Some of Panama's most talked-about developments, from beachfront resorts on the Pacific to new residential towers in Panama City, are sold before they are finished. Buying pre-construction, or off the plan, is common here, and for many international buyers it is the entry point into the market. Understanding how it works removes most of the uncertainty.
The Promise to Purchase
The first formal step is the Promise to Purchase Agreement, known in Panama as the promesa de compraventa. It is a legally binding contract that sets the price, payment schedule, delivery expectations, and the obligations of both sides. Buyers typically place a deposit at this stage, often around ten percent, which secures the unit and takes it off the market.
Because this document defines the entire transaction, it should be reviewed by a qualified Panamanian attorney before signing, not after.
Paying Along the Way
Pre-construction differs from buying a finished home in one key respect: the payment schedule is tied to construction. Rather than paying in full at closing, buyers generally pay in installments as the project reaches defined milestones, with the balance due on completion and title transfer. This staged structure is one reason pre-construction can be more accessible than it first appears.
Final title passes through a Public Deed, the escritura pública, signed before a notary and then recorded with the Public Registry, the step that makes ownership official. Foreign buyers can hold titled property in Panama outright, in their own name or through a Panamanian entity.
Protecting Yourself
The main risk in any pre-construction purchase is the developer, so due diligence belongs on the developer as much as the property. Confirm the track record on completed projects, and verify that permits are actually issued rather than pending.
On the financial side, deposits and payments are safer held through an escrow or trust arrangement, or backed by an irrevocable bank payment guarantee that releases funds to the seller only on title transfer. Working with established developers and experienced local counsel is what turns an off-the-plan purchase from a leap of faith into a manageable process.
Pre-construction also remains a qualifying route for Panama's residency programs, provided the documentation is handled correctly.
CHORD Real Estate works with vetted developments and local partners across Panama, guiding international buyers through each stage. Purchase and residency decisions should always be confirmed with qualified legal and tax advisors.
Global portfolio: https://chordrealestate.com/international-developments
International services: https://chordrealestate.com/international
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