Real State Lawyers in Panama

REAL STATE LAWYERS IN PANAMA – BUYING AND SELLING PROPERTIES IN PANAMA

Real Estate Law Specialists in Panama

Comprehensive Legal Advice for National and International Investors

We are a law firm dedicated exclusively to real estate law in Panama, with a highly skilled legal team focused on delivering tailored legal solutions for the property sector. With extensive experience assisting both individuals and legal entities, we guide clients through every step of acquiring, selling, leasing, or managing real estate in Panama. Our mission is to provide reliable, strategic, and efficient legal support at all stages of the investment process.

Panama’s thriving real estate market continues to attract investors from around the globe. Sustained growth, driven by urban expansion, economic stability, and a solid legal framework, positions the country as a prime destination for asset protection and return on investment. Purchasing property in high-potential areas not only safeguards capital but also offers significant long-term gains through appreciation and resale.

 

Who Can Invest in Property in Panama?

Panama offers a favorable legal environment for foreign investment. Any individual or legal entity—regardless of nationality—can purchase real estate in the country, as long as they meet the legal requirements. There are no discriminatory barriers, making Panama a secure and accessible market for international buyers.

Property acquisitions can be made directly or through corporations, foundations, or other legal entities, providing greater flexibility for tax planning and asset protection. Our legal team will help you determine the most suitable structure based on your investment strategy, guiding you from company formation to the successful completion of the transaction.

 

Remote Property Purchase: Invest Without Being in Panama

One of the key advantages of Panama’s real estate market is the ability to invest without physically being in the country. With the right legal representation and digital tools, you can carry out the entire transaction process remotely.

Our firm provides complete legal support for remote investors, including power of attorney execution, contract drafting and review, due diligence, title registration with the Public Registry, and post-sale legal management. Wherever you are in the world, we ensure that your investment is handled professionally, securely, and with complete peace of mind.

 

WHY TRUST US?

100% focused on Panamanian real estate law

 

Bilingual service: Spanish and English

 

Extensive experience with international and corporate clients

 

Legal guidance for purchases, sales, rentals, inheritances, and more

 

Thorough knowledge of current laws and market trends

 

Confidential, transparent handling of all transactions

 

REAL ESTATE PURCHASE AND SALE LAWS IN PANAMA

In Panama, real estate transactions are primarily governed by the Civil Code and the Commercial Code. These legal frameworks ensure that all property transactions are conducted securely, providing legal protection for both buyers and sellers.

 

PANAMA’S COMMERCIAL CODE

 

Chapter I of Title XI of the Commercial Code serves as the cornerstone for regulating sales as commercial acts. Spanning Articles 740 to 782, it sets out the fundamental rules for sales contracts, outlining the rights and duties of each party involved.

 

KEY AREAS COVERED INCLUDE:

 

Essential elements of a valid contract

Completion of the sales process

The seller’s obligations regarding transfer and guarantees

The buyer’s responsibility for timely payment

Legal outcomes in the event of contract breaches

These provisions aim to ensure a fair, transparent transaction process while safeguarding both parties’ rights and supporting the integrity of Panama’s property registry system.

 

CIVIL CODE OF PANAMA

The Civil Code also governs sales through Article 1215, which provides a broad and precise definition of a sale contract. It states that a sale is an agreement where one party commits to delivering a specific item, and the other agrees to pay a set price in money or its equivalent.

 

This civil regulation is applied in a complementary way, particularly when the asset is not strictly commercial in nature or when the parties involved are not merchants.

 

WHAT IS A REAL ESTATE PURCHASE AND SALE?

In Panama, the purchase and sale of real estate is a legally binding agreement between two parties—either individuals or legal entities—where ownership of a property is transferred in exchange for an agreed-upon price.

 

THIS CONTRACT MUST INCLUDE:

 

Accurate property identification

Full details of both buyer and seller

The negotiated price and form of payment

Delivery terms and conditions

Special clauses tailored to the agreement

For legal validity, the contract must be executed as a public deed before a notary and then registered with the Panamanian Public Registry. Only then does it acquire full legal standing and protection against third parties.

THE IMPORTANCE OF LEGAL COUNSEL

Given the complexity and financial significance of real estate transactions, it is highly advisable to consult a real estate attorney. A legal expert can examine title documents, identify any existing liens, and ensure all procedures comply with Panamanian law.

 

WHAT IS REQUIRED FOR A PURCHASE TO BE LEGALLY VALID IN PANAMA?

The purchase and sale of real estate in Panama is a formal legal procedure that must comply with specific requirements to be considered valid and enforceable. It cannot be based solely on a verbal agreement or informal arrangement between the parties; it must be a properly drafted and executed contract that offers legal certainty and protection for both the buyer and the seller.

 

ESSENTIAL COMPONENTS OF A SALES CONTRACT

To be valid under Panamanian law, a real estate sales contract must include several key elements that establish its legitimacy and legal force. These essential components include:

 

Complete identification of the parties: Full names, identification or passport numbers, marital status, nationality, and residential addresses of both buyer and seller.

 

Detailed property description: Including the property’s location, size, boundaries, registered property number, and any distinguishing characteristics.

 

Defined contractual terms: Clear clauses outlining the purchase price, method and timeline of payment, and terms for delivery of the property.

 

Responsibilities and obligations: Such as payment of taxes, settlement of encumbrances, and notarial or registration fees.

 

Clauses for breach of contract: Conditions outlining penalties, termination, or legal remedies in the event of non-compliance by either party.

 

The contract must be elevated to a public deed before a Panamanian notary and subsequently registered with the Public Registry, completing the official transfer of ownership.

 

SIGNIFICANCE OF A WRITTEN SALES AGREEMENT

The sales agreement is the only legally binding document that secures the transfer of property ownership. It serves as legal protection for both parties against future claims, fraud, or disputes.

 

Without a properly executed and registered agreement, parties risk the loss of ownership rights or becoming involved in lengthy and expensive legal conflicts.

 

IS A LAWYER NECESSARY IN THE PROCESS?

In Panama, it is common to believe that selling a property requires various professionals, such as brokers, accountants, or advisors. While these professionals may facilitate the process, the only essential figure is a licensed attorney.

 

Although real estate brokers are authorized to mediate transactions and receive commissions, they are not legally empowered to draft or formalize a public deed of sale.

 

The Key Role of the Lawyer in the Purchase and Sale of Property

In Panama, only a licensed attorney authorized to practice law can legally draft the purchase agreement, prepare the public deed of sale, manage the notarial process, and file the necessary documentation with the Public Registry.

A Real Estate Lawyer is Also Responsible For:

Verifying that the property is free of mortgages, liens, or encumbrances.

Ensuring all property taxes are paid and up to date.

Confirming the seller’s legal authority to transfer ownership.

Reviewing all documents to ensure compliance with Panamanian legal standards.

For these reasons, a valid and legally binding property transaction in Panama cannot proceed without the active involvement of a qualified attorney. Legal oversight is critical to safeguarding the interests of all parties and ensuring the legality of the transaction.

Requirements for Drafting a Purchase Agreement in Panama

Buying or selling real estate is one of the most significant and sensitive legal transactions an individual or company can undertake. To ensure the process is conducted correctly and legally, several legal and administrative requirements must be met to validate the agreement and facilitate the property’s legal transfer.

Below are the key elements needed to formalize a real estate purchase agreement in Panama:

 

Hire a Qualified Real Estate Lawyer

The first and most crucial step is to engage an experienced real estate attorney, who will:

Review all legal and ownership documents related to the property.

Confirm the absence of liens, encumbrances, or ongoing litigation.

Draft the purchase agreement, incorporating all agreed-upon legal conditions.

Manage the preparation of the public deed and oversee its registration in the Public Registry.

The attorney not only ensures legal compliance but also protects the client’s interests at every stage of the transaction.

Price and Terms of Sale

The contract must clearly establish:

The agreed-upon sale price of the property.

The method and schedule of payment between the parties.

Any special conditions, such as included furnishings, renovation agreements, or delivery timelines.

These terms must be clearly outlined, as they will be incorporated into the public deed and serve as a legal reference in case of future disputes.

Drafting of the Minutes and Public Deed

Once all terms are agreed upon, the lawyer prepares the formal deed of sale, which summarizes all key contractual conditions. This document is then formalized as a public deed before a notary, granting full legal force to the agreement.

Without the execution of the public deed, the transaction cannot be registered with the Public Registry, meaning the transfer of ownership will not be legally recognized.

 

IDAAN Clearance Certificate

Before completing the transaction, the seller must obtain a clearance certificate from IDAAN (the national water and sanitation authority). This certificate confirms that there are no outstanding debts for water or sewage services tied to the property and is a required document for the sale to proceed.

Payment of Real Estate Transfer Tax (2%)

The Panamanian government requires the payment of a 2% transfer tax, calculated on the higher of either the cadastral value or the sale price. This tax must be paid prior to registration of the transfer with the Public Registry.

By default, this cost is borne by the seller, unless another arrangement is agreed upon in writing.

 

Payment of Capital Gains Tax (3%)

Additionally, the seller is required to pay 3% capital gains tax, applied to the higher of the sale price or the registered property value. This tax must be declared through the Income Tax Return Form submitted to the General Directorate of Revenue (DGI).

This filing and payment are mandatory steps to legally complete the transfer of ownership.

 

What Happens If These Requirements Are Not Met?

Failing to comply with any of the legal steps involved in a real estate transaction can result in serious consequences, such as delays in the transfer process, invalidation of the purchase agreement, or potential legal disputes. That’s why it’s essential to work with an experienced legal team that ensures full compliance with all legal, administrative, and tax obligations.

What to Do in Case of Bank-Financed Properties?

If you’re looking to purchase a property in Panama but lack the full amount for a down payment, bank financing through a mortgage loan is one of the most common and viable solutions. Several banks in Panama offer real estate financing for individuals and legal entities looking to acquire homes, land, commercial properties, or investments—provided the applicant meets the financial institution’s eligibility criteria.

What Is a Mortgage Loan?

A mortgage loan is a credit facility granted by a bank specifically for the purchase of real estate. Typically, the bank finances a significant portion of the property’s value, while the buyer must contribute an initial down payment, usually ranging from 5% to 20% of the total purchase price.

Mortgage terms commonly range between 20 and 30 years, and interest rates vary depending on the bank, type of property, applicant’s financial profile, and prevailing market conditions.

 

Steps to Obtain a Mortgage Loan in Panama

Both salaried employees and self-employed individuals can apply for mortgage loans, as long as they meet the required qualifications. Below is a breakdown of the key steps and documentation involved:

Initial Interview and Credit Assessment

The process begins with an initial consultation at the bank, where the applicant submits personal, financial, and employment information. The bank then evaluates the applicant’s credit profile based on:

Monthly income and employment status

Credit history (APC report)

Job and income stability

Debt-to-income ratio

Overall financial capacity

Based on this analysis, the bank determines if the applicant qualifies and establishes a pre-approved loan amount.

Requirements for Salaried Employees

Applicants employed by companies must present:

Valid ID or passport

Updated letter of employment

Social Security records

Payslips from the last three months

Personal and banking references

Requirements for Self-Employed Individuals

Independent professionals and business owners must provide more comprehensive documentation to validate their financial solvency, including:

Income tax returns for the last two fiscal years

Proof of tax payments issued by the DGI

Audited financial statements by a CPA

Company activity reports

Valid commercial license (if applicable)

CPA-certified income declaration

All submitted information must be current, verifiable, and well-organized, as banks place a high value on financial transparency during the loan approval process.

Property Evaluation and Appraisal

Once the preliminary approval is granted, the bank will order a professional appraisal of the property through a certified appraiser. This appraisal confirms the property’s market value and determines the exact amount the bank is willing to finance.

Additionally, a legal due diligence review is conducted to verify the property’s title is clear of any liens, encumbrances, or irregularities.

 

Final Approval and Mortgage Signing

After completing all due diligence and documentation reviews, the bank issues final loan approval. The following steps are then carried out:

The public deed of sale and the mortgage deed are signed before a notary

The lawyer—representing either the buyer or the bank—registers both the purchase and the mortgage in the Public Registry of Panama

The bank disburses the approved funds directly to the seller or property developer, according to the agreed terms

 

IMPORTANT TO CONSIDER

Conditions and documentation requirements may vary between banks.

It is advisable to compare offers from different financial institutions before making a decision.

Some banks provide preferential rates for first-time homeowners, young buyers, or eco-friendly projects.

HOW LONG DOES A PROPERTY PURCHASE AND SALE TAKE IN PANAMA?

The duration of a real estate purchase and sale in Panama varies depending on several factors. While there is no fixed timeframe, the process typically takes between two and six weeks, depending on how quickly documentation is completed and whether the purchase is cash or bank-financed.

FACTORS THAT INFLUENCE THE TIMELINE

Availability of legal documents (deeds, clearance certificates, registry reports).

Status of the property title (free of liens, mortgages, or disputes).

Financing method: transactions with mortgage loans usually take longer than cash purchases.

Availability of the parties involved and their legal representatives.

Efficiency of notarial and public registry processes.

HOW CAN WE SPEED UP THE PROCESS?

As a law firm specializing in real estate, we handle the entire legal purchase and sale process—from verifying property registration to completing the final entry in the Public Registry.

Our goal is to complete your transaction in the shortest possible time, free from errors or legal complications. To achieve this, we:

Verify the legality and status of the property title.

Draft the purchase agreement and deed of sale.

Coordinate with notaries and tax authorities.

Manage all registration procedures.

Provide ongoing legal advice to both buyers and sellers.

LEGAL MECHANISMS TO PROTECT YOUR REAL ESTATE INVESTMENT

Beyond assisting you throughout the transaction, we advise on the best legal structures to acquire and safeguard your assets. Panama offers several options for protecting and managing real estate—whether for tax benefits, confidentiality, or estate planning.

Buying in the Name of a Corporation

Purchasing property through a Panamanian corporation is a popular strategy among local and international investors. This approach offers advantages such as:

Anonymity and confidentiality: beneficial owners are not listed in public records.

Ease of transfer: selling the corporation owning the asset can be faster than transferring property title.

Efficient management of business or rental properties.

Purchase on Behalf of a Private Interest Foundation

Private Interest Foundations are Panamanian legal entities designed to protect and manage family or business assets. They are widely used by individuals who want to ensure the orderly transfer of assets or protect their holdings from legal and personal risks.

 

ADVANTAGES OF A FOUNDATION:

Absolute protection of the property from third-party claims.

Simplified estate planning without the need for complex wills.

Clear separation between personal and property assets.

Confidential management and control of assets.

The annual maintenance cost of a Private Interest Foundation in Panama averages USD $700, making it an affordable solution for protecting high-value assets.

WHICH STRUCTURE IS BEST FOR YOU?

Choosing between a corporation or a private foundation depends on your personal, financial, and tax goals. Our legal team will analyze your situation and recommend the most suitable structure tailored to your needs.

WHAT TAX IS PAID ANNUALLY FOR OWNING PROPERTY IN PANAMA?

All individuals and legal entities owning real estate in Panama must pay property tax, collected by the General Directorate of Revenue (DGI) under the Ministry of Economy and Finance (MEF). This tax is calculated based on the property’s registered cadastral value.

HOW IS PROPERTY TAX CALCULATED?

The tax is progressive, applied to the combined value of land and improvements (buildings), as per Law 66 of 2017, effective since 2019:

Property Cadastral Value       Annual Tax Rate

Up to B/. 120,000       0.00% (Exempt)

B/. 120,001 to B/. 700,000    0.50%

Over B/. 700,001        0.70%

 

PRACTICAL EXAMPLES

A property valued at B/. 250,000 pays 0.50% on B/. 130,000 (the amount exceeding B/. 120,000).

A property valued at B/. 800,000 pays:

0% on the first B/. 120,000,

0.50% on the next B/. 580,000 (up to B/. 700,000),

0.70% on the remaining B/. 100,000.

This progressive system ensures higher-value properties contribute proportionally more.

WHICH PROPERTIES ARE EXEMPT FROM PROPERTY TAX?

Exemptions apply to:

Homes with cadastral values up to B/. 120,000 used as the owner’s primary residence.

Properties with special tax benefits, such as newly constructed homes under current exemptions (though these benefits have been gradually reduced).

WHEN AND HOW IS PROPERTY TAX PAID?

The tax may be paid annually or quarterly via the DGI’s online portal. Deadlines for quarterly payments are:

March 31

June 30

September 30

December 31

Late payments can lead to fines, surcharges, and even restrictions on property transfers or sales.

HOW CAN WE HELP YOU?

As a Panama-based real estate law firm, we offer comprehensive services to:

Verify your property’s tax status.

Manage DGI clearance certificates.

Structure your investments for optimal tax efficiency.

Assist in including properties within corporations or foundations based on your asset protection and tax goals.

WHICH PROPERTIES ARE EXEMPT FROM PROPERTY TAX IN PANAMA?

Though most properties pay annual real estate tax, certain exemptions exist to support specific groups and economic activities, governed by Law 66 of 2017 and related regulations.

HOMES VALUED UP TO $30,000

Properties appraised below $30,000 are fully exempt from property tax. This usually applies to small rural homes, family residences in remote areas, or inherited properties without significant improvements.

Note: The property must be used strictly for residential, not commercial, purposes.

FARMS USED FOR CATTLE RAISING (UP TO $350,000)

Rural properties registered and used exclusively for cattle raising, with values up to $350,000, are exempt. This encourages livestock farming as a vital agricultural sector.

PROPERTIES OCCUPIED BY PERSONS WITH SPECIAL NEEDS

Owners with disabilities or special needs may apply for exemption if:

The property is their primary residence.

The cadastral value does not exceed $250,000.

Valid medical and legal documentation certifying the condition is presented.

This exemption supports tax equity and inclusion, easing the burden on families with additional challenges.

 

WHY IS IT IMPORTANT TO VERIFY THE LEGAL STATUS OF A PROPERTY BEFORE PURCHASING?

Beyond confirming tax exemption status, it is essential to ensure the property is free from liens, mortgages, or legal disputes before proceeding with the purchase.

Key steps to protect your investment:

Registry Review: Confirm that the deed of sale is properly registered in the Panamanian Public Registry. This is the only official document proving ownership and detailing the property’s legal history.

Certificate of Freedom from Encumbrances: Issued by the Public Registry, this certificate verifies whether the property has liens, mortgages, easements, or other restrictions.

Tax Verification: Check that no debts exist related to property tax, water (IDAAN), sanitation, or maintenance fees.

HOW CAN WE HELP YOU?

As a law firm specializing in Panamanian real estate law, we guide you through every step of the buying and selling process to:

Confirm the property is free from legal risks.

Verify your eligibility for tax exemptions.

Handle all legal formalities before the notary, Public Registry, and DGI.

Advise you on the optimal legal structure to acquire and protect your investment.

ONE OF THE MOST COMMON MISTAKES WHEN BUYING PROPERTY IN PANAMA

In today’s digital age, buying property may seem easier than ever, with countless listings and “unique opportunities” just a click away. However, a common mistake, especially for first-time buyers, is to rely on advertising without proper legal guidance. Purchasing without a real estate attorney’s support exposes buyers to serious legal and financial risks.

EMOTION VS. LEGALITY

It’s natural for excitement to push toward quick decisions, but buying property is more than exchanging money. It is a complex legal process requiring thorough documentation, regulatory compliance, and up-to-date records.

Many buyers unknowingly acquire land or homes that:

 

Are not properly registered in the Public Registry.

Carry hidden mortgages, foreclosures, or legal disputes.

Are sold by individuals lacking legal authority.

Lack necessary land use permits or approved plans.

HOW TO PREVENT FRAUD OR ERRORS?

The key is specialized legal advice and following a structured two-step process:

LEGAL PROPERTY RESEARCH

A real estate attorney’s first step is to investigate the property’s legal status, including:

Confirming registration in Panama’s Public Registry.

Verifying the seller’s name matches the registered owner.

Reviewing ownership history to detect irregular transfers, disputes, or liens.

This is crucial, especially for land purchases where physical boundaries may be unclear or differ from official plans.

VERIFICATION OF DOCUMENTATION AND SELLER AUTHENTICITY

The attorney then cross-checks Public Registry data with seller-submitted documents such as:

Original deeds.

Certificates of freedom from encumbrance.

Municipal and IDAAN clearance certificates.

Cadastral or municipal plans.

Previous contracts, if any.

If the seller cannot prove rightful ownership or authority to sell, the transaction must be halted immediately.

Buying without this due diligence exposes you to fraud and the risk of losing your investment with little chance of recovery.

 

WHY IS IT IMPORTANT TO HAVE A REAL ESTATE LAWYER?

A specialized real estate lawyer not only drafts the sales contract but also:

Protects the buyer’s interests.

Ensures everything is in order before signing.

Prevents abusive clauses or unfavorable conditions.

Handles registration in the Public Registry.

Advises on legal entities for asset protection (such as companies or foundations).

Avoid the Most Costly Mistake: Don’t Buy Blindly

One of the gravest errors when purchasing property is doing so without legal advice. The consequences may include:

Buying a property that does not legally exist.

Acquiring a property with hidden debts.

Falling victim to fraud or identity theft.

Being unable to register the property in your name.

THINKING ABOUT BUYING PROPERTY IN PANAMA?

At our real estate law firm, we guide you through every step—from preliminary research to contract drafting and final registration—providing legal protection to secure your investment.

PROPERTY PURCHASE FRAUD IN PANAMA: HOW TO AVOID IT

Unfortunately, Panama has seen many cases of fraud and scams involving land and property purchases. These situations cause major financial losses, stress, and long legal battles to recover assets or money invested.

The good news is most of these cases could be prevented by one simple measure: hiring a real estate attorney from the start.

 

WHY DO SALES FRAUDS OCCUR?

Common factors enabling fraud include:

Proliferation of false or fraudulent offers on portals and social media.

Lack of prior verification of the property’s legal status.

Sales by individuals who are not the true owners or lack authority to sell.

Missing or irregular deed registration in the Public Registry.

Abusive clauses or poorly drafted contracts that harm buyer rights.

THE KEY ROLE OF THE REAL ESTATE ATTORNEY

Hiring a real estate attorney is a wise and essential choice that protects your investment from the outset. This professional:

Conducts thorough legal research to confirm the property is free of liens, mortgages, or legal issues.

Verifies the seller’s identity and legitimacy to prevent scams or impersonation.

Drafts and reviews the sales contract with clear, secure clauses.

Advises on compliance with tax and municipal obligations.

Manages proper deed registration in the Public Registry to ensure legal transfer.

Prevents costly and lengthy litigation by ensuring all steps are correctly documented and legalized.

THE IMPORTANCE OF COMPREHENSIVE LEGAL ADVICE

In a dynamic and sometimes uncertain real estate market, expert advice saves you time, money, and potential headaches. It also protects you from criminal liability in fraud attempts.

Our commitment as real estate attorneys is to provide comprehensive, reliable, and transparent service, keeping your investment safe.

 

TRUST YOUR INVESTMENT TO PROFESSIONALS

Buying property is one of the most significant financial decisions you will make. Don’t risk your assets by relying on promises or uncertified intermediaries.

Let us be your legal partner throughout the buying and selling process. Together, we will make your investment safe, transparent, and successful.

 

MONEY LAUNDERING AND ITS RELATIONSHIP WITH THE PANAMANIAN REAL ESTATE MARKET

Money laundering is a widespread and sophisticated financial crime. One of the most common ways criminals launder illicit funds is through real estate transactions.

Panama, with its active and attractive real estate market for both domestic and foreign investors, is not immune. Therefore, the government has implemented strict measures to combat money laundering, especially in the real estate sector.

 

WHAT IS MONEY LAUNDERING?

Money laundering is the process of disguising funds obtained from illegal activities—such as drug trafficking, corruption, fraud, or smuggling—to make them appear legitimate. This often involves multiple financial transactions, with property purchases being a common method to integrate illicit funds into the formal economy.

Why Real Estate Is Vulnerable

Real estate is attractive for laundering because:

Transactions often involve large sums of money.

Properties can appreciate or be sold quickly, aiding fund circulation.

The legal and technical complexity of the sector makes detecting irregularities difficult.

LEGAL AND PREVENTIVE MEASURES IN PANAMA

Money laundering is a serious crime in Panama, punishable by law. Current legislation mandates real estate agents, lawyers, notaries, and related professionals to comply with strict Know Your Customer (KYC) regulations, report suspicious activities, and cooperate with authorities.

Additionally, Panama has specialized agencies dedicated to investigating and prosecuting these crimes, reinforcing oversight of the real estate market.

 

CONSEQUENCES FOR FOREIGNERS AND RESIDENTS INVOLVED

It is crucial that both nationals and foreigners understand:

If caught and convicted of involvement in money laundering related to real estate transactions in Panama, you will face severe criminal penalties, including fines and imprisonment. Additionally, convicted foreigners will be deported after serving their sentences and will lose any immigration rights they previously held.

 

THE IMPORTANCE OF LEGAL ADVICE WHEN BUYING PROPERTY

To protect yourself from legal and financial risks, it is essential to seek guidance from attorneys specializing in real estate law and anti-money laundering. These experts ensure that:

The source of funds for the purchase is legitimate.

All applicable laws and regulations are followed.

The transaction is conducted with full transparency and legal certainty.

OUR COMMITMENT

As a law firm specializing in real estate and regulatory compliance, we commit to supporting you throughout the entire buying or selling process—ensuring every transaction complies with the law and is free of legal risks.

REAL ESTATE BROKERS AND MONEY LAUNDERING RISKS IN PANAMA

In Panama’s fast-moving real estate market, brokers serve as key intermediaries between buyers and sellers. However, there is a concerning reality: weak oversight and informal practices in this profession can facilitate illicit activities like money laundering.

WHAT DOES IT TAKE TO BE A REAL ESTATE BROKER IN PANAMA?

Unlike many regulated professions, no specific university degree is required to become a real estate broker. Panamanian law mandates an official license issued by the Ministry of Commerce and Industry (MICI), which must be renewed annually by paying a fee. Brokers who fail to renew their license cannot legally practice.

THE REALITY OF PROFESSIONAL PRACTICE

Despite clear regulations, several gaps exist in practice:

Many brokers are delinquent on license renewals.

Some operate without proper registration.

Others work entirely without a license, promoting properties via social media or informal channels.

This environment allows opaque, untraceable transactions, creating fertile ground for crimes like money laundering, fraud, and tax evasion.

WHY DOES THIS POSE A MONEY LAUNDERING RISK?

Unregulated brokers weaken the compliance chain. Without oversight or due diligence, they may knowingly or unknowingly enable illicit funds to enter the economy through property sales.

When buying through an informal intermediary:

 

There’s no assurance that the funds have been properly verified.

The transaction lacks clear traceability.

Both the process’s legality and the buyer’s assets are at risk.

THE SOLUTION: SPECIALIZED LEGAL SUPPORT

For these reasons, we strongly advise:

Never purchase property without the guidance of a real estate law specialist.

 

Only a qualified lawyer can:

 

Verify that all parties involved are duly authorized.

Ensure the contract and transaction are legal and valid.

Confirm compliance with anti-money laundering laws (Law 23 of 2015 and amendments).

Protect you from future legal problems.

 

OUR COMMITMENT AS A LAW FIRM

At our firm, our team of real estate lawyers has extensive experience in regulatory compliance, fund traceability, and ensuring the legality of every transaction. Our priority is to protect your investment and provide peace of mind by handling each process with complete transparency.

 

FINAL RECOMMENDATION

If you plan to buy, sell, or invest in real estate in Panama, make sure that:

 

The broker is properly licensed and up to date.

All documentation is carefully reviewed by a qualified lawyer.

The transaction complies with anti-money laundering and terrorist financing regulations.

COMMON PROBLEMS ARISING FROM PROPERTY ACQUISITION IN PANAMA

Panama’s real estate market continues to attract foreign investors due to its steady growth, strategic location, and legal stability. However, lacking knowledge of local laws can turn a promising investment into a source of legal conflict if precautions are not taken early.

 

THE FREQUENT CASE OF FOREIGNERS BUYING AND ABANDONING PROPERTIES

A common scenario involves foreign buyers purchasing apartments in residential complexes (PHs), then abandoning their obligations—such as paying maintenance, management fees, and other common expenses—once they return to their home countries.

 

This non-compliance often leads to:

 

Accumulated fees with interest.

Legal actions by the PH administration.

Restrictions on the use or sale of the property.

In severe cases, foreclosure proceedings.

Many owners don’t realize that PH ownership carries ongoing obligations, which remain even if the property is unused.

IMPORTANCE OF STAYING UP TO DATE AND SEEKING LEGAL ADVICE

If you encounter such issues, it is best to consult a lawyer specializing in real estate and horizontal property (PH) law. Attempting to resolve conflicts directly with the administration or Board of Directors without legal representation can be ineffective or counterproductive.

 

KEY TIPS FROM REAL ESTATE LAWYERS IN PANAMA

Based on our expertise, we offer this advice to all buyers and owners:

 

DON’T FACE PH CONFLICTS WITHOUT LEGAL ASSISTANCE

PH boards and administrators maintain community order, but most members lack legal training. This can lead to misinterpretation or misapplication of the law, potentially harming your rights as a property owner.

 

A lawyer can:

 

Review PH statutes.

Verify the legality of charges.

Represent you in negotiations or legal actions to protect your interests.

DON’T RELY EXCLUSIVELY ON THE REAL ESTATE BROKER

While some brokers act responsibly, many lack legal authorization or expertise. We have seen buyers and sellers suffer serious problems due to:

 

Poorly drafted contract clauses.

Failure to disclose liens on the property.

Contracts without legal validity.

Transactions conducted outside the law.

ALWAYS VERIFY THE PROPERTY WITH A LAWYER BEFORE BUYING

One of the most crucial steps in any real estate transaction is legal verification of ownership, which only a lawyer with access to the Public Registry and specialized legal tools can perform.

 

A lawyer will:

 

Confirm the property is free of liens or mortgages.

Verify that the seller is the legitimate owner.

Check for ongoing legal disputes affecting the property.

Ensure that deeds and contracts comply with all legal requirements.

OUR COMMITMENT TO YOUR INVESTMENT

As a law firm experienced in real estate and horizontal property law in Panama, we provide full support from the initial purchase phase, through contract drafting and formalization, to registration in the Public Registry.

 

We also advise property owners facing disputes, offering strong defense and legal strategies to avoid costly litigation or loss of rights.

 

Investing in Panama is a major decision. Do it with legal guidance to avoid mistakes that could cost you thousands.

 

Contact us today for a personalized consultation.

Contact us.