Panama Real Estate Prices and Costs

What are the average property prices in Panama?
What is the normal down payment when purchasing property in Panama?
What are average closing costs?
Who normally pays for the title transfer tax – the buyer or the seller?
Who normally pays for the closing costs on real estate transactions in Panama – the buyer or the seller?

What are the average property prices in Panama?
It depends on location. In the city, 2- and 3-bedroom apartments can be found in decent neighborhoods for as little as $50,000. In more upscale neighborhoods, prices are higher, as are those with a water view. Brand-new condos on upscale Balboa Avenue…with a panoramic view of the Bay of Panama are selling for about $175 per square foot and up.

Outside the city, prices are lower. It is possible to find a 3-bedroom house in the mountains or near the beach, within a 90-minute drive of Panama City, for $90,000 and up. (We have seen some homes for $50,000…but usually some TLC is required.) In Boquete, prices have risen quite a bit in the last few years…but there are still deals to be had. If you wish to be in a gated community here with lots of amenities, you can expect to pay $150,000 and up.

Along the Chiriquí coast, and on islands like Contadora, there are considerable deals to be had on beachfront property. In the Bocas del Toro area and along Panama’s Caribbean Coast, you will find property prices to be much lower than in other areas of the Craibbean…but we caution you to be careful when buying property in these areas. Much of it is not properly titled.

To learn more about some of the best residential projects in Panama, go here. We have also created a special Panama First Alerts to notify you about Panama news and local about real estate opportunities. Sign up and find our archives here.

What is the normal down payment when purchasing property in Panama?
Usually, sellers will accept 10% as a down payment upon signing the promise to buy/sell contract. The down payment indicates "good faith" on behalf of the buyer, ensuring the seller that the buyer is serious. The down payment amount, though, depends on the particular transaction and the negotiations that occur. In some cases, sellers will demand as much as 50%, and in other cases, sellers will ask for as little as 5% or less.

What are average closing costs?
Generally, you can expect legal fees and closing cost to range between 1% and 3% of the sales price. Public registry fees alone can be as little as $15 or as high as $2,500 or more, depending on the sale price.

Who normally pays for the title transfer tax – the buyer or the seller?
It is the law in Panama for the seller to pay for the title transfer tax. In some cases, however, depending on the negotiations between the buyer and seller, the seller may request that the buyer pays the title transfer taxes.

Who normally pays for the closing costs on real estate transactions in Panama – the buyer or the seller?
Usually, the buyer pays all the closing costs except for the transfer tax, and normally the seller will pay his/her attorney to review the buy/sell contract. The closing costs payable by the buyer, include: his/her attorney’s fees for drafting the buy/sell contract, doing the title search, title transfer, escrow services, notary cost and public registry taxes. In rare cases, buyers and sellers negotiate special terms whereby the buyer or the seller share closing costs.