How to Buy Property in Panama: Private Foundations, Legal Airbnb, and Top Projects with Thevelopers

One of the biggest surprises for expats buying property in Panama is the inheritance process. If you own real estate in your individual name, your heirs face a mandatory succession procedure that can take up to two years. Austin Hess, COO of DoPanama, shared a real-world example: a client passed away mid-deal, and nine months later the property still couldn't be sold because of the succession holdup. The solution? Set up a private foundation (very similar to a U.S. trust) that owns the property instead of you. The foundation's bylaws let you control exactly when and how beneficiaries can sell – great for protecting family assets or keeping a rental property in the family. A corporation can also work, but foundations offer more flexibility for estate planning.

Panama has a law that requires short-term rentals (like Airbnb) to be in buildings registered with the tourism authority. For years this law was barely enforced, but that's changing fast. According to Austin Hess, an estimated 85-95% of current Airbnb listings in Panama are not in legally registered buildings. The government is now regulating the market, and Airbnb will soon require proof of registration or remove listings. That means if you own a unit in a legal Airbnb building (like Thevelopers' Dovele or Selva), your competition will shrink dramatically when the crackdown happens. This is a huge opportunity for investors looking at rental income. Legal buildings also charge the 10% tourism tax, just like hotels, but the payoff is a compliant, future-proof investment.

Thevelopers, described as Panama's most disruptive real estate developer, has three standout projects discussed in this conference. Dovele, in Costa del Este, is a completed building with a few remaining units – both legal Airbnb apartments and long-term residences. Selva, also in Costa del Este, will be delivered in August. Austin Hess called it 'absolutely gorgeous,' with a rooftop inspired by Singapore's architecture, complete with a meditation garden. But the flagship is Bioma, a 12-story tower that has already sold 85% of its units. Bioma is designed as a 'smartest way of living' – everything you need within 15 minutes walking distance, plus incredible amenities and forward-thinking details like a beautifully designed laundry room. Melissa Arisrizabal emphasized that Bioma's unit finishes, color schemes, and materials have blown away every visitor. Only 15% of units remain, and a $5,000 refundable deposit can secure one today.

Costa del Este is one of Panama City's most desirable neighborhoods. It already has a Johns Hopkins-affiliated hospital, the Town Center Mall, underground power lines, and wide sidewalks. But the one downside has been traffic, especially leaving Costa del Este to get back to the city. That's changing fast: a new overpass connecting Costa del Este to the main highway is under construction and will be completed in less than a year. Austin Hess noted that once it's done, it will save drivers 20-30 minutes during peak times. This infrastructure boost is expected to further increase property values in the area. Thevelopers' Bioma and Selva projects sit right in the heart of this growth zone.

Melissa Arisrizabal, who lived in Chicago and San Francisco before moving to Panama, summed it up best: 'Panama offers something that surprisingly is difficult to find anywhere else. It combines many of the advantages people appreciate in developed markets, international connectivity, a strong business environment, modern infrastructure, but with the warmth, the energy, the lifestyle that make Latin America so enjoyable.' Panama is a true melting pot where cultures, religions, and nationalities live together in peace. Whether you're a retiree, digital nomad, entrepreneur, or family, the quality of life is hard to beat. And with world-class developers like Thevelopers building innovative towers, the real estate market is exciting and full of opportunity.