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11. Real estate and land: Panama

Real estate and land in Panama: equal ownership rights for foreigners and the border and island limits, title by public deed and registration in the Registro Público, the 2 percent transfer tax and the 2026 new home relief, the 10 percent tax on gains with its 3 percent advance, property tax schedules and the home exemption, leases under Ley 93 de 1973 and the 1994 and 1995 freedom of contract decrees, rental income tax and ITBMS, condominiums under Ley 284 de 2022, coastal land and possessory rights titled by ANATI, expropriation, indigenous collective land and zoning, each tied to the official text. Panama has no tax treaty with Argentina; the Argentine side of a cross border property deal is covered in The Argentine Thread guide.

Investor view. Panama lets foreigners own property on the same terms as nationals, prices deals in US dollars, protects registered title and keeps holding taxes low on homes, which makes it one of the most open real estate markets in the region for international buyers.

• Buying and owning property in Panama: equal rights for foreigners, public deed and registration, and who pays which closing costForeigners may own real estate in Panama on the same terms as Panamanians, except land within ten kilometres of the borders and island land, which is restricted by the Constitution. Ownership passes t
• Foreign ownership of land in Panama: open market, the ten kilometre border ban, island land and the ban on foreign governmentsPanama does not restrict foreigners from buying urban or rural property in general, and the Constitution guarantees private property for nationals and foreigners alike. The exceptions are land within
• Title registration and due diligence in Panama: the Registro Público, priority by presentation, registry fees and the checks before closingReal estate ownership and mortgages are recorded in the Registro Público, an autonomous public registry that anyone may consult. An unregistered title does not affect third parties until presented, an
• Property tax in Panama (impuesto de inmuebles): 0.6 to 1 percent on investment property, up to 0.7 percent on a registered home, exemptions and payment datesPanama's national property tax applies to land and buildings on their cadastral value, set by ANATI at 60 percent of market value. Commercial, industrial, second home and land holdings pay nothing up
• Real estate transfer tax in Panama: 2 percent paid by the seller, and the 2026 relief for the first sale of new homesEvery transfer of real estate for value in Panama bears a 2 percent transfer tax on the higher of the price and the cadastral value, paid by the transferor before the deed is signed. Inheritances, don
• Selling property in Panama: 10 percent tax on the gain, the 3 percent advance that can be final, and the scale for developersAn individual or company that sells real estate outside its ordinary business pays income tax of 10 percent on the gain, and must pay 3 percent of the higher of price and cadastral value as an advance
• Leases in Panama: freedom of contract for commercial and most residential leases since 1995, the written contract, the one month deposit held by the Ministry of Housing, and the legacy protections of Ley 93 de 1973Panama's lease law, Ley 93 de 1973, still governs leases, but executive decrees of 1994 and 1995 took commercial, professional, industrial and teaching leases, furnished rentals, homes renting above B
• Rental income in Panama: territorial income tax at 0 to 25 percent for individuals and 25 percent for companies, and 7 percent ITBMS on commercial and short leasesPanama taxes income produced in its territory wherever it is received, so rent from Panamanian property is taxable for residents and non residents alike. Individuals pay 0 percent up to B/.11,000 of n
• Condominiums in Panama (propiedad horizontal): owners' assembly, monthly common fees, a 20 percent late surcharge cap, a 1 percent reserve fund and the paz y salvo needed to sellApartments, offices, lots and other units in shared developments are held under the horizontal property regime of Ley 284 de 2022, which replaced Ley 31 de 2010. Each owner holds its unit and a share
• Coastal land, beaches and islands in Panama: public beaches and shoreline strips, the titleable coastal zone, island land and beach access finesBeaches, the sea and the banks of navigable rivers belong to the State, are free for public use and can never be privately owned. Behind the beach, a public shoreline strip of 22 metres on the Pacific
• Possessory rights and land titling in Panama: ANATI, five years of possession, free titling up to 5 hectares and acquisitive prescriptionMuch rural and coastal land in Panama is held as possessory rights (derechos posesorios) rather than registered title. ANATI is the single authority that recognises possession and grants title over St
• Expropriation in Panama: public utility, a court process with prior compensation at commercial value, and urgent occupation in emergenciesPrivate property in Panama can be expropriated only for public utility or social interest defined by law, through a special court process and with compensation. In an ordinary expropriation the judge
• Indigenous collective land in Panama: constitutional reservation, inalienable collective titles and free, prior and informed consentThe Constitution requires the State to reserve land for indigenous communities and guarantee their collective ownership, and bars private appropriation inside the areas the law delimits. Outside the c
• Zoning and urban planning in Panama: the Ministry of Housing and municipalities, zoning changes in 30 days, and fines up to B/.100,000 for unauthorised worksUrban planning in Panama is shared between the Ministry of Housing and Territorial Planning, which sets national and regional plans, and the municipalities, which approve local plans and zoning. Zonin

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