We always recommend that you become totally familiar with a country before you purchase property.  Renting for the first year will allow you to be sure of your decision when the time comes. Many find that the first locale they select isn’t the one that they choose when buying a home becomes a reality. 

Renting a property in Panama easily fits into a budget.  Unless you are looking at an upscale community with every amenity imaginable, prices should run under $800US per month. If Panama City is your goal, then the rental prices will be much higher. 

Real estate agencies are throughout the country, as are many new developments along both the north and south coasts.  Find the area that attracts you.  THEN begin your search for a place to live.  Often one correlates with the other. You  may find that when a perfect home is put in front of you, the home becomes more important than the area! 

Renting Property in Panama:
It is suggested that you use a realtor to negotiate a rental contract.  Don’t sign anything until your local attorney has gone over the entire contract, since it will be in Spanish.  The realtor will receive a commission from the seller. 

Leases run for a minimum of three (3) years, with increases of approximately 3%-5% yearly.  You can negotiate a shorter term. 

Rental deposits are required, and for a three year lease, 3- month’s security is normal.  The Ministry of Housing will hold one month’s fee, and the landlord will hold the other two months. 

If you are renting a furnished property, be sure you take photographs of the interior and exterior, with dates shown on the images. 

Purchasing Property:
Most property purchased by expats is paid for in cash.  If you are financing, you will need to approach a Panamanian bank. While the interest rate is competitive, it is adjustable.  Most Panamanian mortgages are 30-year adjustable.

Tax returns, a credit check, the proper Visa, bank statements and references will be required to obtain a Panamanian mortgage, among other details specific to each bank. 

In the past, Panamanian attorneys performed a title search on all property being sold.  With the influx of out-of-country buyers knowledgeable in title history, the use of title insurance has increased. Some Panamanian properties do not have clear title, yet they can be sold.  It is suggested that you only buy a property if the title is clear.