Panama's Preferential Mortgage Calculator
Estimate your tax savings under Panama Law 468 — the government-subsidized mortgage rate for first-home buyers up to USD 120,000. See who qualifies, how much you save, and how long the benefit lasts.
Preferential rate by price bracket
The subsidy follows three price tiers. The region only changes the upper tier (USD 80k–120k); below USD 80,000 the rate is identical nationwide.
| Price bracket | Preferential rate |
|---|---|
| ≤ USD 80,000 | 5.0% |
| USD 80,001 – 120,000 (Region 1) | 4.0% |
| USD 80,001 – 120,000 (Region 2) | 3.5% |
| > USD 120,000 | Not eligible |
Who qualifies
- Primary residence (first home)
- Sale price ≤ USD 120,000 including land + improvements
- Loan from a financial institution regulated by the Superintendency of Banks
- Buyer has not previously benefited from this law
- Residential use only
- Second or investment properties
- Property price above USD 120,000
- Commercial-use properties
- Buyers who previously used the subsidy
- Loans from non-regulated lenders
What savings look like
Indicative numbers for a typical first-home buyer. Your exact savings depend on the bank's commercial rate and your loan term — model your case in the Spanish-language calculator.
| Loan amount (90% financing) | USD 90,000 |
| Monthly payment WITHOUT Law 468 | ≈ USD 629/mo |
| Monthly payment WITH Law 468 (4.0% preferential) | ≈ USD 430/mo |
| Cumulative savings during 7-year benefit | > USD 12,000 |
Sample case using a 30-year mortgage and the maximum preferential rate. Savings vary with bank rate, term, and price tier.
Model your savings
The interactive calculator with inputs for price, term, region and rate is currently in Spanish. Or talk to Santiago directly — he can model your case in minutes on WhatsApp.
Frequently asked questions
What does Panama's Law 468 preferential mortgage do?
Law 468/2025 (with the Law 341/2025 reform in force since January 2026) subsidizes part of the mortgage interest for buyers of a first home priced up to USD 120,000. The government covers up to 85% of the bank's interest, with a maximum preferential rate of 4% during the first 7 years of the loan.
How much can I save with the preferential mortgage program?
Savings depend on the property price, loan term, and the rate offered by your bank. For a USD 100,000 home at 7.5% over 30 years with 10% down, monthly savings are typically USD 150–200 and cumulative savings during the 7-year benefit window can exceed USD 12,000. The Spanish-language calculator models your exact case.
Who qualifies for Panama's preferential mortgage rate?
Buyers of a first home (primary residence) for residential use, with a sale price not exceeding USD 120,000 including land and improvements. Prior beneficiaries, second homes, and commercial-use properties are excluded. The loan must be issued by a financial institution regulated by the Superintendency of Banks of Panama.
Can foreign buyers use Panama's Law 468 program?
The preferential mortgage program targets residents purchasing a first home. Non-resident foreigners typically do not qualify for the subsidy but can still access regular Panama bank mortgages (60–70% LTV for non-residents, 80% for residents). Foreigners holding Panamanian residency who meet income and primary-residence conditions may qualify — confirm with a local banking advisor.
How long does the Law 468 benefit last?
Under the Law 341/2025 reform in force since January 2026, the benefit applies for 7 years and is non-renewable. After year 7, the buyer pays the full commercial rate offered by the bank. The reform removed the prior obligation for banks to offer transition alternatives, so plan ahead for the rate step-up.
Is the preferential rate the same across Panama?
The subsidy follows three price tiers. For homes ≤ USD 80,000 the rate is 5% nationwide. From USD 80,001 to USD 120,000 the rate is 4.5% nationwide. The maximum 4% (Region 1: Panama / Panama Oeste) or 3.5% (Region 2: Colón, Chiriquí, rest of country) applies in the upper tier. Below USD 80,000 the subsidy is identical in both regions.
Does Law 468 apply to used homes?
The regulation prioritizes new homes. For specific cases of eligible used homes, check with your bank and a legal advisor before signing a promise to purchase. Eligibility is confirmed by the authorized financial institution per the Ministry of Housing (MIVIOT) and Ministry of Economy and Finance (MEF) requirements.
This calculator and guide are informational only. Tax and legal compliance: consult your CPA and a Panamanian banking advisor before signing a mortgage. Estimates are based on Law 468/2025 with the Law 341/2025 reform in force since January 2026. Sources: KPMG Panamá, Ministry of Economy and Finance (MEF).