Panama Real Estate

Foreigners who invest in Panama real estate have the same benefits and rights as a Panamanian citizen. In order to get a mortgage in Panama as a foreigner you will need to prepare 30% of the total home sale price as a down payment since Panama banks have very conservative lending practices. Deposits to secure preconstruction real estate are typically in the 10% range at the contract signing.

Panama also has a Public Registry to keep track of land titles. Make sure you utilize the services of your own real estate lawyer when viewing land title documents and sales contracts before you buy anything.

Panama Real Estate Tip#1:
Check prices on multiple websites where possible, especially for preconstruction projects. Pricing can vary quite a bit from one company to the next and some companies seem out of touch with current pricing. There is one caveat as a lower price listed on a website may be out of date and no longer valid. Make sure to call and check several places until you can determine the "true" current price.

Panama Real Estate Tip#2:
Hire your own real estate lawyer to perform a title search for your property as well as go over any sales contracts to make sure your best interests are respected.

Panama Real Estate Tip#3:
Be careful of internet scams. Most real estate companies in Panama are above board and can provide you with excellent service, but as with any industry there are people out there that simply want to take your money. Make sure the lawyer you hire has no affiliation with the real estate company you work with so you will get unbiased service.

Panama Real Estate Tip#4:
Get financing for your Panama real estate purchase from a bank in Panama. Panama banks will only give out mortgages to people who are buying something with good value. Panama banks will not give a mortgage if the cost of what you are being sold is grossly inflated over what they think the property is actually worth.

Panama Real Estate Tip#5:
Property taxes are 2% of the value of the property. If the home is new there are no property taxes to pay for up to 20 years depending on the construction date and price of the unit.

Panama Real Estate Tip#6
Visit multiple real estate firms in Panama when you decide to visit to look at the properties you are interested in. Remember to schedule property showings before you arrive in Panama.