Buying property in Panama
Reviewed by Hassim Patel Bhana, Managing Partner · Updated
Panama runs on its Public Registry: each property has a unique finca number and the owner is whoever the Registry shows. The golden rule is that before you pay a single dollar you do a title study, check the plans, inspect the property and check with ANATI. A sale carries 2% transfer tax and 10% capital gains tax.
Key points
- Each property has a unique finca number, and the owner is whoever the Public Registry shows.
- Before you pay anything: title study, plans, inspection and a check with ANATI.
- Transfer tax is 2% and capital gains tax is 10% on a sale.
- Notary and registry costs run about 0.5% to 1%.
- A purchase moves through offer, notarised purchase promise, deposit, title verification, public deed and registration.
- The deposit is usually 10% to 15%.
- Your ownership is complete only once the deed is registered in the Public Registry.
Frequently asked questions
How do I know the seller really owns it?
The Public Registry decides: each property has a finca number and the owner is whoever the Registry shows. The title study is how you confirm it before paying.
What taxes does a sale carry?
Transfer tax of 2% and capital gains tax of 10%, plus notary and registry costs of about 0.5% to 1%.
What is ANATI?
Panama's national land authority. Checking with it is part of the due diligence before you sign.
How much deposit is normal?
Usually 10% to 15%, paid after the purchase promise is notarised.