Purchase Panama property
Below is general information on purchasing real estate in Panama. Depending on the type of land, it is essential to ask the expert for more detailed information. The mainland real estate law may differ considerably from the laws of the islands, coastal areas, areas close to the border.
Before delivering money, consult experts and conduct an appropriate due diligence investigation on property. It is important to understand rules and handle real estate transactions correctly.
The first step is to find the Panama property you like and negotiate the price and terms of buying and selling with the seller (or Panama real estate broker). Second, look for Panama's qualified lawyer, process due diligence and title search on property, contact Panama lawyer and seller or real estate broker and collect copies of property rights documents and investigations (If available). Third, let your lawyer sign a property sale agreement and prepare an appointment to purchase / sell a contract to guarantee agreed terms (approximately 10% deposit usually signs a sales contract Requested by the seller) Give due diligence and give time to put the funds in the escrow account. Fourth, when the lawyer confirms that the real estate title is clean, a final closure is scheduled. Here, the buyer / seller signs the final buy / sell contract. Fifth, payment is made to the seller, broker or attorney from the escrow (in some cases the buyer / seller agrees that the payment will be made after the notary of the property has been transferred to the name of the buyer). Sixth, the purchase / sell contract is registered in the public registry and it transfers property ownership from the previous owner to the new owner.
Advantages of introducing property in company name:
1. The veil of a company protects property against your personal name from attacks from creditors and misleading lawsuits.
2. When you sell real estate you can simply sell the company's shares and pay 2% real estate ownership transfer tax and possible capital gains tax.
3. When selling real estate, the buyer's profit is obtained because the sales contract does not need to be registered publicly, and the buyer closing costs are saved
4. When selling real estate, the buyer does not reflect the actual purchase price because the registered amount does not reflect the real estate tax reduction (or if the registered amount is less than $ 30,000 there may be no property tax) .
"Priority interest method"
There is a law called "preferential tariff law" which provides special low interest rates under the following conditions:
1. The buyer must be the first purchaser,
2. Purchased real estate must be newly constructed,
3. The unit must be for residence purposes,
4. The prepayment amount must be within the range of US $ 25,000 to US $ 62,500 after prepayment.
5. The amount of funds raised can not exceed 95% of appraisal value,
6. The property must have a title,
7. The loan period shall not exceed 15 years. This is based on Law No. 50 (October 27, 1999), which revised part of Law No. 28 (June 20, 1995) and Cabinet December 44 (1990), benefits to lending institutions Are stipulated as follows.
(A) If the loan amount is less than $ 25,000.00 and less than $ 62,500.00, a 4% discount (tax deduction for financial institution) is awarded from the maximum fixed rate set by the bank supervisor
(B) If the loan is less than $ 25,000.00, a 5% discount from the maximum fixed rate (further tax credit to the financial institution) will be applied.
About government property tax
Property tax is taxed only for assets whose registered value is over US $ 20,000 (the amount registered is the amount stated in the public certificate registered in the public registry). The maximum annual real estate tax is 2.10% of the registered value of the land (as stated in Law No. 36 of 1995, this tax is exempt on land less than $ 20,000). The fixed property tax is also taxed on the declared value of the building improvement of the land, but the Panama law provides tax relief for building improvement up to 20 years (this is because the Panama government promotes new construction The majority of GDP in Panama as a whole). New property completed by August 31, 2006 will be exempt from property tax for 20 years. Ownership does not asset property property, property ownership property, because the property belongs technically to the government of Panama.
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