Source: https://panamamedicalhub.com/guides/en/buying-property-panama-guide/
Language: English
Source edition: 2026-10-11. Original source reviewed by the site owner: 2026-10-14. Reader editorial update: 2026-10-22; this does not imply a new owner review or medical/legal review. Source checks are dated separately.

## Key points and your next step

Get familiar with title checks, purchase steps, property taxes, and due diligence.

- Use this guide to prepare a conversation; confirm the requirements that apply to you.
- Figures and contacts in the source document are not current quotes or independent site verification.
- Record the date, who answered, and written confirmation before acting.

# Buying Property in Panama: The Complete Guide for Foreign Retirees

**Source’s stated verification: October 2026.** Written for expats aged 55–85 considering buying a home in Panama: what you may own, how the purchase works step by step, the exact costs and taxes, and — most importantly — the verification protocol that separates safe purchases from catastrophic ones.

> ⚠️ **The one thing to remember:** Panama's title system is solid for *registered* property, but two traps concentrate most buyer losses: untitled "rights of possession" (ROP) land, and pre-construction projects that never deliver. The verification protocol below protects you against both.

## Can foreigners buy property in Panama?

Yes. Foreigners — resident or not — can own titled property with essentially the same rights as Panamanian citizens: no residency requirement, no limit on the number of properties, no special permit or surcharge. You can buy in your personal name, through a corporation (Sociedad Anónima), or a Private Interest Foundation — get legal advice before choosing a structure.

**There is one hard exception you must know.** Article 291 of the Constitution bars foreign natural persons, foreign companies, **and Panamanian companies with any foreign capital** from owning land within **10 km of the international borders** (Costa Rica and Colombia). Three consequences:

- A Panamanian corporation or foundation does **not** circumvent the ban — foreign capital "taints" the entity. There is no corporate workaround.
- Residency status is irrelevant; the rule attaches to your nationality of ownership.
- Affected areas: far western Chiriquí near Costa Rica, mainland Bocas del Toro around Guabito/Changuinola, and Darién and Guna Yala near Colombia. **Panama City, Coronado, Boquete, El Valle and Pedasí — all the main expat markets — are outside the zone.** For parcels anywhere near a border, have your lawyer and a licensed surveyor measure the distance before proceeding.

Also not privately ownable by anyone: indigenous comarca land, the public beach strip (22 m from the high-tide line on the Pacific, 10 m on the Atlantic), mangroves, and protected areas.

## What is the difference between titled property and ROP (derecho posesorio)?

This is the single most important distinction in Panama real estate.

**Titled property (propiedad titulada)** is registered in the Public Registry with a finca (parcel) number and a verifiable chain of ownership, mortgages and liens. It is financeable, insurable, and resalable.

**ROP (right of possession)** is recognized occupation of **state-owned land**, administered by ANATI — not registered, not owned. The holder can sell only the improvements and the "expectation of titling": no finca number, no financing, no registry protection. ROP is concentrated exactly where cheap "dream listings" appear: the Bocas del Toro islands, remote coastlines and rural land.

**Red-flag marketing language that usually means ROP:** "titled property coming soon" (it isn't), "in the process of titling" (outcome unknown), "traditional land rights," and any coastal or island listing without a registered folio number.

### Can ROP land be converted to title?

Yes, through ANATI's adjudication process — but it is slow, costly, and never guaranteed:

1. Petition to ANATI's National Titling Directorate; 2) georeferenced survey by a licensed surveyor (~$800–3,500); 3) proof of 5+ years' possession (corregidor certificates, utility contracts, sworn witness statements, dated photos); 4) ANATI site inspection; 5) public edict; 6) a **15-business-day opposition window** — neighbors, comuneros, indigenous communities, the municipality or the State can suspend or deny; 7) land appraisal (for "oneroso" titles you also pay ANATI's land-value price); 8) adjudication resolution; 9) public deed; 10) inscription at the Public Registry — only then are you a full titled owner.

Total: **12–36 months** without opposition (contested cases can run years or never conclude), at **$3,500–12,000 in costs plus the land value**. Risks: the land stays State-owned until titling completes; it is unmortgageable; unregistered rights enable double-selling and forgery; indigenous or protected-area claims can void titling; and the right can be lost by abandonment (~1 year without occupation). **Rule of thumb: never buy ROP assuming it will be titled later.** The only defensible ROP purchase is 40–60% below comparable titled land, with the titling file already past inspection, payment through escrow, and part of the price retained until titling completes.

## How does a purchase work, step by step?

For a clean titled resale property, expect **30–60 days** from accepted offer to registered title.

| Step | What happens | Typical time |
|---|---|---|
| 1. Offer accepted | Price negotiated (asking prices have room — see our market article) | Days |
| 2. Promesa de compraventa | Binding promise contract fixing price, closing date, deposit (~10%), refund clause if due diligence fails, suspensive conditions (e.g., mortgage approval) | 1 week |
| 3. Due diligence | Your attorney searches the Registry, DGI tax status, ANATI cadastre, municipality, PH administration (see protocol below) | 10–20 days |
| 4. Mortgage approval (if any) | Runs concurrently; longer for foreigners | 15–30 days |
| 5. Escritura pública | Public deed drafted by your attorney, signed before a Panamanian notary; taxes paid | 1–3 days |
| 6. Inscription | Deed filed at the Public Registry; **only upon inscription are you the owner against third parties** | 5–15 business days (rush: 1–2 days for a fee) |

**Deposit safety:** the ~10% deposit goes to your attorney's segregated escrow account, or a notary or bank escrow — **never to the seller's personal account**. If the seller backs out, custom (arras penitenciales) entitles you to the deposit back plus an equal penalty.

**The anti-double-sale tool almost no foreigner uses:** the *anotación preventiva* (Civil Code art. 1753). Your promesa is notarized and filed at the Registry (~0.1–0.25% of price plus stamps); it "freezes" the finca for 180 days (extendable), so any later sale stays subject to your claim. Strongly recommended for long closings or pre-construction.

**Buying remotely:** possible via a notarized, consular-legalized or apostilled power of attorney. Bank KYC for non-residents takes 30–60 days, so many buyers close through the attorney's escrow at a Panamanian bank without opening a personal account first.

## What are the exact costs?

| Cost | Rate | Who pays |
|---|---|---|
| Transfer tax (ITBI, DGI Form 106) | 2% of the higher of sale price or cadastral value | Seller (legal obligation; due within 1 calendar month) |
| Capital gains advance (Form 107) | 3% of the higher of price or cadastral value — an advance against the 10%-of-net-gain tax | Seller |
| Buyer attorney fees | 1–1.5% of price, or flat from ~$1,500 | Buyer |
| Notary | $300–600 typical | Buyer |
| Registry inscription (official tariff, Resolución 212/2013) | B/.10 per finca + B/.5 on the first B/.1,000 + B/.2.50 per additional B/.1,000 (~0.25%: a $300,000 purchase ≈ B/.762.50) | Buyer |
| Stamp tax | 0.1% of registered value | Buyer |
| Escrow | Flat $500–1,500 or 0.5–1% | Buyer or split |
| Agent commission | ~5% + 7% ITBMS | Seller |

**All-in buyer-side total: roughly 1–2% in legal fees plus small fixed costs; 3–5% all-in with escrow and stamps** (sources range 2.1–5–7% depending on scope).

**Capital gains — the correct framing (widely mangled online):** there is ONE tax, 10% of the net gain. At closing the seller must in every case pay a **3% advance** on the higher of price or cadastral value; the 3% is credited against the 10% liability, or the seller may elect to treat it as definitive; if the 3% exceeds 10% of the actual gain, the excess is refunded. Example: $300k sale with $270k documented basis → $9,000 advance vs. $3,000 real tax → ~$6,000 refunded. **Keep every purchase and improvement receipt — today's price is tomorrow's cost basis.** There is no primary-residence capital-gains exclusion.

**DGI paz y salvo:** the seller must deliver a *paz y salvo de finca* (tax clearance) — free online at dgi.mef.gob.pa via e-Tax 2.0. No transfer can close without it.

## What property tax will I pay each year?

Rates under Law 66 of 2017 (in force since 1 January 2019), on the cadastral (registered) value — each rate applies only to the portion in the band:

| Band | Primary residence (Patrimonio Familiar Tributario / Vivienda Principal) | All other property (second homes, investment) |
|---|---|---|
| Exempt portion | First $120,000 | First $30,000 |
| Next band | 0.5% ($120,001–700,000) | 0.6% ($30,001–250,000) |
| Next band | 0.7% (over $700,000) | 0.8% ($250,001–500,000) |
| Top band | — | 1.0% (over $500,000) |

Worked examples: $250,000 cadastral value → **~$650/yr** as primary residence vs. **~$1,320/yr** standard; $500,000 → ~$1,900 vs. ~$3,320. Property tax is payable in three installments (April 30 / August 31 / December 31), with a 10% discount for full-year payment by end of April.

**Two catches.** First, primary-residence status is **not automatic**: you must apply to the DGI (via e-Tax 2.0) and keep ANATI cadastral data updated — simply living in the property does not qualify it. Second, a qualifying first home ($120k–$300k cadastral) gets an additional automatic **3-year** exemption.

### The "automatic 20-year exemption" is a myth

Developer marketing still implies that new buildings come with a 20-year property-tax holiday. **False.** Law 66 of 2017 closed the old Law 28/2012 exemptions (20/10/5 years by value) to new construction: only projects registered and approved **before 1 January 2019** still hold them. Grandfathered exemptions **transfer with the property** — on a resale, have your lawyer verify remaining exempt years in the finca's DGI statement. In condos, even where an improvements exemption exists, the land portion may remain taxable at 1%. New post-2019 construction gets **no** automatic long exemption — you rely on the general $30k/$120k brackets.

## What is the "Verify Before You Buy" protocol?

Do all of this — or have your own independent lawyer do it — **before paying anything**:

1. **Get the finca/folio number in writing.** If a seller cannot produce one, walk away.
2. **Search the Public Registry yourself.** Go to **rp.gob.pa** → create a free account → Consultas Web → Folios → Inmuebles; search by finca number (also by owner name or company). Review the registered owner, area, mortgages, liens, judicial annotations and easements.
3. **Order the official certification (~$20).** It shows the current owner, all encumbrances, dimensions and ownership history. **Demand a certificate dated within 30 days of signing — never accept seller-provided photocopies.** Online, it takes less than a business day.
4. **Register an anotación preventiva** (art. 1753 Civil Code) if the gap between promesa and closing exceeds ~60 days.
5. **DGI paz y salvo** — free via e-Tax 2.0; confirms no outstanding property-tax debt and lets you verify remaining exemption years.
6. **ANATI cadastral check** for land; a licensed survey if boundaries matter (an area discrepancy over 5% must be regularized).
7. **For condos, audit the PH (building) finances** under Ley 284 de 2022: current quota and $/m², 3-year quota history, budget vs. actual, reserve fund (a *Fondo para Imprevistos* of at least 1% of annual collections is mandatory by law), minutes of the last 3 assemblies, administrator tenure, and — the key red flag — **the delinquency rate. Buildings where over 15% of owners are behind on fees typically have cash-flow problems and higher special-assessment risk** (some exceed 35%). Unpaid quotas attach to the unit and can end in judicial auction; get the PH paz y salvo at closing.
8. **Verify your lawyer.** Attorneys must hold a *certificado de idoneidad* from the Supreme Court (CSJ). Check the idoneidad number in the CSJ's Registro de Abogados (ojpanama.organojudicial.gob.pa); newer certificates carry a **QR verification code** — scan it. No number = walk away. Never use the seller's or developer's lawyer as your own.
9. **Verify your broker.** Brokers must be licensed by the **Junta Técnica de Bienes Raíces (MICI)** — check at consultas.mici.gob.pa/consulta_jtbr. Since 2025, ads must display the license number. Unlicensed "corredores brujos" (pirate brokers) are a documented problem.
10. **For pre-construction:** developer track record, land title, permits; milestone-tied payments verified by an independent inspector; a firm delivery date (Ley 45 art. 79 lets you terminate and recover everything if breached); and anotación preventiva. Deposits are **not** automatically escrowed off-plan — ACODECO logged 247 complaints against real-estate companies in January–July 2026 alone, over half refund demands.

## What can go wrong? The Punta Pacífica cautionary tale

Registry data tells a story no marketing brochure will. On the Punta Pacífica peninsula — Panama City's showcase luxury neighborhood — **97 property titles have been embargoed since 2020 across 16 of 21 towers, and 47% reached judicial auction** (24 were open at last count). The JW Marriott condo-hotel alone accounts for 62 embargoed titles. Unpaid mortgages, unpaid PH fees and developer debts all flow through the same registry — which is exactly why the $20 certification and the PH audit exist. Buyers who lost money in these towers are disproportionately people who bought pre-construction with unprotected deposits, or bought units without checking building-level distress that was publicly visible. **Use the registry. It is the cheapest protection in the entire transaction.**

## Can retirees get a mortgage in Panama?

Yes — but terms are conservative and most foreign buyers pay cash.

| Term | Detail |
|---|---|
| Financing (LTV) | Non-residents typically 60–70% (30–40% down). **Caja de Ahorros** publishes a dedicated non-resident product: up to **70% financing, 20-year term**. **Davibank's** non-resident second-home schedule: **75% below $500k, 70% for $500k–1.5M, 65% for $1.5M–2.5M**, terms to 25 years |
| Interest | Nominal 6–7.5% for foreigners, **plus 1% FECI surcharge** non-residents pay on primary residences (citizens/residents exempt) → **effective 7–8.5%** |
| Age rule | **Borrower's age + loan term ≤ 75 years** (explicit at Davibank; market-wide 70–75). A 65-year-old gets ~a 10-year maximum term; a 55-year-old ~20 years |
| Other | Minimum loan $60k–100k; approval 60–90 days for foreigners; life and fire insurance mandatory (life policy may require a medical exam at older ages); debt service ≤ ~1/3 of verifiable income. Documented pension income is well accepted; Pensionado residency materially improves terms and banking access |

Banks experienced with foreign borrowers: Caja de Ahorros, Davibank, Banco General, Banistmo, Scotiabank, Davivienda. Casco Viejo has a special preferential-rate regime (2.75% primary residence / 3.75% investment) for qualifying buyers.

## Bottom line

Buy titled, buy verified, and buy with your own idóneo lawyer. The registry, the DGI and the PH financials will tell you nearly everything about a property for about $20 and a few days of patience. Buyers who lose money in Panama are almost always the ones who skipped steps 1–10 of the verification protocol.

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## Sources

- RG Law Firm — Panama Residential Real Estate for Foreigners — https://www.rglawfirmpa.com/en/panama-residential-real-estate-for-foreigners — accessed Oct 2026
- PanamaProp — Derecho Posesorio vs Título de Propiedad 2026 (ANATI 10-step process) — https://www.panamaprop.com/blog/derecho-posesorio-vs-titulo-propiedad-panama-2026 — 2026-05-05
- PanamaProp — Arras vs Promesa de Compraventa 2026 (anotación preventiva, art. 1753) — https://www.panamaprop.com/blog/arras-vs-promesa-compraventa-panama-2026 — 2026-04-24
- Casa Solution — How to Verify Property Titles via the Online Public Registry — https://casasolution.com/how-to-verify-property-titles-in-panama-through-the-online-public-registry/ — 2026-05-31
- Casa Solution — Panama Property Tax Calculator by Bracket — https://casasolution.com/the-panama-property-tax-calculator-what-youll-actually-owe-every-year-by-price-bracket/ — 2026-08-21
- capitalgainstax.net — Panama CGT (Código Fiscal art. 701, Ley 33/2010) — https://capitalgainstax.net/cgt-calculator/panama — 2026-09-19
- Global Property Guide — Panama Taxes and Costs — https://www.globalpropertyguide.com/latin-america/panama/taxes-and-costs — 2026-09-01
- Panama Elite Homes — Notary and Lawyer Fees in Panama Real Estate — https://panamaelitehomes.com/notary-and-lawyer-fees-in-panama-real-estate/ — 2026-09-04
- EL DEPH — Guía Completa Ley 284 de 2022 Propiedad Horizontal — https://eldeph.com/blog/guia-completa-de-la-ley-284-de-2022-de-propiedad-horizontal-en-panama-todo-lo-que-debes-saber — 2026-08-11
- PanamaProp — Cuota de Mantenimiento 2026 (PH 10-point audit, >15% delinquency) — https://www.panamaprop.com/blog/cuota-mantenimiento-apartamento-panama-2026 — 2026-04-19
- velo-legal — Impuesto de Inmuebles Panamá (Ley 66/2017 grandfathering cutoff) — https://velo-legal.com/blog/impuestos-de-inmuebles-panama/ — 2026-07-24
- TheLatInvestor — Foreigner Rights in Panama (Art. 291 detail) — https://thelatinvestor.com/blogs/news/panama-foreigner-rights — 2026-09-21
- TheLatInvestor — Mortgages in Panama for Foreigners — https://thelatinvestor.com/blogs/news/panama-mortgage — 2026-09-21
- Vaca Group — Mortgages in Panama for Non-Residents (FECI) — https://vacagroup.net/en/blog/mortgages-in-panama-for-non-residents — 2026-07-08
- lakilé — Punta Pacífica Buyer's Guide (registry-based embargo data) — https://lakile.ai/neighborhoods/punta-pacifica — 2026-07-15
- Registro Público de Panamá — Manual de Calificación (Resolución 212/2013 tariff) — https://registro-publico.gob.pa/ — accessed Oct 2026
- DGI — Paz y Salvo (e-Tax 2.0) — https://dgi.mef.gob.pa/cob/PYS — accessed Oct 2026
- TheLatInvestor — Off-Plan Risk (Ley 45 art. 79; ACODECO 247 complaints) — https://thelatinvestor.com/blogs/news/panama-off-plan-risk — 2026-08-31
- Icon Realty Group — Title Deed vs Right of Possession (red-flag language) — https://iconrealtygroup.com.pa/title-deed-vs-right-of-possession-panama/ — 2026-08-19
- MICI Junta Técnica de Bienes Raíces — Licensed Broker Check — https://mici.gob.pa/jtbr-corredores-de-bienes-raices-idoneos/ — accessed Oct 2026
- Órgano Judicial — CSJ Attorney Idoneidad and QR Verification — https://www.organojudicial.gob.pa/noticias/sala-cuarta-de-la-csj-establece-procedimientos-para-obtener-la-idoneidad-para-ejercer-la-abogacia-en-panama — 2023-06-20

### Official links to confirm details

These links supplement the original references; they do not independently verify every statement in the source document.

- [Superintendencia de Bancos de Panamá](https://www.superbancos.gob.pa/)
- [Registro Público de Panamá](https://www.rp.gob.pa/)