Property Ownership

Foreigners can own property in Panama with few restrictions. Currently ownership can be conveyed in two ways: title and rights of possession.

Titled property is treated very similar to U.S. real estate law. Deeds are recorded in the public registry or "Registro Público". Rights of possession are handled by the agriculture department and also recorded. This system was originally set up in the land reform of 1971 to encourage homesteading of unclaimed, untitled land. Most of the land traded in the islands is by right of possession with the exception of town, property.

The most important difference in the two forms of ownership is that rights cannot be mortgaged.