A relatively straightforward procedure, property purchase in Panama involves a series of formalities in order to run smoothly. Below is a general guide on how best to purchase property in Panama.
Foreigners are entitled to own freehold title in the vast majority of land and property purchases in Panama. The purchase procedure is akin to the Continental European style system.
A good agent is advisable when purchasing property in Panama. Propertyshowrooms.com and IPIN take the time to consider your particular requirements carefully, providing you with options to suit your needs. We can also recommend all related professional services that will help you make a safe and reliable purchase in Panama. Many of our available properties for sale in Panama are situated within off-plan developments as they offer the greatest value for money and room for returns on investment.
A title search arranged by your lawyer is highly recommended to ensure that the property is free of liens or liabilities.
This is the first formal step to be taken when purchasing property and is a legally binding document on each side formalizing the intent to sell and buy. It also involves a down payment from the purchaser of around 10% of the property value which avoids the seller accepting another offer. These funds are normally placed into an escrow account – normally provided by a lawyer in Panama.
The document may include stipulations made by the buyer and seller, eg. time scales or improvements agreed to be made upon the property.
Should the buyer back out of purchase after signing this document, he/she will lose the deposit. If the seller decides not to sell then he/she must pay the purchaser twice the deposit amount. If the seller fails to pay this amount, the purchaser can resort to legal action and ultimately have the property sequestered by the courts.
Once the seller has paid a 2% transfer fee and obtained all necessary certificates indicating all taxes and debts are paid up to date, then property transfer takes place and the rest of the payment on the property is made.
The entire property purchase can take about 30 days in Panama, depending on the complexity of the real estate transaction. The new deeds will have been prepared by your solicitor and will always be drawn up in Spanish. They are normally released from the public registry within 10 working days of the date of sale.
As with all overseas real estate purchases, it is advisable to contract a good local lawyer specialising in property transactions in order make the sale problem-free. IPIN can help put you in touch with reputable real estate lawyers in Panama. Lawyers normally charge between 1.5 and 3% of the property price.
Get the latest property and investment opportunities direct to your inbox free of charge
Panama Canal Celebrates 100th Birthday
Booming Panama – No Longer 'Just a Canal'
Upscale Panamanian property in need of revaluation
Panama tax code changes hoped to improve housing market
Could you benefit from Panama's economic growth?
Panama canal expansion attracting residential investors
All property news from Panama
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in Panama.
Help me find property in Panama
Considering a property purchase in Panama or need to transfer currency to/from Panama?
Save Thousands in Currency Transfers
When considering a buying property in Panama, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in Panama
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in Panama, you get an insurance quote using our online insurance quote form.
Get Insurance in Panama
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Bocas del Toro Property
Los Santos Property