By Ken Norton, founder of Panama Properties
I moved from Canada to Panama in 2021, after more than two decades in business and investing at home. Since then, I have watched a steady stream of Canadians make the same trip: some for the winter, some for good, and some simply to put part of their savings into a hard asset priced in US dollars. Most of them arrive with the same questions, and a few arrive with the same expensive assumptions. Here is what I wish every Canadian knew before buying property in Panama.
You can own outright, and residency is a separate decision
Canadians can hold titled property in Panama on the same legal footing as Panamanians, in their own name or through a Panamanian corporation. There is no foreign buyer tax, no vacancy tax and no requirement to be a resident. The main restriction applies to land within 10 kilometres of an international border.
Ownership and immigration are completely separate. Many Canadians own here for years while entering as tourists. Residency becomes relevant when you want to stay longer, bring household goods in duty-free or make banking easier.
The residency options worth knowing
Canada is on Panama's Friendly Nations list, which matters. The three routes most Canadians compare are:
Friendly Nations visa: qualify through titled real estate with a registered value of at least US200,000,aUS200,000 fixed-term deposit or a Panamanian job. Two years of provisional residency come first, and the property must be kept throughout.
Pensionado visa: a verifiable lifetime pension of at least US$1,000 a month. Canadian government and workplace pensions generally qualify with the right documents, and no purchase is required.
Qualified Investor visa: immediate permanent residency, with the investment held for five years. Since September 2026, real estate qualifies from US300,000foranew,first-salepropertyandUS500,000 for a resale.
Your application belongs with a licensed Panamanian immigration attorney, and rules change, so confirm the numbers before you buy.
The CRA does not care that Panama taxes territorially
Panama taxes only Panama-sourced income, such as rent from a Panamanian property. That is genuinely good news, but it says nothing about what you owe Canada.
The Canada Revenue Agency looks at your ties, not where you spend January. Keep a home, a spouse or dependants in Canada and you may well remain a Canadian resident, taxed on worldwide income. If you do become a non-resident, departure tax can treat many assets, such as non-registered investments, as if you had sold them at market value. Canadian real estate and registered plans such as RRSPs, RRIFs and TFSAs are generally exempt. Canadian payers usually withhold tax on pensions, RRSP and RRIF withdrawals, CPP and OAS paid to non-residents, often at 25%.
Panama also taxes property sales: a 2% transfer tax and a capital gains payment of 3% of the sale price or registered value, whichever is higher. Build that into your exit from day one.
None of this is advice for your situation. Sit down with a Canadian cross-border accountant before you move or buy, not after.
Health coverage and pensions
Provincial health plans limit how long you can be away. In Ontario, OHIP generally requires 153 days a year in the province, so living in Panama full-time usually means giving it up and buying private insurance. The good news is that Panama City has excellent private hospitals, and the main expat areas have good clinics.
CPP is paid wherever you live. OAS continues abroad if you lived in Canada for at least 20 years after age 18.
Moving the money is its own decision
Panama uses the US dollar, so there is no local currency risk once you are here. But Canadians carry CAD/USD exposure from the moment they commit. On a US$400,000 purchase, the gap between a retail bank's exchange rate and a specialist currency service can easily run to thousands of dollars. Treat the conversion as a separate decision and compare quotes.
Opening a Panamanian bank account takes patience. Expect to provide bank and professional references, proof of income and an in-person interview.
Where Canadians are buying
The right area matters more than the right house. Canadians tend to compare a few places:
Pedasí and the Azuero Peninsula: a working Pacific town with surf, sport fishing and a relaxed pace. It is my home base.
Boquete: a highland town with spring-like temperatures and the country's longest-standing North American retiree community.
Panama City and Casco Viejo: a real capital with private hospitals, international schools and direct flights.
Coronado: a Pacific beach corridor about 90 minutes from the city, with deep services for foreign residents.
Bocas del Toro: a Caribbean archipelago with strong rental demand and higher due diligence needs.
Getting here is easier than most people think. Copa flies from Toronto and Montreal to Panama City in about five and a half hours, and seasonal winter flights go direct to Rio Hato near the Pacific beaches. Panama stays on UTC-5 all year, so from November to March you share Toronto's clock.
Who your agent works for
This is the part that surprises Canadians most. In Panama, the agent showing you a property usually works for the seller, and listing data is incomplete, with the same home often advertised by several agents at different prices. That is why I set up a licensed buyer's real estate brokerage in Panama: buyers pay no agent commission, and we sit on their side of the table, checking title, rights of possession and price before money moves.
Whatever you decide, rent before you buy, visit in more than one season and hire your own Panamanian attorney. Panama rewards Canadians who do their homework, and it is a wonderful place to be in February.
