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REAL ESTATE IN PANAMA
Whether you are renting, investing or purchasing
real estate in Panama, GB OFFSHORE, through
our qualified attorneys can provide you with the
legal assistance that you need, we will help you
with all the legal documentation that you require
for the different types of real estate transactions.
GB OFFSHORE
will accommodate you with Panamanian realtors that
will help you find the property you are looking at
the most convenient price in the local market.
Real Estate Purchase Tips:
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1 |
Title or Possession Rights? -
Before you purchase a property (meaning, paying
any amount of money), make sure the property is
properly titled. Possession rights may be
transferred to you but such is not recommended.
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2 |
Title check –
If you are advised by the seller of a property
you are interested in that the same is titled,
then you should have such title checked at the
Public Registry of Panama in order to ascertain
whether the property has any liens or
encumbrances, as well as to identify the
ownership of the property, surface area and
measurements.
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3 |
Rights of Possession –
By Law, you will not be able to purchase rights
of possession (squatter's rights), however, you
can have them transferred over to you. It is
recommended that such transfer deed be drafted
by an attorney, notarized and registered with
the local Municipal Government in order to
provide the transaction with the formality
required. Also in this case you should also have
the ownership of the possession rights checked
and inquire regarding any disputes.
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4 |
Talk to the neighbors –
When interested in a property, make sure you
talk to the neighbors and ask them if they are
aware of any disputes, also check for the
availability of electricity, water, cable TV,
internet connections)
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5 |
Planning & Zoning issues –
This is of utmost importance as there could be
restrictions on the property or the area where
the property is located set forth by the
government, specially if you are interested in
developing the property and are going to build a
hotel or a building for condo’s or offices.
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6 |
Home Inspection and Pest Control Reports –
This is certainly of importance for all
properties because an inspection can reveal
defective construction of old and new homes.
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7 |
Homeowner's association documents –
Make sure to read these carefully as there could
be restrictions imposed, such as: pet
restrictions, restrictions on certain
improvements, etc.
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Tax Incentives:
Real estate with an appraised value above US$30,000
is subject to yearly property taxes between 1.4% and
2.1%. However, the Panama Government provides
incentives to the construction of buildings and
ownership of residences, which encourage investments
by locals interested in a secure tax shelter. The
fact that construction provides needed employment to
unskilled labor and addresses a chronic housing
shortage, has prompted the Government to provide the
following tax incentives:
1) 20-year exemption of property tax on the value of
buildings and improvements, (in force until 2006,
after which the maximum will be of 15 years.)
2) Exemption of Capital Gains Tax on the first sale
of residences,
3) Banks granting residential mortgages for new
residences below US$62,500 receive a negotiable tax
credit equivalent to interest reduced in 2 to 4
points below the prevailing rate,
4) Buyers of residences can deduct from their
taxable income the amounts paid as interest for
mortgages without the tax credits listed in 3),
5) Developers can deduct up to $1,000 on taxable
income from the sale of low-income housing with a
price of less than US$14,000,
6) Developers can report as non-taxable income the
profits from the sale of real estate that are re-invested
in the construction of new residences, as long as
the value of the new building is below US$62,500 and
equivalent to four times the amount of the profits
realized.
Foreign investors should seek the advice of
competent tax counsel in their country of residence
to determine their applicable fiscal compliance
requirements and liabilities.
Contact Us
Panamá City , Republic of Panamá
Phone (507) 399-2729
Fax: (507) 399-2729
when dialing to Panamá, please dial 011 first
P.O. BOX 0831-01086 Panamá City , Republic of Panamá
E-Mail:
info@gboffshore.com
We will be glad to assist you, if you need further
information please contact
us; we will answer any enquiry you may have.
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DISCLAIMER: Global Business Offshore is not a
bank, nor does it provide banking services.
Global Business Offshore offers international
company formation, corporate administration
services, and bank/broker introductory
services, account opening assistance and other
legal services through our recommended law
firms and agents. This website is only used
for promotional marketing purposes of Global
Business Offshore and is not intended to
portray that this is the site of a bank or law
firm.
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