Can a foreigner get a mortgage in Panama?
Short answer: Yes, a foreigner can apply: Banco General’s own mortgage page lists documents for foreign applicants, terms of up to 30 years and no 100% financing. It says clients without permanent residency pay the 1% FECI surcharge. It does not publish a maximum loan percentage or a rate for non-residents, and the broker figures we found (60–70% of value, 7–9%) disagree with each other.
Many buyers ask whether they can finance a Panama purchase. Broker guides answer with precise numbers; the banks publish far less. This note separates what one bank states on its own page from what brokers repeat. It is general information, not financial or legal advice.
Step 1: what Banco General publishes
Banco General’s mortgage page says the bank does not finance 100% of a home’s value, that terms go up to 30 years depending on age, that life and fire insurance are mandatory, and that maximum payment capacity is 30% of salary in the private sector. For foreign applicants it lists a passport with entry and exit stamps, a valid Panama migration card, two bank references from the home country, a personal reference in Panama if the applicant has one, and the purchase contract.
On cost, the page says the FECI (Fondo Especial de Compensación de Intereses, created by Law 4 of May 17, 1994) is a 1% annual surcharge, that main-residence mortgages do not pay it, and that foreign clients without permanent residency do pay it, as do second mortgages. La Estrella, citing the Superintendencia de Bancos, confirms the 1% on loans above $5,000 and the main-residence exemption; it does not discuss foreigners, so the foreigner rule rests on the bank’s statement alone.
Step 2: the question table
The table keeps what the bank states apart from what it leaves open. Broker figures appear only in the right-hand column because we could not verify them against a bank.
| Question | What Banco General publishes | What it leaves open / what brokers say |
|---|---|---|
| How much can I borrow? | It does not finance 100% of the value; the down payment depends on price and use | No maximum percentage for non-residents on the page. Broker guides say 60–70% (one says 50–70% elsewhere); unverified |
| How long is the loan? | Up to 30 years, depending on the client’s age | Whether non-residents get the same term is not stated. Broker guides say 10–20 years; unverified |
| Is there an extra cost for foreigners? | FECI, a 1% annual surcharge, is paid by foreign clients without permanent residency, and on second mortgages | La Estrella (citing the Superintendencia) confirms the 1% on loans above $5,000 and the main-residence exemption, but does not address foreigners |
| What documents does a foreigner bring? | Passport with entry and exit stamps, valid Panama migration card, two bank references from the home country, a personal reference in Panama if any, the purchase contract | It lists a Panama migration card; it does not say what applies to someone who has none |
| How much income do I need? | Maximum payment capacity is 30% of salary in the private sector (35% in the public sector); at least 2 years at the job (private) | How foreign income is assessed is not stated |
| What interest rate? | No non-resident rate on the page | Planbexpat: 7–9% for foreigners; The Latinvestor’s Panama City article: 6–8%. Both unverified |
Step 3: what brokers say, and why we do not use it
Broker guides give precise numbers. The Latinvestor’s mortgage guide puts a non-resident’s down payment at about 30–40%, and Planbexpat puts rates for foreigners at 7–9%. They are not consistent: The Latinvestor’s own Panama City article gives 6–8% and a 50–70% loan range elsewhere on its site. These are marketing-adjacent sources, not bank terms, and we did not confirm them with any lender.
An illustration, not a quote: if a $300,000 purchase were financed at 60–70% (the broker range), the loan would be $180,000–$210,000, and the 1% FECI the bank describes would add roughly $1,800–$2,100 a year in extra interest. That is a Brax calculation from a broker range and the bank’s stated 1%; actual terms depend on the bank and the applicant.
Step 4: what to do before you count on a mortgage
Ask each bank in writing: (1) the maximum loan percentage for your immigration status; (2) the rate, and whether FECI is added on top; (3) the term; (4) whether foreign income is accepted and what proof it needs; (5) whether you need a Panama migration card before applying. Banks can change terms, so a written answer with a date is worth more than any guide, including ours.
Related reading on the same market: Panama’s mortgage squeeze and what a mortgage appraisal costs.
Step 5: a disclosure
Brax is paid a commission by developers on new-build units, so we are not independent from those sales. We have no commercial relationship with Banco General that we are aware of for this note, and we are not recommending a lender.
Related: Panama’s mortgage squeeze, Mortgage appraisal cost, How a Panama closing works.
Questions about a unit? Jacky, from the Brax team, answers on WhatsApp: +507 6776-4203. Brax is paid by developers on new-build units.
Common questions
Can a foreigner get a mortgage in Panama?
Banco General’s own mortgage page lists the documents a foreign applicant must bring and says terms go up to 30 years with no 100% financing. It does not publish a maximum loan percentage or a rate for non-residents, so confirm with each bank in writing.
What is the FECI on a Panama mortgage?
The FECI (Fondo Especial de Compensación de Intereses, Law 4 of 1994) is a 1% annual surcharge on loans above $5,000. Banco General says main-residence mortgages do not pay it, but foreign clients without permanent residency and second mortgages do.
How much do banks lend to non-residents in Panama?
We could not verify a number from a bank. Broker guides repeat 60–70% of value but disagree with each other, and the bank page we read does not state a percentage for non-residents.
What documents does a foreigner need for a Panama mortgage?
Banco General lists a passport with entry and exit stamps, a valid Panama migration card, two bank references from the home country, the purchase contract and income documents. It does not say what applies to someone without a migration card.
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