Part 2: Contract signing, handover and further costs
In Part 1 of this series, we reported on the preliminary purchase agreement for our apartment in Panamá Pacífico and the return forecast presented to us. Since then, several concrete steps have followed:
- the contract signing,
- payment of further purchase and closing costs,
- the handover of the apartment with a professional inspection,
- the recording of warranty claims,
- further preparations for the planned short-term rental.
This article, too, expressly describes one single, specific case. It cannot be used to derive a generally applicable process, a generally applicable cost structure, let alone any promise of returns for real estate in Panama. The value of this series lies precisely in documenting a real case with real costs.
Contract signing on September 11, 2026
On Friday, September 11, 2026, the contract was signed in Panamá Pacífico.
In addition to signatures, fingerprints were taken. We have come across this several times in similar procedures in Panama, so it no longer surprised us.
Before the signing, the following invoice had to be paid:
| Item | Amount |
|---|---|
| Legal services | USD 362.75 |
| Registration costs | USD 743.00 |
| Notary and stamp fees | USD 320.00 |
| ANATI fee (land administration authority, prior to registration) | USD 5.00 |
| Translation | USD 150.00 |
| Tax (7%) | USD 25.40 |
| Total | USD 1,606.15 |
Handover on September 22, 2026
The handover and inspection of the apartment took place on September 22, 2026.
Before we even entered the apartment, there was a detailed meeting in an office or conference room. Among other things, the following topics were explained:
- the different warranty periods for various building components and fittings,
- how warranty claims are reported and handled,
- the rules and regulations of the residential complex,
- the use of the common areas,
- further organisational details.
We also received the documents on the building regulations on a USB stick.
Our service provider was very helpful during this meeting. They translated for us – our Spanish is not yet good enough for complex technical and contractual details. They also knew the history of the transaction and were able to explain the practical significance of individual points.
The atmosphere of the meeting was very good. The amount of information and formalities, however, was greater than we had expected.
This was followed by the actual inspection of the apartment, the handing over of the keys and access cards, and further organisational matters.
The professional inspection
The apartment was handed over furnished.
During the professional inspection, 11 items were identified and recorded to be processed as potential warranty claims. Whether and to what extent all of these items will ultimately be accepted and remedied under the warranty remains to be seen.
As laypeople, we would probably not have noticed some of these items ourselves – for example, minor workmanship defects in paint, wallpaper or similar work.
Anyone with experience in real estate, property inspections or trade work might be able to handle some of these tasks themselves.
The second invoice: inspection, follow-up and internet
The second invoice from our service provider amounts to a total of USD 1,171.65:
| Item | Amount |
|---|---|
| Apartment inspection, plus follow-up and supervision of the warranty work | USD 850.00 |
| Fibre internet registration and installation | USD 75.00 |
| Ubiquiti fibre router | USD 170.00 |
| ITBMS (7%) | USD 76.65 |
| Total | USD 1,171.65 |
Important: the USD 850 does not just cover the one-off inspection appointment. According to the invoice, it also includes follow-up and supervision of the subsequent warranty work.
ITBMS is Panama's sales tax on goods and services. External fees for connections and services such as water, electricity and gas may be charged on top.
Why we deliberately buy in many services
We deliberately structured the entire purchase and closing process so that as little work as possible falls on us.
Renting out apartments is not meant to become our main business, nor is it meant to pay for our living. This first apartment is also a test of it as an investment:
- What return does it actually generate?
- What costs really arise?
- How much work does it require from us?
- How does the property compare with other investments?
Anyone who is experienced, already owns property or has practical trade skills could handle some of these services themselves and save money.
Our approach, by contrast, is deliberately different: outsource as much as possible and keep our own workload low. The costs of doing so will, of course, be included in our later return calculation.
Our impression of the apartment and of Panamá Pacífico
We liked the apartment very much at the handover. It is already furnished and attractively decorated.
Panamá Pacífico itself impressed us once again: plenty of greenery, modern infrastructure, a supermarket, shops and restaurants close by, and common and leisure areas with a swimming pool and barbecue facilities. On top of that, there is the view towards the airport.
We consider Panamá Pacífico a strategically interesting location. The area lies west of the Panama Canal, close to Panama City but not in the middle of it. To travel towards Panamá Oeste, the Pacific beaches and further west, there is no need to cross Panama City first. Panama City and Casco Viejo nevertheless remain within easy reach.
There is one drawback, however: getting to Tocumen International Airport means crossing the entire metropolitan area to the east, and travel time depends heavily on traffic.
Our personal expectation is that the apartment could appeal to business travellers and tourists. This is expressly an expectation – not established demand and not a statement about the future return.
What happens next?
Despite the handover, the apartment is not yet ready to be rented out. Items still outstanding include:
- installation and connection of the extractor hood,
- connection of the existing tankless water heater,
- the gas connections,
- electrical and other technical connections,
- processing of the recorded warranty claims,
- further preparations for the rental.
A specialist company is to carry out the technical work. It will probably take a few more weeks before short-term rentals can begin.
The rental itself is also to be handled largely by a service provider. We will document the costs actually incurred in the next parts.
Interim total of the costs mentioned in this part
Together, the two invoices described above amount to:
- USD 1,606.15 for legal, registration, notary, translation and other costs
- USD 1,171.65 for the inspection and follow-up, internet installation, router and ITBMS.
The two invoices described in this part therefore total USD 2,777.80. This figure simply summarises the costs already listed above and is not an additional cost item.
The overall calculation is not yet complete. Further costs are likely to arise before the rental begins, particularly for technical installations and connections. We will document these as well.
The goal remains a realistic view of the return
The goal of this series is to provide as realistic a picture of the return as possible. Rather than looking only at theoretical gross rent or a brochure return, we intend to capture as completely as possible:
- the actual purchase costs,
- the additional acquisition costs,
- furnishings and equipment,
- the technical work,
- ongoing management,
- the rental service provider,
- maintenance,
- taxes,
- other running costs,
- the actual rental income,
- and, where possible, our own workload.
In the end, it should be clear what actually remains for this particular apartment.
To make it clear once more: this is one single real case and not a general statement about returns on real estate in Panama.