Panama Real Estate: What Foreigners Should Know

Panama has become one of Central America’s most appealing destinations for property buyers because of its straightforward financial environment. Its stable economy and low taxes, as well as its use of the US dollar as a legal tender, provide predictability and security for foreign investors. But before you explore houses for sale in Panama, it’s important to understand the legal requirements and lifestyle considerations that can affect your purchase so you can avoid costly mistakes.

Are expats allowed to buy a home in Panama?

Yes, foreigners can purchase property in Panama with nearly the same rights as Panamanian citizens. The country has some of the most expat-friendly real estate laws in Latin America, making it a popular choice for those seeking to invest abroad or relocate permanently.

Rights and restrictions when buying property in Panama

The process to buy houses for sale in Panama is straightforward, but there are a few rules you should know before proceeding:

• Titled land vs. Right of Possession (ROP)

Make sure that you’re investing in fully titled real estate. It’s best to avoid ROP land because it comes with legal risks.

• Beachfront limitations

You cannot privately own real estate within the first 22 meters from the high-tide line, as it’s considered public domain.

• Restricted zones

Foreigners cannot own property that’s within 10 kilometers of international borders.

Are you a US citizen? Make sure that the house isn’t in a restricted zone. We recommend consulting a trustworthy real estate attorney for a smoother transaction and to ensure that you’re investing in the right property.

Ownership laws for foreigners

Panama’s constitution protects private property, and this extends to foreign buyers. In most cases, you can purchase the following types of properties directly under your name:

• Residential properties such as houses for sale in Panama, as well as condos and apartments
• Undeveloped land (with some restrictions)
• Commercial buildings
• Islands, provided you obtain government approval

It’s a pathway to residency

You don’t need to be a resident to buy a house in Panama, but if you’re interested, property ownership can help you gain Panamanian residency. Many foreigners purchase property as vacation homes or rental investments without seeking residency. However, if you intend to live in Panama year-round, obtaining residency will make everyday life easier, from opening bank accounts to accessing local services.

Start house-hunting

You don’t need to look elsewhere for houses for sale in Panama. Search here at https://www.panama-real-estate.com/ to save time and effort. We have up-to-date listings of every property you might want, from beachfront retreats to countryside escapes. Need personalized guidance? Call KW Panama at +507 3680700.