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Ortiz & Anguizola Law Firm
Panama Attorney Information & Links
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 Domestic flights to many destinations in Panama and San Jose Costa Rica.
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 Aeroperlas.com
Panamanian domestic airline with daily flights to and from Panama City and David, Chiriqui.
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 The Panamanian Institute of Turism website. A helpful source of information regarding visiting the beautiful Republic of Panama.
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A time-lapse journey through the Panama Canal from the ...
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Free Web Directory
Including Business Services Resources, Offer automatic, instant and free directory submissions. |
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Legal Translation, Certified Interpreting, Transcription & Litigation Support - Legal Language Services provides litigation support for domestic & international proceedings in more than 150 languages & dialects.
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Panama facts
The Panama Canal and the long standing involvement of the United States, (Panama has the highest per capita US investment in all of Latin America is one reason why Panama's infrastructure is far and away the best in Central America. Highways, airports and shipping centers are extensive and well maintained.
The Panamanian currency is the US dollar, which is of tremendous importance in attracting foreign investment. (Panama does mint coins which are identical in size and weight with US coins and of the same value.)
The government is stable and the business climate is optimistic. British Cable and Wireless recently won the bid for controlling interest of INTEL, the government phone company, with a bid of $625 million. Cable and Wireless subsequently announced that they would invest an additional $572 million over the next five years to expand and modernize the existing system.
More than $800 million of foreign investment has been made in the new Canal Zone Industrial Center.
Panama is an international banking and finance center that has no restrictions on the movement of money in or out of the country. It is also legal and very simple to form truly anonymous corporations.
The Tourism Master Plan includes incentives to encourage investment in Panama which include no income or capital gains taxes for twenty years and the importation of a wide variety of goods duty free (when they are related to a tourist business).
There is a large indigenous peoples influence in Panama which contributes greatly to the charm of the country. (The Kuna Indians of the San Blas Archipelago for example.)
There are no real estate taxes for twenty years on any new construction. This should help increase the number of homes to be constructed on the subdivided property.Panama is an Indian word meaning "place of many fish".
In Panama, the sun rises over the PacificOcean.
Panama's highest mountain is Volcan Baru and from its summit you can see the Atlantic and the Pacific Oceans.
Panama has 500 rivers and 1600 islands.
Panama has approximately 900 species of birds.
Panama has the highest per-capita income, the largest foreign investment and the most highly developed economic infrastructure in Central America.
The Province of Chiriqui is positioned just below Bocas del Toro, runs adjacent to the Costa Rica border to it's west and along the Pacific Ocean to it's south. The largest community in this province is David, which is a short distance from the Pacific coast. To the north of David lies the "Cordillera Central" mountain range, where one can find the popular tourist areas of Boquete, Volcan and the Baru Volcano.The mountain portion of Chiriqui has the country's coolest temperatures, and climatic patterns that differ from anywhere else in Panama. There exist communities settled at 6,000 feet above sea level, where the evenings in particular are very cool and damp; temperatures often reach 0 degrees Celsius (32 degrees Fahrenheit), or cooler. It is in this region that coffee is grown, milk and cheese are processed, and ornamental plants are grown for export.
Buying Titled Properties in Panama Panama has a reliable Public Registry system, and this office maintains a record of all titled properties throughout most of Panama. Information regarding titled properties is readily available through the Public Registry, and is a fairly routine process to undertake through due diligence on a lot or property (finca). Our attorneys can issue you in writing an abstract title of the land, along with any and all liens, mortgages, covenants, encumbrances, maps, verification of tax payments and utility bills, special characteristics, fence lines, encroachments, shared driveways, and registered surface area, and can verify that the person who is selling the property is the actual owner.
INTRODUCTION AND SUMMARY. The following is general information on purchasing real estate in Panama. It is not to be construed as legal advice. The different categories of land make it imperative to engage professionals for more detailed information. Real estate laws on the mainland can be quite different than those on islands, coastal areas, and areas near national borders.
Before handing over any money, make sure you consult with a professional and do a proper due diligence investigation over the property to ensure you aren't buying a big problem! It is important to understand the rules and process your property transaction correctly.
Panama has three different types of property;
Titled Property
Titled property is not unlike "fee-simple" titles in the USA. The Panamanian Public Registry has jurisdiction over the registration of titled properties throughout the country. Titled property is verifiable through the Public Registry system and is guaranteed by the constitution of the Republic of Panama. Titled property can also be mortgaged. The bank will register a lien against the title as collateral on the loan. Titled properties are subject to annual property taxes when the registered value is over US$30,000 unless the buyer has obtained an exemption for the construction of a new dwelling. This is a pro-rated tax exoneration based on the value of the dwelling. Buying titled property normally requires the following procedure:
1. Promise to Purchase Contract: A small down payment is made at the signing of the promise to purchase contract. The down payment secures the property and establishes time for the title search and to coordinate payment arrangements for the closing. Registering this contract at the Public Registry ensures the property cannot be sold to another party during the escrow period.
2. Title Search: A proper title search includes: a) verification that the seller in fact has title to the property and it is free and clear of encumbrances, liens, or other issues that could affect the free disposition or transfer of the title; b) a review of the official survey map, and a professional surveyor to physically verify the map points on the property (to avoid future boundary conflicts); c) verification of utility debts (water and sewage d) verification of payment of property taxes and/or of the tax exemption.
3. Buy-Sell Contract: This contract is registered at the Public Registry and the final balance is paid to the seller, or an escrow agent. Payment is made when the title is transferred to the buyers' name. Payment can be issued by a bank, contingent on receiving from the seller proper title to the property. The buyer can open a bank account (or get a mortgage) and then formally request that the bank issue payment as soon as it is presented with the registered public deed transferring title to the buyer. Real estate agents normally get paid only when the sale closes.
4. Title Transfer: The buyer officially owns the property when the title is transferred to the buyers' name. The transfer occurs when the buy-sell contract is signed by each party and registered at the Public Registry. If the title is in the name of a corporation, there is no transfer of title, only a transfer of shares of the corporation. The buyer can keep the same officers in the corporation or appoint new members. Buyers of corporate titled properties through the purchase of the corporation itself, should ensure the annual corporation tax (Tasa Unica) is up to date. A change of corporate officers cannot be officially recorded at the Public Registry if the tasa Unica is in arrears.
Possession Rights Property
Possession Rights Property is not unlike "squatters rights" common in North America many years ago. This property is government owned but is "occupied" or "used" by a Panamanian individual (or Panamanian organization) for some time. Possession rights are generally certified by either municipal mayors, sheriffs, or other government organizations such as the Agricultural Reform Department (Reforma Agraria). Possession rights do not incur property taxes, although registered improvements on possession rights property may incur taxes at a municipal and/or national level. Most Possession Rights properties can become titled through a procedure of purchasing the land from the government, however, the law prohibits titling of possession rights properties in some areas such as certain coastal areas, national parks, or islands. In these cases, as an alternative, the "possessor" of the property can apply for an administrative concession over the land to guarantee the pacific use of it.
Acquiring possession rights over a property normally requires the following procedure:
1. Promise to Purchase Contract: A small down payment is made at the signing of the promise to purchase contract to secure the property, establish time for the title search and to coordinate payment arrangements for the closing. Contracts related to the purchase of Rights of Possession cannot be registered at the Public Registry, but can be authenticated by a public notary.
2. Due Diligence: The due diligence procedures on possession rights property is more complex since there is no central database of information on possession rights properties. Buyers of possession rights should take extra care in their purchase. The following due diligence investigation can be done on possession rights property:
a. Verification of Certification of Rights of Possession: A valid Certification of Rights of Possession is issued by a competent government authority, and contains the possessors' name, correct description of the property in terms of location, size (area), limits, boundaries and neighbors (to the north, south, east, and west).
b. Verification of Survey: A stamped, signed survey by a professional licensed surveyor or topographer, identifying the possessors' name, location and reflecting the same information in accordance with the Certification of Rights of Possession is recommended.
c. Inspection: An inspection will evaluate the physical occupation, no opposition by third persons, and good faith. A physical inspection to identify and mark the points of the property as well as confirmation of these points with the neighbors to ensure that there are no future boundary conflicts should be done by your surveyor. Also, the property should be maintained and fenced to clearly delineate the boundaries.
d. Permitting Verification: If the buyers' intentions are to build a certain type of structure or project on the possession rights property (for example, a marina, port, hotel, airstrip, etc.), it is necessary to verify any national or municipal regulations that may prohibit those activities in the area.
3. Buy-Sell Contract: The final balance is paid to the seller, or an escrow agent, once the possession rights certification is transferred or changed to the buyers’ name. Contracts relating with the purchase of Rights of Possession cannot be registered at the Public Registry, but can be authenticated by a public notary.
4. Possession Rights Certification Transfer: Possession rights for the property are officially transferred to the buyer when the Certification of Rights of Possession is transferred to the buyers' name. Transfer to the buyer’s name occurs when the buy-sell contract is signed by each party. If the possession rights are in a corporations' name, there is no transfer of certification, only a transfer of shares of the corporation. The buyer can keep the same officers in the corporation or appoint new members. Buyers of corporate possession rights properties through the purchase of the corporation itself, should ensure the annual corporation tax (Tasa Unica) is up to date. A change of corporate officers cannot be officially recorded at the Public Registry if the tasa Unica is in arrears.
Concession Property
Concession property is not unlike “land lease” arrangements, common in Mexico or Hawaii. Concession Property is government owned property, where the government has granted a concession to an individual or organization for a specific purpose, such as a real estate development, hotel, or marina. Concessions in Panama are generally granted for a maximum of 20 year (renewable) periods. Some concessions are granted for up to 40 years (renewable) in specially designated areas such as the Amador Causeway or where there are commercial and condominium developments currently being sold (Naos Harbor, for example).
Concession Property is often located on islands, in special coastal or other protected areas where titles are not permitted by law. Real estate developments over concession property often offer investors time share or fractional ownership arrangements. Unlike Possession Rights property, Concession property is guaranteed by the government through a specific contractual agreement.
CONTRACTS IN ENGLISH HOLD NO LEGAL WEIGHT IN PANAMA.
Contracts signed are legally binding documents, and you should ensure that you have read and understood them completely before signing.
All judicial processes in Panama are conducted in Spanish. For any real estate transaction in Panama, a contract written solely in English carries no legal weight, and is generally not recognized. All contracts for property must be in Spanish on a formal public deed, and signed before a public notary, in order to be legally enforceable and where applicable, be filed at the Public Registry.
GET PROFESSIONAL HELP. Buying real estate in a foreign country should not be guesswork. As when purchasing real estate in the U.S., common sense should be the guiding factor. Again, engaging a reputable attorney and licensed real estate broker is recommended. While a good real estate agent can help you through the steps of buying, he cannot provide you with legal advice; an attorney does that. Even some Panama City-based real estate lawyers might not be fully familiar with such intricacies as land law in certain areas, e.g., Bocas del Toro.
The Panama Canal
The Panama Canal does far more than provide 10% of Panama's GDP (Gross Domestic Product – the total economy). Unlike many small nations that depend on tourism or some natural resource whose price varies depending on the market, the Panama Canal provides Panama with a large, steady, dependable income and will continue to for years to come. It also provides thousands of well-paid jobs for Panamanians. A multi-year, $8 billion expansion of the Panama Canal will add thousands more jobs. These are jobs that pay a great deal more than picking coffee beans or waiting on tourists. And the money from Panama Canal fees reaches out to touch people and businesses everywhere in the country. But there is more than the Canal to Panama. Unlike many other Latin American nations, agriculture plays an important, but relatively small role in the economy. International banking, maritime services, manufacturing, and shipping combine to provide more jobs and tax revenue than the Panama Canal. Panama is also home to the second-largest free trade zone in the world (Hong Kong is the largest) which has had a dramatic impact on the economy, employing twice as many people as the Canal. Panama's economy is far more modern and service-oriented than you might expect. This means stability not only for Panamanians, but for those of us who retire there.
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