GENERAL INFORMATION TO ACQUIRE A PROPERTY

• Equality and Security. Foreigners can buy property in Panama with the same rights and guarantees given to nationals.
• Costs for the Buyer. The costs incurred by the purchaser of a property at closing are the notary fees, registration fees, legal fees and bank charges (in case of funding).

• Costs for the Seller.  The seller must pay a 2% property transfer tax on either the sales price or rated value of the property, whichever is greater. The seller must pay a capital gains tax from the transfer of the property. In most cases, the tax is ten percent (10%) of the total profit. It is recommended to consult with a local tax advisor as there might be other ways to determine this tax.
 
• Ownership. The buyer acquires the property as soon as the deed is registered in the Public Registry, including the sales agreement. This process takes approximately 10 working days, but you can pay a fee of two hundred and fifty US dollars (US$250.00), in addition to the respective registration fee, in order to undertake on a priority basis the deed of sale.

• Corporations.  It is possible to use a Panamanian company or other offshore foundation or holding title to the property. The cost for the incorporation of a corporation or foundation is one thousand dollars (U.S. $ 1000.00) including expenses.

• Exemptions. According to Law 21, all the apartments and shops that constitute the Los Faros de Panama (building 23863), are exempt from property tax for a period of 20 years, stated in the work occupancy permit.

MIGRANT VISA

• Investment. A foreigner who invests between a minimum of a hundred and sixty thousand U.S. dollars (U.S. $ 160,000.00) can apply for permanent residency 2 years after applying for legal residence. After 5 years of permanent residence, he/she may apply for Panamanian nationality.

 Property. A foreigner who acquires property, with a minimum value of three hundred thousand U.S. dollars (US $300,000), in his/her name, and who can prove via the migration institutions that he/she is financially solvent, can apply for permanent residence, two years after having applied for legal residence. Five years after being granted permanent residence, he/she can apply for Panamanian nationality.

 • Rent. A foreign pensioner or retired person who receives a pension from a foreign government, an international entity or private company with a monthly income or pension of at least a thousand U.S. dollars ($1000.00), may apply for a residence permit as a pensioner or retiree and have the right to introduce items for domestic or personal use at a value of up to ten thousand U.S. dollars (U.S. $ 10,000.00), free from all taxes as well as the right to introduce a new motor vehicle, every two (2) years, tax free importation.

Furthermore, a retired foreigner with a long-term deposit in a national bank for a minimum duration of 5 years, and which generates minimum monthly interest earnings of two thousand U.S. dollars ($2000.00), can apply for a residence permit as a retired rentier, with the same benefits as outlined in the previous paragraph.