Panama is one of the key crossroads in the world, the land bridge between North America and South America and the waterway between the Atlantic and the Pacific, yet it seems to be perpetually a decade or two behind always-trendy Costa Rica in drawing crowds of tourists. This is true even though Panama has all the elements to qualify as a Central American hotspot: teeming wildlife, sandy beaches, scuba diving, world-class fishing, widespread English proficiency, reliable transportation and a cosmopolitan capital city. The country even uses the U.S. dollar as its currency, so American visitors don’t have to worry when the dollar takes a dive abroad.
So what’s the hang-up?
As in many Latin American countries, past unrest is partly to blame for the low visitor numbers. Leaders have made up for lost time, however, and today the economy is booming, the Canal is in expansion mode, and the high-rise skyline of Panama City is dotted with construction cranes. In general, Panama is a safe and stable place to travel or retire.

Panama is a property market that is on the rise, and currently it is a market dominated by retirees and investors. Many major developments are being constructed (including a Trump project expected to reach the $400 million mark). The interest has sparked a boom in the prices - not only in properties, but in construction materials and even labor as well.
Although the increase in values has started to slow a bit, the future projects still are expected to reach just below 10%. The government is working hard to keep up with the property boom with airport expansions, road improvements and many more infrastructure developments.
Many experts recommend you establish a Panamanian Corporation to hold property in the country.

Buying a Titled Property. Enter into a “Promise to Purchase Agreement.” This will give you time to do all the research necessary and to acquire any financing that is needed. The agreement must be recorded in the Public Registry.
Perform a due diligence of the property - this includes a title search, map reviews, research of tax status (to be sure the property is in good standing) and utilities. The purpose is to ensure that the property you are purchasing does not have any limitations or encumbrances on it.
Once everything is found to be in good standing you can proceed with a “Purchase and Sale Agreement.”
Purchasing Possession Rights Properties. Be sure that the land you are acquiring is being issued by the correct authorities. Some properties are managed by the national governments and some are managed by the local municipal governments.
Make sure the award (the document showing the purchase agreement) includes a complete description of the property - including any limitations, all boundaries, and encumbrances that are included, and all other details of the land. There should also be complete blueprints which have been approved.
Confirm ahead of time that any activity you will be taking on the property is allowed by the government that owns and manages the property.
Weigh the cost of the property with the time restrictions for possession to be sure that you will be able to create a profit from the transaction.
There is no uniformity in the way that "possession rights" are granted. Review each transaction before entering into any agreements

"Possession rights" transfers can take up to six months to complete.

Terms to know: Registro Public - Public Registry Office that keeps records of all titled properties in all the nine provinces of Panama. Derecho Posesorio - Properties that are owned by the governments (national or local) who grant “possession rights” for these properties for a limited period of time.
Additional Tips: It can take up to 44 days to close a property transaction in Panama.
• Properties that are bought with “possession rights” can not be mortgaged.
• Buyers only pay the lawyer/notary fee which is 2% of the purchase price.
• Foreigners can buy most properties in Panama. The few exceptions include islands and properties located close to the frontiers.