How to buy real estate in Panama

We have successfully completed many real estate acquisitions in Panama. With this article we would like to give you an overview of the process and the costs of buying a property in Panama.


  1. Purchase offer and price agreement
  2. Reservation agreement (15 working days, 1% deposit)
  3. Legal Due Diligence
  4. Technical inspection of the property
  5. Purchase contract (45-60 days closing, 10% deposit)
  6. Buyer: Application of an irrevocable letter of payment with his bank in Panama (amount must be in the account)
  7. Seller: Pay relevant taxes & obtain water and electricity certificates
  8. Notary appointment and handing over of the payment cheque
  9. Registration in the land register
  10. Cashing the payment cheque

Once you have found your property, you can also complete the property purchase in Panama from home. Because you do not have to be in Panama for the above points, because you can do some of them online or with a power of attorney for your lawyer in Panama. Your lawyer will then represent you in the purchase process with a special power of attorney, which is best given to him during your trip to Panama. You must be there in person to open your bank account in Panama. Take the help of our lawyers to ensure that everything runs smoothly.

We accompany you through the entire buying process in Panama.

Our experience shows that our efficient process takes us about 3 months from price agreement to registration in the land register.


  • Usually the legal, notary and land registry costs together amount to approx. 0.8% – 1% of the purchase price (assuming a purchase value of 400,000 USD)
  • The bank fee for the above mentioned irrevocable letter of payment is 0.25% – 1% depending on the bank
  • There is NO inheritance tax
  • Exemption from property tax until 2031 for properties completed before 2011 / thereafter 0.6% – 1.0% p.a.
  • Sales tax is 2% and capital gain tax 10% (on profits)
  • Any brokerage fee (usually 3-5%) is paid by the seller
We are more than happy to help you with our experience when buying a property in Panama.
The real estate market in Panama counts internationally as one of the most interesting locations for property investment. We would like to be your local trusted adviser and to take care of your investments in Panama.    

Profitable, secure and beautiful:
Real estate investments in Panama

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