How to Purchase Property in Panama as an Expat

This post will discuss how to purchase property in Panama, particularly as an expat.

Buying property in Panama as a foreigner can seem complex, but it doesn’t have to be daunting.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

Investing in real estate can be lucrative, but seeking financial advice is recommended to avoid having more risks in your portfolio than you can tolerate.

How to purchase property in Panama

Once you’ve chosen your desired location and property, the following are steps on how to purchase property in Panama:

Engage a Real Estate Agent Specializing in Expat Needs

Your first step should be seeking the services of an experienced real estate agent with expertise in Panama’s real estate market.

They should be well-versed in the real estate matters for retirees and expats.

A proficient agent can assess the pros and cons of each property.

It’s essential to ensure that your chosen agent holds a valid and active license, as real estate agents in Panama must be licensed to operate.

Validate Property Title

Your agent can conduct a thorough check in the public registry.

This is to confirm that the property you intend to purchase possesses a clear and unencumbered title and that the seller is the registered owner.

Present a Well-Considered Offer

Once you’ve identified a property of interest, your agent can help you determine a competitive offer.

After settling on a figure, your agent will engage with the seller to negotiate terms until an agreement is reached.

Execute a Purchase Agreement

You can proceed to sign a purchase deal that explicitly outlines the transaction’s terms and conditions.

This should be done following your agent’s confirmation of a clean title for the expat real estate in Panama you wish to acquire.

Subsequently, the closing will be scheduled, with the down payment to the seller usually amounting to 10% of the asking price.

The deal will then be finalized.

Transfer Property Title

The government levies a 2% tax for transferring a property’s title to the buyer.

This property tax is calculated based on the property’s value as per the deed of sale.

The process also entails other fees, the amount of which can vary according to the property’s size, type, and value.

Upon the title transfer, a final version of the contract is signed by all involved.

It’s noteworthy that Panama doesn’t mandate in-person presence during the signing.

Transfer Funds

Property payments, including down payments, are typically conducted through an escrow account.

Typically, funds are transferred after the final agreement is signed.

However, in certain cases, it occurs after the property’s public deed is registered under the buyer’s name.

Register Your Acquisition

Your agent will file the record of your acquisition in Panama City, initiating the title transfer process, which can take up to ten days.

Subsequently, you will receive the final documents plus registered title deed.

Do you need a Panama real estate lawyer?

When engaging in property transactions in Panama, enlisting the services of a local lawyer can be invaluable.

This is particularly beneficial for navigating the legal intricacies and ensuring a smooth process.

One crucial document they can assist with is the Purchase-Sale Agreement (Contrato de Compraventa).

This is a legally binding contract that delineates the terms and conditions of the sale between the buyer and seller.

A Panamanian lawyer can also aid in conducting a Property Title Search (Búsqueda de Titulo de Propiedad).

This is essential to verify the property’s ownership status and uncover any potential legal issues or encumbrances.

Furthermore, they can guide you through the process of obtaining required permits and approvals, including those from the local Land Registry Office or relevant authorities.

Pained by financial indecision? Want to invest with Adam?

Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.