12-Step Guide to Buying a Home in Panama - Your Dream Home in Panama Awaits!
Panama is a paradise for expats, retirees, and investors alike. With its stunning beaches, lush mountains, and vibrant cities, it’s no wonder so many people are choosing to buy property here. But where do you start? Don’t worry—we’ve got you covered! Follow this simple 12-step guide to make your dream of owning a home in Panama a reality.
Step 2: Set a Realistic Budget
Include the purchase price, taxes, legal fees, and maintenance costs.
Tip: Foreigners often pay in cash, but local banks offer mortgages with 30-50% down payments.
Step 3: Get Your Finances in Order
If paying cash, ensure funds are accessible in Panama. If financing, get pre-approved by a Panamanian bank or explore international lenders.
Tip: Open a local bank account to simplify transactions.
Step 4: Hire a Local Real Estate Agent
Work with a licensed agent who specializes in helping foreigners.
Tip: Choose someone bilingual and experienced in your target area.
Step 5: Research the Market
Compare properties online and visit shortlisted options in person.
Tip: Look for properties with clear titles and no liens or disputes.
Step 6: Consider Residency (Optional but Helpful)
Panama’s Friendly Nations Visa or Pensionado Program can make the process smoother.
Tip: Residency simplifies opening bank accounts and securing financing.
Step 7: Make an Offer
Negotiate the price and terms with the seller.
Tip: Include contingencies for inspections and financing in the offer.
Step 8: Conduct Due Diligence
Hire a local attorney to verify the property’s legal status. Check the Public Registry for a clear title and no encumbrances.
Tip: Confirm zoning laws and future development plans for the area.
Step 9: Sign the Purchase Agreement
Pay a deposit (typically 10%) to secure the property.
Tip: Ensure the agreement includes a clear timeline for closing.
Step 10: Arrange Financing (If Needed)
Finalize your mortgage or transfer funds for a cash purchase.
Tip: Factor in closing costs (2-5% of the purchase price).
Step 11: Close the Deal
Transfer the title at the Public Registry. Pay the remaining balance and closing costs.
Tip: Keep copies of all documents for your records.
Step 12: Move In and Enjoy!
Set up utilities, internet, and other services. Explore your new community and connect with local expats.
Tip: Learn basic Spanish to enhance your experience.