Mundo recently appointed Master Broker for Mercan Group: Introducing the Ultimate Guide to Buying Real Estate in Panama as a Foreigner in 2026

Understanding the Real Estate Buying Process

Today, we revisit the question of buying property in Panama as a foreigner. This time, we touch upon the topic bearing excellent news: Mundo Real Estate Group has been assigned master broker for one of the most prestigious companies, not only in Panama, but in the world.

To celebrate this with our readers, we decided to share with you a simple yet useful guide to buying real estate in the country of the canal.

Steps to buying real estate in Panama

The Offer Letter: Starting the Conversation

Most processes start with an offer letter sent by the buyer to the seller. In this document, the buyer/investor proposes prices, down payment terms, and financing methods (or mortgage if applicable).

It's worth noting that Mundo works with prestigious developers, some of whom already have financing plans in place. Especially in pre-sale development or the developments currently under construction, entry prices can be much more convenient. To this, we can add the perk of accessing developer financing plans.

The Promise Contract: The Core Legal Agreement

If the offer letter is signed by both parties, it can be legally binding, but the ultimately legally binding document is the promise of purchase. 

When the buyer sings, they are officially committing to making the purchase. All prices and payment terms are stipulated. Furthermore, the promise is backed by the down payment (usually 5% to 10%, according to what has been agreed). 

The Title Transfer Contract: Finalizing the Deal

When 100% of the property is paid for, the title is transferred to the new owner. The process may take years, depending on the payment plan. This is especially found in pre-construction deals. 

These agreements are based on the buyer paying several down payments before construction starts. Then, subsequently, they pay monthly installments (or further down payments) as construction begins. When the apartment is ready, the property cost is covered through monthly installments, usually for two or five years. 

In case the purchase is done with the support of a bank mortgage, the title deed will be put under the buyer’s name, with the lender (the bank) holding a lien on the said property. 

Required Documents and Legal Considerations

As you have probably read in previous articles, foreign residents or citizens have almost the same rights as Panamanians when it comes to owning land, apartments, or any type of property. Naturally, there are some exceptions as we have discussed on previous occasions. 

Even with this, you can own property in any place in Panama (in the city or in the provinces). The property will be 100% owned by you for as long as you want, unless, of course, you are buying concessioned land. Again, this is a condition that you will find in any country and that applies equally to foreigners or locals. 

Understanding the Costs Involved: the city or the provinces?

Choosing where to buy depends entirely on your lifestyle choices. When it comes to prices, the property costs are not that different. 

A matter of lifestyle 

Choosing between an urban setting and a countryside region constitutes a lifestyle statement. In Panama, things work like in most countries, and common sense will dictate the characteristics. 

Living in a capital city means being more exposed to pollution, noise, traffic jams, and the quite often stressful city pace. At the same time, a city has more cultural offers, more options when it comes to shopping or dining, and better access to government offices or companies for legal processes or business deals. 

On the other hand, a secluded community comes with more peace and safety, but you must be ready to drive for a few hours to appear before the migration offices or any other entity/process that may require physical presence. 

Ask us about the projects

We have prepared a short comparison of projects in the city and the provinces so that you have a basis for decision-making. 

City or provinces? Comparing the projects

Disclaimer: Prices, characteristics, and other information published in this article may be outdated at the time of reading. Please consult with a certified professional before making decisions about real estate. 

Playa Bonita: a good compromise

We call Playa Bonita a “good compromise” because every heading must have an effect, but this is hardly a compromise. Playa Bonita is an outstanding neighborhood that may be the answer for those who don't want to sacrifice calmness nor the exciting events of the city. 

Currently, we are offering an outstanding option here: a development that is branded by one of the most renowned hospitality brands in the world. We proudly offer this development, firstly because it's run by one of the most reputable and long-standing development companies in Panama, and, secondly, because of the characteristics of the complex itself. 

Here is a list of this project’s advantages: 

• Located only a bit further than 10 miles from Panama City
• Close to the famous special economic zone, Panama Pacifico
• Important urbanization plans being implemented by the government in Panama Pacifico are expected to bring appreciation
• One of the only projects that still offers developers’ financing
• The project is placed in a lovely beachfront neighborhood, Playa Bonita
• Branded by one of the top luxury accommodation brands
• Expected to be finished by 2029
• Still on presale, which provides an excellent entry point for investment and optimal Roi
• Phase A will consist of 200 residences
• (8 per floor)
• Phase B will consist of 150 residences (6 per floor)
• The project will have 29 levels, including the rooftop
• There will be a wellness center on level 28, parking lots on level 15, and a social area on level 20.

Mundo’s editor's opinion: "If you're thinking about purchasing an apartment abroad, I strongly recommend Panama. In my 10 years as a writer and researcher, I haven't found a better place for a real estate investment. I like Panama because of everything it offers, which is much more than just good returns or pretty homes. 
A friendly environment, a cosmopolitan and tolerant society, and a great urban feeling (or a coastal feeling, depending on what you choose) make it a great place for living. I say this from personal experience, as I lived here for 4 years.
The memories I have of Panama are truly endearing: from having a beer at the famous Rana Dorada, to exercising in Parque Omar, and taking a free yoga lesson. 
So, if what you're looking for is an investment, then, you can't be indifferent to Panama's boom. Especially now that developers are orienting their constructions toward short-term rental activity. Most of them even come with the license from day one. 
What's my advice to readers? Contact the Mundo team and ask for the details about each property so that you can start the path to real estate ownership or even residency". 

Special considerations about Panama

Above, we have mentioned the differences between the city and the provinces. Now, the following comparison might be useful as it points out some specific characteristics. 

Consult with Professionals

When buying property abroad, it's important to rely on trusted professionals like Mundo experts. We have excellent news on this front. 

Buy your new home with Mundo: master brokers of Mercan Group 

We have recently been appointed master brokers for Mercan Group, a prestigious real estate and migration firm. With this, we can help our readers get straight access to the company's best developments (which are also some of the best developments you can find)

What is the role of a master broker?

Master brokers have a vital role in the real estate marketing and purchase process. These brokers oversee the marketing in large-scale projects, in many cases helping and supervising other marketing or sales agents. This positions the master broker in an ideal place of expertise, helping buyers with more comprehensive services and views of each project. 

Buy a property now

Frequently Asked Questions

Can US Citizens Buy Property in Panama?

Yes. US citizens, Canadians, and people of any nationality can buy property in Panama except in areas that are within 10 kilometers of an international border. 

What Taxes and Fees Are Involved?

Property is taxed in Panama depending on whether it is the main residence, or a secondary home or commercial property. 

For primary residences, there is an exemption for real estate up to 120,000 dollars for primary residences, and 30,0000 for non-primary property. From there, tax rates increase as follows: 

• Up to 120,000 — exempt (primary residence)
• $120,001—700,000 — 0.5% (primary residence)
• Over $700,000 — 0.7% (primary residence)
• Up to 30,000 exempt (non-primary residence or commercial)
• $30,001—250,000 — 0.6% (non-primary residence or commercial)
• $250,001—500,000 — 0.8% (non-primary residence or commercial)
• Over $500,000 — 1% (non-primary residence or commercial) 

Can Foreigners Obtain Mortgages in Panama?

Yes, although with more demanding requirements and higher down payments than locals. 

Conclusion and Next Steps

To sum up, Panama positions itself consistently as one of the best real estate hubs in the region. The possibility of obtaining permanent residency with the real estate purchase is surely an interesting perk.

However, we strongly recommend going through the process hand in hand with an expert, and luckily, Mundo is formed by a strongly consolidated team. Our real estate experts can guide you towards choosing and purchasing the best property according to your needs.

Now that we are master brokers of a prestigious firm, we can help you even more thanks to our strong reputation and the support of a widely renowned company.

Who we are

We are a team formed by experts in real estate, corporate, banking, and migration by investment. For many years now, we have been helping international investors and global citizens set up their structures. There are many tools out there, and we can help you obtain these tools or a combination of them so that you can fulfill your goals optimally. Contact us today.

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