Panama mortgage for foreigners, what banks require from you in 2026
Updated: 2026-08-04
This guide is for you if you're a foreigner planning to buy in Panama with a mortgage from a local bank. Yes, Panamanian banks lend to you even if you're not a resident, but they ask for a larger down payment and more paperwork. As of the second quarter of 2026, typical financing for a non-resident foreign buyer runs 60–70% of the property's value. That means putting 30–40% of the price down in cash.
We updated it for the third quarter of 2026 with the terms banks are giving non-residents right now. We also explain two Panamanian mechanisms that trip up almost every foreign buyer, the preferential-interest regime (Law 468 of 2025, amended by Law 481 of 2025) and the FECI surcharge. It's general information and doesn't replace advice from a bank, a licensed attorney or a tax advisor in Panama.
As of the second quarter of 2026, Panamanian banks typically finance up to 60–70% of a property's value for non-resident foreign buyers, requiring a 30–40% down payment at market rates near 6.5%–8%.
Six quick facts
- You can finance property in Panama as a foreigner. Banks typically lend 60–70% of value to non-residents, with a 30–40% down payment (Q2 2026).
- In early 2026, a non-resident foreign buyer is quoted around 6.5%–8%, a bit above what a resident gets.
- The mortgage-market reference rate set by the Superintendency of Banks is 6.50%, in effect since October 2025.
- Terms reach up to 30 years, but many banks require that the loan term plus the borrower's age not exceed 75 years.
- Preferential interest (Law 468 of 2025) only covers new primary-residence homes priced up to B/.120,000, so it rarely applies to an investment purchase.
- FECI adds a 1% annual surcharge to loans above B/.5,000, except when the loan is for the buyer's primary residence.
Can you get a mortgage in Panama as a foreigner?
Yes. Panamanian banks grant mortgages to foreigners, non-residents included, as long as you can document income and repayment capacity. What changes versus a local client is the terms. A non-resident is asked for a higher down payment and more paperwork. The rate is usually a bit higher too, because the bank sees less of your credit history.
Banks that lend to foreign buyers of residential property include Banco General, Banistmo, BAC, Scotiabank and Davibank, which publishes its own non-resident mortgage product on its site. Other brokers also mention Caja de Ahorros and La Hipotecaria for this profile, though we couldn't find that policy published on either bank's own site. Not every bank applies the same criteria. Shop several of them, or lean on a mortgage broker who knows which foreign-buyer profile each bank accepts.
Before you ask for a quote, decide whether you'll live in the property or hold it as an investment. Many foreigners buy to rent out or for the appreciation in areas like Costa del Este (/zonas/costa-del-este) or Punta Pacifica (/zonas/punta-pacifica). That difference between primary residence and investment property decides whether preferential interest applies to you or whether you pay FECI, and both are explained below.
Financing for a resident and a non-resident foreigner
These are the typical terms in Panamanian banking as of the third quarter of 2026. Each bank sets its own criteria, so confirm them case by case.
| Item | Resident / national | Non-resident foreigner |
|---|---|---|
| Financing (LTV) | Up to ~80–90% on a primary residence | Typically 60–70% of value |
| Down payment | From ~10–20% | 30–40% of the price |
| Rate (2026) | Close to the reference rate (6.50%) | Around 6.5%–8% |
| Documentation | Standard local file | Additional, apostilled from abroad |
| Preferential interest | Possible if a new home ≤ B/.120,000 | Rarely applies |
Preferential interest requires the home to be your primary residence. An investment purchase doesn't qualify even if it's priced below B/.120,000.
What down payment, rate and term can you expect?
The down payment is what weighs most if you're not a resident. Since the bank finances only 60–70% of value, you put 30–40% of the price down in cash, and some banks ask for 40% or more depending on your profile (banking practice as of Q2 2026). On a US$300,000 property that's US$90,000 to US$120,000 down, before closing costs.
The rate starts from an official reference. The Superintendency of Banks publishes a residential mortgage-market reference rate of 6.50%, in effect since October 2025, and that figure is the base for the preferential-interest regime. As a non-resident foreign buyer you'll be quoted around 6.5%–8% in early 2026. That's a bit more than a resident pays, because the bank knows less about your history.
The term runs up to 30 years at the major banks, with one age condition. It's common that the loan term plus the borrower's age can't exceed 75 years. If you're 55, for example, you'll struggle to get a 30-year term. The bank shortens the amortization to stay under that ceiling and the monthly payment goes up.
Why do preferential interest and FECI rarely help an investment purchase?
Preferential interest is a state subsidy that lowers the payment on middle-class housing, which is why it almost never reaches a foreigner's purchase. Law 468 of 2025 (which replaced Law 3 of 1985) reserved it for new primary-residence homes priced up to B/.120,000. The State subsidizes up to a maximum of 85% of the rate the bank charges. Law 481 of 2025 amended that framework and extended the subsidy to 7 years for the B/.80,000.01–120,000 bracket. Higher-priced properties, commercial units, second homes and anyone who already received the benefit are all excluded.
Because of that design, almost every purchase a foreigner makes falls outside preferential interest, since it's priced above the cap, bought to rent out or held as a second home. Those loans are priced at market rates. Ask your bank whether your case qualifies before you count on the subsidy.
FECI (the Special Interest Compensation Fund) works the other way and makes the loan more expensive. Law 4 of 1994 created it and the Superintendency of Banks administers it. It adds a 1% annual surcharge to the outstanding balance of personal and commercial loans above B/.5,000. Loans to buy a primary residence are exempt. If the property will be your primary home, the loan pays no FECI. If it's a second home or an investment property, the 1% is added to your interest. A foreigner buying a primary residence is exempt too, because the exemption follows the purpose of the loan.
Eight financing figures (Q3 2026)
Figures from banking practice and the Superintendency of Banks as of the third quarter of 2026. Verify amounts and rates with each bank before you commit.
| Typical financing for non-residents | 60–70% of value (Q2 2026) |
|---|---|
| Down payment for non-residents | 30–40% of the price (Q2 2026) |
| Mortgage-market reference rate | 6.50% (in effect since Oct 2025) |
| Market rate for non-resident foreigners | ~6.5%–8% (early 2026) |
| Common maximum term | Up to 30 years |
| Age + term ceiling | 75 years |
| FECI surcharge (outside primary residence) | 1% annually on balances > B/.5,000 |
| Price cap for preferential interest | B/.120,000 (new primary residence) |
Documents the bank wants
For a non-resident the bank asks for a valid passport with migratory movements and two bank reference letters from your home country, because it has to rebuild a history that doesn't exist in Panama. Then come apostilled proof of income, account statements and tax returns. Sometimes they add an employer letter or an international credit report.
Once the file is complete, the credit committee assesses your repayment capacity and the source of funds. The analysis takes a couple of weeks in a simple case and more than a month in a complex one, depending on the bank. Submit the documentation translated and apostilled from the start, because the back-and-forth over a missing paper is what delays an approval most.
If your underlying goal is immigration, keep in mind that financing the purchase reduces the capital you invest out of pocket, and that can matter for programs like the Qualified Investor Visa. See our guide to the Qualified Investor Visa via real estate and confirm with your attorney how a purchase with a mortgage is counted.
Should you finance with a Panamanian bank?
- ✓ You keep liquidity instead of locking all your capital into a single asset.
- ✓ You pay in dollars, Panama's legal tender, so there's no currency risk if your money is already in USD.
- ✓ The bank runs its own due diligence on the title before disbursing, and that review sits on top of your attorney's.
- ✓ With a term of up to 30 years, the monthly payment stays closer to the rent you expect to collect.
- ✗ As a non-resident you put down 30–40%, a large upfront outlay.
- ✗ Your rate as a non-resident foreigner is usually somewhat higher than a resident's.
- ✗ If the property isn't your primary residence, you pay the 1% annual FECI surcharge.
- ✗ The age-plus-term ceiling of 75 years shortens the term and raises the payment if you apply later in life.
What to check before you sign
Compare offers from at least two or three banks before you commit. The down payment, the rate, the term and the associated insurance differ enough between banks to move the payment. Always ask for the amortization schedule and confirm whether the rate is fixed or adjustable, because a variable rate rises when the bank's cost of funds rises.
Also verify the property title at the Public Registry and that it's free of liens, because the bank won't disburse until the title is clean. A licensed attorney and a real estate broker who works the local inventory, like us at Panavanti, lower the risk that a registry problem stalls the deal. For the full legal and tax picture, see our guide for foreign investors in Panama.
This content is informational and does not constitute legal, tax or immigration advice. Verify current requirements with a licensed attorney in Panama before making decisions.
Sources
- kpmg.com — La Ley 468 de 2025 subroga la Ley 3 de 1985: el Estado subsidia hasta el 85% de la tasa del banco para viviendas nuevas de hasta B/.120,000 usadas como vivienda principal, con exclusión de inmuebles comerciales y segundas viviendas. (accessed 2026-08-04)
- kpmg.com — La Ley 481 de 2025 modifica la Ley 468 de 2025 y extiende a 7 años la vigencia del subsidio para el tramo de viviendas de B/.80,000.01 a B/.120,000. (accessed 2026-08-04)
- www.superbancos.gob.pa — El FECI, creado por la Ley 4 de 1994 y administrado por la Superintendencia de Bancos, aplica una sobretasa anual de 1% al saldo de préstamos personales y comerciales mayores a B/.5,000, y exceptúa los préstamos destinados a la compra de vivienda principal. (accessed 2026-08-04)
- www.sucre.net — Confirmación de firma legal panameña (Sucre Arias Reyes) de la sobretasa FECI de 1% anual sobre préstamos personales y comerciales mayores a B/.5,000 y de la exención para préstamos de vivienda principal, evaluada por destino del préstamo. (accessed 2026-08-04)
- www.superbancos.gob.pa — La tasa de referencia del mercado hipotecario residencial publicada por la Superintendencia de Bancos de Panamá, base para el régimen de interés preferencial (6.50% vigente desde octubre de 2025). (accessed 2026-08-04)
- thelatinvestor.com — Práctica bancaria 2026 para extranjeros no residentes: financiamiento típico de 60–70% del valor (enganche de 30–40%), tasas de mercado en torno a 6.5%–8%, bancos que prestan (Banco General, Banistmo, BAC, Scotiabank) y documentación adicional apostillada. (accessed 2026-08-04)
- www.bgeneral.com — Plazos de préstamo hipotecario de hasta 30 años en el sistema bancario panameño según la edad del cliente. (accessed 2026-08-04)
- www.davibank.pa — Regla común en la banca panameña de que el plazo del préstamo sumado a la edad del deudor no exceda los 75 años. (accessed 2026-08-04)
Related guides: Panama Qualified Investor Visa via real estate (2026) · inversionistas extranjeros panama · inversion panama 2025 · guia reubicacion panama
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