Glossary · Taxes
FECI (1% loan surcharge)
Definition
FECI (Special Interest Compensation Fund) is a Panamanian surcharge of 1% per year on certain loans. On home mortgages, citizens and permanent residents are usually exempt for a primary residence; a non-resident foreigner typically pays it, raising the effective rate by about 1%.
In practice
It's the fine print that most surprises financing foreign buyers: the bank quotes '6.75%' and the real payment runs at an effective 7.75% because of FECI. Our mortgage calculator includes it automatically when you select the non-resident profile. If you later obtain permanent residency and the property is your primary home, it's worth asking the bank about requalifying the loan.
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