How Much Does It Cost to Buy an Apartment in Panama City? (All-In)

The all-in cost to buy an apartment in Panama City is the sticker price plus roughly 3 to 5 percent for closing costs if you pay cash, and closer to 5 to 7 percent if you finance. On a US$300,000 apartment that means budgeting about $9,000 to $15,000 on top of the price, mostly for your own legal fees, notary and Public Registry charges, and escrow. The transfer tax and capital-gains advance are customarily the seller's bill, not yours.

The sticker price is the easy part. The number that catches foreign buyers off guard is everything that sits on top of it, and who is actually responsible for each line. This guide breaks down the full cost: purchase prices by area, every closing-cost item with who pays it, and a worked $300,000 example you can copy.

What an apartment actually costs by area

Panama City is priced in US dollars, which makes it unusually easy for foreign buyers to read. But the market is uneven. Two towers a block apart can carry very different prices, fees and resale prospects, so the neighbourhood band matters more than any citywide average.

As a baseline, the median apartment in Panama City sits around $265,000 in 2026, and the median price works out to roughly $2,200 per square metre. Luxury stock pulls the average well above that. Here is how the premium areas stack up.

• Punta Pacifica. The trophy waterfront. Asking prices run roughly $3,000 to $4,800 per square metre, with closed sales often landing lower than the headline ask. Whole units commonly run into the high six and seven figures, and seafront penthouses higher. Hospitals, malls and Pacific views keep demand strong.
• Costa del Este. The planned, executive-family district just east of the city. Per-square-metre pricing lands in the $2,700 to $3,400 range, with entry around $250,000 to $300,000 for a newer two- or three-bedroom, and older or smaller units from about $155,000. This is the clearest upper-mid to premium family market in the city.
• Casco Viejo. The restored colonial quarter. Pricing is wide because you are choosing between old restored shells and new builds: roughly $2,500 to $4,000 or more per square metre, depending on whether it is a restored shell or a premium new build, with restored apartments often starting around $300,000 and large penthouses passing $1 million. Note that Casco Viejo carries its own historic-district rules, so legal review here is not optional.

Two practical notes. New-build apartments usually run 15 to 30 percent more than a comparable resale unit in the same area, mostly for amenities and lower near-term repair risk. And a normal (non-trophy) listing often closes below asking, commonly in the mid to high single digits, so the headline number is rarely the final number.

Want to filter live listings by budget and area instead of guessing? Use the Panama Property Finder.

The closing costs, line by line

This is where the all-in number is built. In Panama, the costs split cleanly between buyer and seller, and the split is mostly customary, not fixed by law, which means parts of it are negotiable in the promise-of-sale contract.

The headline tax is the ITBI (Impuesto de Transferencia de Bienes Inmuebles), the 2 percent real-estate transfer tax. It is calculated on the higher of the sale price or the property's registered cadastral value, filed with the tax authority (Direccion General de Ingresos) on Form 106, and it is customarily paid by the seller. The Public Registry will not record the transfer until it is paid, so it is real money that has to clear at closing, even though it is the seller's side of the ledger.

Alongside it sits the 3 percent capital-gains advance, again on the higher of price or cadastral value, also the seller's. It is an advance against the seller's gains tax, not a flat tax on profit, and it can be reconciled later. You will sometimes hear sellers fold these into negotiations, so confirm in writing who is absorbing what before you sign.

Your side, as the buyer, is lighter:

The pattern is the one that surprises people: the big-ticket items (transfer tax, capital-gains advance, commission) are customarily the seller's, which is why a seller's all-in cost runs higher than a buyer's. As a cash buyer, your real exposure is your lawyer, the notary and registry, and a little escrow friction.

One change worth flagging, because older guides still get it wrong. For more than fifty years, a developer's first sale of a brand-new home was exempt from the 2 percent transfer tax. Law 468 of 2025 (Article 13, repealing Article 4 of Law 106 of 1974) removed the long-standing exemption on a developer's first sale. It was published in Gaceta Oficial 30264-A on 24 April 2025 and took effect 25 April 2025, so as of 2026 the 2 percent ITBI applies to every transfer, including a developer's first sale. On a new unit the tax is formally the developer's to pay, but it is typically built into the price. If you are buying preconstruction or a first-sale unit, ask exactly how the ITBI is being handled in your figure.

A worked example: a $300,000 apartment, all-in

Say you are buying a $300,000 two-bedroom resale apartment in San Francisco or Costa del Este, paying cash, with clean title. Here is a realistic buyer-side budget.

That is roughly 1.9 percent over the price on a clean, straightforward cash deal. Build in a buffer and most cash buyers land in the 3 to 5 percent range once you account for a more complex title, a corporate seller, or higher-end legal work. The transfer tax and capital-gains advance, around $6,000 each on this property, sit on the seller's side of the closing statement.

If you finance, add the bank's costs: appraisal, mortgage registration, the lender's legal fees, and required insurance. That is what pushes a financed purchase toward 5 to 7 percent all-in.

Financing versus cash, and what foreigners can actually buy

First, the ownership question, because it underpins everything else: a foreigner can buy and fully own titled apartment property in Panama outright, in their own name or through a Panamanian company, with the same rights as a citizen and no residency requirement. City apartments are titled property, recorded in the Public Registry under a finca number, which is exactly what you want. (For the full ownership picture and the one distinction that protects your money, see how to buy property in Panama as a foreigner.)

Many buyers in Panama City pay cash, often by wire using a bank letter of payment. If you finance, expect Panamanian banks to lend roughly 60 to 70 percent of value, and as little as 50 percent for a foreigner with no local banking history. Mortgage rates have sat around 6 to 7 percent, and non-residents and second-home buyers typically pay the FECI surcharge on top. The standard structure is a 10 percent deposit into escrow on signing the promise of sale, with the balance due in 30 to 60 days.

Whatever the financing, the rule that saves foreign buyers money is the same: use your own independent Panamanian attorney to run the title and encumbrance search before any deposit is released. It is the cheapest insurance in the deal.

What this means for your budget

For a clean cash purchase, budget the price plus 3 to 5 percent and you will be safe. For a financed purchase, plan on 5 to 7 percent. The transfer tax and capital-gains advance are the seller's by custom, but confirm that in the contract, because custom is not law. And remember the recurring costs that start the day you own: HOA fees, utilities, insurance and annual property tax. We cover the latter in full in our guide to Panama property taxes.

When you want a second set of eyes on the numbers and the structuring of a specific purchase, book a consultation and we will walk through it with you. To compare real units by area and budget first, start with the area pages for Punta Pacifica and Costa del Este.

FAQ

How much are closing costs when buying an apartment in Panama City?

For a buyer, roughly 3 to 5 percent of the price on a clean cash deal, and 5 to 7 percent if you finance. The bulk is your own legal fees (about 1 percent), notary and Public Registry charges, and escrow. The 2 percent transfer tax and 3 percent capital-gains advance are customarily the seller's.

Who pays the transfer tax in Panama, the buyer or the seller?

The 2 percent ITBI transfer tax is customarily paid by the seller, calculated on the higher of the sale price or the registered cadastral value and filed on Form 106. It is negotiable in the contract, so confirm in writing who absorbs it before you sign.

Can a foreigner buy an apartment in Panama City outright?

Yes. Foreigners can buy and fully own titled apartment property with the same rights as a Panamanian citizen, in their own name or through a company, with no residency requirement. City apartments are titled property recorded in the Public Registry.

Do I have to pay cash, or can I get a mortgage?

Both are common. Panamanian banks typically lend 60 to 70 percent of value, and around 50 percent for a foreigner without local banking history, at rates near 6 to 7 percent plus the FECI surcharge for non-residents. Many buyers pay cash by wire with a bank letter of payment.