Homeowners Association in Panama


A Homeowner’s Association (HOA) is an organization in a subdivision, planned community or condominium building that enforces rules for the properties and residents of that community.

General aspects

Most HOAs are incorporated and, therefore, are subject to state law. The members of such an association are the residents of the subdivision, community, or building; and in many cases, mandatory membership is required for persons purchasing property in the community.

The HOA usually charges monthly or annual dues to pay for maintenance of common areas and upkeep facilities. Likewise, they may impose fines on owners who do not comply with the established rules.

It should be noted that a homeowners association (HOA) is different from a property owners association (POA) since that last one refers to a group of people interested in improving their community and the real estate values of the properties in it.

The primary difference between POAs and HOAs is that POAs can include anyone in the community who has an interest in the value of the community’s real estate; therefore, unlike HOAs, POAs can include non-homeowners.

Incorporation process

Homeowners Associations are usually incorporated as Non-Profit Organizations (NPOs) whose process is simple but can take 4 to 8 months to obtain approval, as the resolution is signed by the Ministry of Government with the prior consent of other governmental entities with jurisdiction over specific NPO matters.

Advantages of a Homeowners Association (HOA)

Establishes and enforces community standards: The HOA establishes standards for its members, which are maintained to preserve and enhance the value of the community’s property.

Protects property value: These standards are often focused on appearance and include regulations for cleanliness, condition, and repair of the property. Compliance with the standards ensures a uniform appearance for all properties included in the association’s zone.

Provides services, amenities, and facilities: Membership dues usually guarantee additional services such as landscaping, parking, as well as maintenance of facilities such as swimming pools, sports fields, or party spaces. Some also cover the cost of garbage pick-up.

Register your HOA

Homeowners Associations, being corporations, must be incorporated with the help of an attorney.

Contact us

Contact us to receive the appropriate legal assistance and complete the incorporation of your HOA correctly and easily.