Panama Real Estate Law

Panama has a number of laws and incentives in place to attract and protect real estate investment by foreigners. In general, foreigners are allowed by law to own real estate in Panama, with few restrictions, and acquiring property is a largely painless affair.

However, any foreigner (or national, for that matter) considering a real estate purchase in Panama should enlist a legal representative to perform due diligence on the property and oversee the details of the transaction, to ensure there are no unpleasant surprises down the road.

Properties in Panama should generally be registered with the Public Registry (which has a searchable database)and the Land Registry Office . Registered properties are knows as titled land. However, there are many parts of Panama’s territory, particularly the more remote, rural areas, that have not yet been officially inscribed.

In these cases, ownership may stem from possession rights, when a person/family has lived on or worked the land for more than five years. These properties can be purchased, but require a little more legwork to ensure the right of ownership is properly transferred.

Rights and Restrictions on Foreign-Owned Property

The right to private property is guaranteed in Panama’s Constitution. The right for foreigners to own real estate in Panama is well-enshrined in Panamanian law. Law 54 of 1998 guarantees foreign investors the same property rights and responsibilities as national investors with no restrictions except those outlined in the Constitution and other laws (such as environmental laws). It also guarantees the right to dispose of and repatriate the capital, profits, dividends, etc. relating to real estate investments.