International real estate investors are likely to buzz with excitement when it comes to the potential presented by Panama property. This country is facing a real estate boom, drawing constantly the interest of experienced real estate investors. The country is home to many companies’ regional headquarters; it has also become popular with many retirees and second home buyers. And we should not forget about the tropical climate either. This tropical weather makes this country a nice place to visit, particularly when it comes to wintertime.
Panama property is regarded as an emerging market for those who want to invest in real estate; this current market has much to offer and all existent properties have low prices. Foreigners are attracted by the amazing tropical climate, buying and selling property in Panama freely. Still, there are a few things that must be well understood when it comes to the purchase process in Panama before jumping in.
If you are interested in buying Panama real estate, then you should know that this region has the highest per-capita income. Panama has the largest foreign investment and one of the best developed economic infrastructures in Central America. The Panama tourist plan includes various incentive programs, encouraging future foreign investments in this country; this plan includes no income or capital gains taxes for twenty years. One will need the assistance of a solicitor, taking care of tile and deed search.
Often, foreign investors will purchase and sell property through a national corporation and the legal transaction can be set up by a professional lawyer. Most of the available properties for sale are likely to be freehold; you are not likely to have any problems as long as proper diligence is done. Once the necessary promise to buy has been signed, the lawyer will carry out the necessary due diligence and title searches. Panama has a special Public registry for all the existing titles and this register is to be regarded as reliable.
Still, you are likely to need a good lawyer who will make sure that everything is okay. If the title search is fine and all the necessary and legal conditions have been met, then the final transaction and its contract are drawn up and closing will take place. You will also have to consider the necessary title insurance because this is a genuine protection against loss arising from problems that may be connected to the title to the purchased property.
Properties are likely to go through several ownership changes. There are certain problems that could emerge from this legal chain. We are talking about unpaid real estate taxes or fighting over land possession. Title insurance covers the insured party for any claims and legal fees that arise out of such problems. You must also be aware that the final contract must be in spanish in order to become legal in Panama. Contracts in other languages are unenforceable. So, the 2% transfer tax will be paid by the vendor.
Once the property has been closed, the title will be registered right at the Public Registry. Still, you must remember that ROP property is not registered with the Public Registry and it does not qualify for a residency visa. You have to pay attention to this aspect when it comes to your Panama property purchase. Every legal condition must be obeyed for anyone concerned with Panama real estate.