Tips to Buying a Home in Panama

Posted By: PanaGal on 09.04.2007
Views: 494, Published in sections: Life in Panama ::

Panama is a popular tourist destination. Some people, once they have been to Panama cannot get it out of their system. They are so amazed at the wonder of Panama’s sights that they wish to be back again to this country. Some people have even gone so far as to decide that the only solution would be to buy a vacation home in Panama.

Buying real estate, wherever you plan to do so, is a complex matter requiring great deliberation and systematic investigation. It is highly recommended that before you finally commit to buying a particular piece, you should seek the help and advice of a real estate lawyer in Panama.

There are also things you need to know beforehand even if you plan to consult a real estate professional. It is better that you collect all available information that you can get your hands on before seeking professional help. Thus, you would have a better grasp of the legal situation as well as have the necessary knowledge based on which you can ask intelligent and relevant questions.

Types of property in Panama

Panama has three different types of property; the Titled Property, Possession Rights Property and Concession Property. The Titled Property is under the jurisdiction of the Panamanian Public Registry and the existence and value of a particular property can be verified through this channel. Titled Properties obligate the owner to pay taxes in Panama if property is worth more than $30,000. If you are currently building, you can get tax exemptions proportionate to the value of your real estate.

To purchase a Titled Property, you will be required to make a downpayment, accomplish a contract as well as formalize transfer of title through appropriate certification with the Panamanian Public Registry. This will start the procedure of changing the title of the property to your name. Before all the rigmarole that all these entail, you should not forget to run a check on the property you want to buy. If the property is not registered, then you are beings scammed by the person selling you the property.

Possession Rights is ownership of property after the fact. This type of ownership is granted by the government to people who have been occupying or using part of its land for a long period of time. Thus, to qualify for buying a Possession Rights property, you must get a certification from your local officials that you are indeed staying where you say you are.

Concession Properties are properties that are owned by the government but are leased out for a long period of time such as 20 years, sometimes even 40 years. You can actually take advantage of this because governments do intend to develop locations still sparingly visited by tourists.

Other things to remember

Do not forget to read the contract before signing on the dotted line. You should use a trustworthy Panamanian lawyer to explain the contract to you. This is because by necessity, the contract is written in Spanish.