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Buying property in Panama as a foreigner: requirements, taxes and costs

What a foreigner needs to buy property in Panama: No restrictions, Coastal zone, Purchase tax. 16 projects under construction with 3D tours.

Can a foreigner buy property in Panama?

No restrictions
Same terms as a Panamanian citizen, no local partner or quotas required
Coastal zone
Within 10km of the coast requires a bank trust (the foreigner is the beneficiary)
Purchase tax
Property transfer tax 2% + notary/registration fees 3–5%
Tax benefit
Up to 20-year exemption on the annual property tax for new builds

Source: legalsolutionspanama.com, gruporesidencial.com

Frequently asked questions

No restrictions when buying property in Panama

Same terms as a Panamanian citizen, no local partner or quotas required

Coastal zone when buying property in Panama

Within 10km of the coast requires a bank trust (the foreigner is the beneficiary)

Purchase tax when buying property in Panama

Property transfer tax 2% + notary/registration fees 3–5%

Tax benefit when buying property in Panama

Up to 20-year exemption on the annual property tax for new builds

16 projects under construction in Panama

Compared: buying as a foreigner across the index's 12 countries

Main requirement for foreigners and listed projects, by country
CountryKey pointDetailProjects
Argentina No restrictions Same terms as an Argentine citizen, no prior visa needed 19
Mexico Restricted zone No direct title within 100km of a border / 50km of the coast 13
Spain Key requirement NIE tax ID — required to sign a deed or apply for a mortgage 2
the United States No restrictions No residency, citizenship, or SSN required to buy 25
Uruguay No restrictions Same rights as a local citizen, no prior residency needed 4
Panama No restrictions Same terms as a Panamanian citizen, no local partner or quotas required 16
Colombia Key requirement Passport or foreigner ID + proof of lawful source of funds 11
Paraguay No restrictions Same rights as a Paraguayan citizen, no residency or special visa 7
Peru No restrictions Same property rights as a Peruvian citizen, no prior residency (except within 50km of a border) 2
Ecuador — — 0
Costa Rica — — 0
the Dominican Republic No restrictions No prior residency or citizenship required to buy 2
Investing in other countries:
Argentina · Mexico · Spain · the United States · Uruguay · Colombia · Paraguay · Peru · Ecuador · Costa Rica · the Dominican Republic

Editorial content with cited sources. This is not legal or tax advice. Rules change: always confirm with a local professional before transacting.