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🚫 HOLD That Overseas Property Hunt! 🚫

Navigating the global real estate market? Let Michael Cobb, a seasoned expert with decades of experience, guide you. On August 22nd, he's revealing the ins and outs of overseas property buying.

  • 🌍 Dive into:
  • 🔍  Hidden costs you never anticipated
  • 🔍 Tactics used by agents to seal the deal
  • 🔍 Strategies to make your investment profitable

🏠 Webinar: "5 Fatal Traps of Buying a New Home Exposed!" 🏠

Unlock the knowledge to secure your dream home without the pitfalls.

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P.S.: Craving an edge in your property search?

🌟 For personalized guidance, see if you qualify for a FREE consultation with Michael!

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Buying Real Estate in Panama As a Foreigner

Your Guide to Buying Panama Real Estate Investments

Buying real estate in Panama is attractive for for people of all ages. Panama is one of the easiest countries to to buy real estate for foreigners from all over the world. Panama real estate investments offers about every option there is for such a small country – you can live on the Pacific beaches, the Caribbean beaches, in the mountains, as well as big city life in Panama City. Not to mention if you are an investor there are many types of real estate investments in Panama.

Retirees especially are flocking to this country, likely because of its attractive retiree benefits. Panama has one of the easiest residency programs in the world – the Panama Friendly Nations Visa – with which to obtain permanent residency. This is especially true if you’re a retiree where they have the Pensionado Program. Gaining permanent residency in Panama as a retiree requires very little, the greatest hurdle being to prove that you have a guaranteed monthly income of just U.S.$600 if you’re single, which Social Security will more than cover. You also get a whole host of other benefits, such as discounts on airfare, medical bills, and groceries. This makes it incredibly attractive to retire to Panama.

Panama real estate investmentsCombine the ease of residency with the fact that Panama has one of the fastest growing economies in all of the Western Hemisphere, and it’s no wonder why there is so much interest in buying real estate in Panama. Whether you’re interested in buying Panama real estate for a retirement home, a second home, or as a Panama real estate investment, real estate in Panama is a very attractive prospect for many. Foreigners are not barred from buying real estate in Panama, in fact, and they don’t even have to live in the country to do so – which might be the case for other types of real estate investments.

The process for buying Panama real estate is fairly straightforward. Of course, the first step in the process, as with buying real estate or property investments in any country, is to get oneself a reliable Panama real estate agent, as well as a reliable attorney. Both of these professionals are crucial in making sure that you obtain what you are looking for, at a good price, and that the real estate is bought in a legal and secure fashion.

Once you have decided on the real estate that you want to buy, there are several documents that must be obtained, and several processes that must be gone through.

The documents when buying Panama real estate are:

Letter of Intent – This must be signed by both parties. Upon signing, the buyer will put down a good faith deposit and the real estate agent for the seller will take the property off the market for an agreed upon amount of days. The Letter of Intent is backed up by another important document when buying real estate in Panama:

Promise to Purchase – This document lays out all of the terms of the real estate deal. This includes such details as the purchase prices, deposit amount, and any penalties for non-compliance.

*Note: These two documents are not necessary, but they are usually used. They work as good indicators that both parties understand the terms of the sale and are both committed to it.

Promissory Note (Promesa de Compra y Venta) – Must be in Spanish to be legal. Can also be written in English, but again, the Spanish is required. This document is similar to the Promise to Purchase but is much more formal, both in a legal sense as well as in the aspects of the sale that it lays out.

The Promissory note states:

  • The parties to the sale
  • What is included in the sale
  • A description of the property
  • The time frame on deposits and final balance payments
  • Penalties for non-compliance
  • Any other details pertinent to the sale

Upon signing the promissory note, a down payment will be made. This is typically 10% of the purchase price, but can be different depending on the circumstances outlined in the promissory note. This down payment will go to the seller, and is typically used to pay the attorney who drafted the promissory note, as well as pay the 5% transfer/capital gains fees.

Buying real estate in PanamaAfter this, several other documents must be gathered by the seller. These documents include the deed(s) for the property as well as statements of good faith, which show that there are no outstanding taxes or other bills associated with the property (such as money owed to the water company). During this time, the buyer should do a physical inspection of the property, to ensure that it meets all of the specifications outlined in the sale.

Irrevocable Letter of Credit – This is a document that the buyer must provide to the seller. It is essentially an escrow letter. The seller may cash this at the buyer’s bank, once the property has been transferred in the public registry.

Buy Sell Agreement – After all of the above documents have been gathered, and the processes completed, the Promissory Note is converted into a Buy/Sell Agreement, which is then signed by both parties in front of a public notary and inscribed in the public registry. The property is then registered and the ownership of said property is changed from the seller to the buyer. The seller may cash the buyer’s Irrevocable Letter of Credit at this time.

Once everything is squared away, the closing costs will typically be around 1-2%, aside from the transfer tax, which is 5%.

The whole process can take as little as 30 days, but usually it will only be this quick if the property is being sold by way of selling shares of a corporation that owns the property. This expedites the process, as the property isn’t what’s being sold, but rather the shares of the corporation which owns the property. The owner of the property remains the same: the corporation.

The process can take as long as 90 days on a typical basis. It could potentially take even longer, as there is always the possibility of unforeseen external factors influencing the process. In general, however, a 90-day cap on closing time can be expected.

Buying Panama real estate investments can be an excellent way to diversify one’s assets. International diversification is key to a successful and strong portfolio. In addition, for anyone interested in moving to Panama or retiring to Panama, buying real estate in Panama will be a crucial part of this process.

Panama Pineapple Farm Investment

$ 100,000 Minimum Investment
Panama’s popular Golden Pineapple variety is a proven winner at retail, having taken many years of development to achieve its ideal color, flavor, and shelf life. Grown near the fabled Gatun Lake of t [more]
Panama’s popular Golden Pineapple variety is a proven winner at retail, having taken many [more]

Azuero Oceanfront Land for Sale for Panama

Contact us for pricing
This working ranch in Panama is 543 acres of Panama oceanfront land for sale near Pedasi. This oceanfront property is currently a working ranch, featuring a 3,300 ft stretch of oceanfront, located nea [more]
This working ranch in Panama is 543 acres of Panama oceanfront land for sale near Pedasi. [more]

Pedasi Beachfront Development Land For Sale ...

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Pocri Finca 1 consists of 8.9 hectares of Azuero Peninsula beachfront land for sale in Pedasi Panama with 1,000 ft stretch of Pacific Ocean beachfront. The development land requires no further extensi [more]
Pocri Finca 1 consists of 8.9 hectares of Azuero Peninsula beachfront land for sale in Ped [more]

Azuero Peninsula Beachfront Land For Sale Ne...

Price Upon Request
Pocri Finca 2 is Azuero Peninsula beachfront land for sale is near to near Pedasi Panama. The beachfront land is split into five 1 hectare parcels so it  can be purchased separately or as a whole. The [more]
Pocri Finca 2 is Azuero Peninsula beachfront land for sale is near to near Pedasi Panama. [more]

Pedasi Panama Beachfront Ranch Land For Sale

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La Gloria is located midway between Las Tablas and Pedasi, this 20 hectare beachfront land for sale boasts over 3,000 ft of Pacific beachfront with views of Isla Iguana. It is a functioning Panama cat [more]
La Gloria is located midway between Las Tablas and Pedasi, this 20 hectare beachfront land [more]

Panama Beachfront Development Land For Sale ...

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This Panama development land for sale boasts 1,000 ft of beachfront as well as views of the famed Isla Iguana. This beachfront development land has already been cleared, with no further excavation req [more]
This Panama development land for sale boasts 1,000 ft of beachfront as well as views of th [more]

Fantastic Islands for Sale in Panama – Maje ...

$ 7,988,408
These virgin gem islands are surrounded by tropical beauty with their close proximity to Panama city, which is considered an international business hub. It is not often when you can find Panama island [more]
These virgin gem islands are surrounded by tropical beauty with their close proximity to P [more]

Panama Agriculture Investment in Greenhouses

$ 98,000
This is a great Panama real estate investment in hydroponic greenhouses growing strawberries. The developer is an established agricultural company. You can purchase 500 square meters (53,820 square fe [more]
This is a great Panama real estate investment in hydroponic greenhouses growing strawberri [more]

Panama Teak Investment with Visa and Residen...

$ 27,180 Only 25 Left
This is a wonderful 19 year old Panama teak investment that allow you to obtain permanent residency in Panama. The Panama teak investment plantation is located in the Darian area of Panama. There are [more]
This is a wonderful 19 year old Panama teak investment that allow you to obtain permanent [more]

Vacation Rentals for Sale in Bocas del Toro ...

From $ 344,000 USD
Own your own jungle lodge for investment income and feel at one with nature in these Bocas del Toro vacations rentals for sale in Panama. These vacation rentals in Red Frog Beach Resort have a jungle [more]
Own your own jungle lodge for investment income and feel at one with nature in these Bocas [more]
2 153.00 m2full info

Panama Property Investment in a Mango Planta...

$ 41,000 Per Hectare
This is a wonderful Panama property investment in a mango plantation. The mango plantation is located in the heart of Panama’s farming country. This USDA certified Panama organic mango plantatio [more]
This is a wonderful Panama property investment in a mango plantation. The mango plantation [more]
10,000.00 m2full info

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