Investment Finance For Panama

Various financial options are available when considering an investment in Panamanian property.

Financing your property investment in Panama could entail injecting some of your own cash resources or, as most serious investors prefer, a mortgage or equity release scheme.

A variety of mortgage products are available to foreign investors in Panamanian property while strict banking laws are in operation to maintain international standards. You will be able to borrow between 75 and 80% of the value of the real estate you wish to purchase.

If you are buying a principal home or improving an existing property, you can borrow up to USD 500,000. Generally, holiday homebuyers can obtain a maximum of USD 300,000.

If you intend to construct a property on a piece of land, this can be up to 50% financed to a maximum amount of USD 150,000 over 15 years.

Interest rates vary according to the amount borrowed:

Average Interest Rates: Amount Interest Rate
Up to USD 150,000 6.50% p.a.
Over USD 150,001 6.25% p.a.

Off-Plan Financing

Many off-plan developments in Panama offer installment plans. Charges applicable vary according to developer and repayments are usually index linked. The developer can often offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives from their own countries.

As always, before making a commitment, we recommend you discuss your intended investment strategies for Panama with a lawyer, a reputable property agent with experience in the area or a financial advisor.

Equity Release

Equity release is a means of releasing some cash from your home without having to sell up and move house: if you have property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who can help you raise the necessary finance for your investment property in Panama.

If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your property in Panama.

Alternative Finance

Not everybody falls into a category and some investors will need to raise alternative finance to equity release or mortgage options. There are other borrowing facilities available to purchasers of investment property in Panama.

Click here to enquire about a mortgage in Panama

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