Property Sales Process | Selling Costs

Overview:
The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include;

• The legal property transaction fee of US$1200 (includes; title search, buy/sell contract, closing, & property title transfer service).
  
  
• Public registry title transfer fees of approx. US$200 to US$300.
  
  
• Escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction), and (4) incorporation fee of US$1000 to setup the Panama corporation.

However, if the property is held by a Panama corporation already, and the buyer is purchasing the shares of the corporation, then the transaction is relatively simple because there is no registration of title transfer, meaning that there is no title transfer tax, and no public registry title transfer fees. In this case, the closing costs would include;

• The legal property transaction fee (includes; title search, purchase of shares contract, and closing for US$800).
  
  
• Change of directors / resident agent of the corporation (approx. $35).
  
  
• Escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).

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