We are working with a many clients all around the world, which are interested in investing in a Panamanian real estate. And there are always coming up questions about what someone should do from the beginning of the purchase process till its end. Considering all those questions and all our experience we create this easy steps guide that surely will make your purchasing experience positive.

1. Who can buy real estate in Panama?

According to constitution of Panama, when a foreigners buying property they have the same rights and responsibilities as Panamanians. With the only exception, that the foreigners cannot buy real estate properties that are located in a 10 mile zone near of Panama borders.

2. Careful investigation and analysis of the property and its owner.

Before signing a Purchase and Sale Agreement, that is always necessary to investigate real estate property in Panama’s Public Registry for to make sure that the property doesn’t have any pending payments, levy or limitations, that could interfere with passing a Public Deed and that this property is really owned by the seller.

3. Purchase and Sale Agreement.

Purchase and Sale Agreement does contain all terms and conditions that establish relationship between seller and buyer. This agreement is private and can vary depending on the property, on what phase of construction property are, or if it is already built. Foremost paragraph there is some that establish payment plan, determine commitments and responsibilities, paragraph about penalties in a case that one of the signing parts will violate agreement and other terms that is necessary for successful purchase.

4.Purchase and Sale agreement language.

In many cases the Purchase and Sale Agreement is provided in both Spanish and English languages, however if there is no English copy provided or one of the signing parts doesn’t understand language of agreement, that part can request the Purchase and Sale Agreement on a language that it does understand.

5. Paying Taxes.

Seller must provide the documents that proves that the property are free any pending payments, levy or limitations such as paid transfer of ownership tax receipt (2% from property value), receipt for paid property tax, water usage, garbage collection and building maintenance.

6. Settle pending mortgage.

In the cases when the property that been purchased has a mortgage credit with one of the locally represented banks, seller must pay off the complete amount of mortgage for the bank release a Paid Mortgage Certificate that should be included in a Public Deed. Then notarized Public Deed with Paid Mortgage Certificate must be registered in Public Registry.

7. Financing.

When a local bank is issuing a mortgage for a property purchase, in a majority of the banks there is a common policy that the bank will make the Public Deed that aside of Purchase and Sale Agreement itself will also contain mortgage agreement. To proceed with a mortgage you will have to provide to the bank a Sale Agreement and probably other documents that will request the bank (That can vary from one bank to another).

8. Public Deed.

Public Deed must be notarized by Panama public notary and then registered in Public Registry with the documents mentioned above adjunct.

9. Public Deed registration in Public Registry.

At the moment when Public Deed is successfully registered in Panama's Public Registry, the property title is passed to its new owner. The entire registering process can take approximately 10 work days (That is possible to accelerate that process by paying $250 fee and skipping the queue).

10. Changing owner information in Cadastre of Panama.

At the moment when Public Deed is successfully registered in Panama's Public Registry it is necessary to bring the copy of it to the cadastre agency – "Catastro y Bienes Patrimoniales del Ministerio" (that is a part of Ministry of Economy and Finance) to register the new owner information in their system. That process can take about 15 days.