# Panama 🇵🇦 — Property Due-Diligence Playbook

ISO2: `pa`. Status: ✅ Fully populated (researched 2026-04).

## Country profile

- **Postcode**: 4 digits (`0801` Panama City, `0427` David, `0907` Boquete area)
- **Admin levels**: 10 provinces + 5 indigenous comarcas + 81 districts
- **Currency**: **USD** (US dollar) + symbolic balboa 1:1 — UNIQUE economy fully USD-denominated
- **Languages**: Spanish (de facto); English widely used in business + expat zones
- **Cadastre**:
  - **Registro Público de Panamá**: `https://www.rp.gob.pa/`
  - **ANATI (Autoridad Nacional de Administración de Tierras)**: `https://www.anati.gob.pa/`
- **Identifier**: **Finca / Tomo / Folio** (or Documento Redi for newer digital filings)
- **Ownership types**:
  - **Titulado** (titled freehold)
  - **Derecho posesorio** (rights of possession; common rural/coastal — harder to mortgage)
  - **Coastal concession (ROP)** within **22 m measured from highest-tide line (línea de pleamar máxima)**, municipal + AMP-administered government strip (concession-only, not freehold; ROP framework under Decreto Ley 7 of 1998 / Código Agrario)
  - **Comarcas indígenas** (collectively owned; foreigners CANNOT buy)

## Section: `--price`

### Primary sources

- **INEC (Instituto Nacional de Estadística y Censo)**: `https://www.inec.gob.pa/`
- **Superintendencia de Bancos**: `https://www.superbancos.gob.pa/` — mortgage data
- **TheLatinvestor**, **Global Property Guide** — aggregated benchmarks

### Listing platforms

- **Encuentra24 Panama** — DOMINANT: `https://www.encuentra24.com/panama`
- **CompreoAlquile**: `https://www.compreoalquile.com/`
- **Realtor.com.pa**, **InmoPanama**, **PanamaEquity**
- USD economy = **listings stable in USD**

### 2026 price benchmarks (TheLatinvestor + Global Property Guide — **aggregator-only / secondary tier per anti-hallucination contract**; verify with on-the-ground broker quotes + INEC HPI series before relying — INEC publishes no per-m² price series; aggregators interpolate listing samples)

| Region | USD/m² (typical) | Notes |
|---|---:|---|
| **Punta Pacífica (Panama City)** | $2,900–$3,700 | Premium |
| **Costa del Este** | $2,800–$3,500 | Modern expat |
| **Santa María / Casco Viejo (premium)** | $3,200–$5,500 | Heritage + golf |
| **El Cangrejo / Marbella** | $2,000–$2,800 | Mid-range Panama City |
| **Albrook / Clayton** | $2,200–$3,000 | Former Canal Zone |
| **Boquete (mountain expat)** | $100k–$400k typical homes | Mountain expat market |
| **Coronado (beach 60-min west)** | $200k–$600k typical | Beach 6–9% yield |
| **Bocas del Toro (Caribbean)** | varies massively; 6–12% yield | Seasonal |
| **El Valle de Antón** | $200k–$500k | Crater valley |

**2026 nominal**: ~+3% YoY est. (interpolated from TheLatinvestor / Global Property Guide listing samples — INEC publishes no per-m² HPI; verify with on-the-ground broker quotes)

### Compute

1. USD/m² = price / **área de construcción** (built area)
2. **Verify titulado vs derecho posesorio** — critical
3. **Check 10km border restriction** if near Costa Rica or Colombia
4. **No FX risk** for USD holders (USD economy)

### Key terms

- Finca / Tomo / Folio = title identifier
- Titulado = titled (full ownership)
- Derecho posesorio = rights of possession (lesser title)
- Concesión = government coastal lease
- Comarca indígena = indigenous collective land (off-limits to foreigners)
- Pensionado = retiree visa
- Friendly Nations Visa = expat-attracting program

---

## Section: `--traffic`

### Sources

- **MOP (Ministerio de Obras Públicas)**: `http://www.mop.gob.pa/`
- **ATTT (Autoridad de Tránsito y Transporte Terrestre)**

### Key term

**TPDA (Tránsito Promedio Diario Anual)** = AADT-equivalent.

### Verdict bands

- 🟢 < 1,500 v/d (residential, rural, comarcas)
- 🟡 1,500–10,000 v/d (collector, suburban)
- 🟠 10,000–35,000 v/d (urban arterial, Panama City corridor)
- 🔴 > 35,000 v/d (Corredor Norte, Corredor Sur, Av Balboa, Cinta Costera)

---

## Section: `--tax`

### Annual property tax — Impuesto de Inmuebles (Family Patrimony — Ley 66/2017)

**Progressive scale for primary residence ("patrimonio familiar")**:

| Value (USD) | Rate |
|---|---:|
| 0–$120,000 | **0%** |
| $120,000–$700,000 | **0.5%** |
| > $700,000 | **0.7%** |

**Non-primary scale**:

| Value (USD) | Rate |
|---|---:|
| 0–$30,000 | 0% |
| $30,000–$250,000 | 0.6% |
| $250,000–$500,000 | 0.8% |
| > $500,000 | 1.0% |

### Transaction taxes

- **Stamp duty / Aviso de Operación + escritura**: ~**2% effective**
- **Notario + Registro Público fees**: ~**$1,500–$3,000** typical
- **ITBMS 7%** — commercial rent only (residential exempt)

### Capital gains

- **10%** on residential resale gain. **2% transfer tax + 3% income-tax advance withheld at closing**. Seller may elect the **3% advance as DEFINITIVE tax** (no refund, no further CGT) **OR** compute 10% on actual gain and credit the 3% advance. Election matters when actual gain is low — 3% on whole price can exceed 10% on small gain (2026-05-27 verified, source PwC Worldwide Tax Summaries Panama 2026).

### Territorial tax — UNIQUE

**No Panamanian income tax on foreign-source income** — UNIQUE territorial system.

### Total transaction cost (buyer side)

- Resale: ~**3-4%** (2% stamp + ~$1.5-3k notary + ~0.5% registry)
- New build: included in price + ~3% other costs

### Future risk

- **Pensionado visa stable** ($1,000/mo lifetime threshold; **$750/mo threshold if applicant buys ≥US$100k Panama real estate** per statute concession; pension must be government/military/recognised-private institution + provably LIFETIME, not term annuity)
- **Friendly Nations Visa** — modified by **Decreto Ejecutivo 197 of 7 May 2021** (effective 21 August 2021), now USD 200k real-estate investment requirement (or 3-year fixed deposit / combo + economic ties)
- **Qualified Investor Visa** **USD 300k floor retained through Oct 2026** real estate (mooted increase to USD 500k repeatedly deferred — re-verify before commitment; see `shared/visa-programs.md` PA Qualified Investor row) (2026-05-27 verified)

---

## Section: `--rental`

### Long-term residential

- **Ley 93 de 1973** + reforms govern lease
- Tenant protection moderate
- Standard 1-3 year contracts

### Short-let

- **City**: ATP (Autoridad de Turismo) registration; municipal license; **10% ITBMS** on hotel-classed stays (vs general 7%) — applies once ATP-licensed (2026 PwC summary, 2026-05-27 verified) + income tax
- **Boquete**: HOA-dependent
- **Bocas del Toro**: marine-zone overlay + ATP licence

### Tax on rental

- Resident: progressive income tax
- Non-resident: 25% withholding (or as per DTT)
- **10% ITBMS** on hotel-classed short-let stays (PwC 2026); **7% ITBMS** standard for general commercial rent; tobacco 15%

---

## Section: `--work=<profession>`

### Sources

- **MITRADEL (Ministerio de Trabajo)**: `https://www.mitradel.gob.pa/`
- **Konzerta**, **TecoLoco Panama**, **LinkedIn PA**, **CompTrabajo**

### Self-employment

- **Persona natural** with Aviso de Operación
- **Sociedad Anónima (SA)** common for asset protection
- **ITBMS** 7% above $36,000 turnover

### Salary benchmarks (2025)

- Median monthly gross:
  - Panama City (banking/finance): ~$1,500–$3,500
  - Other Panama City: ~$800–$1,500
  - Boquete / Coronado expat zones: highly variable
- **Salario Mínimo**: varies (~$600-$700/month national avg)

---

## Section: `--risks`

### Primary national sources

| Source | URL | What it gives |
|---|---|---|
| **SINAPROC (Sistema Nacional de Protección Civil)** | `https://www.sinaproc.gob.pa/` | Emergency response, hazards |
| **IMHPA — Instituto de Meteorología e Hidrología de Panamá** (successor to ETESA's Hidrometeorología unit) | `https://www.imhpa.gob.pa/es/` | Hydrometeorology |
| **IGN (Instituto Geográfico Nacional)** | `https://ignpanama.anati.gob.pa/` | Geography |
| **Universidad de Panamá Sismología** | — | Seismic monitoring |

### Specific risks

- **Earthquake**: generally low-moderate
  - **Pacific Azuero peninsula** + **Bocas del Toro Caribbean** higher zones
  - **2024: zero ≥M6 events recorded** in the Panama box — [USGS FDSN event count](https://earthquake.usgs.gov/fdsnws/event/1/count?format=geojson&starttime=2024-01-01&endtime=2024-12-31&minmagnitude=6&maxlatitude=10&minlatitude=7&maxlongitude=-77&minlongitude=-83) returns `{"count":0}` for 2024 (same box at M≥4 returns 35, so the window is live not empty) — [browsable search UI](https://earthquake.usgs.gov/earthquakes/search/?starttime=2024-01-01&endtime=2024-12-31&minmagnitude=6&maxlatitude=10&minlatitude=7&maxlongitude=-77&minlongitude=-83) (2026 verification, source USGS) (cross-check trend at Universidad de Panamá Sismología); the underlying hazard remains real but 2024 was quiet at ≥M6
- **Flooding + landslide**: rainy season May–Nov
  - 2024 Bocas/Chiriquí floods documented by SINAPROC — verify scope per address
- **Hurricanes**: **mostly outside hurricane belt** (Panama is south of typical paths)
- **Tsunami**: Caribbean coast residual risk
- **Climate**: tropical wet — humidity year-round; rainfall variability increasing

### Build-era hazards

| Era | Hazards |
|---|---|
| **Pre-1980** | Asbestos common; older systems |
| **1980s–2000s** | Improving codes |
| **Post-2000** | Modern building standards |

### Mandatory at sale

| Document | Required because |
|---|---|
| **Escritura pública at notario** | Mandatory closing |
| **Certificación del Registro Público** | Title verification (folio of finca) |
| **Paz y salvo municipal** (real-estate tax) | No-debt |
| **Paz y salvo nacional** (income/ITBMS) | Tax compliance |
| **IDAAN (water), ENSA/Naturgy (electric) no-debt** | Utilities |
| **Survey (memoria descriptiva)** for newer fincas | Cadastre |

### Climate change projections

- **est. +1.5–3.0°C** by 2100 (climate-model projection — verify scenario/model with IPCC AR6 + Panama's Comunicación Nacional)
- **Sea-level rise**: est. +20–60 cm by 2100 (Caribbean Bocas vulnerable; Pacific coast — verify scenario with IPCC AR6)
- **Increased rainfall variability** (drier El Niño / wetter La Niña)
- **Hurricane belt potential southward shift**

---

## Section: `--mains`

### Sources

- **IDAAN (Instituto de Acueductos y Alcantarillados Nacionales)**: `https://www.idaan.gob.pa/`
- Universal in cities
- Rural cisterns + septic standard

### Costs

| Scenario | Cost (USD) |
|---|---:|
| Mains connection | $500–$2,000 |
| Septic + cisterna | $2,500–$8,000 |
| Bored well | $3,000–$10,000 |

---

## Cost benchmarks (PA 2026)

| Work | Cost (USD) |
|---|---:|
| Survey (memoria descriptiva) | $500–$1,500 |
| Notario + escritura | ~2% of price |
| Registro Público fees | ~$500–$1,500 |
| **Total transaction cost (buyer)** | **~3–4%** of price |
| Roof renovation | $2,500–$8,000 |
| Energy retrofit | $5,000–$20,000 |
| Solar PV (5kW) | $4,000–$8,000 |
| Hurricane retrofit (Bocas) | $5,000–$15,000 |

## Active fiscal incentives + visa programs (2025-2026)

### Residency programs

#### Pensionado (low pension threshold — USD 1,000/mo)

- **USD 1,000/month lifetime pension** (+ $250/mo per dependent). **$750/mo threshold if applicant buys ≥US$100k Panama real estate** (statute concession). Pension must be **government/military/recognised-private institution + provably LIFETIME** (NOT term annuity).
- **Generous discounts**: medical 15%, transport 25–50%, restaurants 25%
- Permanent residency
- Foreign-source income exempt (territorial)

#### Friendly Nations Visa

- **Modified by Decreto Ejecutivo 197 of 7 May 2021** (effective 21 August 2021)
- Now **requires USD 200k investment** (real estate, fixed deposit, or local employment)
- Provisional 2-year residence → permanent
- Operates under the **Decreto Ley 3 of 22 February 2008** migration framework (Servicio Nacional de Migración) — NOT "Ley 22/2006" (this is a misnumbering in some sources)

#### Qualified Investor Visa

- **USD 300k real estate floor retained through Oct 2026**
- 60-day fast-track to permanent residency
- **Planned $500k increase repeatedly deferred** — re-verify before commitment (`shared/visa-programs.md` row PA Qualified Investor) (2026-05-27 verified)

### Tax incentives

- **Territorial tax**: no Panama income tax on foreign-source — UNIQUE
- **0% property tax up to USD 120k** primary residence
- **No worldwide income tax** for territorial residents

## Common listing platforms

- **Encuentra24 Panama** — DOMINANT
- **CompreoAlquile**, **Realtor.com.pa**, **InmoPanama**, **PanamaEquity**
- USD economy = stable pricing

## Caveats unique to PA

- **USD economy** — no FX risk for USD holders; balboa is symbolic 1:1
- **Territorial tax** — no income tax on foreign-source income — UNIQUE in region
- **Pensionado visa** — low pension threshold (USD 1,000/mo lifetime)
- **Friendly Nations Visa** modified 2021 — now USD 200k investment, no longer "open" tourist-flip route
- **10-km international border restriction** — **CONSTITUTIONAL** — foreigners cannot acquire titled land within 10 km of any international border, **affecting parts of Bocas del Toro near Costa Rica + parts of Darién near Colombia**
- **Comarcas indígenas** (Guna Yala, Ngäbe-Buglé, Emberá-Wounaan, Naso Tjër Di): **collectively owned, foreigners cannot buy/lease titled land**. **San Blas islands fully off-limits to foreigners**
- **Rights of possession (derecho posesorio)** vs titulado — many rural/coastal parcels still derecho posesorio
- **Harder to mortgage and transact** with derecho posesorio
- **ANATI titling programs ongoing** (Land Registration + Titling Program)
- **Coastal concession (ROP — Restricted Public Zone)** within **22 m measured from highest-tide line (línea de pleamar máxima)** is municipal + **AMP (Autoridad Marítima de Panamá)**-administered government strip; concession-only, not freehold; foreigner access via concession is possible but discretionary (Decreto Ley 7 of 1998 / Código Agrario provisions)
- **Banking secrecy + corporate-veil tradition** + use of S.A.s for property holding (common asset protection + estate)
- **Registro Público portal flaky** — recommend lawyer-mediated lookup
- **Earthquake risk** lower than CR; **Pacific Azuero + Caribbean Bocas higher zones**
- **Hurricane risk LOW** — Panama mostly south of typical Caribbean hurricane paths
- **Boquete + Coronado** = major expat retirees
- **Casco Viejo** = UNESCO heritage + premium pricing. **Régimen de incentivos** per **Decreto-Ley 9 of 27 August 1997** (Régimen de incentivos para la Restauración y Puesta en valor del conjunto monumental histórico del Casco Antiguo), amended by **Ley 136 of 31 December 2013** + **Ley 53 of 4 July 2017**: exemption from real-estate-tax-at-sale; income-tax exemption on transfer profits; **30-year property-tax exemption on restored buildings**; 10-year income-tax exemption on commercial/professional activities inside Casco Antiguo; import-duty exemption on restoration materials (2026-05-27 verified, source UNESCO Cultural Heritage Laws DB).

## Reddit / forum sources

- **r/Panama**, **r/expats**
- **r/MoveToPanama** (smaller)
- **The Panama News**, **NewsRoom Panama** (English)
- **Living in Panama** (expat forum)

## Verification authorities

| Authority | When to call |
|---|---|
| **Registro Público de Panamá** | Title verification |
| **ANATI** | Cadastre + titling programs (derecho posesorio) |
| **Notario público** | Mandatory closing |
| **Municipalidad** | Property tax + permits |
| **DGI (Dirección General de Ingresos)** | Tax compliance |
| **SNM (Servicio Nacional de Migración)** | Visa applications |
| **ATP** | If short-let |
| **IDAAN** | Water connection |
| **SINAPROC** | Hazard zone |

## Source URL templates

| Source | URL pattern |
|---|---|
| Registro Público | `https://www.rp.gob.pa/` |
| ANATI | `https://www.anati.gob.pa/` |
| INEC | `https://www.inec.gob.pa/` |
| Encuentra24 PA | `https://www.encuentra24.com/panama` |
| CompreoAlquile | `https://www.compreoalquile.com/` |
| SINAPROC | `https://www.sinaproc.gob.pa/` |
| IMHPA — Instituto de Meteorología e Hidrología de Panamá (ex-ETESA) | `https://www.imhpa.gob.pa/es/` |
| IDAAN | `https://www.idaan.gob.pa/` |
| DGI (tax) | `https://dgi.mef.gob.pa/` |
| SNM (migration) | `https://www.migracion.gob.pa/` |

## Status

✅ **Fully populated** as of 2026-04-26.
**Last verified**: 2026-05-27 (validation sweep — 10km border zone correct per Const. Art. 291; DGI URL → dgi.mef.gob.pa; Decreto-Ley 9/1997 + Ley 136/2013 + Ley 53/2017 Casco Antiguo incentives; Decreto Ejecutivo 197 of 7 May 2021 Friendly Nations; Decreto Ley 3/2008 migration framework; Pensionado $750 with $100k RE buy; Qualified Investor $300k retained; ITBMS 10% hotel-classed STR; CGT 3% advance may be elected DEFINITIVE; ROP 22 m from línea de pleamar máxima + AMP).
**Coverage check**: pricing (TheLatinvestor + Global Property Guide 2026), traffic (MOP TPDA), tax (Inmuebles 0% up to $120k primary + ITBMS 7% commercial + 10% CGT residential + territorial system), rental (ATP + ITBMS), work (MITRADEL + SA), risks (Bocas/Chiriquí 2024 floods + Pacific Azuero/Caribbean seismic), mains (IDAAN).
**Confidence**: HIGH for territorial tax system + Pensionado USD 1,000/mo + USD economy; HIGH for Family Patrimony tax structure (Ley 66/2017); HIGH for 10-km border constitutional restriction + Comarcas indígenas; MEDIUM for 2026 price benchmarks (aggregator data); MEDIUM for Qualified Investor Visa $300k real estate (USD 500k mooted but not verified). Registro Público portal flaky during verification.

## Extension TODOs

- [ ] Per-province property tax variations
- [ ] 10-km border zone overlay (Costa Rica + Colombia frontiers)
- [ ] Comarcas indígenas perimeter map
- [ ] Derecho posesorio → titulado conversion flow (ANATI titling)
- [ ] Pensionado vs Friendly Nations vs Qualified Investor decision tree
- [ ] Coastal concession (ROP) within 22m above-tide verification
- [ ] Casco Viejo heritage-restoration constraints
- [ ] Bocas del Toro hurricane vulnerability zoning
- [ ] SA property-holding structure for asset protection
- [ ] Foreign-source income territorial tax planning