Panama Real Estate
Protect and grow your assets in the freest tropical tax haven in the Americas.
Your Assets Deserve a Profitable Safe Haven in Hard Currency
Advantages of acquiring property in Panama
Uncomplicated Access for International Investors
You can invest like a local, without excessive bureaucracy, visa requirements, or mandatory minimum investment amounts. Want to invest $300,000? You can. Want to start with less? You can do that too. Outside of protected coastal zones, the country lets you decide where, how, and how much you want to invest.
Residency in a Tropical Paradise
With a real estate investment starting at USD 200,000, held for 2 years, you can obtain temporary residency through the Friendly Nations program. Or, with USD 300,000 held for 5 years, you can apply for permanent residency, which also counts toward the timeframe for future naturalization and citizenship after 5 years.
Favorable Real Estate Taxation
You pay no inheritance tax, which ensures that the property passes to your heirs without additional costs. If you choose to rent out your property as a non-resident, taxation is progressive, ranging from 5% to 20% depending on the income generated. Meanwhile, the annual property tax is low, between 0% and 1% of the property value.
Profitability in Dollars
With prices between USD 1,300 and USD 2,500 per m², lower than in Chile, Mexico, and Brazil, Panama offers strong rental demand and average returns between 6% and 7% per year. This is especially true in capital neighborhoods like El Cangrejo and San Francisco, where executives, expats, and tourists drive the market year-round.
True Freedom
With no taxes on foreign income, no Central Bank, a dollarized economy, crypto-friendly accounts, and liberal laws regarding civilian firearm ownership, freedom of speech, religion, and sexual orientation, the Dubai of Central America offers a truly free environment if you want to invest and live with less state interference.
Modern Infrastructure and Strategic Location
The capital, Panama City, features the tallest skyscrapers in Central America with views of the Pacific Ocean combined with a pleasant warm climate year-round, beautiful beaches, a large community of North American expatriates, and high-end infrastructure. Hospitals, schools, hotels, and shopping malls make the city one of the most modern urban centers in Latin America, just over a 6-hour flight from São Paulo and a 4-hour flight from Miami.
What Do You Need to Know Before Buying Your Property?
Taxes and Fees Involved
Capital gains tax
Description
A tax on the profit made from the sale of a property.
Amount
10% on net profit.
Who pays
Seller.
Property tax
Description
Charged annually by the municipality on the property.
Amount
From 0% to 1%, depending on the property value.
Who pays
Owner.
VAT (ITBMS)
Description
Value-added tax on the sale of new properties and services.
Amount
7% of the transaction value.
Who pays
Seller.
Rental Income Tax
Description
Applies to rental income received by the owner.
Amount
5% to 20% for non-residents;
15% to 25% for residents.
Who pays
Owner.
Real Estate Brokerage Fee
Description
Fee paid to the real estate agent involved in the transaction.
Amount
Between 3% and 5% of the property value.
Who pays
Seller.
Registration Fee
Description
Fee for registering the property transfer at the public registry.
Amount
About 0.3% of the property value.
Who pays
Buyer.
Notary Fee
Description
Charged by the notary for the formalization and legalization of the deed.
Amount
On average 1% of the property value or a fixed fee.
Who pays
Buyer.
Invest where you and your assets are welcome.
Required Documents
- Copy of the buyer's and seller's passport or official ID
- Property deed
- Tax documents
- Receipts for payments made for the property
- Property valuation
- Notarized contract
- Appraisal report
- Proof of funds
- Power of attorney (if applicable)
- Copy of property inspection reports
Step-by-Step Guide to Buying Your Property in Panama
- Define your goal:
Residency, rental income, or personal use? Knowing what you are looking for simplifies the entire process. - Rely on local experts:
With our partners, you have access to those who understand the market, the law, and what truly works in Panama. - Choose the ideal property for your plan:
High-end apartments, beachfront villas, or commercial properties—it all depends on your strategy and preferred location. - Conduct legal due diligence:
Our local partners verify the deed, zoning, and any potential encumbrances to ensure a secure purchase. - Sign the preliminary contract:
You and the seller sign an agreement outlining the price, terms, and timeline. The deposit (usually 10%) is held in a secure escrow account. - Finalize the transaction:
The final contract is signed before a notary, the payment is released, and the property is officially registered in your name at the Panama Public Registry. From that point on, you are the legal owner.
Who Will Assist You
FRAPAN Invest
To ensure you invest safely and efficiently, Settee partners with FRANPAN, a team with decades of experience in the financial and real estate markets and deep knowledge of Panama.
With them, our clients have access to a full-service experience: from property selection to the legalization of the purchase, with minimal bureaucracy and maximum confidence.
Klaus Happ
Founder of FRAPAN-Invest and former UBS director in Germany, he brings over 25 years of experience in wealth management and international transactions. He leads client services for Settee in Panama.
Klaus is supported by a highly qualified team, including experts in real estate management, property development, and investment structuring, all with a strong track record in the Panamanian market and a local base in Panama City.
With this team, you will receive comprehensive, personalized support to carry out your real estate investment with peace of mind and security.
Is a Property in Panama Right for Me?
We Recommend Purchasing Property in Panama For:
- Investors seeking dollar-denominated returns and appreciation in a stable, growing market.
- People who wish to obtain legal residency in a tax-efficient country with minimal requirements and maximum freedom.
- Those who want to protect their assets from unstable governments by leveraging clear regulations and a territorial tax system that exempts income earned outside the country.
- Expats looking for a strategic base in Latin America that is connected to the U.S. and the rest of the world, without sacrificing infrastructure and quality of life.
We do not recommend purchasing property in Panama for:
- Investors looking for quick, speculative gains without a medium- to long-term vision. The Panamanian market is stable and promising, but it requires strategy, not haste.
- Those expecting the same informality as a purchase in Brazil. Buying abroad is a structured process with legal steps and international standards.
- People with a budget under USD 250,000. In Panama, we work exclusively with properties starting at this value, which align with residency requirements and the investment profile that delivers real returns.
- Those looking for a low cost of living destination. Panama offers high quality and infrastructure, but its cost of living is higher than in countries like Paraguay or Colombia.
Frequently Asked Questions (FAQ)
Yes! Any foreigner can buy property in Panama without needing a residency permit. Foreign investors have the same rights as local citizens, with no restrictions or disadvantages.
No, Panama does not offer citizenship directly through investment. However, foreigners can apply for residency through investment by purchasing property via the Friendly Nations Program. After obtaining permanent residency and meeting specific requirements, including years of residency, they may apply for citizenship.
Yes, but they are few. Foreigners have virtually the same rights as local citizens when purchasing property in Panama. The only relevant restriction concerns properties located in protected coastal zones, which require special permits. Otherwise, you are free to acquire residential, commercial, and investment properties throughout the country.
Yes. Many investors buy property in Panama specifically to generate passive income in dollars. Rental demand is strong, especially in central neighborhoods of Panama City, commercial districts, and beachfront areas.
The annual return typically ranges between 5% and 8%, with high demand for short-term rentals catering to expats, executives, and tourists. You can rent out your property even without living in the country, though local income will be subject to taxes.
No! The purchase can be made remotely via a notarized power of attorney, allowing a representative to act on your behalf.
Yes, foreigners can purchase agricultural land in Panama.
While not mandatory, working with a consultant makes the process safer and more efficient. An expert can help draft the Purchase and Sale Agreement, ensure all documents are in compliance, and conduct a Title Search to avoid legal issues. Additionally, a consultant assists with the correct payment of taxes and fees, and provides guidance on the permits and approvals required for property registration.
We can issue an invoice for the service. Please send us your preferred billing address.