Glossary · Financing
Down payment (abono inicial)
Definition
The down payment is the share of the price the buyer pays out of pocket. In Panama, banks typically require 30%–40% from non-resident foreigners (as of July 2026) and less from residents; in pre-construction, it's usually paid in installments during the build.
In practice
Rule of thumb for non-residents: on Panama City's $265,000 median apartment, budget $80,000–106,000 down plus 1.5%–3.5% in closing costs. The promise-contract deposit (typically 10%) is part of this amount and should be protected in escrow. In pre-construction, the payment plan spreads the down payment across 24–36 months of construction — the gradual capital-entry route foreign investors use most.
Related terms
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Mortgages in Panama for non-residents →General information, not legal or tax advice. Every transaction is confirmed with an attorney and accountant.
Term reviewed as of July 2026 · Vaca Group Real Estate, Lic. PN 5904