Real estate

Buying Property in Panama After the October Earthquake: A Checklist for Australian and New Zealand Buyers

After Panama's October 9 earthquake, what Australian and New Zealand buyers should check: the new post-quake building certificates, the code and insurance.

By Jake Smith · November 2, 2026 · 7 min read

Panama City high-rise towers under evening cloud, seen from the air

If you are in Australia or New Zealand and have been looking at an apartment in Panama, the earthquake of October 9 has probably landed in your inbox as a question: is it still safe to buy? It is a fair question, and the honest answer is that buying here still makes sense, but only if you check a few things that many buyers used to skip. Panama has also changed the rules on building inspections since the quake, which helps you.

New Zealanders in particular know this ground well. At home, a house policy that includes fire cover automatically comes with natural hazards cover from the Natural Hazards Commission, and the building excess for natural hazard claims is NZ$500. In Panama none of that is automatic, so the checklist below matters more than it would at home.

1. What happened, and where

On October 9 an earthquake struck with its epicentre 39 km northwest of Tonosí, in Los Santos, at a depth of 4 km, according to Panama's civil protection agency (Sinaproc). Panama reported it as magnitude 7.5; the USGS measured 7.7. By the Pan American Health Organization's third situation report, the University of Panama had recorded more than 600 aftershocks, 26,018 people were directly affected, and 74% of the homes evaluated were in Los Santos and Herrera.

In the province of Panama, Sinaproc's first report listed minor damage to four residential condominium buildings (PH), plus businesses and homes in the Las Perlas islands, and precautionary hospital evacuations. The president of the Panamanian Society of Engineers and Architects (SPIA), Tomás Correa, said that in general buildings and homes had responded within the parameters they were designed, built and supervised for.

Aftershocks continue. A magnitude 5.9 tremor on Saturday, October 31, led to precautionary evacuations, and the Social Security Fund (CSS) said its inspected facilities showed no new structural damage. Meanwhile the government has committed to 2,700 homes for families who lost theirs, with the last keys due by March 2027.

2. The new post-quake certificate: read the sign at the door

On October 23 the Gaceta Oficial published JTIA Resolutions 024 and 025 (the JTIA is Panama's technical board for engineering and architecture). From that day, any inspection of a building after the earthquake must use a single official form and finish with one of four certificates posted at the main entrance:

INSPECCIONADO (green): structure safe, normal use.
USO RESTRINGIDO (yellow): only the cleared areas can be used, and cordons must be respected.
NO OCUPAR (red): structure unsafe; no one occupies it until it is repaired and reinspected.
Danger of collapse (red): not fit for occupation; only authorised personnel until a detailed evaluation.

Only civil engineers, architects and structural architects with a current JTIA licence can sign one. Each certificate must show the professional's name, signature and seal, their JTIA licence number and the number of the report behind it. A strong aftershock felt at the site voids it until a professional reinspects. The green certificate itself says what it does not cover: it is not a guarantee against future earthquakes, and it does not include what finishes hide.

For a buyer this is useful. Ask the building administration for the report behind the sign, not just a photo of the sign.

Buying from Australia or New Zealand and cannot fly over to check? Book a free consultation and we will tell you who can look at the building for you.

3. Ask which code the building was designed to

Panama's current structural code is REP-2021, adopted by Resolution JTIA-020-2022 and in force from April 30, 2023. A tower completed in the last few years may have been designed under the earlier REP-2014. Neither is a reason to walk away, but you should know which one applies, and an engineer can tell you what that means for the specific building.

For pre-construction purchases, ask the developer which code the structural design follows and who the structural engineer of record is. For resales, ask whether the building had a post-quake inspection and what the certificate says.

4. Earthquake insurance in Panama works differently

According to the Panamanian Association of Insurers (Apadea), as reported by La Prensa:

Structure: a fire policy with earthquake cover protects the structure (walls, ceilings and other parts of the building), but only when the contract includes the earthquake risk.
Contents: a residential multi-risk policy can cover furniture and appliances inside, again only if earthquake is included. The name of the policy alone guarantees nothing.
Deductible: 2% of the sum insured is common for catastrophe cover, and it is calculated on the sum insured, not on the damage. On a home insured for $300,000 that is $6,000 before the policy pays.
Mortgages: if you finance, check that the sum insured matches the real cost of rebuilding, not just the loan balance.
Cars: earthquake damage to your own car needs comprehensive cover; the compulsory third-party policy does not pay for it.

If a claim goes badly, Panama's insurance regulator (SSRP) sets out the route: first a written complaint to the insurer's internal disputes officer, who has 30 calendar days to reply, then up to 90 business days to complain to the SSRP. Apadea has also warned about fraud during claims: check the identity of adjusters and never pay anyone who promises to speed things up.

5. A short checklist before you sign

The post-quake certificate and the full inspection report, with the engineer's JTIA licence number.
Which structural code the building was designed to (REP-2021 or earlier).
The building's (PH) insurance for common areas, and whether it includes earthquake.
A quote for your own unit's cover with earthquake included, and the deductible in dollars.
Minutes from recent owners' meetings: any special levies for repairs.
Your own title review and due diligence, done by a lawyer who works for you.

We are an introduction service, not engineers or insurers. What we do is put you in touch with the right professionals and stay with you until the purchase is done.

Ask us on Webinar Wednesdays

Every Wednesday at 8 PM Panama time we host a free live webinar on Zoom (noon on Thursday in Sydney, 2 PM on Thursday in Auckland). This Wednesday, November 4, our guest is Mitch Bubb of GLP Properties Panama on secure, profitable real estate for international buyers, a good moment to ask your earthquake questions live. Save your seat, or register directly on Zoom.

Have a question about a specific building? Message Jake on WhatsApp about this article, or see all our services.

For more background, read why foreign buyers are driving Panama's property market in 2026, mortgage options for foreigners in Panama City and Canada vs Panama City.

Sources

Questions and answers

Was Panama City badly damaged by the October 2026 earthquake?

No. The worst damage was in the provinces of Coclé, Veraguas, Herrera and Los Santos. In the province of Panama, Sinaproc's first report listed minor damage to four residential condominium buildings and to homes and businesses in the Las Perlas islands.

What is the post-sismo certificate in Panama?

It is an official sign posted at a building's entrance after a professional inspection, in one of four categories from normal use to danger of collapse. Since October 23, 2026 it is mandatory for post-quake inspections, and only licensed civil engineers and architects can sign it.

Does home insurance in Panama cover earthquakes?

Only if the policy expressly includes earthquake cover. Fire policies with earthquake cover protect the structure, multi-risk policies can protect contents, and catastrophe deductibles of 2% of the sum insured are common.

Should I still buy property in Panama after the earthquake?

That depends on the building, not the headline. Check the inspection certificate and report, the design code and the insurance, and have your own lawyer and, where needed, an engineer review the purchase.

Can I check a Panama building from Australia or New Zealand?

Yes. You can request the certificate, the inspection report and the insurance documents by email, and a licensed professional in Panama can inspect on your behalf. We can introduce you to one.

This article is general information, not legal, tax or financial advice. Rules in Panama change, so confirm anything here with us or a licensed professional before you act on it.