Buy Land, Live Free: Exploring Panama’s Real Estate Market

Between its low taxes, political stability, and US dollar-based economy, it’s easy to see why many people are buying property in Panama. Foreigners enjoy nearly the same property rights as citizens here. And unlike many other destinations, you don’t need residency to own land in the country.

Can foreigners legally buy property in Panama?

Yes. Panama’s real estate laws are among the most expat-friendly in Latin America. Foreign buyers are legally allowed to purchase most types of property in their own name, including houses, apartments, condos, and commercial real estate. You can even buy undeveloped land or entire islands, with a few restrictions. Just keep in mind these three restrictions:

• Border restrictions: Foreigners can’t own land within 10 kilometers (6.2 miles) of Panama’s borders with Costa Rica or Colombia.

• Island land: You can buy land on most islands in Panama, as long as they’re not within 10 kilometers of the border.

• Beachfront rules: The first 22 meters from the high tide line is public domain. It can’t be privately owned by anyone. That said, you’ll still find plenty of beach-view, ocean-adjacent, and titled island properties that are fully open to foreign buyers.

Do you need residency when buying property in Panama?

No. Buying property in Panama doesn’t require residency. Many Americans and Europeans purchase real estate here while remaining full-time residents of their home countries. They use the properties for vacations, retirement, or as income-generating rentals.

That said, if you’re planning to stay longer or live in Panama full-time, owning property can help you qualify for a visa under the Friendly Nations Visa and Real Estate Investor Visa programs, which have investment thresholds starting at $200,000.

Residency isn’t required, but it can make things like opening a bank account or setting up utilities much easier.

Why are so many people buying property in Panama right now?

Panama’s appeal to real estate investors really comes down to freedom. There’s freedom to own titled land, invest securely, and build a life that doesn’t come with excessive taxes or red tape. Property rights are enshrined in the constitution, and prices are still reasonable in many areas. And it’s easier than ever to settle in because of all the new infrastructure, direct flights, and active expat community.

If you’re considering buying property in Panama, now’s the time to learn the rules and make sure you understand the zones and visa options that apply to your situation.

Need help buying property in Panama?

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