Investment property: Panama

Updated 6 October 2026

Panama is open to foreign buyers: a foreigner owns property with the same rights as a citizen, and payments are made in US dollars.

The main purchases are flats in the capital, resort homes on the Pacific coast and houses in the highlands, where many foreign retirees live. Since September 2026 buying a home has again become the main route to permanent investor residence: the threshold for new builds was lowered to $300,000.

What a foreigner can do

Taxes and fees

Annual tax rates are progressive and apply to portions of the value. To get the lower rates for a main home, the property is registered as the owner's family home. By law the seller pays the transfer tax and the advance tax on gains from a sale, but contracts sometimes change this, so we fix how costs are split before signing.

Residence through a purchase

Under Decree No. 17 of 8 September 2026, permanent qualified investor residence is granted for buying a new home from a developer from $300,000 or a resale home from $500,000. Alternatives without property are a fixed-term deposit from $500,000 at one of the two state banks or investments through the securities market. According to the Ministry of Commerce and Industries, 268 investor certificates worth about $113.6 million were issued between July 2025 and June 2026.

How a purchase works

1. Choice of property for the goal: home, rental, investor residence.
2. Public Registry check: owner, encumbrances, mortgages, property tax and building service debts.
3. Promise to purchase agreement and a deposit, usually about 10%.
4. Payment through a bank or escrow with proof of source of funds.
5. Signing the deed before a notary and registration in the Public Registry.
6. Application for investor residence, if needed.

A completed home purchase usually takes one to three months, mostly for checks, payment and registration.

Risks to know about

• Coastal and island plots may have a special legal status, so we check land documents especially carefully.
• Without a certificate of no property tax debts the transfer will not be registered, so we obtain it before payment.
• The supply of flats in the capital is large, and resale can take time.
• For residence it matters not only what you pay but whether the home is new and bought from the developer, if you are counting on the $300,000 threshold.

Can a Russian citizen buy property in Panama

Yes. Panama does not restrict home purchases by nationality: an apartment or house is registered in your own name without a residence permit, and title is recorded in the Public Registry in the same way as for citizens. The restrictions concern location, not nationality: land within 10 kilometres of the borders and parts of the islands and coast.

For Russian citizens the difficulties start with money. Settlements are in US dollars, and Panamanian banks check the source of funds more strictly than usual and refuse anyone linked to sanctions lists. So the payment route is planned before the deposit: through an account in a third-country bank or a Panamanian bank if an account can be opened, with a full file on the origin of funds.

Apartment prices by district

Prices are median asking prices in 2026, rounded up. The expensive bayfront districts cost 30-35% more than the central neighbourhoods, and in older Punta Pacifica towers a square metre starts at $1,000-1,500. For the investor residence permit, not only the amount matters but also the type of property: the $300,000 threshold applies only to new homes bought from a developer.

Owner taxes: rent and sale

• Rent. Income from letting a home in Panama is local income, taxed under the personal income tax scale: 0% up to $11,000 a year, 15% up to $50,000, 25% above.
• Sale. The gain is taxed at 10%. At the sale the seller pays an advance of 3% of the higher of the price and the cadastral value; if 3% exceeds the tax on the actual gain, the difference can be reclaimed.
• Annual tax. A primary home up to $120,000 is tax-free; for other property, rates from 0.6 to 1% apply to portions of the value.

There is no double tax treaty between Russia and Panama, so a Russian tax resident declares rental income in Russia and credits the Panamanian tax under the general rules. They also notify the tax office of an account in a Panamanian bank.

How to buy property in Panama remotely

A deal in Panama can be signed by a representative under a power of attorney. It is executed before a notary in your country of residence with an apostille and a Spanish translation, or at a Panamanian consulate. Through the representative the property is checked in the Public Registry, the promise of sale and the main deed are signed before a notary, and the documents are filed for registration.

Money is best transferred through an escrow account: the seller receives it only after title is registered. Buyers usually come in person once - to open a bank account or to apply for the investor residence permit, which requires a personal visit to the migration service.

For the deal you prepare an international passport, source-of-funds documents - statements, contracts, income returns - and, if buying through a company, its constitutional documents and beneficial owner details. Foreign documents need an apostille and a Spanish translation, so they are ordered in advance while the property is being checked.

What we do

Murblz specialists select a property for your goal, check it in the Public Registry, prepare agreements and the source of funds file, support payment and registration, open an account with a Panamanian bank and handle the investor residence application. We fix the estimate in writing.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

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