Real Estate Financing

In the past decade, Panamanian banks have eased up restrictions on loans for locals and foreigners. As of today, non – residents qualify for up to 70% financing of the purchase price for no longer than a 25-year term.

This is great news for our foreign investors, and the best part is that Panamanian banks DO NOT REPORT to your credit score in your home country. The mortgage will only show on your Panamanian credit and will help establish a credit base for any future financing.

One thing to keep in mind is that Panama has a 75-year-old restriction on its loans. Meaning that to qualify for loans up to 25 years term, you must be 50 years old or younger. Those who are for example 60, will get around 15 years.

Types of Loans Available in Panama

• Residential
• Commercial
• Land
• Construction
• Second Home Investment Property

Documents Required for Loan Approval

For Locals

• Valid ID

If you work in a private company

• Original work letter valid for 30 days
• Original Social Security
• Last proof of payment
• Employee Card (Panama Canal Authority)

If you work in a public company

• Comptroller’s proforma valid for 30 days
• Last pay stub

If you are Self-employed

• Last two income statements
• Certificate of receipt of each declaration
• Receipt of payment of taxes and educational insurance
• Balance letters or last payment receipt if the property is mortgaged
• Photocopy of the Purchase and Sale promise contract


• Copy of your valid and legible passport, including migratory movements (entry and exit stamps)
• Panama migration card (current and legible)
• Two letters of bank references from your country of origin

Private company

• Original work letter valid for 30 days of Original Social Security file o Last two proofs of payment.

Public company

• Pro forma comptroller’s office valid for 30 days of Last two pay stubs

Self Employed

• Last two income statements.
• Certificate of receipt of each declaration.
• Receipt of payment of taxes and educational insurance
• Personal reference in Panama, in case you have it
• Purchase and Sale contract of the property to be financed

Non-resident applicants can expect the following loan terms and conditions if approved:

• 25-year term maximum
• 70% of purchase price financing
• Life and Fire insurance is required
• Around 7% interest rate

Once it’s approved, a loan term sheet will be issued by the bank for you to review. If you agree and sign the terms of the loan, the bank will issue an irrevocable promissory letter for the loan amount approved.

Depending on which bank you apply with and the type of loan you are applying for, the terms may vary from the ones above. Obtaining a mortgage on your own directly with the bank may be a bit overwhelming. It’s best if you find a mortgage specialist located in Panama that has access to all the banks and can find you the best terms and loan programs available.

If you need help, reach out to us and we will put you in contact with a financial advisor or a mortgage specialist so the process of acquiring a property in Panama can go smoother and faster.

Our Contact Information:
+507 830-6020 / +507 6678-4765


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