How to Buy a Home in Panama

Welcome to Panama, a vibrant and beautiful country that has become an attractive destination for expats looking to buy a home. Known for its tropical climate, rich culture, and favorable foreign investment policies, Panama offers a diverse range of properties. This guide will walk you through the essential aspects of buying a home in Panama, ensuring a smooth and informed process for expats.

How do I find houses for sale in Panama?

Finding houses for sale in Panama can be done through various methods. Online listings on real estate websites, local newspapers, and social media groups are excellent starting points. Additionally, working with a reputable real estate agency can provide access to a wider range of properties and expert guidance. Networking with other expats and attending local events can also lead to valuable insights and opportunities.

Are there restrictions on foreigners owning property in Panama?

Panama generally welcomes foreign investment in real estate. However, there are certain restrictions to be aware of. Foreigners are not allowed to own property within 10 kilometers of the borders, and specific regulations apply to waterfront properties. Despite these restrictions, foreigners can legally own titled properties in most areas. It is essential to consult with a legal expert to understand the specific rules and potential workarounds, such as forming a corporation to hold the property.

Does Panama have an MLS type system?

Panama does not have a centralized Multiple Listing Service (MLS) system like the one found in the United States. Real estate listings are often managed by individual agencies, which means buyers may need to consult multiple sources to find the best properties. Working with a well-connected real estate agent can help navigate this fragmented market and access a broader range of listings.

Do brokers have licenses and how do I know if they are licensed?

In Panama, real estate brokers are required to be licensed, but the enforcement of this regulation can vary. To ensure you are working with a licensed broker, request their license number and verify it with the Ministry of Commerce and Industry (MICI). Reputable brokers will readily provide this information and may also be members of professional associations, which can further attest to their credibility.

What documents are required when buying a home in Panama?

When buying a home in Panama, several documents are required. These include a valid passport, proof of funds, a purchase agreement, a certified check for the down payment, and a power of attorney if you are not present for the closing. Additionally, you will need a Certificate of Title (Certificado de Registro Público) and a survey plan (plano catastral). It is crucial to have all documents translated into Spanish and notarized for legal purposes.

Do I need a lawyer when buying a home in Panama?

Yes, it is highly recommended to hire a lawyer when buying a home in Panama. A lawyer will guide you through the legal process, conduct a title search, draft and review contracts, and ensure all required documents are in order. Legal fees can vary, but they typically range from 1% to 2% of the property's value. Engaging a lawyer with experience in real estate transactions will help protect your interests and facilitate a smooth purchase.

Do people typically buy a property with all cash or take out a mortgage?

In Panama, both cash purchases and mortgages are common. Many foreign buyers prefer cash transactions to avoid the complexities of obtaining a mortgage. However, local banks do offer mortgage options for foreigners with competitive interest rates. Requirements for a mortgage may include proof of income, a down payment (usually 20% to 30%), and a valid residency permit. Consulting with a financial advisor can help determine the best financing option for your situation.

Are there inspections that take place, and if so what is that process like?

Home inspections are not mandatory in Panama, but they are highly recommended to ensure the property's condition. Buyers can hire a professional inspector to assess the structural integrity, electrical systems, plumbing, and other critical aspects of the property. The inspection process typically involves a thorough examination and a detailed report outlining any issues or necessary repairs. It is essential to schedule the inspection before finalizing the purchase agreement.

What are some of the pitfalls to avoid when buying property in Panama?

When buying property in Panama, be aware of potential pitfalls. These include title issues, hidden costs, and unscrupulous sellers or agents. Conduct thorough due diligence, including a title search, to ensure the property is free of liens or encumbrances. Be cautious of properties with unclear ownership or ongoing legal disputes. Additionally, factor in all costs, such as property taxes, maintenance fees, and potential renovation expenses, to avoid financial surprises. Working with reputable professionals and seeking legal advice can help mitigate these risks.

Expats Talk about Real Estate in Panama

"Before moving to Panama, it's crucial to understand the visa and residency requirements. Familiarize yourself with the process and prepare for legal procedures such as opening a bank account and obtaining a driver's license. Explore the available housing options to suit various needs and budgets. Learning Spanish is essential, as it's the primary language in Panama. Additionally, research educational opportunities for your children and consider factors like public transportation, safety, and basic infrastructure. Get acquainted with Panama's cultural and recreational offerings to fully enjoy your experience in the country. It's also valuable to explore the recreational and sports options available in Panama. From pristine beaches to outdoor activities like hiking, surfing, and diving, the country offers a wide range of opportunities to enjoy nature and maintain an active lifestyle. Additionally, there is a vibrant sports scene with local and international events that may interest sports enthusiasts," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

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Moises Alvarado N.

Panama Legal Business (PANLEB)

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

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Moises Alvarado N.

Panama Legal Business (PANLEB)

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

"We visited here many times before moving and stayed in different areas each time. There are 13 micro-climates here and they vary greatly. Some roads are not good so that may play into housing decisions too. Temperatures vary, even 5 minutes away can make a big difference. There are also areas that get extremely windy in Jan-Feb. Rent before buying," wrote a member in Boquete.

"Rent first before you buy. Your paradise today may not be what you will think in 6 months. Brings essentials and sell everything else, you can get it cheaper here," commented one expat who made the move to Bocas del Toro.

"Come and visit several areas before making the move. We have snakes, though I haven't seen one yet. We do not have mosquitos. If you select an International Mover, avoid Move Management. They are very efficient on the US side, but they use PIR on the Panama side. PIR can't create a ACH to withdraw funds from your checking account, nor can they swipe a debit or credit card. As Manny Rojas in Miami,says, you can always pay in cash. (his relatives in Panama City run PIR) If you do not have two thousand in cash it may take you nine days to get the cash from an ATM, meanwhile, port charges, at $50 per day, keep mounting. I was withdrawing from 2 different banks in the US banks on a daily basis. BTW, every ATM here spits out $20.00 bills. You may have to fight with your US bank to make them understand that there is no Foreign Exchange issue in Panama. Mastercard charged as much as $12 foreign transaction. They have since reduced those fees to $5 or $6. Visa charges $4. If you don't have a place for your goods to be delivered, PIR charges $500 per month or any portion thereof, even one extra day will cost you $500.00. One more thing, if you send them a wire transfer, their bank charges PIR $90, which they will gleefully pass on to you. Bring buckets of cash or avoid Move Management. Your local US contact will drop you like a hot potato as soon as your goods are on the water. There is a storage place on the way to Boquete called Chiriqui Storage run by Hellmut and Linda Pederson. One good sized locker is $100/mo. A 20 ft. container would take two lockers," remarked one expat living in Alto Boquete.

"Definitely rent. When you find a short-term rental you really like and you demonstrate to the owner that you can be trusted they will probably let you reserve it a year in advance. That’s what we do, but we are considering the possibility of looking for a yearly lease which might cost about the same as 4-6 months short term. It would have to be a place where the owner lives nearby and can keep an eye on things. The advantage would be that you can furnish it the way you want and keep your stuff there when you are away. As far as I can see that would be cheaper and more convenient than buying," wrote one member in Panama.

"When someone is planning to retire in a tropical paradise like Panama, owning a home, investing in land, acquiring a beach-front property are only some of the reasons why it is important to learn the rules regarding real estate in the Republic of Panama. No matter for what purpose the land is being purchased it is important to learn as much as possible regarding the property, including but not limited to limits and boundaries, its encumbrances, registered value, official blueprints, tax burdens and others. First and foremost, the Panamanian constitution and Panamanian law allows for both nationals and foreigners to purchase titled property in Panama," wrote Business Panama from Business Panama Group.

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Business Panama

Business Panama Group

The Business Panama Group (“BusinessPanama”) is a well-established group of companies, professionals and alliance partners promoting and facilitating business, investments, real estate, immigration and tourism in Panama by providing information, business, legal and investment services to individual and corporate investors.

Click connect to have our partner, Business, contact you via e-mail and/or phone.

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Business Panama

Business Panama Group

The Business Panama Group (“BusinessPanama”) is a well-established group of companies, professionals and alliance partners promoting and facilitating business, investments, real estate, immigration and tourism in Panama by providing information, business, legal and investment services to individual and corporate investors.

Click connect to have our partner, Business, contact you via e-mail and/or phone.

"When purchasing property anywhere in Panama, it is best to use a knowledgeable real estate company and/or attorney to walk you through the process. If you work with an expat in Panama, make sure they are working here legally! Ask to see their work permit. If you work with an illegal (even if they are from your hometown!), you will have no recourse if something goes wrong. Also, understand the difference between the two types of property ownership in Panama, TITLED and R.O.P. (Right of Possession)," mentioned one expat living in Panama.

"Use only a well known reputable realtor and have an attorney. If you hire professionals listen to their advice. We bought prior to moving here 2 1/2 years ago, and we bought sight unseen as it was an unusual opportunity. The process went smoothly, no issues. We couldn't be happier with our property and in retrospect we really got a great deal on a great property," said an expat in Panama.

"DO your due diligence, engage a realtor who A - speaks English, B-is responsive and pro-active, where EVER you are calling them from. KNOW what you are looking for (we made a LIST of 'must haves' and 'must NOT haves'! We found our DREAM here," remarked one expat in Panama.

"Yes, foreigners are allowed to own property in Panama with few restrictions. Foreigners have the same rights as Panamanian citizens to acquire property, whether for personal use or as an investment," wrote Moises Alvarado N. from Panama Legal Business (PANLEB).

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Moises Alvarado N.

Panama Legal Business (PANLEB)

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

Connect

Moises Alvarado N.

Panama Legal Business (PANLEB)

Moisés Alvarado Navarro is an experienced legal advisor in Panama and has assisted numerous foreigners in establishing themselves in Panama.

Click connect to have our partner, Moises, contact you via e-mail and/or phone.

"First and foremost, the Panamanian constitution and Panamanian law allows for both nationals and foreigners to purchase and own titled property in Panama. When someone is planning to move to a tropical paradise like Panama, owning a home, investing in land, acquiring a beach-front property are only some of the reasons why it is important to learn the rules regarding real estate in the Republic of Panama. ,"

"Some years ago the government passed laws limiting "visitor" stays to maximum of 3 months. Property owners apply for and can be granted residency status which may take some time and $$$$, but is a must if the property here will be your primary home," said an expat in Panama.

"Foreigners have the same property rights as Panamanians, with one exception. Foreigners are not allowed to own property in their own name within 10 kilometers of the border of Costa Rica. Of course, there are still legal ways to have your dream beach house! ROP properties are not included in this rule, since they are not technically "owned" and Titled properties can be held in a Panamanian Corporation or Foundation that is set up properly for this. Another reason to hire a competent attorney," remarked one expat in Panama.

"I would recommend using a reputable agent! Highly recommend Lauretta Bonfiglio with Boquete Land and Realty and also affiliated with Casa Solution. Highly knowledgeable," commented one expat living in Boquete, Panama.

"Keller Williams Realty Panama is one of the best countrywide real estate companies in Panama and they are aactive listing on the MLS, called ACOBIR in Panama. Debbie Fishell is an active Keller Williams associate who works primarily in the Chiriqui province [email protected]. There is a good site on the up and coming area of Puerto Armuelles called visitPuertoArmuelles.com, which has a classified section with some for sale by owner properties," mentioned one expat living in Panama.

"There is a website used by many real estate people and individuals that put their house/condo etc. up for sale and rent. The site is https://www.encuentra24.com/panama-es/clasificados . It covers all of Panama so it is best to know where it is you are interested in buying. It took us 3 years of traveling throughout Panama to find where we wanted to settle. Good luck with your search," said an expat in Panama.

"Inside Panama Real Estate has the most versatile listings AND property management services. Many others can be easily found online. Some specialize in farm or ranch properties, some in high rise condos in Panama City," remarked one expat in Panama.