We advise buyers and sellers on property transactions in Panama, from the first review of the title through to registration, and we prepare and review lease agreements.
Property rights in Panama are recorded in the Registro Público, the Public Registry, which anyone may consult. Each registered property has a finca number, and its record sets out the description of the property by nature, location, boundaries and area, the registered owner, and anything registered against it. That includes mortgages, liens, easements, court measures and other limitations on the title.
A title search obtains that record. Title review is the reading of it: what the entries mean, and whether any of them affect the transaction you are contemplating. Legal due diligence goes further and compares the record against the transaction itself. That includes whether the seller has capacity to sell, whether the registered description matches the property on the ground, whether the property is current with the tax authority, and whether existing leases or other registered interests would continue after a sale.
We carry out the search, review what it shows, and explain what it means before you commit to anything. Most of this work is done before documents are signed.
Yes. Foreign buyers can generally acquire and hold registered title to property in Panama.
There are limits. One is constitutional: foreign persons cannot acquire land situated within ten kilometres of Panama’s national borders. Other restrictions depend on the location of the property, its nature and status, and what is registered against it, such as an easement, a concession, an adjudication by the State, or another limitation entered on the title.
Some property in Panama is held under derechos posesorios, or rights of possession, rather than registered title, which is a different kind of transaction. The position for any particular property depends on the applicable law and on that property’s record, so we check both before advising.
Titled property is registered ownership. It is entered in the Public Registry, which records the owner, the boundaries and area, and anything charged against it.
Some property in Panama is held under derechos posesorios, or rights of possession, rather than registered title. Rights of possession are recognised in practice but do not carry the protections that registered title gives. Where titling is possible, additional administrative or judicial procedures may be required, and whether that route is available depends on the particular property. ANATI, Panama’s national land administration authority, has a central role in land titling and regularisation.
Buying rights of possession is a different transaction from buying titled property, and it is important to establish exactly what is being transferred. We advise thorough due diligence on any such purchase.
A promesa de compraventa is a promise-to-purchase agreement, and it is commonly part of the transaction documentation in Panama. It can bind the parties in writing, and registration may have legal significance depending on the transaction. Whether registration is advisable, and what protection it provides, should be assessed for the specific matter.
The transfer itself proceeds through the appropriate deed and registration process. Registration is not automatic on signature: among other requirements, a property has to be shown to be paz y salvo, meaning that the applicable obligations are current, before the transfer can be recorded. Any outstanding property tax therefore needs to be dealt with as part of the closing.
We also draft and review lease agreements for owners and tenants. The terms worth settling in writing are usually the same: term and renewal, the deposit, who is responsible for what, and how the lease ends.
We cannot publish figures that would be accurate for every transaction, but these are the categories that usually apply.
Which of these fall on the buyer and which on the seller depends on the transaction and on what is negotiated. Rates and obligations are set by law and change from time to time, so we set out the position for your specific matter.
Depending on the transaction, a properly executed power of attorney may allow certain steps to be handled while a party is abroad. Documents executed abroad may need to be apostilled or otherwise legalised, depending on the country of issue.
Sequencing matters here. Documents have to be executed, authenticated and delivered in the right order and within the right timeframes. We will tell you at the outset which steps require your presence and which do not.
International buyers often ask whether property should be purchased personally or through a Panamanian entity. There is no single right answer, and it is not automatically an advantage to use a company.
The considerations usually include who will appear in the Registry as the registered owner, what the property will be used for, how the interest is expected to be transferred later, the continuing obligations an entity carries, and, where relevant, immigration planning. Several residency categories can be qualified for through property, each with its own conditions on value, ownership structure and holding period, so it is worth settling this before the purchase is structured rather than afterwards.
The obligations that come with holding a Panamanian entity are set out on our company formation in Panama page, and the property side of residency planning is covered under Panama immigration and residency.
Receive our free monthly newsletter covering Panama visa updates, immigration law changes, real estate insights, and practical guides for living in Panama. No spam, ever.