What additional costs should you expect when buying a property in Panama? With our report we would like to give you an overview of the costs when buying a property in Panama. In addition, we show you the ongoing monthly costs.
Closing Costs in Panama:
What are the incidental costs of buying real estate in Panama? We would like to give you a brief overview of the costs involved in buying real estate in Panama.
- As a rule, the legal, notary and land registry costs in Panama together are approx. 5.000 USD (calculated for a 400.000 USD property / depending on property value).
- The buyer usually pays the notary and land registry costs in Panama. The lawyer’s fees are borne by each party.
- There is NO land acquisition and inheritance tax in Panama.
- Any broker’s commission (usually 3-5%) is paid by the seller.
- For the purchase of a property in Panama it is advisable to apply for a payment cheque at your bank in Panama in order to handle the transfer of ownership in a legally secure and risk-free way. The fee for a payment cheque is 0.25% – 1% depending on the bank.
- The buyer does not pay taxes when buying a property in Panama.
- The seller pays a sales tax of 2% and a capital gain tax of 10% (on the profit). Click here for more information on taxes in Panama.
Running costs of a property in Panama:
What running costs should you expect for an apartment in Panama City? We give you an overview.
- In every tower building in Panama City there is a property management company that takes care of the day-to-day running of the building (building insurance, concierge, pool, lift, cleaning, gym, etc.). For this, you pay a monthly property management fee of usually 1.50 – 2.00 USD per sqm per month.
- A rental management company that takes care of your flat and your tenant usually costs 10% of the monthly rent. Click here for more information about our property management in Panama.
- Insurance for an apartment in Panama costs about 0.1% p.a. of the purchase value. In the old town Casco Viejo approx. 0.2% p.a.
- Property tax in Panama depends on various factors (old town vs. new town, year of construction, use, etc). Often, real estate in Panama is exempt from property tax. For an insight, see taxes in Panama.
- If you are looking for a tenant in Panama, the agent receives one month’s rent as a commission for the successful brokerage.
We are happy to accompany you with our experience in the purchase process in Panama.
Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.
The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.
Profitable, safe and beautiful:
Investments in Panama