Transferring money to Panama for a property: US dollars, no exchange controls, full paperwork.

Are there exchange controls on sending money to Panama?

No. The US dollar is the currency in use in Panama, there are no foreign exchange controls, and there are no restrictions on capital flows into or out of the country, according to the US International Trade Administration's Country Commercial Guide. A US dollar transfer arrives without conversion.

Panama has no central bank. Banco Nacional de Panamá performs some central-bank functions and acts as clearing house, per the same source. Panamanian statutes quote amounts in balboas (B/.).

What paperwork does a Panamanian bank ask a foreign buyer for?

A passport, a taxpayer identification number, and an affidavit that the money flows meet the tax obligations of your tax residence. That is what foreigners opening a Panamanian bank account must present, according to the US State Department's 2024 Investment Climate Statement. Plan for source-of-funds paperwork on any purchase.

The tax authority (DGI) identifies property taxpayers by a taxpayer identification number (NIT). A single named foreigner ID document, like Spain's NIE, was not found for this page. Ask your Panamanian lawyer which number your deed and tax account will carry.

Does the money have to come from abroad for a residency purchase?

For the investor-residency routes, yes. The Qualified Investor route requires showing the qualifying funds are the investor's own and originate abroad, according to law firm Icaza, González-Ruiz & Alemán. Migración's economic-solvency real estate sheet also says the funds must come from abroad.

Keep the wire records from your home bank to the Panamanian account or escrow. They are the evidence. The residency routes themselves: foreign ownership and residency in Panama.

Can a foreigner get a mortgage in Panama?

Yes, from local banks, according to Global Property Guide: terms are shorter than in the US, usually 20 years at most, down payments are higher, and lenders focus on income and employment rather than credit history. A typical loan-to-value for non-residents was not found in a citable source for this page.

The residency rules allow a local mortgage on some routes. The Friendly Nations property route says the purchase may be financed through a local bank. On the economic-solvency real estate route, only the portion above the B/.300,000 paid in cash may be mortgaged. Get the bank's terms in writing before you sign a promesa and pay a deposit.

Can I take the money out of Panama when I sell?

Yes. There are no restrictions on capital flows out of Panama, according to the US International Trade Administration. The friction on the way out is tax: the seller pays the capital-gains tax, with a 3% advance at transfer, before the sale can be registered at the Registro Público.

The seller is also the legal taxpayer for the 2% transfer tax. The rest of the exit: selling property in Panama as a foreigner. The overview: buying property in Panama as a foreigner.

Header photo: 123Hollic, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.