The cost of buying property in Panama: taxes & fees
If you're considering buying property in Panama, it’s essential to understand the various costs and taxes involved beyond the purchase price. Being well-informed can help you plan your budget effectively.
This guide outlines the one-off costs, ongoing expenses, and typical mortgage considerations for non-residents looking to invest in property in Panama.
One-off Purchase Costs
When purchasing property in Panama, there are several one-off costs to consider. These can include transfer tax, notary fees, and legal costs among others.
Typically, buyers should budget around 7% to 10% of the purchase price for these costs. It's advisable to verify current rates with local professionals.
Transfer Tax and Notary Fees
The transfer tax in Panama generally falls around 2% to 3% over a certain threshold of the purchase price. It’s structured progressively, so the total percentage can vary based on the property's price.
Notary fees, which are generally necessary to formalise property transactions, can range from 1% to 2% of the property value.
Legal and Conveyancing Fees
Legal fees can vary significantly but expect to pay around 1% to 2% of the purchase price to ensure all legalities are handled correctly.
It’s crucial to engage a qualified lawyer to navigate the local legal landscape.
Recurring Costs of Ownership
Once you own property in Panama, there are ongoing expenses to consider. Property tax may range roughly from 0.5% to 2% annually, depending on the property’s value and location.
Community fees, if applicable, can vary widely based on the property, while utilities like water and electricity depend on usage.
Example Calculation
For a median property price of around €747,000, here’s a rough calculation of one-off costs: - Transfer Tax: Approx. €15,000 to €22,500 - Notary Fees: Approx. €7,470 to €14,940 - Legal Fees: Approx. €7,470 to €14,940 This brings total one-off costs to around €29,940 to €52,380, or approximately 4% to 7% of the property price.
Mortgage Costs for Non-Residents
Obtaining a mortgage as a non-resident can be challenging, but it's possible. Many banks in Panama offer loans up to 70% of the property’s value for foreign buyers.
Be aware of higher interest rates than locals, and always consult with a local accountant to understand the implications and costs involved.
Frequently asked questions
What are the initial costs when buying property in Panama?
Initial costs typically include transfer tax, notary fees, legal fees, amounting to about 7% to 10% of the purchase price.
How are the property taxes calculated in Panama?
Property taxes are generally 0.5% to 2% annually, depending on the property’s value and location.
Can non-residents get a mortgage in Panama?
Yes, non-residents can obtain mortgages, usually up to 70% of the property's value, but interest rates may be higher.
What ongoing expenses should I anticipate for a property in Panama?
Ongoing expenses include property taxes, community fees (if applicable), utilities, and insurance fees.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed July 2026.