Panama is one of the favorite destinations for foreign investors looking to purchase real estate in Latin America. The good news is that yes, foreigners can buy property in Panama, and the process is fairly accessible and secure as long as certain legal steps and considerations are followed.
Who Can Buy Property in Panama?
There are no restrictions on foreigners purchasing immovable property in Panama. They can acquire land, houses, apartments, or commercial spaces without needing to be residents or Panamanian citizens.
Important Legal Considerations
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Title Without Liens: The property title must be free of liens and legal issues.
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Sales and Purchase Contract: It must be formalized before a Panamanian notary public.
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Public Registry: The public deed is formally recorded in the Public Registry to legally establish the ownership of the new owner over the immovable property.
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Taxes and Notarial Fees: Transfer taxes, notarial fees, and registry fees are required to be paid.
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Use of Lawyers: It is highly recommended to hire a local real estate lawyer to review documents and protect your interests.
- Professional Translation Service: Never sign any document without fully understanding its content. A Panamanian authorized translator can translate the contract in advance or interpret it from the source language to the target language at the time of signing.
What Are the Benefits of Buying Property as a Foreigner?
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Total property rights, equal to that of a Panamanian citizen.
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Possibility to reside in Panama based on real estate investment.
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Access to special investor visa programs.
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Growing real estate market with good rental opportunities.
Final Tips
Before buying, always conduct thorough investigation. Verify the seller’s identity, the legal status of the property, and government permits. Panama protects private property rights, but proper legal advice is key to avoiding risks. Be cautious with rights of possession or placing the property in the name of a legal entity. Analyze all aspects before purchasing a property that only has rights of possession and is not titled. In some cases, it may be better to register the property under an individual’s name rather than a company or foundation.
Law Office of Edgardo Espinosa, Esq.
Real Estate Attorney and Legal Translator
The Century Tower, 4th floor, Suite 401
Ricardo J. Alfaro Avenue
Panama City, Republic of Panama
Telephone: +507 6772-4739
E-mail: info@lawyerinpanama.com
Website: https://lawyerinpanama.com