Countries › Panama › Guide › 11. Real estate and land › Foreign ownership of land in Panama: open market, the ten kilometre border ban, island land and the ban on foreign governments

Foreign ownership of land in Panama: open market, the ten kilometre border ban, island land and the ban on foreign governments

Last verified: 2026-10-29 · Status: Stable

Panama 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 ten kilometres of the borders, island territory, which can only be titled under special conditions, and ownership by foreign governments. Buyers of state land under the coastal and island titling law must disclose their ultimate owners and may only use registered shares.

Panama's currency, the balboa (B/.), is at par with the US dollar, which circulates as legal tender; the Superintendencia de Bancos states that the balboa's value is on a par with the US dollar (checked 29 October 2026). USD figures therefore equal the balboa figures.

Key facts

Border zone where foreigners and foreign owned companies may not acquire land	10 kmConstitución Política art. 291, as of 2026-10-29 · in force
General restriction on foreigners buying real estate outside border and island rules	None textConstitución Política arts. 20, 47 and 291, as of 2026-10-29 · in force
Exchange rate used for USD conversions	1 PAB per USDBalboa at par with the US dollar (Superintendencia de Bancos), as of 2026-10-29 · in force

The rule

1. Panamanians and foreigners are equal before the law; the law may set special conditions or deny certain activities to foreigners for reasons of work, health, morality, public security and the national economy.Constitución Política (texto único 2004), art. 20, 2004-11-15 official text · verified 2026-10-29

2. Foreign individuals and companies, and Panamanian companies whose capital is foreign in whole or in part, may not acquire ownership of public or private land located less than ten kilometres from the borders.Constitución Política (texto único 2004), art. 291 first paragraph, 2004-11-15 official text · verified 2026-10-29

3. Island territory may be sold only for specific national development purposes, when it is not a strategic area or reserved for government programmes, and when it has been declared a special development area with legislation on its use that safeguards national security. Selling island land does not affect State ownership of public use property, and the property may be expropriated at any time with adequate compensation.Constitución Política (texto único 2004), art. 291 second to fourth paragraphs, 2004-11-15 official text · verified 2026-10-29

4. No foreign government or foreign official or semi official entity may acquire ownership of any part of the national territory, except embassy premises as the law provides.Constitución Política (texto único 2004), art. 290, 2004-11-15 official text · verified 2026-10-29

5. Island land may be titled to possessors only if possession for more than five years is proved, the land is used for specific development purposes, the area has been declared a special development zone and is not strategic or reserved, and public use areas are not affected; the Cabinet may declare special development areas by decree. Where the State reserves an area, existing possessors may receive a renewable twenty year use concession on request.Ley 80 de 2009 art. 13 as amended by Ley 59 de 2010 art. 93, art. 13, 2010-10-08 official text · verified 2026-10-29

6. All applications to buy State land under the coastal and island titling law are public; a company applicant must disclose the individuals who own or control it, only registered (nominative) shares are allowed, and a change of shareholders before titling without written notice is a breach. The titled company must present financial statements that the State may publish. Companies whose common shares are listed on a recognised exchange are exempt.Ley 80 de 2009, art. 11, 2009-12-31 official text · verified 2026-10-29

Worked example

A US investor's Panamanian company wants a coffee farm in Chiriquí eight kilometres from the Costa Rican border: the Constitution bars the acquisition because the company has foreign capital, whatever the price.
The same company can buy a B/.1,500,000 (US$1,500,000) farm twenty kilometres from the border on the same terms as a Panamanian buyer.

Step by step

Measure the distance from the border on the cadastral plan before negotiating rural land in border provinces.
For island property, confirm in the Registro Público that a title already exists, or that the area is a declared special development area before relying on possessory rights.
When applying to buy State land, prepare a beneficial ownership disclosure and convert any bearer structure to registered shares.

Common traps

The border ban reaches Panamanian companies with any foreign capital, so a local shell company does not cure it.
Island land outside special development areas is generally not titleable, and possession alone does not give ownership.
Even titled island land remains subject to the State's right to expropriate with compensation and to public use areas such as beaches.

Sources

← Buying and owning property in Panama: equal rights for foreigners, public deed and registration, and who pays which closing costTitle registration and due diligence in Panama: the Registro Público, priority by presentation, registry fees and the checks before closing →

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