How to Buy Property in Panama: A Step-by-Step Guide with DoPanama

Panama has become a magnet for global investors and retirees, and for good reason. The country uses the US dollar, property laws are friendly to foreigners, and you don't need residency to buy. According to International Living's 2024 Annual Global Retirement Index, Panama ranks among the top retirement destinations globally, with a cost of living that can be 30-50% lower than in the US or Canada. Right now, buyers from the US, Canada, Jamaica, Trinidad, Germany, Italy, and even Australia are all arriving in Panama, ready to find their dream homes. The energy is electric, and the timing is perfect because pre-construction projects offer the most appreciation potential as prices rise during construction.

If you are buying pre-construction, the process starts with a refundable reservation fee, typically $2,000 to $5,000. This fee locks in the unit and the price, taking it off the market for you. You can even put this on a credit card to earn points or miles. At DoPanama, their clients get at least 30 days to review the contract with their attorney. Once everything checks out, you sign and make a down payment of 10-15% (which includes the initial reservation). Then you follow a payment schedule tied to construction milestones. The beauty of buying pre-construction is that you benefit from appreciation as the developer builds, often pushing up the property value significantly by the time you close.

For those who want to move in immediately, buying a resale property is faster and more straightforward. The timeline is around 60 days from offer to closing. You still make a refundable reservation with the owner to take the unit off the market, then sign a contract with a 10-15% down payment. Your attorney reviews the title and contract, and then you arrange the final payment. This could be cash, a wire transfer, or a mortgage loan that DoPanama can help you secure. Resales are ideal if you are ready to relocate now and want to avoid waiting years for construction to complete.

When you buy property in Panama, you own it 100% outright. You have three main ways to hold title: in your personal name, through a Panama corporation, or via a private foundation (similar to a trust in the US). Each option has different tax and privacy implications. Panama has over 36,000 attorneys, but DoPanama recommends working with a vetted legal partner who understands international buyers. Using a corporation is common for asset protection and ease of transfer, while a foundation offers additional privacy and estate planning benefits. Your attorney will help you decide which structure fits your goals.

DoPanama is known as the 'buyers brokers of Panama' because their focus is on protecting the buyer's interests, not just closing a deal. Their team, including top broker David with 16 years of experience, listens to your needs and even anticipates your questions. They provide access to a network of over 147 affiliates across Panama, plus off-market and pocket listings you won't find on public sites. They also coordinate with attorneys, pet relocators, school consultants, and other services to ensure a smooth relocation. The goal is to make sure you are not just buying a property, but buying the right property for the lifestyle you want to achieve.

If you are excited about Panama but not sure where to start, DoPanama offers a free 23-question relocation survey called 'Where Should I Live?' It takes 3-5 minutes and is multiple choice. Once you submit it, the team will reach out with general information and set up a complimentary 30-minute Zoom call with Austin Hess himself. During that call, they will discuss your goals and interests and match you with the right broker. This personalized approach ensures you land in the perfect community, whether that is the vibrant city life of Panama City, the cool mountain air of Boquete, or the beachfront charm of Coronado.