Expats buying Real Estate in Panama Must Know This

For many expats, at first sight Panama has all the positive points to invest in: a modern city, tropical weather, us dollar economy, diverse options of properties, beautiful views both in the city and beach properties.

All these points make Panama a prime destination, and for sure it is, and there is a wide range of options for real estate properties at very competitive prices. However, like in any other country, it is important to pay attention to a few things before rushing into a real estate investment, particularly in 2025 and beyond.

If you are planning to buy real estate in Panama, or even understanding the Panama real estate market, here are some of key factors you must know to ensure a smooth and successful investment.

1. Understand Panama’s Property Market

Panama’s real estate market is diverse, offering options that cater to different lifestyles and budgets. Expats are drawn to specific regions, each with its unique appeal:

Panama City: The capital of the country, it is ideal for those who prefer an urban lifestyle, and it is full of luxury condos, modern apartments, and access to business centers, shopping malls, restaurants, and nightlife.

Beaches and Coast Areas: Popular locations like Coronado, Playa Blanca, and Buenaventura are very popular districts for beachfront properties, which are usually perfect for vacation homes or rentals.

Mountain Regions: Cooler climates in towns like Boquete and El Valle de Antón attract a lot of retirees and nature lovers looking for beautiful nature views and a more relax environment.

Property prices and rental returns vary significantly by location. For instance, a luxury apartment in Panama City may cost upwards of $200,000, while a beachfront apartment in Coronado might range from $180,000 to $300,000.

2. Research Property Types and Availability

In Panama, you will have access of different property types, including condos (apartments), single-family houses, and undeveloped land. Each has its benefits:

Condos or apartments: Usually comes in 2 or 3 bedrooms, it is not very common to have a 4th bedroom unless it is a luxury apartment. But most buildins come with modern amenities like pools, gyms, 24/7 security, as well as some kids playground and/or pet hangout. These properties are ideal for urban living or rental investments.

Single-Family Houses: These properties provide privacy and more space, suitable for families or retirees. They usually come with 2 to 4 bedrooms depending on the size, as well as a backyard. In gated communities, you will also have a club house which includes amenities such as pool, lounges, bbq areas and gym.

Undeveloped Land: This type of properties present multiple opportunities, for example for custom-built homes, agricultural use (if purchased in the interior of the country), or commercial development. They might come with competitive prices but depending on how you are planning to use it, it may require additional permits.

3. Understand the Legal Process

Panama’s property purchase process is not very complex but it has several steps, so it is crucial to understand each step to avoid any problems:

Property Search: Once you find a property, your agent will negotiate terms with the seller.

Due Diligence: A lawyer or a real estate professional will verify the property’s title, ensure it is free of liens, and confirm compliance with local laws.

Promise to Purchase Agreement: Both parties sign this agreement, outlining terms and conditions, and the buyer typically pays a deposit of 5 to 10%.

Final Sale Contract: After completing due diligence, the sale is finalized, and the buyer pays the remaining amount (if its not finance in a local bank through a mortgage).

Property Registration: The property is registered under the buyer’s name at the Public Registry.

Hiring an experienced real estate attorney or a real estate agent is very important. They will safeguard your interests and ensure a smooth transaction.

4. Take Advantage of Residency Options

One of Panama’s most attractive features for foreigners is its residency programs, which often go hand-in-hand with real estate purchases.

Friendly Nations Visa: Expats from over 50 countries can apply for residency by making an economic investment, such as purchasing property worth at least $200,000.

Pensionado Program: Retirees with a minimum monthly pension of $1,000 can qualify for residency, enjoying benefits like discounts on healthcare, travel, and dining.

Understanding these programs can help you get more benefits from your investment in Panama.

Buying real estate in Panama as an expat can be a very rewarding venture, but it is clear that it requires a more deep research and preparation, such as understanding the market, working with a professional, and navigating the legal processes carefully.