Panama Information

Purchasing Property

Useful Tips on Buying Property in Panama

INTRODUCTION AND SUMMARY. The following is general information on purchasing real estate in Panama. It is not to be construed as legal advice.

Buying Property in Panama – Exercise Due Diligence

While thousands of American citizens buy and sell property in Panama without incident, the U.S. Embassy provides the following basic information on buying property in Panama due to the high number of property dispute complaints received. 

Disclaimer: The U.S. Embassy does not provide legal advice; the following is only general information.  Consulting a reputable attorney for legal advice and a licensed real estate broker for real estate advice is strongly recommended.

Is your land titled? 

Only one-third of all property in Panama is titled; rights of possession and concessions make up the other two-thirds.  Almost all property in coastal areas and on islands is not titled and frequently ownership is in dispute.   Know what type of property you are buying, because different laws apply to different types of properties.

Know how the Panamanian System Works

Buying property in Panama is different than buying property in the United States.  The laws and accompanying procedures governing the purchase of property and acquiring a mortgage are different than in the United States.  Understand how the process works and how the process affects your personal situation before you purchase property.

Judicial Remedies

The judicial system’s capacity to resolve contractual and property disputes is weak and open to corruption.  The World Economic Forum ranks Panama’s level of judicial independence to be 103 out of 133 countries in the world.

Please understand that Panamanian laws and the Panamanian court system are outside of the jurisdiction of the United States Government.