How to Buy Property in Panama as a Foreigner

Can Foreigners Own Property in Panama?

Yes. Panama has some of the most foreigner-friendly property ownership laws in Latin America. Foreigners have the same ownership rights as Panamanian citizens for titled property — no restrictions, no quotas.

This is one of Panama's major advantages over other countries in the region.

Types of Property Rights

Before you buy, understand what you're actually purchasing:

*Titled Property (Propiedad Titulada)*

The most secure form. Title is registered at the Public Registry (Registro Público). This is what you want.

*Rights of Possession (Derecho Posesorio)*

Common in areas outside Panama City. Not registered at the Public Registry. Higher risk — avoid unless you have expert local guidance.

*Concession Property*

Some beachfront and island properties are government concessions. Complex legal situation — always get a specialist attorney.

For Avenida Balboa and most Panama City condos: you'll be dealing with titled property. Good.

Step-by-Step: The Buying Process

Step 1: Engage a Real Estate Attorney

This is non-negotiable. Your attorney (not the broker, not the seller's attorney) will:

• •Review the title at the Registro Público
• •Check for liens, mortgages, and encumbrances
• •Verify the seller's right to sell
• •Draft or review the Promesa de Compraventa

Budget: $1,500–$3,500 in legal fees depending on complexity.

Step 2: Make an Offer

In Panama, offers are typically informal (verbal or written email/WhatsApp). Once accepted, you move to the formal contract stage.

Step 3: Sign the Promesa de Compraventa

The Promesa de Compraventa (Purchase Promise) is the key contract. It outlines:

• •Property description
• •Agreed price
• •Payment schedule
• •Closing date
• •Penalties for breach by either party

With the Promesa, you typically pay a reservation deposit of $5,000–$10,000. This deposit is usually non-refundable if you back out without cause, but refundable if the seller fails to perform.

This document can be signed remotely via DocuSign in most cases.

Step 4: Due Diligence Period

During the period between the Promesa and closing, your attorney:

• •Conducts a full title search at the Registro Público
• •Verifies there are no outstanding property taxes (impuesto de inmueble)
• •Confirms HOA fees are current (in case of existing owner)
• •Reviews condo reglamento for STR restrictions

Step 5: Closing — The Escritura Pública

The Escritura Pública (public deed) is the final transfer document. It must be:

1. Drafted by a Panamanian attorney

2. Signed before a Notario Público

3. Registered at the Registro Público

Can you close remotely? Yes. With a Power of Attorney (POA), your attorney can sign the Escritura on your behalf. Many of our international clients close entirely without visiting Panama.

Step 6: Registration and Transfer of Title

After signing, the Escritura is submitted to the Registro Público. Processing takes 2–6 weeks. Once registered, the title is officially in your name.

Closing Costs