Panama: Invest and Enjoy!

Panama is one of those undercover destinations that has so much going on it’s just a matter of time before it becomes the next great getaway.

Panama gives you a variety of luscious jungles, white sand beaches and mountain getaways. The Capital, Panama City, is a first class metropolis and is also the place where the most English is spoken. New apartment buildings and commercial properties are constantly on the rise so if you like 5 star restaurants and downtown nightlife, Panama City is the place to be.

Panama is now open to foreign investment
Local law once stopped foreigners from buying islands but since 2006, foreigners can buy their own island paradise in the Caribbean waters of Panama. Oh yeah, another nice thing about Panama is that since the U.S. dollar is the currency, exchange rate fluctuations can’t effect your investment.

Just Not Near the Border
The only restriction for foreign citizens or companies buying real estate in Panama is that you can’t buy land within 6.2 miles of the country’s only two land borders (with Costa Rica and Colombia).

Panama Hot Spots

Panama City
You can still get a lot for your money in Panama compared to most major cities in the U.S. Or Europe. For example, right in the heart of the city’s financial district you can find luxury one bedroom apartments for sale with central air, a swimming pool and party hall. A 950 sq. ft. apartment like this can cost under $100,000. Just outside of the city there are plenty of options too.

The Azuero Peninsula is a sought after spot for foreign buyers. There are nearby national parks, ancient archaeological sites and plenty of beaches. It’s a 5 hour drive from Panama City. A number of celebrities are said to have bought large areas here. It is a growing resort destination and could be a great investment for a tourist resort. The area is diverse. Three bedroom houses can be found for only $30,000. Quarter acre property at the beach can be found for under 60k. Of course constructed beachfront will run higher but for under $100,000 you can find 1,400 sq ft, homes and 5,000 ft. of land.

Altos de Maria is a mountain area just 90 minutes from the city. You can find 3,000 sq. ft. homes on half acres of land for under $270,000 here. But there are plenty of other places to look. Like I said, you might just find a tropical island for sale which you could literally have all to yourself.

How to Buy Your Piece of Panama

Rules & Regulations
Anyone can take advantage of Panama’s property. The law grants equal rights to foreigners and Panamanians when it comes to the country’s real estate and other opportunities.
If you decide to buy, you want to do a few things prior to forking over any cash. First thing you need to do is to check the title of a property that catches your eye. There are two documents you need to see to know that Señor salesman is actually the owner and has his documents in order.

You want to see the title (called “la escritura” in local language) and the Ownership certificate from the Public Registry (“El Certificado de Registro Publico”). If the guys you are doing business with don’t have a copy but claim everything is legal, ask for the property number (called “numero de finca”). With this, your lawyer can look it up in the Public Registry to confirm the legal ownership.
Once you know you’re good to go you negotiate the final price and draw up the contract called a “compromiso de compra-venta”. This agreement to make the deal sets the terms for when the title will be transferred and the price.

Contract
The contract is typically signed by you and the seller in front of a notary. Lastly, once the deal is done, your lawyer must file the title at the Public Registry. This can take over a month to be finalized unless your lawyer goes to the main Public Registry branch in the capital. In this case it’s usually just over a week’s wait. There is often a financial penalty included for either you as buyer or the seller for backing out once the agreement is signed. It usually calls for an immediate down payment of 10% of the purchase price. This can take over a month to be finalized unless your lawyer goes to the main Public Registry branch in the capital, in that case it’s usually just over a week’s wait.