Panama – Finding Property to Buy

Who are the main estate agents operating in Panama, and how do buyers typically use them?

Panama does not operate a centralised MLS in the way many other countries do, which makes working with a well-connected agent particularly important. Although an MLS does technically exist in Panama, its listings are sparse and it does not function as a broad information-sharing tool in the way North American systems do. A practical consequence of this is that agents will generally only present properties for which they have a commission arrangement in place. Because of this dynamic, it is common for buyers to engage more than one agency at the same time during their search.

A number of established agencies are active across Panama and regularly serve overseas purchasers. Among those most frequently encountered are:

• Panama Equity Real Estate — panamaequity.com — An agency built around delivering a genuinely professional real estate experience, with agents who prioritise doing right by their clients.
• Panama Sovereign Realty (licence PJ-1384) — panamasovereign.com — Positioned as a strategic property advisory for buyers, sellers, and investors seeking more than a simple listing service, the agency combines local knowledge with international standards to provide hands-on client representation.
• DoPanama (licence PJ-1430-2023) — dopanama.com — With strong relationships across the real estate, legal, construction, and specialist sectors, this agency focuses on making the relocation process as seamless as possible for international buyers.
• Benoit Properties — benoitproperties.com — Provides an end-to-end service covering everything from initial property identification and consultation through to completing the transaction.
• Metro Realty Panama — An agency recognised for its integrity, bilingual capabilities, and detailed knowledge of the local market, with a focus on luxury homes, beachfront properties, relocation support, and investment opportunities across Panama City and other areas.
• BusinessPanama Real Estate — businesspanamarealestate.com — Brings together licensed agents, attorneys, insurance professionals, mortgage brokers, and investment advisors under one roof to address a full range of real estate needs.

It is worth noting that neither Panamanian nor foreign agents assisting with property purchases or lettings are legally required to observe a fiduciary duty in Panama — that is, there is no statutory obligation compelling them to prioritise a client’s interests over their own. This is a significant departure from regulated markets such as the United Kingdom, where agents are held to conduct standards by bodies such as The Property Ombudsman, or the United States, where buyer’s agents in numerous states are legally bound by fiduciary obligations. Buyers should bear this in mind and always retain an independent lawyer alongside any agent.

Note: The prominence and availability of individual agencies can shift over time. Always confirm current details and licensing status directly with agents and through the official regulator before engaging their services.

Do estate agents in Panama need qualifications or a licence to operate?

The real estate profession in Panama is governed by Decree Law No. 6 (of 8 July 1999), which sets out the regulatory framework for real estate agents and brokers. The body responsible for issuing and overseeing these licences is La Junta Técnica de Bienes Raíces (JTBR) — the Real Estate Technical Board — which operates under the Ministry of Commerce and Industries (MICI). The contact email cited by ACOBIR for licensing enquiries is [email protected], though readers should verify current contact details and procedures directly with mici.gob.pa.

To practise lawfully as a real estate agent in Panama, individuals must hold a professional capability licence issued by the Junta Técnica de Bienes Raíces. Agents are also required to post a bond of ten thousand dollars (B/.10,000) — payable in cash, State Bonds, through an insurance company, or via a bank guarantee letter — as security against any sanctions imposed by the state and to cover potential losses caused to third parties.

In reality, however, a large proportion of individuals presenting themselves as real estate agents in Panama do not hold a personal licence. This does not automatically prevent them from showing properties; their remuneration may be described as “marketing” or “professional services” fees, and because they operate under the umbrella of a licensed broker, they may be exempt from needing their own licence. Developers are also permitted to employ staff to sell properties within their own projects without those individuals requiring a licence, and private sellers may sell their own property without one either.

Panama stepped up enforcement within its real estate sector in 2025, following a rise in cases where foreign buyers were defrauded by unlicensed individuals misrepresenting themselves as agents, resulting in disputes and financial harm. The government intensified its crackdown on such operators. Nevertheless, buyers should still request to see an agent’s licence card and verify its validity through the JTBR or MICI before proceeding with any arrangement.

The Panamanian Association of Real Estate Agents and Promoters (Asociación Panameña de Corredores y Promotores de Bienes Raíces / ACOBIR) maintains a strict code of conduct for its members, and its ethics committee can act as a mediator in disputes — offering an additional layer of recourse for buyers who choose to work with ACOBIR-affiliated agents. ACOBIR’s website is acobir.com.

This environment differs considerably from countries such as the UK, where all estate agents must belong to a government-approved redress scheme, or the US, where state-level licensing is mandatory and rigorously enforced. In Panama, the licensing legislation exists, but enforcement is largely reactive rather than proactive — it tends to be triggered only once a formal complaint has been lodged. Readers should verify the current regulatory requirements directly with MICI.

How much do estate agents charge in Panama, and who pays the fees?

The prevailing convention in the Panamanian market is for agent commission to be set at 5% of the sale price, payable to the agent who concludes the transaction. That said, commission is not fixed by law — the parties are free to negotiate the rate. As of 2025, 5% remains the widely referenced benchmark, but buyers should always confirm the applicable rate directly with any agent before entering into an arrangement.

Commission is customarily paid by the seller rather than the buyer, though this can vary, with rates in practice typically ranging from 3% to 5% of the sale price. Unlike in some markets where the buyer separately negotiates and funds their own agent, in Panama the seller’s agent’s fee is almost invariably absorbed by the seller as part of the deal. Buyers do not normally pay an additional fee to a selling agent, though this position may differ if an exclusive buyer’s agent arrangement is formally agreed upon (see the buyer’s agent section below).

In addition to any agent commission, buyers should factor in further transaction costs. These include notary fees of approximately 0.25% of the property value, registration fees of 0.3%, a transfer tax of 2% of the property value or cadastral value (whichever is the greater), and legal fees that generally fall between 1% and 2%. Overall, buyers in Panama can expect closing costs of between 3% and 6% of the purchase price, covering legal, notarial, and registry expenses.

Buyers should also be aware that Law 468 of April 2025 removed certain property tax exemptions on first sales of residential properties occurring after 31 December 2025, which may marginally increase costs compared to earlier transactions. Confirming the precise tax position with a solicitor at the time of purchase is advisable. There is no official government portal that publishes standardised agent fee schedules; the most relevant guidance comes from ACOBIR at acobir.com.

Where else can buyers find properties for sale in Panama, apart from estate agents?

Panama’s property market is served through a variety of channels beyond the traditional estate agency route. Given the fragmented structure of the market and the absence of a comprehensive MLS, international buyers are well advised to consult several of these sources simultaneously.

Online property listing portals

The most widely used property platforms in Panama are Encuentra24 and Compreoalquile. Encuentra24 (encuentra24.com) is one of the largest classified and property listing websites across Central America and is regularly used by both agencies and private sellers in Panama. Compreoalquile (compreoalquile.com) is dedicated specifically to property sales and rentals in Panama, making it a natural starting point for anyone wanting to survey the market by location and price range.

MLS ACOBIR

Panama’s closest equivalent to a multiple listing service is operated through ACOBIR. The portal allows users to browse a broad selection of properties across different regions, categories, and price points. It can be accessed at mls.acobir.com. While less comprehensive than MLS platforms in North America or Australia, it lists properties held by ACOBIR member agents and provides a useful aggregated view of the market.

Developer direct sales

New-build and off-plan properties are frequently sold directly by developers, bypassing agents entirely. Developers may legally employ people to sell units within their own projects without those individuals needing a real estate licence. Major developments in Panama City and along the coast commonly operate their own sales offices and maintain dedicated websites. Purchasing directly from a developer may unlock early-stage pricing, but independent legal review of all contracts is essential regardless.

Expat communities and forums

Recommendations gathered through expat networks, professional directories, and reputable agencies can provide valuable on-the-ground insight. Active resources include Panama-focused expat groups on Facebook and discussion boards on International Living forums. The International Living website (internationalliving.com) publishes regular coverage of Panama’s property market. These communities are particularly useful for uncovering off-market opportunities and sourcing personal referrals.

The Public Registry

The Registro Público (Public Registry) maintains digital records for all titled properties in Panama, including details of current owners, legal descriptions, and registered encumbrances. Its website is registro-publico.gob.pa. While the registry does not function as a listings portal, it can be consulted to verify the title status and ownership history of any specific property under consideration.

Word of mouth and relocation services

Given Panama’s relationship-oriented business culture, personal introductions and referrals carry significant weight, and consulting other expats for agent or area recommendations is a well-established approach. Relocation-focused services such as DoPanama also offer structured property tours and introductions to local communities, which can be an effective way to narrow down preferred areas before committing to a formal search through agents.

Is using a buyer’s agent common practice when purchasing property in Panama?

In Panama, the concept of a dedicated buyer’s agent — a professional working solely in the purchaser’s corner rather than the seller’s — is not yet established practice to the same degree as in markets such as Australia or the United States, where buyer’s agency is a well-defined and legally recognised profession. That said, the model is gaining traction, particularly among firms that cater to international clients.

Certain agencies, such as Panama Sovereign Realty, present themselves as strategic property advisories offering local market expertise, international standards, and hands-on representation designed to safeguard clients throughout the transaction. In practice, firms operating in this way often fulfil a buyer’s agency-type role, though they may still receive their remuneration from the seller’s side of the deal rather than directly from the buyer.

As noted elsewhere, neither Panamanians nor foreigners who assist with property sales or purchases are legally bound by fiduciary duty in Panama — there is no statutory requirement to place a client’s interests above their own. This is the core challenge that buyer’s agency in Panama must contend with: unlike many US states or jurisdictions with dedicated buyer’s agent legislation, there is no legal framework in Panama that compels an agent acting for a buyer to uphold fiduciary obligations. Buyers seeking exclusive representation should confirm in writing who the agent is working for and precisely how they are being paid.

There is no distinct licence category for buyer’s agents in Panama; any agent performing this function would need to hold a standard real estate broker’s licence from the JTBR. Where a buyer’s agent arrangement is formally agreed, fees are generally structured as a percentage of the purchase price or as a flat consultancy fee. As of 2025, no standard published rate exists for buyer’s-only representation, and current figures should be confirmed directly with individual agents before any engagement.

The most widely used alternative to a dedicated buyer’s agent is the engagement of an independent real estate lawyer from the outset. Having your own attorney conduct a thorough title search and prepare the purchase contract is a critical safeguard, and their advice on what is needed to complete a transaction successfully in Panama should be treated as the primary protective measure available to buyers operating within this system.

Are there organisations in Panama that support or represent foreign property buyers?

No single government body or dedicated association exists in Panama exclusively to advocate for or protect foreign property buyers. However, several organisations provide meaningful support and some degree of oversight.

ACOBIR — Asociación Panameña de Corredores y Promotores de Bienes Raíces

ACOBIR, the Panamanian Association of Real Estate Agents and Promoters, holds its members to a strict code of professional ethics. Under Decree Law No. 6 of 1999, the Real Estate Technical Board has authority to hear arguments concerning disputes between parties to a real estate transaction and to impose appropriate sanctions. ACOBIR also provides an arbitration mechanism for resolving intractable disagreements between members and their clients. Website: acobir.com.

Junta Técnica de Bienes Raíces (JTBR) / MICI

The Junta Técnica de Bienes Raíces (JTBR) is the government authority responsible for issuing and regulating real estate licences in Panama, operating within the Ministry of Commerce and Industries. Buyers who encounter an unlicensed agent or wish to submit a formal complaint may contact MICI directly. Website: mici.gob.pa.

Colegio Nacional de Abogados (National Bar Association)

Panamanian lawyers specialising in real estate transactions should be registered members of the National Bar Association (Colegio Nacional de Abogados) and should have demonstrable experience advising foreign buyers. If you need to identify or verify a qualified property lawyer, the Bar Association is the appropriate reference point. Website: colegioabogados.org.pa.

Registro Público (Public Registry)

Panama’s Public Registry, which falls under the Ministry of Government and Justice, is the country’s sole official property registry. While it does not provide buyer advocacy, it serves as the authoritative source for confirming title, identifying any registered encumbrances, and tracing the ownership history of any given property. Website: registro-publico.gob.pa.

International Living and Expat Communities

Although not a regulatory or legal entity, International Living (internationalliving.com) publishes substantial guidance for foreign buyers considering Panama, and its forums are regularly consulted by expats seeking recommendations for vetted professionals and candid accounts of others’ experiences. These informal networks can serve as a practical alternative to a formal foreign buyer protection body.

What other steps or considerations should foreign buyers be aware of when searching for property in Panama?

Foreign ownership rights and restrictions

As of early 2026, Panama continues to stand out as one of Latin America’s most accessible real estate markets for foreign nationals, with no blanket prohibition on non-Panamanians acquiring residential property. Rather than imposing restrictions, Panama extends to foreigners the same property rights that its own citizens enjoy — with a limited number of exceptions. Foreign buyers may freely purchase real estate in Panama for personal use or as a rental investment, and may hold title in their own name or through a Panamanian corporate structure.

The one clear constitutional restriction applicable specifically to foreign buyers is the prohibition on purchasing land within 10 kilometres of the country’s international borders with Costa Rica or Colombia. In practical terms, this most significantly affects buyers interested in rural or coastal property in Chiriquí province near the Costa Rica border, or in the Darién region near Colombia. Land within the autonomous indigenous territories (Comarcas) is held collectively and cannot be sold or titled to foreign nationals. The precise status of any rural property should always be confirmed with a lawyer before proceeding.

Right of Possession land — a key risk

Right of Possession (ROP) land exists throughout Panama and carries considerable legal risk, principally due to ambiguous or incomplete ownership documentation. Foreign buyers are strongly advised to avoid ROP properties entirely and to concentrate their search on fully titled land that offers comprehensive legal protection and unambiguous ownership rights. Claims by agents that all the paperwork is ready to convert an ROP property to a title should be treated with scepticism — the titling process can be protracted and may involve costs running to tens of thousands of dollars.

The role of the Notary Public

The function of a Notary Public in Panama is quite different from what a notary does in many other countries. In Panama, a Notary Public is a senior official vested with final authority in property transactions. Every real estate transfer in Panama must pass through a notary public, who drafts and authenticates the public deed (escritura pública) — the legal instrument through which ownership formally passes — and verifies the identities and signatures of all parties to the transaction.

The role of a real estate lawyer

Your attorney should be entirely independent of both the agent and the seller in order to avoid any conflict of interest. The title search process involves your lawyer conducting thorough searches of the Public Registry to establish current ownership, identify any liens or charges, and confirm that the property’s physical boundaries correspond to the official records. Retaining an independent lawyer before signing any document or paying any deposit is essential and strongly recommended.

Language and bilingual services

Spanish is Panama’s official language, and all contracts, public deeds, and registry documentation are produced in Spanish. Many agencies serving overseas buyers — particularly in Panama City, Boquete, and coastal resort areas — offer bilingual services. Metro Realty Panama, for example, is specifically noted for its bilingual capabilities alongside its local market expertise. Buyers who are not proficient in Spanish should nonetheless insist that all contracts are reviewed by a bilingual lawyer before they sign anything.

Anti-money-laundering checks

One area where foreign buyers frequently notice differential treatment compared to local buyers is the level of documentation requested by sellers, agents, and banks, including detailed scrutiny of the origin of funds. This stems from Panama’s anti-money-laundering legislation (Law 23) rather than any personal suspicion of foreign buyers. To register a property in your own name, you will typically be required to present your passport, a notarised purchase agreement, and evidence of income and the source of your funds — checks that may be conducted by both the notary and the bank. Having these documents prepared well in advance will help prevent unnecessary delays.

Buying remotely

It is legally possible to purchase property in Panama without being physically present. With an appropriately drafted power of attorney, your lawyer can manage the entire process on your behalf. That said, visiting Panama in person before committing to a purchase is strongly recommended. Structured relocation tour services exist that can guide prospective buyers around different regions so they can compare areas, climates, and local infrastructure before making a decision.

Step-by-step: how the property purchase process works in Panama

1. Identify target region and property type. Engage licensed real estate agents who specialise in foreign buyer transactions.
2. Inspect the property. Conduct a thorough property inspection including physical condition, neighbourhood assessment, and utility verification.
3. Submit a purchase offer. Submit a written purchase offer typically accompanied by a 5–10% deposit held in escrow.
4. Sign the preliminary contract (Promesa de Compraventa). Once the offer is accepted, a preliminary contract is signed. At this stage, a deposit is typically paid, often 10% of the purchase price.
5. Conduct due diligence. The due diligence period lasts 30–60 days, during which title searches, surveys, legal checks, and environmental assessments are conducted.
6. Arrange finances. Arrange financing through Panamanian banks or transfer funds from abroad. Foreign buyers typically pay in cash via bank transfer as access to financing in Panama can be limited.
7. Prepare legal documents. Prepare all required legal documents including notarised passport copies, proof of funds, and legal certificates.
8. Close at a notary office. Close the transaction at a notary office and pay all applicable taxes and fees.
9. Register ownership. Complete the process by registering new ownership with Panama’s Public Registry to secure legal title.

Frequently asked questions

Can I search for property in Panama from abroad, without being there in person?

Yes. You can work remotely with a local agent and browse listings through platforms such as Encuentra24 and Compreoalquile. Many agents are willing to conduct video tours and share documentation electronically. However, visiting Panama in person before finalising any purchase decision is strongly advisable, as the country’s regions differ substantially in terms of atmosphere, climate, and access to services and infrastructure.

Do I need a local bank account before buying property in Panama?

Having a Panamanian bank account is not a legal prerequisite for purchasing property, but it offers considerable practical advantages. A bank or escrow company in Panama can issue an irrevocable letter of payment at the point of deposit, guaranteeing payment to the seller upon transfer of title. Without a local account, funds may be transferred from overseas and held in escrow. Be aware, however, that opening a bank account in Panama as a non-resident can be challenging due to stringent anti-money-laundering requirements — your lawyer can advise on the most appropriate route.

What happens if the seller withdraws from the sale after the preliminary contract is signed?

Once the Promesa de Compraventa has been executed and a deposit paid, the terms of the transaction become legally binding. Should the seller withdraw without lawful grounds, the buyer would ordinarily be entitled to recover their deposit along with additional compensation, as set out in the contract. The specific remedies available will depend on how the contract is drafted — which underlines once more why having your own independent lawyer review all documentation prior to signing is indispensable.

Do I need residency in Panama before I can buy property?

No visa or residency status is required to purchase property in Panama — even a tourist entering the country on a valid passport may buy real estate. That said, obtaining residency through schemes such as the Pensionado Visa can bring additional tax advantages and make it easier to access banking services.

What is Right of Possession (ROP) land and should I buy it?

Right of Possession land is a category of land in Panama that carries significant legal risk owing to the absence of a full and clear title. Foreign buyers should steer well clear of ROP properties and confine their search to land with a registered title, which provides comprehensive legal protection and unambiguous ownership rights. If a seller is offering an ROP property, the safest approach is either to seek a fully titled alternative or to include a contractual condition making the purchase conditional on the seller obtaining an official title before any transfer takes place.

How can I verify that an estate agent is properly licensed?

The Junta Técnica de Bienes Raíces (JTBR) is the official government body responsible for issuing and overseeing real estate licences in Panama. Always ask any agent to produce their licence card, and verify the licence number by contacting MICI directly at mici.gob.pa. Selecting an agent who is also a member of ACOBIR (acobir.com) provides a further layer of accountability.

Is it possible to get a mortgage in Panama as a foreign buyer?

Access to mortgage financing in Panama for foreign nationals is limited, and the majority of overseas buyers complete their purchases using cash transferred via bank. Cash transactions account for approximately 78% of foreign buyer activity according to the Panama Real Estate Association. Some Panamanian banks and developers do extend financing to non-nationals, but the terms are typically more restrictive and interest rates higher than those available to residents. A local mortgage broker or your real estate lawyer can help you explore what is currently available.

Can buying property in Panama lead to residency?

As of early 2026, property ownership can form the basis of an application for permanent residency in Panama through specific investment visa pathways. The Qualified Investor Visa offers immediate permanent residency to foreign nationals who invest a minimum of $300,000 in real estate, with processing times potentially as short as 30 days, and this threshold is expected to remain in place until at least October 2026. Requirements and programme rules are subject to change, so confirming the current position with Panama’s National Immigration Service or a qualified Panamanian immigration lawyer is advisable.