Panama: An Investment Opportunity
Welcome to Panama's Real Estate – Your Gateway to Exceptional Properties in Panama.
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Overview of Panama City
Panama City, the capital of the Republic of Panama, stands as the country's largest and most modern metropolis. Located on the Pacific coast at the entrance to the Panama Canal, Panama City serves as the political and administrative center of the country. It is also a pivotal hub for international banking and commerce, boasting the most advanced International Banking Center in Latin America, with over 80 banks from more than 32 countries. The city is equipped with sophisticated technical and fiber optic infrastructure, high-end retail shops, casinos, restaurants, and luxury hotels such as the InterContinental, Hilton, Waldorf Astoria, JW Marriott, and Hard Rock Hotel.
Real Estate Boom
The real estate boom in Panama City began in 2003, primarily driven by buyers from the United States, Canada, Venezuela, and Spain. Early buyers focused on under-construction apartments in areas like Punta Pacifica, Avenida Balboa, and Costa del Este, attracted by competitive prices and promoted through real estate fairs, media, and internet campaigns. Today, the market remains undervalued, but prices are rising as more people discover Panama's advantages. Investors have various areas to explore for growth opportunities.
Urban Development
With a population exceeding 1.5 million, Panama City is experiencing a significant construction boom. Its skyline, featuring 250 planned office skyscrapers and condo towers, rivals those of Manhattan and Singapore. The city offers high-end restaurants, first-class hotels, excellent shopping, cultural festivals, concerts, and various sporting events. Shopping options range from local markets to luxury malls and boutiques.
Notable Real Estate Developments
Panama City's urban fabric is continually revitalized with luxury towers, world-class hotels, prestigious shopping centers, and the impressive expansions of the Panama Canal. This development has transformed the city into a vibrant cosmopolitan and international center, attracting international investors and expatriates.
Key Areas and Properties
- Marbella, Paitilla, Coco del Mar, Punta Pacifica, San Francisco: These areas offer a range of apartments and condominiums. Noteworthy projects include Costanera, Armonía, Nuovo Armani, Yacht Club Tower, and Infinity Tower.
- Avenida Balboa: Known for its bayfront condo buildings like Yoo Panama, a 60-story building with loft-style apartments and penthouses.
- Obarrio: A trendy district with office spaces and luxurious apartments, home to embassies and high-end boutiques.
- Paitilla Point: Dense with high-rise condos and luxury projects like The Towers Punta Paitilla and Deluxe Residences.
- Pacific Point: Features opulent condominiums like Dupont Towers and the iconic sailboat-shaped JW Marriott.
- San Francisco: Offers vibrant dining, shopping, and modern residential projects like PH Aurora and The Towers Residences.
Other Notable Districts
- Costa del Este: An American-style residential area with ocean-view homes and condos, and iconic buildings like Ten Tower and PH Top Towers.
- Santa Maria Golf & Country Club: A luxury community with a Nicklaus Design Golf Course and resort-style amenities.
- Clayton: Known for its green spaces and the City of Knowledge, with gated communities like Embassy Club Community.
- Costa Sur: An exclusive area with gated communities like El Doral and Costa Sur Village.
- Old Town (Casco Viejo): Historic district with elegant buildings, world-class restaurants, and boutique hotels, benefiting from government incentives for restoration.
Investment Opportunities
Outside Panama City, excellent properties are available for developers and individuals. Remote locations offer more reasonable costs but may lack utilities or roads.
Services Offered
BusinessPanama Real Estate offers a comprehensive solution for all your real estate needs, including:
- Finding condos, houses, or properties.
- Establishing companies, LLCs, trusts, and foundations.
- Opening bank accounts.
- Applying for visas and residence permits.
- Advising on mortgage financing.
- Providing legal services and more.
Explore our real estate listings in Panama City for an overview of available properties or contact us for personalized advice on finding the right property for your new life.
Finding Property in Panama: FAQs
Q: How do I find property in Panama? A: Contact a licensed real estate agent, such as Business Panama Real Estate.
Q: Is it safe for foreigners to buy property in Panama? A: Yes, it is very safe for foreigners to purchase property in Panama. There are numerous laws protecting foreign investments, and private property is safeguarded by the constitution. Many expats own property in Panama, and real estate transactions for foreigners are processed regularly without issues.
Q: Can foreigners directly own real estate in Panama, or are there specific requirements or restrictions? A: Foreigners can own real estate in Panama directly or through a legal entity. The only restriction is that foreign individuals or entities cannot acquire property within 10 kilometers of the national borders. Beachfront properties cannot be titled within 22 meters of the highest tide line on the Pacific coast and 10 meters on the Atlantic coast, though concessions may be granted for use without permanent improvements.
Q: Is it legal for foreigners to buy property in Panama? A: Yes, it is legal for foreigners to own property in Panama. However, it is often recommended to hold property through a Panamanian corporation or foundation for tax and asset protection reasons.
Q: Can a Panamanian corporation own property, and can its shares be sold? A: Yes, a Panamanian corporation can own property and its shares can be sold. Due diligence and a proper title search are essential when purchasing shares of such a corporation. It's crucial to hire qualified attorneys to manage the due diligence and ensure the sales agreement includes clauses protecting the buyer.
Q: Is it common to buy options on properties in Panama? A: While it is legal to buy options on properties, it is not a common practice in Panama. Most sellers are unfamiliar with property options, so educating the seller on this concept might be necessary.
Q: Are lease-to-own agreements available in Panama? A: Yes, lease-to-own agreements are available, but they are less common than outright sales. Lease contracts must be registered with the Ministry of Housing (MIVI) to be legally valid.
Q: Who typically pays closing costs in real estate transactions in Panama? A: Generally, each party pays their own closing costs. The seller covers their attorney fees and the buyer pays for their attorney's services, title search, and title transfer. However, this can be negotiated between the buyer and seller.
Q: Who is responsible for paying taxes and fees during a real estate transaction? A: The buyer usually pays registration costs, while the seller is responsible for capital gains tax and transfer tax. The seller typically covers intermediary costs.
Q: How secure is it to obtain an unencumbered title in Panama? A: Property titles are registered with the Public Registry in Panama through a bureaucratic but straightforward process. It is recommended to obtain title insurance for added security.
Q: What should I consider before buying a property in Panama? A: Key considerations include checking if the property has a title or possession rights, restrictions, liens, encumbrances, mortgages, the registered value, boundary measurements, remaining tax exemptions, property tax rates, suitability for your intended use, and who pays the property transfer tax. Due diligence by experts, including a surveyor and lawyer, is crucial.
Q: How long does it typically take to purchase a property in Panama? A: The process usually takes about 6 weeks, depending on various factors including negotiations, document provision, title searches, and Public Registry processing times.
Q: Are there tax incentives for real estate purchases or developments? A: Yes, there are incentives for real estate development in special tourism zones under Law 80 of November 8, 2012. Periodically, the government also offers real estate tax exemption incentives for new constructions.
Q: How is real estate transferred in Panama? A: Real estate is transferred by transcribing the sales contract into a public deed. The buyer and seller sign the contract before a notary, who ensures all formalities are met. The deed is then registered with the Public Registry.
Q: Describe the land registration system in Panama. A: The system, inherited from Spain, is a centralized Public Record Office that identifies and makes public all assets and rights in real property. The process involves a national cadastral office, the Registrar of the Public Registry, and a notary.
Q: What is the effect of recording title to real property? A: Recording the title in the Public Registry establishes the rights of the property owner and makes these rights enforceable against third parties. It also determines the priority of liens on the property.
Q: What happens if property interest is obtained through forgery, fraud, or incompetence? A: Transfers obtained through forgery, fraud, or incompetence are considered null and void. The notary is responsible for verifying the identity and competence of the parties involved.
Q: Who compensates for errors or defects in property records? A: The person responsible for the error, whether the notary or the Registrar, is liable for compensating any loss resulting from the error.
Q: What value is shown in property transactions? A: The full market value must be shown to calculate property taxes, including transfer tax.
Q: Are there laws for condominiums or subdividing properties in Panama? A: Yes, Panamanian law recognizes horizontal property, similar to condominiums, with individual ownership of units and co-ownership of communal property.
Q: Do real estate lenders need to be registered or licensed? A: Private lenders do not need to be registered or licensed. However, banking or financial institutions must be authorized by the Banking Superintendence and comply with financial regulations.
Q: What determines the priority of mortgages or liens? A: The priority is determined by the date the mortgage or lien is registered in the Public Registry.
Q: Are there standard legal fees for real estate transactions? A: The National Bar Association has established minimum fees based on the transaction value. Business Panama Real Estate offers comprehensive services including locating properties, forming companies, opening bank accounts, applying for visas, obtaining mortgage financing, and legal services. Contact us for a single-window solution for all your real estate needs in Panama
