| Most visitors to Panama are at some point interested in investing in Panama Property. There are many reasons for this interest. The most important of course, is the beauty and diversity in the country’s natural resources that make it a paradise for people to vacation and live in. Whether you want to invest in a condo in the city, a beach side villa or a lodge in the rainforest, this is an investment of a lifetime. You may decide to move to Panama and live here or hire out your property to vacationers. Or you may be interested in buying out a Panama business and take over the real estate that it owns.
Panama is one of the few countries that has shown sustained growth and development despite the global recession. It has been affected by the global economic situation but not as adversely as many other countries. It has created a place for itself in the world tourism and has much to offer.
Buying Property
The Republic of Panama allows both its citizens as well as foreigners to buy real estate and land here. When you want to buy a Panama Property, there are several things that need to be considered. Firstly there are two different types of land or property that you can buy here; land that is titled and that which is owned by the government. The procedure for buying property in the country is different depending on who you are buying it from.
In any country it is important that due diligence is performed on a property before you sign the final papers and hand over the money. It is also a good idea to consider a few more properties in similar neighborhoods so that you have a clear idea of the kind of price you should be negotiating for.
A Promise to Purchase Agreement allows you the time and resources to conduct due diligence so that you know of all the practical details regarding the property. You can buy titled Property in Panama in any of the nine provinces of the country. About 10-20% of the total sale price can be paid as a down payment for the property. The final Payment and Sale Agreement will handed over with payment of property tax as well as capital gaining tax. A good standing property as well as standing water and sewage certificate also has to be procured by the seller. After the title deed is transferred in the name of the new owner, the balance of the sale money is paid.
Possession Rights
If you are interested in property that is owned by the government then you can buy ‘possession rights’ for the same only for a specified period of time. It is vital that you specify the business for which you are attaining the possession rights and that it is in keeping with the municipality laws of the area. Possession rights to agricultural or cattle land can only be granted by the National Agrarian Reform or The Cadastral Office and not by any other state or central government office.
You may also gain possession of property by buying a business or corporation that owns it. When you buy property it is important that all legal aspects are looked into before you invest your money. It would be wise to consult and take the advice of a lawyer before you begin proceedings to buy property. |
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