Real Estate for Sale in Panama
What’s the buzz on Panama Real Estate? Well for one its affordable, and then there are a host of other bonus features that draw investors to the South American country such as: an extremely low cost of living; a US style infrastructure; year round and tropical climate; the uniqueness and diversity of the destination; unrivaled second home/retirement home communities; major national incentive and discount programs for retirees. And finally, to top it off Panama reports a low crime rate when compared to other traditional retirement and vacation spots such as Mexico and Dominica Republic.
Panama real estate legislation as it pertains to foreign real estate investment is also very attractive in that there are several advantages offered to non-local long term real estate investment. A few of these are: tax exemptions and duty exemptions. And there are other incentives for foreigners to spend time here, invest here … or retire here. Non-residents, who buy property, developed or otherwise, do not pay property taxes for a guaranteed twenty (20) years and foreign income is not taxed. Property transfer taxes on Panama real estate are paid by the seller, and there is no inheritance tax or gift tax in Panama.
There are many different types of Panama real estate for sale in Panama. Generally the Panama beach properties are most favorable but are pricy than the picturesque and tranquil mountain properties, and in Panama City, the heart of Panama, real estate for sale is mostly in the form of condos and apartments.
Real estate in Panama for sale can be found all over Panama in all districts, and comes in the form of land, developed or undeveloped and commercial properties, and residential properties. Real estate also comes in the form of town house/condo sty development or gated communities where owner buy into a development which provides certain cervices’ and amenities under the sale of property, be it infrastructure, recreational facilities, etc. In the city furnished or unfurnished real estate for sale is probable the most affordable in the hemisphere, considering the location is a first rate metropolitan city with beach access nearby.
There are three classifications of Panama properties; Titled Property, possession rights property and concession property. Of the three types of real estate classifications in Panama the two: Titled property and Concession property would be the likely two which would be considered, though only the former actually allows actual sale of real estate in question. Concession property which is leased or loaned to individual or company for specific period of time for specify purposes. Islands and other marina facilities normally fall under concession property where property belongs to the state, but the development is that of the concession property holder.
Titled property ideally is regulated real estate for sale in Panama and managed by the Panamanian Public Registry. Titled property can be used as a physical asset, and therefore a titled property can also be mortgaged where the bank will register a lien against the title as collateral on the loan. All titled properties must pay an annual property tax unless exemption has been granted as in the case of foreign investors etc.
The process to buy real estate for sale in Panama is not a simple one and can be time consuming. It is best to contract the services of an agent and an attorney who will assist in the purchasing transactions. Rates and fees of Panama real estate for sale vary based on many factors, one good feature that is not the norm, is that in Panama the transfer fees are paid by the seller and not the buyer. There are other fees involved and the fees should be discussed with the agent or lawyers.
One final note on buying real estate for sale in Panama: all judicial processes in Panama are conducted in Spanish. For any real estate transaction in Panama, a contract written solely in English carries no legal weight, and is generally not recognized. All contracts for property must be in Spanish on a formal public deed, and signed before a public notary, in order to be legally enforceable and where applicable, be filed at the Public Registry.