Answers to Your Real Estate Questions In Panama
Although buying real estate in Panama is a safe and smart investment, it can be a bit nerve wracking to the foreign investor.
We have complied of list of seven questions and answers to help you quickly understand real estate transactions in Panama
Can foreigners safely buy property in Panama?
Buying property in Panama is very safe. There are over a dozen laws protecting foreign real estate and other. Investment.
In addition private property in Panama is protected by the Republic of Panama’s constitution.
Can foreigners legally buy property in Panama?
You bet. Foreigners may legally own titled property in Panama in their personal names. It is recommended that investors hold all property in the name of a Panamanian corporation for asset protection and income tax reasons.
What are the steps needed to invest in Panamanian real estate?
Here is a step by step – although extremely simplified – walk through.
1. The first step is to find a Panama property you like. You should negotiate the price and terms of the sale with the seller or preferably an experienced Panama real estate owner like Jimmy Wellborn Panama.
2. Seek out a qualified attorney in Panama to handle the due diligence and title search on the property connecting your Panamanian attorney in with your real estate broker
3. Have your attorney prepare a written Promise to Buy/Sell Contract to lock in the property sale and secure the agreed upon There is usually a deposit of 10% of the agreed price is usually required by the seller hen the contract is signed.
4. Upon confirmation the property title is clean, schedule the final closing.
5. Payment is made to all parties with an interest -the seller, broker, and attorney. This is made from escrow.
6. Finally, register the Buy/Sell Contract registered at the Public Registry and the property title ownership is transferred from the previous owner to the new owner.
Is it possible and safe to buy a Panamanian corporation’s shares which hold title to property in Panama?
Yes it is possible and safe provided you do a due diligence investigation on the Panama corporation is completed and a proper title search is done on the property that the corporation holds. Ask Jimmy Wellborn Panama directly.
It is important to hire qualified attorneys to handle the due diligence and put the proper clauses in the Buy/Sell Contract of Shares of the corporation.
Does the government of Panama charge taxes or fees for transferring real estate property titles from a sellers name to a buyer’s name?
The Panamanian government charges a 2% property title transfer tax. The government will also charge a 3% advance of capital gains tax, based on the sale value.
You will also have other fees charged by the Public Notary and the Public Registry
Does the buyer or seller pay the property title transfer tax in Panama?
In Panama the seller to pay for the 2% title transfer tax, and the 3% advance of capital gains tax.
This is not a hard and fast rule however and can be open to negotiation.
Does the buyer or seller pay closing cost on real estate transactions in Panama?
Generally speaking the buyer and seller each pay for their own closing costs. .
Buying real estate in Panama is a great business and retirement investment. However it is not without its nuances. Jimmy Wellborn Panama is a great contact, since he owns many properties in Panama.
As a general rule, always seek the help of a qualified expert in Panama real estate like Jimmy Wellborn
Knowing the costs, potential pitfalls and getting the assistance of a qualified real estate attorney and broker can make your investment go smoothly.
I personally hope this information helps you to find the best Luxury Real Estate in Panama. Find other posts about buying safe in Panama by with information from Jimmy Wellborn Panama.