Real estate and construction in Panama

Last verified: 19 October 2026. Each fact links to its official source.

What a foreigner can and cannot buy

The Constitution does not distinguish between Panamanians and foreigners for buying a home or a commercial unit in a city, with one territorial exception. Article 291 of the Constitution bars foreign individuals and companies, and Panamanian companies with total or partial foreign capital, from acquiring national or private land less than ten kilometres from the borders. Article 290 adds that no foreign government or official entity may acquire ownership of any part of the national territory, with the exception of embassy premises.

Residency is not required to buy. It is a separate procedure, and real estate investment is only one of the routes to it, as the guide to buying property in Panama as a foreigner: process, taxes and exemptions explains. That guide also covers the usual ownership structures: in a personal name, through a company or through a private interest foundation, each with different tax consequences and different access to primary-residence benefits.

Property title versus possessory right

A property title is a registered estate (finca) at the Public Registry, with a finca number and a folio. A possessory right is the recognised occupation of State land that has no registered estate yet. The difference decides whether the asset can be mortgaged, insured and sold with certainty, and the guide on possessory rights versus property title develops it with real cases of fraud and double sales.

The law that governs titling of coastal and island land is Law 80 of 2009. Its Article 3 recognises the possession of anyone who has exercised material control as an owner, peacefully and without interruption, for more than five years. Article 5 allows free titles for plots of up to 50,000.00 square metres in the adjudicable coastal zone, and Article 10 excludes mangroves, indigenous and comarca territories and protected areas from titling. The procedure page on Panamá Digital says the process belongs to the National Land Administration Authority (ANATI) and requires a survey plan, a petition and proof of possession, including statements from at least three witnesses.

Whoever buys a possessory right buys a file in progress, not an estate: ownership comes only after an adjudication that depends on meeting the law and on there being no opposition.

The purchase process step by step

A sale is completed by registration at the Public Registry, not by signing the deed. Until then the buyer does not appear as owner against third parties. Online searches at the Public Registry work by finca (properties) or by ficha (companies), according to the Public Registry’s online search instructions, and require signing up with a user name and password.

Funds are usually routed through an escrow account at a bank or law firm until registration. It is not a legal requirement but a safety practice that law firms recommend.

Horizontal property and pre-sale purchases

An apartment is bought within the horizontal property regime (PH, from propiedad horizontal). Law 284 of 14 February 2022 regulates that regime and replaces Law 31 of 2010, according to the Ministry of Housing and Territorial Planning (MIVIOT). Each owner holds a title to the unit and a share of the common areas. That share is set in the co-ownership rules and determines the monthly common-expense fee. The guide on how a PH works, its fees, assembly and owners’ rights also covers the contingency fund and the consequences of late payment.

MIVIOT, through its Horizontal Property Directorate, handles incorporation into, modification of and withdrawal from the regime, and it reviews the minutes of owners’ assemblies.

Buying in pre-sale adds a timing risk: money is paid during construction for a unit that does not yet exist. The central document is the purchase promise, which should state the price, payment plan, estimated delivery date and penalties. Under Law 284, the promise for a new home must state the unit’s actual square metres excluding common areas, the description of the land and the number of parking spaces that go with it. The same law requires the developer to keep a domicile in Panama and to meet the agreed deadlines, and it sets rules on administration fees from the occupancy permit onward. The guide to buying pre-sale: purchase promise, payments and handover covers the questions to put to a developer in writing.

Zoning: what can be built

Zoning is the territorial division of an urban centre or undeveloped area to regulate land use by homogeneous areas. That is how Article 5 of Law 6 of 1 February 2006, which regulates territorial planning for urban development, defines it. Each lot has a zone code that sets permitted uses, density, height and setbacks.

A seller’s marketing is not enough to know what a specific lot allows. MIVIOT Resolution 4 of 2009 (Official Gazette 26221) sets the procedure for land-use or zone-code certifications, and for road easement and building line certifications, which are processed separately. The application is filed with the estate data (number, volume, folio, lot and area), a Public Registry certificate issued no more than three months earlier and a regional location map at 1:5,000. Technical consultations can only be made by the responsible architect or another designated by the owner or the owner’s representative.

The codes most often cited in city projects are explained in the guide to RM3, C1 and C2 zoning: RM for high-density multifamily housing, C for commercial use. Anyone buying land to build must distinguish density from number of units, since the first becomes the second through parking, setback and occupants-per-dwelling rules. The note on land in Panamá Norte and how to evaluate it applies those criteria to a concrete case.

Preferential interest for new homes

Preferential interest is a State subsidy on the rate of a mortgage for a new home. The rules are Law 468 of 24 April 2025, amended by Law 481 of 2025, which took effect on 1 January 2026. The State subsidises the lower of the tranche rate and up to 85% of the rate the bank offers. Tranches depend on the purchase price at the time of financing and on location: Region 1 covers Panamá and Panamá Oeste provinces, and Region 2 covers Colón and the rest of the country.

The terms cannot be renewed. The law requires the loan to finance the purchase or construction of a new home, defined as one acquired for the first time after construction and not previously inhabited, intended as the main residence and located in Panama. The price, including land and improvements, cannot exceed B/.120,000.00. The beneficiary must have no home registered at the Public Registry and can use the benefit only once.

For a foreigner, the decisive requirement is a different one. Article 3 of Law 468 provides that beneficiaries must be Panamanians or foreigners with permanent residency in the Republic. A non-resident buyer or one with provisional residency is left out. How permanent residency is reached is covered by the guides in the visas and residency section of Radar Panamá.

Areas, project types and how to assess a developer

The residential market is organised into a few areas with distinct profiles. The city concentrates tower apartments, in places such as the Costa del Este waterfront or Punta Pacífica. On the Pacific coast, beach apartments and beach houses near the capital predominate. There are also planned communities, such as those in the guide to living next to a golf course, and projects with managed rental programs, which change the owner’s obligations.

Each type raises its own questions: on the coast, who holds title to the land; in the city, the PH rules; in planned communities, the master plan. The guide to ten criteria to evaluate a smart city offers a checklist that fits any development marketed that way.

Assessing a developer comes down to verifiable facts:

• Previous deliveries: finished and handed-over buildings that can be visited.
• Construction financing: which bank finances the project and whether a performance bond exists.
• Domicile and standing: Law 284 requires the developer to state a domicile in Panama and keep the company active while the warranty runs.
• Permits and zoning: the zone-code certification and the status of the building permit.
• Contract: reviewed by an independent lawyer, with delivery dates and penalties in writing.

Artificial-intelligence recommendations about developers, such as those gathered in the study on which developers and projects AI recommends, show which brands appear most often, not which ones perform best. A comparison of projects for foreign investors, with its selection criteria, is in residential projects for foreign investors.

Myths and reality

• Believed: a foreigner needs residency to buy. The rule: the Constitution only limits the ten-kilometre border strip (Article 291); residency is an independent procedure.
• Believed: buying gives an automatic right to reside. The reality: residency by investment is a route with its own requirements, covered in the foreign buyer guide and in the residency section.
• Believed: a possessory right is the same as owning. The rule: Law 80 of 2009 recognises it as possession and allows an adjudication request; title exists only once registered.
• Believed: a signed deed already makes the buyer the owner. The reality: ownership stands against third parties once the deed is registered at the Public Registry.
• Believed: preferential interest is open to any buyer. The rule: Law 468 requires a Panamanian or a foreigner with permanent residency, a new home as main residence and a price of up to B/.120,000.00.
• Believed: a project’s marketing is the same as its land-use permit. The reality: what a lot allows is certified by MIVIOT under Resolution 4 of 2009.

Sources

All sources were consulted on 19 October 2026.

• Political Constitution of the Republic of Panama, current text (Electoral Tribunal), Articles 290 and 291.
• Law 80 of 31 December 2009, Official Gazette 26438-B (ANATI).
• Panamá Digital, recognition of possessory rights and adjudication (ANATI).
• Public Registry of Panama, online search instructions.
• Law 284 of 14 February 2022, Official Gazette 29476-C.
• MIVIOT, Horizontal Property Directorate.
• Law 6 of 1 February 2006, Official Gazette 25478 (MIVIOT).
• Resolution 4 of 2009 of the Ministry of Housing, Official Gazette 26221.
• Law 468 of 24 April 2025, Official Gazette 30264-A.
• Law 481 of 2025, Official Gazette 30361-C.