Property
Foreign ownership permitted, with a coastal and border limit
Foreigners may own titled property on the same terms as nationals, and Panama has a reliable public registry. The constitutional restriction is narrow: land within 10 km of a national border cannot be foreign-owned, and islands and coastal areas are subject to concession regimes and to rights of possession that are not the same as title.
Key rules
- Transfers are made by public deed and registered in the Registro Público.
- Derecho posesorio (rights of possession) is common but is not registered title; it must be converted before it is secure.
- Transfer tax is 2% of the higher of registered value or sale price, plus a capital-gains advance of 3%.
- Property tax was reformed in 2017 with a substantial family-home exemption.
- Titling in the ARAP-administered coastal and island zones follows a separate concession process.
Governing law
- Código CivilProperty and registration.
- Ley 80 de 2009Titling of island and coastal land.
- Ley 66 de 2017Property-tax reform and exemptions.
In practice
Insist on a registry certificate and a survey before paying anything for rights of possession — buying unconverted posesorio is the single most common way foreign buyers lose money in Panama.