A Fresh Boost for the Panama Property Market
In a move welcomed by Panama’s real estate sector, a new bill—Law Project No. 252—is proposing mortgage and tax incentives for buyers of secondhand homes. The legislation, backed by the Panamanian Association of Real Estate Brokers and Developers (ACOBIR), aims to make pre-owned homes more accessible, especially as new affordable housing options remain scarce.
This proposal comes at a time when many locals, and especially expats looking to relocate or invest in Panama, are exploring alternatives to new developments due to rising costs and limited inventory.
What’s in the Proposed Law?
Spearheaded by Deputy Yamireliz Chong and already approved for discussion in the National Assembly, the bill proposes the following key incentives for purchasing a previously owned home:
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A preferential mortgage interest rate of 2% for properties priced up to $300,000, valid for up to 10 years.
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Property tax exemptions for qualifying transactions.
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A 3% transfer tax for properties under $300,000 to help finance the program sustainably.
It’s important to note that the incentive is limited to one property per person, and those who have already benefited from Panama’s existing interest subsidy for new homes would not qualify.
If the secondhand property is priced between $300,000 and $700,000, a combined progressive rate of 0.5% will apply instead.
Why This Matters for Expats and Investors
For expats relocating to Panama or investors looking for value, this initiative could open up exciting opportunities. While new construction is often modern and loaded with amenities, secondhand homes tend to offer larger plots, central locations, and more character—especially in charming areas like Boquete and El Valle, which are favorites among retirees and lifestyle buyers.
Until now, many older properties were less appealing due to higher interest rates, limited financing options, and added costs such as maintenance or renovations. With this bill, however, buyers could benefit from long-term mortgage savings, making these homes more competitive in today’s market.
Market Impact: Will Prices Rise or Fall?
According to ACOBIR President Sarita Hanono de Hamui, secondhand apartments have been trailing behind new builds in buyer interest. She notes that banks tend to impose stricter lending terms on homes over 20 years old, and buyers face increased maintenance and tax costs.
This initiative could help revive demand for these overlooked properties, potentially stabilizing prices. However, Hanono also warned that overextending the benefit to used homes without smart regulation could backfire by deterring new construction or artificially inflating resale prices without addressing quality.
To avoid such pitfalls, the bill proposes a structured rollout, including safeguards to prevent speculation and collaboration with the Ministry of Economy and Finance and the Ministry of Housing.
How Will Properties Be Affected?
For properties in mature areas like Panama City’s San Francisco or El Cangrejo, this bill could breathe new life into listings that have sat on the market due to outdated layouts or aging infrastructure. Expect to see a potential uptick in renovation activity, as buyers leverage savings from the interest discount to upgrade homes to modern standards.
Similarly, buyers in expat-favored towns like Pedasi or Boquete might find this law makes previously out-of-budget homes newly accessible, especially those with traditional charm that simply need a bit of love to become dream residences or rental investments.
Final Thoughts & Call to Action
If you’ve been considering a home in Panama—but new developments felt out of reach—this could be your chance. With interest rates cut and tax benefits on the table, secondhand homes are about to become a whole lot more appealing.
At Casa Solution, we specialize in both new and secondhand properties across Panama, from vibrant city condos to serene countryside retreats. Whether you’re looking in Boquete or exploring homes in El Valle, we can guide you every step of the way.
Let’s find the right property and make the most of Panama’s new buyer incentives. Contact us today at Casa Solution.
