Buying in Panama is relatively straightforward for a foreigner: the law imposes no special restrictions on acquiring titled property. What does demand attention is the due diligence.
Title
The first step is verifying the legal status. Panama has both titled properties, registered at the Public Registry, and land held under rights of possession, which has no registered title. Both are bought and sold, but they are not the same thing and are not worth the same. Rights of possession can be converted into title, but the process takes time and does not always succeed.
Land use
Land-use classification determines what can be built and what the property may be used for. A parcel can be ideal for a clinic and still be zoned residential. Checking this before making an offer prevents purchases that turn out not to serve the objective.
Easements and boundaries
A registered plan does not always match what is on the ground. It is worth confirming boundaries with a surveyor and checking for rights of way or power line easements that limit use.
Closing costs
Beyond the price, budget for transfer tax, legal fees, Public Registry recording and, where applicable, bank fees on the financing. Ask for a written estimate before signing the promise of sale.
Before the promise of sale
The promise of sale is the document that sets the terms. Everything agreed verbally should be in it: deadlines, conditions precedent, what happens if financing falls through, and what is included in the sale.
This article is for guidance only and does not replace legal advice. Legal review must be carried out by a qualified professional.
