Panama Real Estate Overview

Is it safe for a foreigner to buy and own property in Panama?
What are the procedures to buy real estate in Panama?
Must purchase contracts be in Spanish in order to be legally enforceable in Panama?
Can I block public access to the beach if I own beach front property?

Is it safe for a foreigner to buy and own property in Panama?
Yes! Buying property in Panama is very safe, and it is legal for foreigners to own titled property here. Private property in Panama is protected by the constitution of the Republic of Panama, and more than a dozen laws in Panama have been created specifically to protecting foreign property buyers. Foreigners can hold titled property in Panama in their personal names, although, for asset protection and tax reasons, it is normally recommend that foreign clients hold property in the name of a Panamanian corporation. Panama possession rights property, however, should the name of a Panamanian corporation, with the foreign person as the shareholder (or a Panama private interest foundation or trust as the shareholder in place of the foreign person) of the corporation.

What are the procedures to buy real estate in Panama?
Briefly: find a property you like, negotiate the price and terms with the seller or real estate broker; enlist a qualified Panamanian attorney to handle the due diligence and title search; have your attorney prepare a Promise to Buy/Sell Contract (a deposit of 10% is usually required at this time). Once your attorney has confirmed the property title is clean, then the final closing is scheduled, where both buyer and seller sign the final Buy/Sell Contract. At this point, payment is made to the seller, broker, and attorney from the escrow account. (In some cases, payment will be made after the public deed is transferred and registered into the buyer’s name.) The last step is to register the Buy/Sell Contract at the Public Registry and transfer the property title ownership from the previous to the new owner.

Note: You can find complete details about buying property in Panama in our Panama: The Owner’s Manual. Learn more about this invaluable guide here.

Must purchase contracts be in Spanish in order to be legally enforceable in Panama?
No, the law does not require that the buy/sell contract is in Spanish to be legally enforceable. But…if there is ever a dispute over the transaction in a court of law in Panama, the court will require that the contract be translated to Spanish by an official (licensed) translator. Commonly, therefore, original buy/sell contracts are prepared in Spanish, and clients are provided with an official English translation.

Can I block public access to the beach if I own beach front property?
The laws in Panama offer public access to all beaches, oceans, lakes and rivers in Panama. According to the law, unless there is access within 1000 meters from your property, you must allow public access.