Panama Real Estate

Purchasing a property
It's very safe - The Panamanian government has established laws specifically for protecting foreign investments in the country and it's legal for foreigners to own titled property in Panama in their personal name or under the name of a Panamanian corporation.

Public Registry
The Panamanian Public Registry is the entity that has the jurisdiction over all the registration titled properties in the country.

The titled property can also be mortgaged with a Bank. The bank will register a lien against the title as collateral on the loan.

Properties Taxes
•  The maximum annual property tax is 2.10% of the registered value at the Public Registry

•  The Panamanian government charges 2% of the registered value every time you transfer a title from one name to another name (title transfer). It practice in Panama for the seller to pay the title transfer tax

•  The Panamanian law also stipulates a 10% capital gains tax on the purchase and sale of real property in Panama .

•  Titled properties are subject to annual property when the registered value is over US$30,000, but the Panamanian law offers tax exonerations up to 20 years. To make this validity the government has to give the exemption for the new dwelling construction. This was implemented by the Panamanian government to promote the construction in the country

Concession Properties
The Panamanian government owns the property and the government granted a concession to an individual or organization for a specific purpose, such as a real estate development, hotel, or marina. Concessions in Panama are generally granted for a maximum of 20 year periods (renewable).
Concession Properties are often located in areas where titles are not permitted by the Panamanian law. Real estate developments over concession property often offer investors time share or fractional ownership arrangements. All the Concession properties are guaranteed by the Panamanian government through a specific contractual agreement.

Payment Terms
A 10% - 30% deposit is usually required by the seller to sign the promise to buy/sell contract