We are a group of real estate lawyers in Panama specializing in all types of real estate issues in the country.
The real estate boom in Panama guarantees that Panama is the international focus of investors who buy properties to protect their assets and, at the same time, obtain profitability through the future resale of the property.
According to Panamanian law, any natural or legal person can invest in a property in Panama without any further requirements than those established by law.
Purchases or sales of real estate can be made through corporations or by natural persons.
You can also buy a property without having to live in Panama, and you can comfortably manage the acquired property from a distance.
Our legal manual that regulates the purchase and sale of real estate in Panama is the commercial code within Chapter I of Title XI that establishes the rules that will govern the contractual fact established in articles 740 to article 782. We can also obtain the precise definition of purchase and sale in the civil code in article 1215.
We define THE PURCHASE AND SALE OF REAL ESTATE as the legal contract established by two persons, whether natural or legal, who agree to the sale or purchase of a property by mutual agreement. Where the bases and rules for carrying out a transaction in exchange for a previously agreed price or value are set out.
A Purchase and Sale Contract is an agreement that must contain:
Name and data of the parties.
Personal data of the contracting parties.
Clauses and obligations that the buyer and seller must have at the time of finalizing the negotiation.
The contract of sale is the only legitimate document that guarantees the fulfillment and protection of the property that is to be sold, as well as the legal bases in case of litigation or controversy.
In cases where there is no contract of sale, the parties may incur in non-compliance with what was negotiated and lose the legal basis.
Many people think that to sell a property, they need the help and services of various professionals, called real estate brokers, accountants, etc.
Although it is true that Panamanian law authorizes the figure of a real estate broker to carry out the purchase and sale of properties in exchange for a commission, it is really the lawyer who will sign the minutes and deed of sale and will make their respective entry in the public registry.
For this reason, a sale cannot be made without having a good lawyer.
Have a good lawyer.
The lawyer will prepare the purchase-sale contract and will set the price and the formalities that are agreed upon to celebrate the transaction.
Preparation of the purchase-sale minutes and formal deed.
The property must be up to date with the IDAAN.
Pay real estate transfer taxes (2%).
Pay Income Tax form (3%).
Mortgage Loan: can be financed by banking entities for terms of 20 to 30 years and at different interest rates depending on each bank.
To obtain a mortgage loan:
You must go through a credit evaluation interview that consists of the same for salaried and self-employed persons.
If they are self-employed persons, the last two income tax returns. They must be submitted during the last two fiscal periods. And have paid the taxes because the banks will ask for receipts of payments of financial statements.
Or present financial statements audited by a certified public accountant.
It will always depend on each case and how quickly the documentation is ready.
If you make a purchase with us, we can expedite and process all the documents so that the purchase takes the least amount of time possible.
As a law firm, we guide our clients to ensure their rights. As real estate lawyers, we offer different asset protection mechanisms under different legal figures, among which we can mention:
Buying a property in the name of a company.
Having a property in the name of a corporation guarantees anonymity and protection and guarantees that no one knows who the real owners of the investment are.
Buying the property in the name of a private interest foundation.
A private interest foundation for patrimonial use is ideal for the protection of real estate. The assets protected in the foundation are completely safeguarded, and the annual maintenance of a private interest foundation is around 700 USD.
Property tax is paid according to the value of the property, for example:
Properties with a value of:
120,001 to 700,000 will pay 0.50% of the value of the property.
700,001 and above pay 0.7% of the value of the property.
Homes that have a value of $30,000
Properties dedicated to cattle breeding and that have a price of $350,000
Properties that are the home of a person with special needs as long as the price of the property does not exceed $250,000
To ensure that the sale goes well, it is important to verify that the property that is the object of sale is free of liens. For this, it is important to investigate that the deed of sale is duly registered in the public registry; it is the only way to establish that there is no risk in the development of the transaction.
We live in a world where offers are the order of the day. The real estate boom and social networks make promotions of different types every day. Some people get carried away by advertising and make the mistake of buying properties without the services of an expert lawyer on the subject. Mainly in cases of land purchases, as well as in all types of properties.
The first thing the lawyer does is an investigation to verify if the property is legally registered.
Then he verifies if the information that appears in the public registry is the same as that maintained by the seller or supposed seller.
If a verification is not done, a big mistake would be made since the buyer would be exposing himself to fraud.
Unfortunately, there have been many cases of scams in the matter of land purchases in the Republic of Panama, and all these cases could have been avoided if the person had hired a lawyer from the beginning.
That is why we say that the lawyer specialized in the subject of real estate is a fundamental pillar in the subject of the purchase and sale of properties.
It is a smart, accurate, and safe decision that saves the buyer time and money and avoids a long criminal process when trying to seek justice.
Our commitment as real estate lawyers is to provide you with the best service and ensure that your investment is protected.
In any country in the world, one of the most common ways criminals launder money is through the purchase of property.
Our country is no different.
It is important to mention that money laundering is a crime in Panama.
Any foreigner who engages in this activity, if convicted in a criminal proceeding, should be aware that they will be deported from the country afterward.
To be a real estate broker, you don’t need a college degree.
Based on this premise, there is no rigorous oversight of those who engage in this activity.
While it is true that it is a regulated activity, it has several requirements, one of which is that each broker must pay the annual license fee.
The reality is that of the few brokers who are registered, most do not keep up with their obligations.
A broker who does not keep up with the annual fee is not considered legally qualified to operate the business.
This means that it is quite possible that there are many people engaged in this activity who do not legally hold a license.
Just as it is quite possible that people who do not have a broker’s license are engaged in this activity.
This opens the door to cases of money laundering and other crimes.
That’s why we emphasize that the best thing to do when you’re going to buy a property is to contact a lawyer who is an expert in the subject.
Some foreigners who purchase apartment-type properties in Panama are unfamiliar with the law.
We have had cases where they buy an apartment and then abandon it, meaning they return to their country and don’t pay maintenance fees for long periods, even years.
This leads to problems with the management of the property where they purchased the property.
It’s important to stay up-to-date, and if you have any problems of this type, you should also contact an attorney who is knowledgeable in the subject.
One of the pieces of advice we give people is not to get into a dispute with either the administration of the property, much less with the Board of Directors, without the presence of a lawyer to handle the matter.
We handle property administration matters very well and know what they entail.
Most administrators are not lawyers, much less the members of the board of directors.
Since they are not lawyers, they are likely to make mistakes.
Even if you work with a real estate broker and they seem serious, be sure to retain the services of a lawyer. Whether you are buying or selling.
Many brokers in our country have the particular responsibility of handling the entire sale and purchase process, and often the person is not adequately protected.
This can lead to countless legal problems that the buyer or seller will face later.
Before purchasing any new or old property, check with a lawyer.
A lawyer can log into the system and see things a person can’t access, and this will guarantee peace of mind.
