Real Estate Investments in Panama
For several years, real estate acquisition has been an attractive option for investors worldwide. However, Panama has stood out for having a growing real estate market, leading to a remarkable increase in demand for real estate investments in the country.
The nation boasts a thriving economy, solid infrastructure, and a stable real estate market, making it a popular destination for those interested in real estate investments in Panama. In this context, “Panama investment property” has become a commonly used phrase among foreign investors.
How has the real estate value grown in Panama?
In recent decades, the value of real estate in Panama has experienced significant growth due to the booming real estate market in the country. Particularly, Panama City has witnessed a surge in property prices due to increasing demand and the development of new real estate projects in urban areas.
Furthermore, foreign investment in Panama’s real estate market, especially from countries like the United States and Canada, has contributed to this increase in real estate value.
In short, investing in real estate in Panama can be highly profitable for a foreign investor, as the country is known for having favorable legislation for investors and a government that actively promotes foreign investment.
Facilities for investing in property for foreigners
One of the main facilities for foreigners investing in property in Panama is that the country’s legislation allows non-residents to buy and own properties in a straightforward manner without many requirements.
Additionally, foreigners can obtain local mortgage financing for property purchases in Panama, although a minimum down payment of 30% of the property value is required.
It’s also essential to mention that foreigners have the same property rights as Panamanian citizens, allowing them to sell and transfer their properties freely.
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Steps to Invest in Real Estate in Panama
Before outlining the steps to invest in property in Panama as a foreign investor, it’s worth noting that while having legal assistance throughout the process is not mandatory in the country, it is highly beneficial to hire a lawyer familiar with the legal framework of real estate transactions, due diligence, drafting the respective purchase-sale contract, and property registration.
That said, the steps are as follows:
Search for and select a property
This is the first step, and it’s essential to choose a suitable property, considering factors such as location, price, and potential for property value growth.
Perform due diligence
Once the property is selected, conducting a legal review is crucial. This includes checking public records and ensuring the property complies with all legal and technical requirements.
Make an offer and negotiate the price
When making an offer for the property, take the sale price into account and negotiate if necessary to obtain the best conditions.
Obtain financing if necessary
If the investor does not have sufficient capital to buy the desired property, they can obtain local mortgage financing. However, they must meet the conditions required by banks and consider that a minimum down payment of 30% of the property value is generally required.
Once the price is agreed upon, the parties proceed to sign a contract that establishes the terms and conditions of the sale.
After the contract is signed, the property is registered in the public records. This ensures that the buyer has legal ownership of the property.
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