The advantages of being the owner of a corporation
Before buying property in Panama, we recommend analyzing various aspects, which will help you save a lot of money, when you acquire property with the safest structure and most economic.
We recommend to constitute a society to acquire property, which offers benefits and will save you a lot of money when you plan on selling.
There are many disadvantages in buying property under the name of a person, for example:
• Anonymity: If you acquire property in your private capacity, your own will be inscribe in the Public Registry of Panama and in the Ministry of Economy and Finance (Governmental Fiscal Institution) and the Department of Property Registry (Catastro) (where land is registered).
• Responsibility: If someone sues you (for example, if you are in a car accident, or other type of liability), your property can be seized. Responsibility is one of the most important reasons for not acquiring property in a private capacity. On the contrary, if you acquire property under the name of a Panamanian Society, debts cannot be allocated to a Society, for personal debts or liabilities of the Directores or Legal Representatives.
• Flexibility: You cannot sell, lease, or mortgage your property unless you are physically in Panama, or provide a power of attorney according to legal requirements. Then, if you acquire property under your own, the process of title transfer (estate) will take several days. First, you must verify if the last register of the property is up to date in the Department of Property Registry (Catastro) (Department of the Ministry of Economy and Finance). If it is not updated, this update of the register in Catastro under your own may take several months. Then, you will process taxes on capital gains and taxes on the transfer of real estate before the Ministry of Economy and Finance. Then you will go to the Notary to sign the Transfer Deed and inscribe this Deed in the Public Registry (which can take several days). With a society, transfer of assets can take approximately five minutes.
• Taxpayer Registry: If you are Panamanian or foreigner, acquiring property under your own name requires you to register your name in the Ministry of Economy and Finance and complete the R.U.C form (Taxpayer Registration Form), which converts the person into a taxpayer. The register of this R.U.C is not complicated if you are a foreigner, but it is more complicated (if you are a foreigner) to sell the property inscribed under your own name. Second, it is recommended to inscribe the property under the name of a Panamanian Society because it will be this society that will be registered in the Ministry of Economy and Finance and it will be the taxpayer, not you.
• Death or incapacity: As you know, peoples pass away, but Societies don’t (in the case they are inscribed as: Duration: “Perpetual”).
PREVIOUS NEWS
Investment. An important urban Developer from the United Status will compete in the local scene.
IPAT approves hotel investments of $472 million
Mega projects generate ten thousand direct jobs
The Prestigious Buddha-Bar chooses Panama as its next destiny
Hard Rock Hotel gest approval to start sales
We recommend to constitute a society to acquire property, which offers benefits and will save you a lot of money when you plan on selling.
There are many disadvantages in buying property under the name of a person, for example:
• Anonymity: If you acquire property in your private capacity, your own will be inscribe in the Public Registry of Panama and in the Ministry of Economy and Finance (Governmental Fiscal Institution) and the Department of Property Registry (Catastro) (where land is registered).
• Responsibility: If someone sues you (for example, if you are in a car accident, or other type of liability), your property can be seized. Responsibility is one of the most important reasons for not acquiring property in a private capacity. On the contrary, if you acquire property under the name of a Panamanian Society, debts cannot be allocated to a Society, for personal debts or liabilities of the Directores or Legal Representatives.
• Flexibility: You cannot sell, lease, or mortgage your property unless you are physically in Panama, or provide a power of attorney according to legal requirements. Then, if you acquire property under your own, the process of title transfer (estate) will take several days. First, you must verify if the last register of the property is up to date in the Department of Property Registry (Catastro) (Department of the Ministry of Economy and Finance). If it is not updated, this update of the register in Catastro under your own may take several months. Then, you will process taxes on capital gains and taxes on the transfer of real estate before the Ministry of Economy and Finance. Then you will go to the Notary to sign the Transfer Deed and inscribe this Deed in the Public Registry (which can take several days). With a society, transfer of assets can take approximately five minutes.
• Taxpayer Registry: If you are Panamanian or foreigner, acquiring property under your own name requires you to register your name in the Ministry of Economy and Finance and complete the R.U.C form (Taxpayer Registration Form), which converts the person into a taxpayer. The register of this R.U.C is not complicated if you are a foreigner, but it is more complicated (if you are a foreigner) to sell the property inscribed under your own name. Second, it is recommended to inscribe the property under the name of a Panamanian Society because it will be this society that will be registered in the Ministry of Economy and Finance and it will be the taxpayer, not you.
• Death or incapacity: As you know, peoples pass away, but Societies don’t (in the case they are inscribed as: Duration: “Perpetual”).
PREVIOUS NEWS
Investment. An important urban Developer from the United Status will compete in the local scene.
IPAT approves hotel investments of $472 million
Mega projects generate ten thousand direct jobs
The Prestigious Buddha-Bar chooses Panama as its next destiny
Hard Rock Hotel gest approval to start sales