Introduction:
Buying property in Panama is very safe for foreign investors. It is legal for foreigners to own titled property in Panama in their personal names, although in practice, many people hold property in the name of a Panamanian corporation for asset protection and tax reasons. Panama possession rights property, however, should always be held in the name of a Panamanian corporation, where the foreign person is the shareholder (or a Panama private interest foundation or trust can be appointed as the shareholder in place of the foreign person) of the corporation.

Legal requirements:
The seller also has to comply with the legally stipulated notification requirements toward those having rights of pre-emption.  Vendors must ensure they possess relevant property ownership documents and make sure they have paid any outstanding tax or utility bills on their property.

Market research:
Before you do anything, check out the market.  Unless you’re forced to sell, steer clear of slumps when prices are depressed and perhaps consider letting out long-term until the market recovers as an alternative.

Preparing for sale:
It is worth doing some research through consulting with local agents to get advice on how to prepare your home to increase its attractiveness to prospective buyers.  It’s vital to consider what will appeal to local buyers.

Marketing your property:
Once you have decided it’s the right time to sell and are confident your property is in a condition which will appeal to prospective buyers, you are ready to go to market.  The normal means of marketing a property in Panama is via an estate agent who can also value your property.  If you used an agent to buy your Panama home, it could make sense to use the same one to sell it, as they will already know the property.  Before you take on their services, you should check carefully what they will and will not do in terms of marketing and what they will charge as commission – make sure you shop around to get the best service!

However, it’s increasingly easy these days to sell without using an agent.  There are an increasing number of specialist websites and magazines advertising property for sale in Panama.  The key advantage here is avoiding the high estate agents’ fees.  You will need to do your research to get the price right.  Just looking at the adverts will not be enough.  You will need to get out and see comparable properties in your area and check out their facilities.  Alternatively, you could try to sell your property at auction.

Government taxes:
The Panamanian government charges a 2% property title transfer tax. The 2% is based on the registered value (the value established in the registered deed of sale). In addition, there are other fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in Panama. It is standard practice in Panama for the seller to pay for the title transfer tax, however, in some cases, depending on the negotiation between the buyer and seller, the seller may insist that the buyer pay the title transfer taxes.

Timeframe:
The timeframe from start to finish is normally about 6 weeks, however, it really depends on a variety of factors which are dependent initially on the buyer and the seller, the negotiation between buyer and seller, and subsequently dependent on the attorneys and the public registry. Generally, property transactions have the following procedures:

• The buyer and seller to agree on the price and terms (time frame can vary depending on the negotiation)
  
  
• Seller provides completes due diligence on the property title and conducts title investigation (time frame depends on the seller).
  
  
• Attorneys do initial title search & draft the promise to buy/sell contract.
  
  
• Buyer and seller review the promise to buy/sell contract and agree to set a date to sign (time frame varies depending on the buyer and sellers).
  
  
• Buyer sends down payment and legal fees to escrow (time frame depends on the method funds were sent).
  
  
• Buyer and seller sign promise to buy/sell contract and down payment is paid to seller from escrow.
  
  
• Final title search is completed (time frame is approx. 5 days).
  
  
• Buyer sends final payment to escrow (time frame depends on the method funds were sent).
  
  
• Attorneys draft final buy/sell contract (time frame is 1 day).
  
  
• Closing takes place and buyer/seller sign final buy/sell contract (time frame is 1 day).
  
  
• Contract is registered at the Public Registry for title transfer procedure to begin (time frame ranges from 2 to 30 days, depending on the Public Registry's volume).
  
  
• Attorneys receive deed from Public Registry, draft official English translations, and prepare final documents to send to buyer (time frame is approx. 5 business days).