is generally considered safe for expats and tourists, especially in popular neighborhoods like Punta Pacifica, Costa del Este, Clayton, and Panama Pacifico. Like any major city, common-sense precautions are advised. Panama has a stable democracy, no military, and uses the US dollar, making it one of the most secure countries in Latin America.