How to buy a property in Panama

Emigrating to Panama and purchasing property there can be an exciting opportunity. It involves several steps that need to be carefully followed. This guide will assist you in understanding how to buy property in Panama.

Research and Budget

Set Your Budget

• Define a budget considering the current Panamanian market.
• Add 10% for additional costs such as legal fees, potential renovations, and other unforeseen expenses.

Location Preferences

• Research various neighbourhoods, especially in Panama City.
• Evaluate each location based on:
  • Proximity to work and amenities
  • Security concerns
  • Potential rental or resale value

Property Type

• Decide on the type of property:
  • Villa
  • Penthouse
  • Traditional apartments

Legal and Financial Considerations

Hire a Real Estate Lawyer

• Engage a local lawyer who specializes in real estate transactions to decrease risks.
• Lawyers can help you with documentation and ensure smoother transactions.
• Legal fees: $1,500 to $3,000.
• Recommended law firms: Alcogal, Quijano, Arifa, Fabrega Molino, and Gala.

Open a Panamanian Bank Account

• Necessary for handling all financial transactions related to your purchase.
• Many local banks in Panama provide services in English.

Financing Options

• Decide on paying cash or securing a mortgage.
• Local banks offer various financing options.
• Mortgages require proof of stable income. Your lawyer can assist with documentation.

Property Search

Real Estate Agent

• Hire a reputable real estate agent who understands the local market.
• Agents assist in finding properties that meet your criteria and accompany you during viewings.

View Properties

• Inspect potential properties in person.
• Assess condition, view, furnishings, and any potential renovation costs.

Property Annual Costs

Property Tax

• Property Tax (Impuesto de Inmuebles) ranges from 0.3% to 1% of the registered property’s value.
• Paid annually to the municipality where the property is located.

Land Tax

• Varies depending on the size and location of the land.
• Also paid annually to the designated municipality.

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