Panama is a country bordered by Costa Rica to the west, Colombia to the southeast.
The capital and largest city is Panama City, which is home to nearly half the country's 4 million people.
A significant portion of Panama's GDP revenue is generated from canal tolls.
Citizens of the USA, Canada, UK, EU countries, and most Commonwealth & South American countries can stay on vacation in Panama for 6 months on a tourist visa which is automatically given on arrival.
Visitors wanting to stay longer than 6 months can apply for an extension.
Individuals who are retired from work, financially independent and a person of good character can apply for Panama permanent residence.
Individuals who have permanent residency and have resided in Panama for 5 years or more are eligible to apply for citizenship by naturalization.
Panama requires applicants to renounce their previous citizenship in order to be naturalized.
There are no restrictions on foreign buyers acquiring real estate in Panama. The Government of Panama welcomes investment from overseas investors.
Search for your perfect property.
Make an offer to purchase the property with the Real Estate Agent.
Engage a lawyer to perform a title search and land survey.
After signing the Agreement for Sale, pay a 10% deposit.
On settlement pay all taxes and fees.
Pay the balance of the purchase amount.
Please seek the advice of a local lawyer. Legal fees depend on the complexity of the transaction and the amount of work performed.
Property tax ranges from 0.5% to 0.7% of the market value over $120,000 for residential property.
The registration fee is payable by the purchaser and is currently 0.3% of the purchase price.
A person selling a property pays 2% transfer tax.
Only properties located in Panama are subject to capital gains tax. The standard rate is 10% of the gain on the sale.
Panama imposes no inheritance or gift tax.
Panama imposes no tax on worldwide income.
Residents and non-residents are taxed only on their Panama-sourced income. Regardless of nationality or residency status, you are not required to report worldwide income for Panama taxation.
Income Tax rates for residents are progressive ranging from 0% to 25%, and based on total income. The first USD11,000 is tax-free, USD11,000 to 50,000 is taxed at 15%, over USD50,000 is 25%.
Non-residents are taxed at 15%, plus the educational tax rate of 2.75%.