Panama City real estate market — prices, rental yield and trend

• Average price: $1,726 / m²
• Gross rental yield: 8.74%
• 12-month price change (USD): 6.8%
• Net rental yield: 8.23%
• Transaction cost: 8.1%
• Bubble-risk band: moderate
• Price basis: local-market average

Residential property in Panama City averages $1,726 per square metre, +6.8% in dollar terms over the last twelve months. That makes it the 243rd most expensive of the 264 markets in the set.

What a buyer pays in Panama City

The $1,726 figure is a local-market average across all residential property types: a flat in a prime district sits well above it, an older unit on the edge of the market well below. Buying costs — transfer tax or stamp duty, notary, registration and agency — come to about 8.1% of the price here. On a 100 m² apartment at the average price that is roughly $13,981 on top of the $172,600 purchase price. That is below the 9.5% median across the set, which shortens the time it takes for a purchase to break even. Of that, the transfer tax alone is 0%; the rest is notary, registration and agency fees. That is 40.9% below the Panama national average of $2,919.

What it earns

A square metre lets for about $12.6 a month. Against a purchase price of $1,726 per square metre that is 8.7% gross, before tax. Both figures come from the same source and the same period, so you can check the arithmetic yourself. It ranks 14th of 311 markets by gross yield. Rental income is taxed at 1.3–10.4% — the rate is not a single number here. That is the difference between 7.8% and 8.6% net on the same property. The 8.2% net figure we publish uses 5.8%. On the way out there is a third tax: a non-resident seller pays 10% on the gain.

How the tax works. Strongly income-dependent: under Fiscal Code art. 700 (Law 8/2010) the first USD 11,000 a year is exempt and income above it is taxed at 15% up to USD 50,000, which gives 1–10% across typical rent levels — the whole progression comes from the fixed exempt band. Residential lets longer than six months are exempt from the 7% ITBMS. Whether a non-resident gets the exempt band is inferred rather than confirmed by a tax-authority ruling; if it were denied, the rate would be 15%. Source: dgi.mef.gob.pa.

How stretched the price looks in Panama City

Glopra’s bubble-risk score for Panama City is 40 out of 100 — moderate risk. Of the 65 markets scored, 54 read higher. This is a simplified reading: fewer than three index components are available for this market, so treat it as indicative rather than comparable with fully scored markets.

Who can buy in Panama City

Freehold; concession only in the coastal and border strip. That is the rule a foreign buyer meets first, not legal advice — check the current position locally before you commit.

How this figure is built

The price figure for Panama City is built from recorded transaction prices. It was last refreshed on 2026-09-13. We rate our confidence in this market’s data medium: the series is usable, but thinner or less current than our best-covered markets. We recompute every market the same way, which is what lets Panama City be compared with a country average or another city.

Sources: globalpropertyguide.com · numbeo.com. Snapshot: 2026-09-13.