Buying Property
in Panama

Yes. Foreigners may purchase property in Panama with the same rights as Panamanian citizens, and there are no legal restrictions on foreign ownership of real estate. No residency, visa or immigration status is required in order to own.

Yes. The property is legally registered at the Public Registry of Panama under the buyer's name. It may also be acquired through a Panamanian corporation, which some buyers prefer for estate-planning reasons — that is a conversation to have with a Panamanian attorney rather than an agent.

The seller pays the property transfer tax and their own legal fees; in Panama that is 2% of the registered value or sale price, whichever is higher, plus a 3% advance capital gains withholding at closing — commonly quoted together as 5%. The buyer pays notary fees, Public Registry inscription costs and their own legal fees. Capital gains tax on a later sale is generally 10% of the net profit, against that 3% advance.

Panama's property tax is based on the registered cadastral value. If the home is registered as your Vivienda Principal or Patrimonio Familiar Tributario, the first US$120,000 is exempt, US$120,001–700,000 is taxed at 0.5%, and above US$700,000 at 0.7%. For a second home, rental or commercial property, the first US$30,000 is exempt, US$30,001–250,000 is 0.6%, US$250,001–500,000 is 0.8%, and above US$500,000 is 1.0%. Tax is paid in three instalments — April, August and December — with a 10% discount for paying the full year within the first 30 days.

Since Panama's 2019 property tax reform, owners can obtain the exemption on the first US$120,000 of cadastral value by registering the property as Vivienda Principal or Patrimonio Familiar Tributario with the DGI. To qualify, the owner must be a Panamanian citizen or legal resident and register the property as their primary residence. If the property is later used as a long-term rental, investment or commercial property, the benefit may no longer apply.

Yes — Panamanian banks lend to foreigners subject to credit evaluation, verifiable income and bank references. That said, Lucero is designed as a direct-payment community and most acquisitions there are completed through a staged construction payment schedule rather than a mortgage. Forest Brook Reserve does offer a mortgage-financing schedule through partner banks, typically assuming a 35% equity requirement.

The standard cash schedule is 20% on contract, 20% at completion of walls and framing, 25% at completion of the roof, 20% at completion of the interior, and 15% at closing. A mortgage-financed schedule shifts most of the weight to closing: 20% on contract, then 5% at foundation, 5% at roof and 5% at interiors, with 65% at closing. There is also an international-brokerage schedule of 10% on contract, 15% at 60 days, 25% at roof and 50% plus closing costs at closing.

A representative custom-home cash schedule is 20% at contract, 15% at foundation, 15% when walls are complete, 10% when the roof is complete, 20% when concrete floor and plaster are complete, 10% when kitchens, baths, windows and doors are complete, and 10% on closing plus any additional costs. Exact milestones are set in your purchase agreement.

Fly & Buy is a non-cash incentive from Lucero Homes Corp. It applies as a credit against the final purchase price, granted once per qualifying transaction and only when the purchase closes as a direct result of a scheduled, approved and registered visit. You pay your own airfare, accommodation, meals and ground transport up front — the programme is not an expense reimbursement, and the credit is never redeemable for cash. Enrolment requires signing Lucero's agreement before the visit. Ask Margarita to register your visit in advance, because an unregistered trip does not qualify.

Yes. The process can be completed remotely through a power of attorney, and Lucero's commercial and legal teams accompany the client from selection through delivery and title registration. Lucero strongly recommends a virtual call with you and your agent before any site visit, so options and questions are cleared up in advance.

The cost of living is competitive against North America and Europe. The official language is Spanish, and English is widely used in Boquete and in international projects. Healthcare is good in David — forty minutes away — and excellent in Panama City. Panama is considered one of the safer countries in the region, uses the US dollar, and runs a Pensionado programme that is one of the reasons the highlands have a permanent retiree community.

Selection of the lot or unit, reservation, purchase and sale agreement, payments according to the agreed schedule, and delivery with title registration at the Public Registry. Margarita coordinates the Panamanian attorney for title search and due diligence, and stays involved through closing.