Published on and written by Cyril Jarnias
Settling or investing in Panama is attracting more and more French speakers. A dynamic market, relatively mild taxation, strong property rights for foreigners… on paper, everything seems to come together. But a real estate purchase remains a major commitment, in a legal and administrative system very different from that of Europe or Canada. Hence the value of a real checklist, precise and concrete, to make sure nothing slips through the cracks.
This block gathers 25 key points to rigorously check before any signature, without exception. It provides an operational reading grid based on rules and field practices, aimed at informing you without alarming you.
1. Legal Status of the Property: Titled Property or Right of Possession
Before talking price or ocean view, you need to know legally what you are buying.
In Panama, there are two main categories of land:
– titled properties, registered with the Registro Público de Panamá, which function like standard ownership;
– rights of possession (Right of Possession, ROP), where you hold an enjoyment recognized by the State or municipality, but without a title registered in the central registry.
For a property to truly belong to you, it must be registered in your name at the Registro Público. For a titled property, the key elements are the parcel sheet (finca) and the Certificado de Registro Público, which summarizes the owner, area, transfer history, and encumbrances.
Rights of possession operate under a more complex logic: there is no single central database, so you must verify possession certificates, survey plans signed by an engineer, municipal resolutions, absence of neighbor objections, etc. This is terrain reserved for buyers with very strong legal support.
In a prudent checklist, we can sum it up as follows: for a first purchase, almost exclusively prioritize titled property.
2. Location: Free Zones, Restricted Zones, and the Maritime Strip
Second filter, non-negotiable: location with respect to constitutional restrictions.
The Panamanian Constitution prohibits foreigners from acquiring property in certain zones:
A 10 km strip along all international borders (Costa Rica and Colombia) is subject to security restrictions. Indigenous territories (Comarcas) like Guna Yala or Ngobe-Buglé follow special regimes. Additionally, the maritime shoreline zone is regulated: on the Pacific side, the first 22 meters from the high tide line are public; on the Atlantic side, this public strip is 10 meters.
No one, Panamanian or foreigner, can own these first strips. However, you can very well buy just behind them, with a perfectly valid title and direct beach access, provided the cadastral boundary starts beyond those 22 or 10 meters.
Part of the verification is done through the cadastral map (ANATI) and a surveyor’s expertise, which must confirm the consistency between the plan, registry, and physical reality on the ground.
3. Verify That the Buyer Has the Right to Buy… Everywhere (or Almost)
Good news: aside from these exceptions, Panama is one of the most open markets in Latin America. The essential points:
A foreigner can buy real estate (house, apartment, land) in their own name, without a local sponsor or quota. The procedure is identical to that for Panamanians via notary and Registro Público, with no need for a residence permit or specific visa: a valid passport is sufficient.
Some sought-after cities like Panama City, Boquete, Coronado, or Pedasí are entirely outside the zones prohibited to foreigners: no pitfalls there.
4. The Lawyer: Pivot of the Transaction, Choose Carefully
This is the most strategic point of your checklist: your Panamanian lawyer.
They must:
– be independent from the seller, developer, and real estate agent;
– be registered with the Colegio Nacional de Abogados de Panamá;
– be appointed by a written engagement letter, with fees and disbursements clearly detailed.
Their role is not limited to “reviewing” a contract. They must:
Order official certifications from the Registro Público (ownership and encumbrances), verify the entire chain of title (at least two transfers back), check the accuracy of cadastral boundaries and survey plans (recommending a new survey by a surveyor if needed), ensure the seller’s legal capacity (identity, powers, marital status, board resolutions for a company), and set up and monitor the escrow/fund-holding structure, even if this concept does not legally exist in Panama.
5. Title Search: Comb Through the Registro Público
The heart of due diligence is the informe registral and the certification of domain and encumbrances (ownership and charges).
These documents, dated less than 30 days before signing, must specify:
The simple note reveals the registered owner (name and ID), the property description including the finca number, area, location, and regime (simple or horizontal property), as well as all charges such as mortgages, liens, easements, antichresis, or precautionary measures, and any judicial annotations (pending litigation or proceedings).
A crucial point: a property with an active judicial annotation cannot be properly transferred until the matter is resolved. A classic warning: if your lawyer downplays such a mention, change lawyers.
6. Boundaries, Area, and Cadastral Consistency
In Panama, it is common for the actual area to differ from the one registered, especially for older land.
Hence three essential checks:
To secure your property title, start by comparing the area and boundaries shown on the finca sheet with those of the ANATI cadastral plan. Then, hire a licensed surveyor (topographic engineer) to perform a verification survey and official marking of boundary monuments. Finally, cross-check these surveys with your neighbors, obtaining their signature on a boundary recognition document when possible.
In coastal areas or near protected zones, this verification is even more sensitive, because part of the land could actually lie within the public maritime strip or an environmental protection zone.
7. Easements, Rights of Way, and Other Use Restrictions
A property may seem ideal… until you discover that a neighbor has a heavy right of way or that a sewage collector crosses the land.
Easements and restrictions are generally recorded at the Registro Público. You need to identify:
Easements for passage, utilities (water, sewage, electricity), and constraints from a local plan (height, setbacks, density) are real restrictions to be aware of.
Your lawyer must not only list them but also help you assess whether they are compatible with your project: quiet primary residence, tourist rental, small hotel, etc.
8. Outstanding Taxes and Fees: Demand the “Paz y Salvo”
In Panama, an unpaid tax or bill can follow the property rather than the person. Before signing, you therefore demand several certificates of good standing, called paz y salvo:
The buyer must obtain the DGI paz y salvo proving the IBI is paid up to date, the IDAAN paz y salvo for no water arrears, the condominium paz y salvo for common fees (if applicable), and, if necessary, letters of good standing for electricity and other services.
These documents are in principle provided by the seller, but it is your lawyer’s job to request them, verify them, and block closing until they are compliant.
9. Transfer Taxes, Capital Gains, and Closing Costs
Who pays what? Very often, foreigners get lost in the local tax mechanics. Practical summary:
The seller bears a transfer tax of 2% on the sale price or the cadastral value, whichever is higher.
In practice, the total closing costs on the buyer’s side (excluding taxes on the seller’s side) range around 2.5% to 4.5% of the price for a simple cash transaction. For more complex structures or when the buyer exceptionally takes on certain taxes, the total purchase + resale (round-trip) cost often falls between 7% and 9% of the price.
10. Annual Taxation: Primary Residence, Investment, Exemptions
Panamanian property tax is one of the country’s attractions, provided you understand how it works.
The Impuesto de Bienes Inmuebles (IBI) is calculated on the cadastral value (land + buildings) and follows a progressive scale, different depending on whether the property is declared as a primary residence or as an investment / secondary property.
For a primary residence registered as Patrimonio Familiar or Vivienda Principal:
| Cadastral value bracket | Annual IBI rate |
|---|---|
| Up to 120,000 USD | 0% |
| 120,001 to 700,000 USD | 0.5% |
| Above 700,000 USD | 0.7% |
For a secondary or investment property:
| Cadastral value bracket | Annual IBI rate |
|---|---|
| Up to 30,000 USD | 0% |
| 30,001 to 250,000 USD | 0.6% |
| 250,001 to 500,000 USD | 0.8% |
| Above 500,000 USD | 1.0% |
Concretely, most mid-range residential properties pay an annual tax between 200 and 1,500 USD.
List of additional points to include in the checklist
First item to add to the checklist
Second item to add to the checklist
– possible existence of a construction exemption (up to 20 years for certain new constructions);
– municipal taxes (tasas municipales) for local services: garbage, public lighting, fire department, security. For a dwelling, this often falls within a 120–180 USD per year range.
11. Horizontal Property and Condominium Fees: What HOA Fees Cover
If you buy an apartment in a building or a house in an organized development, you enter the horizontal property (PH) regime. Common charges, equivalent to condominium fees, are called HOA or PH fees.
They often represent the second largest recurring expense after any loan repayment, or even the first for a cash purchase. They are generally calculated per square meter, with very wide ranges depending on the standard.
A table is worth a long speech:
| Building category | Typical amenities level | Monthly fee range (per m²) | Example for 85 m² |
|---|---|---|---|
| Entry-level building | 5–10 stories, little or no elevator, few amenities | 0.80 – 1.50 USD | 68 – 128 USD |
| Mid-range building | 15–25 stories, pool, small gym, 24/7 security | 1.80 – 3.00 USD | 153 – 255 USD |
| “Luxury” building | Large pool, social club, concierge | 3.20 – 4.80 USD | 272 – 408 USD |
| “Ultra-luxury” building | Hotel services, multiple pools, spa, large staff | 5.00 – 8.00 USD | 425 – 680 USD |
Geographically, in the capital:
Monthly condominium fees for a high-end building can reach 500 USD or more.
In your checklist, make sure you understand what these fees cover:
– water (often included) and trash collection;
– maintenance of common areas (pools, lobbies, elevators, roof, gardens);
– staff salaries: security, reception, concierge;
– building insurance (structure, liability);
– sometimes centralized cooking gas and small services (wifi in common areas, pool towels, etc.).
Conversely, electricity for your unit, your private internet, and interior maintenance generally remain your responsibility.
12. Condominium Governance: Law 284 and Contingency Funds
Living in a condominium is not just about numbers: it is also an organization governed by Law 284 of 2022 on horizontal property, which strengthened several safeguards.
Points to know:
A threshold of 51% of the votes of units up to date with payments is required for major decisions, modification of fees, and significant improvement works.
Your checklist must therefore include:
– reading the condominium bylaws (reglamento de propiedad horizontal);
– checking the level of the reserve / contingency fund;
– inquiring about recent important votes (works, fee revisions, special assessments).
13. Special Assessments and Initial Contributions: Think Long Term
Even a well-managed building must face, every few years, major expenses: facade renovation, major pool renovation, lobby furniture, technical upgrades… Rather than financing everything through monthly fees, condominiums resort to special assessments.
Typically:
The cost of a complete facade renovation can reach several thousand dollars per unit, while decorative works like the lobby or pool entail more modest but recurring contributions.
When buying a new development, it is common for a one-time initial contribution to be required by the association to build a starting fund.
Before buying, therefore, ask: what are the characteristics of the product?
– the minutes of the last three to five general meetings;
– the list of special assessments voted and those planned in the short term;
– the average delinquency rate of other owners (an indicator of fragility).
14. Total Cost of Ownership: Simulate Your “Full Monthly Cost”
A classic trap for foreign investors is to only look at the loan payment, or only the expected rent. For a realistic view, you need to add up all items.
For a typical condo at 200,000 USD in a median neighborhood of Panama City, without financing, you often find:
Summary of the main recurring expenses related to property ownership: from property tax to condominium fees, including insurance and services.
A few hundred dollars per year, except for any notable exemption for an investment property.
150 to 350 USD per month for a standard building.
50 to 100 USD per month for 200,000 USD of coverage, depending on guarantees.
Often around 140 to 250 USD per month, especially with air conditioning.
Small repairs, painting, unexpected expenses: set aside a monthly or annual budget.
Budget studies show that an owner financing this type of condo could end up with a total monthly cost around 1,650 USD all included, whereas a cash purchase would bring that cost down to 450–600 USD per month, mainly for fees and taxes.
The golden rule: include this calculation in your checklist before making an offer, not after.
15. Purchase Process: Steps and Realistic Timelines
The typical timeline for a real estate transaction in Panama can be summarized as follows:
The purchase begins with a formal offer letter setting the price, deposit, deadlines, and conditions precedent. This is followed by a Promesa de Compra y Venta (promise of purchase and sale) with a 10% deposit into an escrow account. The lawyer performs a full due diligence (title search, tax verification, condominium fee check, technical inspection). The sale is finalized by a escritura pública signed before a notary, then filed with the Registro Público. Funds are released to the seller after final registration.
Observed timelines for a regular transaction:
– 6 to 8 weeks for the entire process;
– closing can be set at 30, 60, or 90 days, as agreed;
– title registration at the Public Registry takes 1 to 3 weeks in practice (sometimes expedited to 2 business days for an extra fee);
– delivery of the final deed by the Registry to the lawyer occurs about 10 business days after acceptance.
There are faster or slower transactions, but any timeline that is much shorter should be considered with caution.
16. Deposit: How It Works and Risks
It is customary for a 10% deposit to be paid upon signing the promise of purchase and sale. Several important points:
The deposit is placed in an escrow account managed by a third party (bank, trust, or lawyer). It allows the seller to take the property off the market and finance certain steps. After due diligence, it becomes non-refundable for the buyer. If the buyer withdraws without a contractual basis, they lose the deposit; if the seller backs out, they must refund the deposit and pay an equal penalty.
Your checklist must therefore include a careful reading of the conditions precedent and the default clauses related to this deposit.
17. Physical and Environmental Inspection: Beyond the View
Serious due diligence does not stop at registries. You also need:
– a complete technical inspection of the property by a licensed inspector: structure, roof, electrical installations, air conditioning, plumbing;
– if necessary, specialized inspections (roof, structure, HVAC) carried out by different experts;
– for commercial properties or projects financed by a bank, an environmental audit may be required.
In certain coastal sites or near protected areas, environmental impact studies are mandatory and regulations specifically prohibit certain activities.
– construction on coral formations;
– activities that cause destruction of mangrove ecosystems, except for tourism projects with an approved impact study.
These items can make or break a development project. They should clearly appear on your checklist.
18. Payment and Escrow: Securing the Money Flow
Panama does not have a strict legal notion of “escrow”, but in practice, several mechanisms are used:
– escrow account with a licensed bank or trust company;
– certified bank check delivered to the notary, who holds it in deposit until title registration;
– irrevocable payment guarantee letter issued by the buyer’s bank, payable to the seller once the transfer is recorded.
A few key principles for your checklist:
Never transfer significant funds without independent legal advice and complete documentation. Require that the final release of the remaining 90% be conditioned on the presentation of the deed duly registered at the Registro Público. Verify who controls the escrow account: ideally, your lawyer, not the seller’s.
In most configurations, the seller receives the funds only once the property is actually registered in the buyer’s name, which protects you against a default in the final stretch.
19. Homeowners’ Association, Internal Rules, and Approvals
In gated communities and large buildings, the purchase of a unit may be subject to approval by the homeowners’ association.
Things to check:
– existence of a required approval certificate before moving in;
– time frame for reviewing the buyer’s application;
– possible application fees payable to the association.
In parallel, the internal rules of the development (equivalent to CC&Rs in the Anglo-Saxon world) govern:
– short-term rentals (allowed, limited, prohibited?);
– rules on pets;
– work hours and acceptable noise levels;
– use of common areas (pool, gym, parking).
Never buy without having read and understood these rules, otherwise you may end up with a property incompatible with your project (e.g., an apartment intended for Airbnb in a tower that prohibits it).
20. Cost of Living Around the Property: Rents, Expenses, Global Budget
Buying in Panama is not just about bricks and mortar; it is also a choice of lifestyle. Depending on whether you target Panama City, a mountain village like Boquete, or a beach area like Coronado, budgets diverge significantly.
Some ballpark figures for rents:
– in the capital, a one-bedroom apartment downtown often rents for around 1,100 USD per month, versus about 950 USD outside the hyper-center;
– a two-bedroom in the city center is more like 1,600 USD, and 1,250 USD on the outskirts;
– in smaller interior towns, a comfortable 1-2 bedroom can be found between 400 and 800 USD;
– in highly sought-after areas like Punta Pacífica, Costa del Este, or certain waterfronts, 2-3 bedroom rents can range from 1,500 to over 3,000 USD.
Ranges for energy, water, and internet vary depending on air conditioning usage and location.
– a total monthly budget of 140 to 320 USD for electricity, water, and internet covers most situations, with much lower bills in the mountains where air conditioning is rarely used.
Regarding retirement budgets, studies show that:
– a modest lifestyle is possible from 1,200–1,800 USD per month for a single person in the provinces;
– a comfortable standard of living for a single retiree is around 3,200 USD per month;
– a couple generally lives comfortably on 2,000–3,500 USD per month, depending on city and standard;
– above 7,500–10,000 USD per month, you move into luxury (premium housing, travel, à la carte services).
Your purchase checklist must therefore connect the cost of owning the property with the overall living budget you are targeting.
21. Local Mortgage: Down Payment, Rates, and Constraints
For foreigners who wish to finance their purchase with a Panamanian loan, banks display several recurring conditions:
Non-residents must provide a down payment representing 30 to 40% of the purchase price of the real estate.
For a mid-range condo at 200,000 USD, the down payment to plan for is therefore in the 60,000–80,000 USD range.
To include in your checklist: comparison of the cost of local credit with any financing solutions in your home country, bearing in mind that all flows are in USD.
22. Home Insurance, Title Insurance, and Specific Risks
Unlike other countries, Panama does not make home insurance legally mandatory for all owners. In practice:
Banks almost always require multi-risk insurance covering fire, natural hazards, and theft for a financed property. Title insurance, although not mandatory, is highly recommended for complex transactions (long ownership histories, old concessions, border zones). Identify exclusions or limitations in policies for specific phenomena like floods, landslides, or coastal erosion.
Your checklist must include: all important steps to ensure nothing is forgotten during your preparation.
– an estimate of the cost of home insurance (often 50 to 100 USD per month for 200,000 USD coverage);
– an analysis of major exclusions (flood, ground movement, etc.);
– the decision whether or not to opt for title insurance in addition to legal due diligence.
23. Residency Aspect and Visas: What the Purchase Opens (or Doesn’t)
Buying property in Panama does not automatically grant a residency right. But the property can be part of a migration strategy, through various programs:
For permanent residency in Panama through real estate, the minimum investment is 300,000 USD (raised to 500,000 USD after mid-October 2026) via the Qualified Investor visa, with a requirement to hold the property for 5 years. The Friendly Nations visa requires a purchase of at least 200,000 USD for eligible nationals, combined with other economic ties. Other paths (bank deposit, stock investments, reforestation, Pensionado) may also take property ownership into account.
Your checklist should clarify whether your purchase is purely asset-based or part of a broader long-term residency plan. In the latter case, you need to incorporate the investment minimums, processing times, and conditions (holding period, minimum presence, etc.).
24. Post-Closing Steps: Don’t Stop at the Signature
Once the deed is signed and registered, many think the procedure is over. In reality, several key operations remain:
After the acquisition, obtain a certified copy of the title in the new owner’s name from the Registro Público. Next, update the records with ANATI (cadastre), DGI for the property tax account, the municipality for tasas municipales, water, electricity and gas utilities, as well as the condominium or HOA for fees. Also adjust insurance policies (building, contents, liability) and carefully archive all acquisition documents: promise, notarized deed, certifications, paz y salvo, and inspection reports.
These steps are often handled by your lawyer, but it is useful to have them itemized in your own checklist, so you can verify everything has been done.
25. Summary: Turning the Checklist into an Action Plan
Ultimately, building a purchase checklist for Panama comes down to organizing a large number of elements. To make it manageable, they can be grouped into major blocks:
Summary of essential checks to secure a purchase, from land analysis to migration aspects.
Type of property (titled or right of possession), Registro Público verification, easements, tax status, environmental regulations, and geographic restrictions.
Real all-in price (purchase, closing, round-trip), holding costs (taxes, HOA, utilities), and cash flow simulations if renting.
Building inspection, natural hazards, compliance with plans and zoning rules.
Level and structure of fees, reserve fund, governance, internal rules, history of special assessments.
Transfer of accounts, cadastre and tax updates, insurance, document archiving.
Articulation with any visa (Investor, Friendly Nations, Retirement, etc.).
One last piece of advice: never confuse speed with a good deal. A well-prepared purchase, with methodical due diligence and a truly independent lawyer, often takes 6 to 8 weeks from the first agreement to title registration. Wanting to go faster often means forgetting one of the 25 points on this checklist… and paying for it later.
Panama offers a very attractive framework for those who take the time to check off all the boxes. With a rigorous method, it is possible to buy property there in complete security, control your holding costs, and build a solid life or investment project in a country where foreigners’ property rights are, in practice, among the best protected in the region.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
