Panama City offers diverse housing options, including high-rise apartments with ocean views, suburban homes surrounded by greenery and colonial-style projects in the historic district. Whether you are looking for a short-term rental, a long-term lease or a property to buy, understanding the local real estate market can help you make informed decisions. This guide covers key aspects of finding a home in Panama City, including popular neighborhoods, pricing, taxes and practical considerations for expats.
Housing options in Panama City
Apartments and condos
High-rise buildings are a common feature of Panama City's architecture, particularly in upscale neighborhoods. Many expats choose to live in apartments or condominiums due to their amenities, such as a pool, gym and security services. The capital provides a wide selection of apartments to suit different needs and budgets. Options include:
- Luxury apartments: Fully furnished units with high-end amenities in upscale areas (Punta Pacifica, Balboa Avenue, Costa del Este);
- Mid-range apartments: More affordable options with good amenities and central locations (San Francisco, El Cangrejo, Bella Vista)
- Budget apartments: Lower-cost units farther from the center, where amenities may vary (El Dorado).
Houses and gated communities
If you value space and privacy or want a yard to connect with nature right at your doorstep, you can find houses for rent or purchase in both central and suburban areas. However, houses in the city center tend to be more expensive. Gated communities are popular among families and retirees for their comfort and security.
- Suburban homes: Larger houses with yards, ideal for families (Clayton, Albrook);
- Gated communities: Enhanced security and high-end amenities (Santa Maria, Embassy Club);
- Traditional houses: Older neighborhoods with single-family homes at a more affordable price than gated communities (Bethania).
Popular neighborhoods in Panama City
Punta Pacifica
Punta Pacifica is a high-end residential area featuring luxury apartments and ocean views. It is close to a well-known private hospital and shopping malls.
Costa del Este
The trendy Costa del Este lies a bit farther from the city center. Home to multinational companies' headquarters, this district appeals to professionals and families alike. It offers international schools, parks, malls, clinics and office buildings. With its modern infrastructure and upscale lifestyle, Costa del Este feels like a city within a city.
San Francisco
San Francisco is a centrally located neighborhood that blends residential and commercial areas. A gastronomical mecca of the capital, this district is known for its ever-growing selection of restaurants.
El Cangrejo
Favored by young professionals and expats, this area has a bohemian vibe with many cafés, restaurants, bars and affordable apartments. It is also pedestrian-friendly, unlike some other parts of the city.
Marbella
With its financial district and Cinta Costera waterfront promenade, Marbella is a popular neighborhood among expats. Its high-rise buildings, featuring sea views and modern amenities, offer excellent rental options in a prime location.
Clayton
A quieter, suburban neighborhood surrounded by greenery, Clayton is home to the City of Knowledge, several international schools, NGO offices and diplomatic residences.
Casco Viejo
If you are drawn to the charm of the historic district, Casco Viejo—with its colonial architecture and cobblestone streets—may be the perfect choice. Renovated boutique apartments feature colorful floor tiles and stylish designs. Restaurants, rooftop bars, cafes and shops line every corner. You will never be bored.
However, this hype place has its downsides. Most buildings in this neighborhood lack parking, and the streets get busy. Moreover, weekend nights can be noisy, as Casco Viejo's vibrant dining and bar scene attracts many visitors.
How to find long-term rentals in Panama City
Online listings
To find a long-term rental that suits your needs, browse the websites of Panama's real estate listings. Those include:
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Compare prices, choose the best option and contact the listing agent or owner. Do not hesitate to bargain if multiple options are available in your preferred neighborhood.
Real estate agents
Working with a real estate broker or agency can also be helpful, as they have in-depth market knowledge. These professionals must be licensed in Panama. Verify whether your chosen agency is a member of the Panamanian Association of Real Estate Brokers and Developers. Choosing a reputable professional can increase your chances of a successful search.
Rental conditions in Panama City
Rental agreement
Once you find your ideal home, sign a rental agreement with the owner. The contract will outline key details such as rent term, price, security deposit amount (typically equivalent to one month's rent) and liabilities. Be sure to verify the ownership of the property in the Public Registry. Your landlord may request proof of income (bank statement or work reference) in addition to your passport or a copy of your residency card.
Monthly rental prices
Rental prices in Panama City vary depending on location, size and amenities. Below is a general guide to what you can expect to pay per month for furnished units:
- Luxury apartments (Punta Pacifica, Balboa Avenue, Costa del Este, Coco del Mar, Casco Viejo) - US$2,000 – US$5,000+;
- Mid-range apartments (San Francisco, El Cangrejo) - US$900 – US$3,000;
- Budget apartments (El Dorado) - US$600 – US$1,100;
- Houses in gated communities - US$2,500 – US$6,000+;
- Suburban homes - US$1,200 – US$4,500.
Short-term rentals in Panama City
If you are arriving in Panama and need a temporary place to stay while searching for your new home, renting short-term is a good way to get started.
Short-term rentals in Panama City are regulated, and landlords must obtain a special license to rent out properties for less than 45 days. As a result, the use of platforms like Airbnb is restricted in Panama City unless the owner has the necessary permits.
Nevertheless, plenty of short-term rentals are listed on Airbnb and similar platforms. Some owners have a tourist public accommodation permit, while others may be taking the risk of renting without proper authorization. Short-term apartment rentals and apart-hotels are more affordable than standard hotels. The following websites have a variety of options:
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Buying a property in Panama City
Foreigners are allowed to buy properties in Panama. The process is relatively straightforward. If you want to purchase a house or apartment, Panama City's real estate market abounds with opportunities. Do not rely on just one method when searching for your best option. Perform an online search and contact real estate agents. Working with several brokers will widen your scope of opportunities.
Check out the following websites:
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Key points to consider
Property prices
Luxury apartments in prime locations usually cost around US$300,000-US$1,000,000;
For mid-range apartments, count between US$150,000 and US$300,000.
Taxes
When you buy real estate in Panama, the seller is responsible for the 2% transfer tax and the 3% advance on the capital gain tax. Property taxes in this country are generally low, and new constructions benefit from tax exemptions.
Primary residence is taxed according to this scale:
- Up to $120,000 - 0%;
- $120,001 to $700,000 - 0.5%;
- Above $700,000 - 0.7%.
All other properties pay the following:
- Up to $30,000 - 0%;
- $30,001 to $250,000 - 0.6%;
- $250,001 to $500,000 - 0.7%;
- Above $500,000 - 1%.
Legal costs
Thorough due diligence is a must and is best navigated with professional assistance. Hiring a local attorney to handle paperwork is a wise move. Most local lawyers can help you navigate the purchase transaction. Moreover, many of them speak English and can guide you through the process if you do not speak Spanish. Legal fees typically range from US$1,500 to US$3,000 for properties priced between US$150,000 and US$500,000.
Property purchase for rental purposes
If you want to buy a property for investment purposes and plan to rent it out, consider which rental option is the best for you.
Short-term rentals are regulated in Panama City under Law 80 of 2012. According to this law, hosts must register with the National Tourism Registry and obtain an operating license. Additionally, properties must meet quality and safety standards and pay a 10% tourism tax.
In 2024, the average occupancy rate for Airbnb properties in Panama was just under 50%. Hotels reported the same number. Even though weekends may be busy and holidays booked well in advance, property management fees can take 10-20% of revenue. Additional costs, such as utilities, maintenance and the 10% tourism tax, can further eat away at your profits.
Panama real estate may still be a great investment. In fact, Panama City's residential rentals are expected to provide a stable 6% yield by 2026. However, relying on short-term rentals in this city may not be the best strategy unless you purchase a property in a development with a hotel-like operating permit.
Utilities and additional costs when renting or buying property in Panama City
Whether you rent or buy a property in Panama, factor in additional costs such as utilities and maintenance fees to evaluate your potential monthly spending.
- Electricity: Monthly costs range between US$50 and US$250, depending on air conditioning usage, as the country has a very hot climate.
- Water and garbage collection: These services are usually included in rent. If paid separately, they may cost around US$20 per month. In condos or gated communities, these costs are included in HOA fees.
- Internet, cable TV and landline service: Bundled plans are US$30-US$80 per month, depending on speed and provider.
- HOA (Homeowners Association) fees: If you buy in a condo or gated community, expect to pay homeowners association fees ranging from US$100 to US$500 per month, based on the property's location and size. If you rent, this fee is covered by the property owner.
Takeaway
Finding a place to live in Panama City requires careful consideration of your budget, lifestyle and long-term plans. The city provides a variety of options: the convenience of a modern high-rise, the charm of a historic district and the tranquility of a suburban home. Rental and purchase prices in the capital vary depending on the area and amenities. With proper research and professional guidance, settling in Panama City can be a smooth process.
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