Q. Do foreigners enjoy the same property rights as Panamanian citizens?
Q. Is obtaining title free and clear of all encumbrances safe and easy?
A. In Panama, all property titles are registered at the "Registro P?blico" (Public Registry)through a bureaucratic yet straight forward process.
Q. Can property be owned by a Panama Corporation as well as an individual?
Q. Can a Panama Corporation sell its shares?
Q. What are the normal closing costs associated with purchasing property in Panama?
A. Realtor commissions are usually from 3 to 5% of the selling price, although this varies depending on the location and developer. In Panama, the general rule is that the real estate commission is to be paid by the Seller. Additionally, there is a 2-3% fee for each party’s attorney’s fees for drafting, reviewing and recording the contract. The buyer must pay the expenses including the registration of title and lawyers’ fees. The amount to be paid is estimated according to Title II, Chapter 1, Article 314 of the Fiscal Code.
Q. Are there any specific tax incentives relating to the purchase or development of real estate?
A. The principal incentives for the development of real estate projects in special tourism zones are contained in Law 8 of 1984. Additionally, from time to time, the government enables an incentive of real estate tax exemption for up to 20 years for new construction.
Q: Does the land registration system indicate the value of the real property?
Does it indicate the amount for the interest, the amount secured by the interest (as in a loan), or the present value of the interest?
A. The Public Registry denotes the amounts paid and amount secured but not the present value or the interest.
Q. Are there any construction or zoning restrictions?
A. Yes. One should check with the Playa Venao developers or local municipality and they will advise you as to what can be built on his lot and if there are any restrictions attached to the land limiting and guiding the use of it.