What the buyer pays
A foreign buyer's all-in closing costs typically land between 2% and 5% of the purchase price, depending mainly on legal fees and whether you add title insurance:
- Legal / conveyancing — 0.5–2%. A titled condo is at the low end; deals with liens, corporate sellers or financing sit higher. Always use your own independent Panamanian attorney, never the seller's.
- Notary — ~0.1–0.25%. The public deed is executed before a notary.
- Public Registry — ~0.2%. To record the transfer and issue your updated folio.
- Title insurance — optional, ~0.5%. Recommended for out-of-country buyers for peace of mind.
- Corporate structuring — optional. Buying through a Panama corporation or foundation (common for estate planning) adds roughly $1,500–5,000.
There is no mandatory escrow or joint-ownership requirement, though a bank trust (fideicomiso) is the safe way to hold your deposit.
What the seller pays
Two important costs are not yours as a buyer, and any calculator that lumps them into your total is misleading:
- Transfer tax (ITBI): 2% of the higher of registered value or sale price — the seller's obligation. New homes within two years of the occupancy permit may be exempt.
- Capital gains: 5% of the seller's profit, collected as a 3% withholding on the sale price at closing.
Estimate your buyer costs
Buyer closing-cost estimator
Buyer-side costs only. In Panama the 2% transfer tax and capital-gains tax are the seller's responsibility. Indicative — confirm with your attorney.
Want these numbers checked against a specific deal, with your attorney lined up? That is what our buyer advisory is for — at no added cost to you.
Frequently asked questions
Who pays the real-estate commission?
In Panama the commission — customarily around 5% — is paid by the seller. Working with a buyer's representative therefore typically costs you nothing extra.
Do I pay the 2% transfer tax as a buyer?
No. The 2% transfer tax (ITBI) and the capital-gains tax are the seller's responsibility. Your costs are legal, notary, registration and any optional title/structuring fees.
Should I buy in my own name or a company?
Both are common. Personal ownership is simplest; a Panama corporation or private-interest foundation can help with estate planning and privacy, at a modest extra cost. Your attorney will advise based on your goals.
Sources & last updated
Figures reflect published 2026 data and are indicative; laws and market conditions change. Verify specifics with a licensed Panamanian attorney or tax advisor before acting.