Is It Safe to Buy Real Estate Remotely in Panama? Due Diligence Guide 2026

The short answer is yes, buying an apartment in Panama remotely is safe and perfectly legal for foreigners, provided four mandatory conditions are met. Panama has a clear legal framework: a centralized Public Registry, notaries with public faith, attorneys licensed by the Supreme Court, and an active market that welcomes foreign investment without nationality restrictions. Risk only appears when the buyer agrees to skip one of the formal steps.

The 4 mandatory conditions

1. Independent licensed attorney — authorized by the Supreme Court and, if handling real estate matters, a member of ACOBIR (Law 6 of 2010).
2. Public deed before a Panamanian notary — never a simple private contract. Only a deed executed before a Panamanian notary has the public faith required to transfer property.
3. Registration at Panama's Public Registry — ownership only legally changes hands when the deed is recorded at registropublico.gob.pa.
4. Payment to a Panamanian bank account — the buyer's attorney's escrow or the seller's local bank account. Never to the seller's foreign accounts.

If any of these four conditions is missing, the transaction is high risk and must be stopped.

Step 1: Hiring a licensed attorney

The buyer's attorney must be independent from the seller, the developer and the broker. Before signing an engagement, verify:

• License number issued by Panama's Supreme Court of Justice.
• If the attorney also acts as broker or real estate advisor, current ACOBIR membership (Asociación de Corredores y Promotores de Bienes Raíces de Panamá), under Law 6 of 2010.
• Verifiable references from at least two prior clients.

Typical fees for full due diligence plus closing range from 1% to 2% of the purchase price. For guidance on selection, see how to choose a real estate attorney in Panama.

Step 2: Opening a Panama bank account

Panamanian banks apply rigorous KYC to non-residents. Typical required documents:

• Valid passport and, in some cases, second ID.
• Proof of address in your home country (recent utility bill).
• Two bank references from your home country, addressed to the Panamanian bank.
• Proof of lawful source of funds (statements, tax returns, sale deed of an asset).

The process usually takes 30 to 60 days. Some buyers choose to close using the attorney's escrow, without opening a personal account immediately; this is valid as long as the escrow is at a Panamanian bank.

Step 3: Due diligence at the Public Registry

The buyer's attorney must obtain and review:

• Property certification from the Public Registry, less than 30 days old, showing registered owner, liens, mortgages, attachments and marginal annotations.
• Property tax clearance from the Ministry of Economy and Finance (MEF) — confirms property tax is current (Law 66 of 2017).
• HOA fee clearance issued by the building administration (Executive Decree 31 of 2010).
• Property record number and MUPA-approved floor plan matching the unit described in the contract.
• Co-ownership bylaws for restrictions (short-term rentals, pets, modifications).

Any discrepancy between the certification and what the seller declares is reason to halt the transaction. For deeper coverage, see the complete due diligence audit.

Step 4: Promise of sale with escrow deposit

Once due diligence is approved, the parties sign a promise of sale agreement. Typical structure:

• Deposit of 10% of the price in the buyer's attorney's escrow (special account separate from fees).
• Closing window between 30 and 90 days, depending on conditions (financing, international fund transfer, power of attorney apostille).
• Refund clause if final due diligence finds hidden liens or missing documents.
• Clear identification of penalties for breach by either party.

Escrow protects the buyer: funds are only released to the seller when the final deed is signed and entered at the Public Registry.

Step 5: Deed before notary and Public Registry

On closing day, the public deed is signed before a Panamanian notary. If the buyer does not travel, their attorney-in-fact signs with an apostilled and translated special power of attorney. The notary protocolizes the act and issues a copy.

The deed is filed at Panama's Public Registry, where it is recorded against the property. Registration typically takes 1 to 3 weeks. Only when registration is complete is the buyer the legal owner.

Anti-fraud: 7 red flags

1. Payment to an account outside Panama — seller asks to wire to an account in another country.
2. No written contract — only verbal or chat agreement.
3. No deed before a Panamanian notary — they propose a private contract and "later" the deed.
4. Price too good — 30% or more below comparable market.
5. Extreme rush — pressure to close in a few days without allowing due diligence.
6. No Public Registry access — the seller avoids or delays giving the property number.
7. Refusal of an independent buyer's attorney — they require using the seller's attorney.

The presence of two or more simultaneous signs must stop the transaction immediately.

Total closing costs (4-6% of price)

In addition to the price, budget the following:

• Transfer tax (ITBI): 2% on the higher of price or cadastral value (Fiscal Code).
• Notary: 0.5%-1%.
• Public Registry: $100-$500.
• Independent attorney: 1%-2%.
• Translation and apostille of powers of attorney: $200-$800 depending on country of origin.

For a $300,000 purchase, typical closing costs range from $12,000 to $18,000.

Use the PanamaEstimate calculator to estimate price before starting the process, and review verified buildings in zones like Punta Pacifica if your profile is premium investment. If you are evaluating residency, see the Qualified Investor Visa guide.

Need personalized due diligence? Ask Alma — free pre-purchase analysis.

Sources

• Executive Decree 722 of 2020 and Decree 197 of 2021 — Qualified Investor Visa, $300,000 minimum in real estate (presidencia.gob.pa).
• Law 6 of 2010 — Real estate brokerage and mandatory ACOBIR licensing.
• Law 66 of 2017 — Property tax and tax clearance.
• Executive Decree 31 of 2010 — Horizontal Property regime.
• Panama Fiscal Code — 2% ITBI on the higher of price or cadastral value.
• Panama Public Registry — official entity for deed registration: registropublico.gob.pa.