What it costs to buy property in Panama
A foreign buyer should budget roughly 1.6%–4.5% of the purchase price on top of the price itself. No licence or permit is required.
What you pay
- Legal fees1.0%–2.5% of the price$5,000–$12,500
- Public Registry0.3%–1.0% of the price$1,500–$5,000
- Bank payment fee0.3%–1.0% of the price$1,250–$5,000
- Notary (escritura pública)0.1% of the price$250
| On a purchase of | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| Legal fees | $2,500 – $6,250 | $5,000 – $12,500 | $10,000 – $25,000 |
| Public Registry | $750 – $2,500 | $1,500 – $5,000 | $3,000 – $10,000 |
| Notary (escritura pública) | $250 | $250 | $250 |
| Bank payment fee | $625 – $2,500 | $1,250 – $5,000 | $2,500 – $10,000 |
| Total on top of the price | 1.7%–4.6% | 1.6%–4.5% | 1.6%–4.5% |
Who carries the taxes and fees
What the seller pays — not you
- Property transfer tax — 2%The seller's, charged on the registered deed value, alongside a further 3% advance against their capital gains. Negotiable in principle, so worth confirming who is carrying it. Since 2026 (Law 546) a qualifying new home is exempt on the first B/.120,000.
Guides that add every tax together and present the total as a buyer's bill overstate the cost. These are the seller's.
Can you buy as a foreigner?
No licence required
Foreigners hold titled property on the same terms as Panamanians, with no permit and no surcharge. The exception is untitled land held by derecho posesorio — possession rights rather than title — which carries a very different risk profile and should not be bought as though it were freehold.
No approval to wait for
With no permission to obtain, the timeline is set by conveyancing rather than by a government queue.
Take it with you
These figures as a PDF, worked out at the price you enter, with every source and the date it was checked.
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Nearby markets compared
What a foreign buyer pays on top of a $500,000 price, here and in the markets around it nearest in cost.
- PanamaNo licence1.6%–4.5%
- NicaraguaNo licence2.7%–4.2%
- Costa RicaNo licence3.8%
- GuatemalaNo licence4.3%–5.5%
- HondurasNo licence5.0%–7.0%