How can I purchase property in Panama?
Anyone can purchase property in Panama. Private property is highly protected and it is registered at the Public Registry of Panama. The usual steps are as follows:
a. Signing of a Promissory Buy-Sale Purchase Agreement with a developer, for a specific project, in which both parties agree to buy and sell a real estate property in the terms of the contract.
b. Completing a Down Payment for the property at signature of contract, usually a 10% installment.
c. Completion of the total Down Payment.
d. Deliver an Irrevocable Promissory Letter of Payment (from a bank) to the developer, usually at least 6 months before project completion.
e. Once the project and unit are ready to occupy, the client’s bank (if finance is used ) or the developer (if no financing is needed ) will draft the Public Deed.
f. Once all other statements are paid, both parties will sign the Public Deed, which goes first to a Public Notary and then to the Public Registry.
g. Once the Deed is duly registered, the client’s bank will pay the balance to the Developer or owner.
How can I finance a property purchase in Panama ?
Financing is widely available for local and international clients. There are over 70 banks operating in Panama, and most offer long term mortgages. For foreigners, the usual terms are:
a.Minimum of 30% down payment. Finance for 70% of the Purchase Price.
b.Rates vary from bank to bank, but right now they range from 5.5 % to 7%.
c.Term of Mortgage: up to 30 years (less than 80 years of age ).
d.Pre-Requisites:
- Complete the bank´s application form.
Copy of Passport.
Letter of Reference from the client´s bank.
Income Statement or Job Letter with proof of income.
Last 3 personal tax return statements.
Fire and Life insurance for 100% of mortgage.
Do I need title insurance?
Title insurance is not needed for purchasing pre-sale condominiums or apartments, but it can be provided if client feels more secure by having it. There are a couple of well recognized Title Insurance service providers in Panama. However, title insurance is recommended when purchasing land property.
What are the usual Pre-Sale buying conditions ?
Usually, the pres-sale buying conditions are basically the same:
a.10 % at signature of promissory buy-sale agreement.
b.10 % at beginning of construction.
c.10 % within 6 months of the beginning of construction.
d.Irrevocable Letter of Payment for the balance 6 months prior to end of construction.
e.Other Conditions:
- Contract can be assigned with previous writing consent of the Developer. A small fee for this request is not unusual.
The contract can be issue in the name of a corporation or a private foundation
Do I need a lawyer to purchase property?
It is recommended that you contact a local lawyer, but it is not indispensable.
What is the cost of living in Panama City like?
Panama city is relatively inexpensive. The cost of living can be best described by examples, like these ones:
a. The cost of an apartment ranges from $ 90 to $ 200 per sq. feet, depending on location, project, size, and views.
b. The cost of maintenance in a typical residential compound or apartment is $ 0.9 to $ 0.20 per sq feet. – This cost includes 24/7 security, electric generator, unlimited gas usage for cooking and water heater, and water in common areas.
c. The cost of electricity is about $ 0.14 per kilowatt.
d. The cost of cable tv with HBO basic is about $ 40 a month and $ 60 with high speed internet access.
e. The cost of first choice supermarket food for a family of 4, is about $ 350 a month.
f. The cost of hiring a full time maid is about $ 160 a month.
g. The cost of luxury dinner for two, with a bottle of wine, is about $80.00.
h. The cost of a Medical Appointment with the best doctors, is around $40.00.
i. The minimum wage in Panama is $ 285.00 a month.
j. The basic family food basket (lowest end) is $ 220 a month.
k. A regular drink (Rum, Whisky, Vodka ) in a good bar or disco cost $3.50 - $ 4.00.
l. A glass of soda or juice costs 50 cents 2-litter bottle of Coke costs $1.40.
Can I afford to buy an apartment in the city and a home or villa on Beach projects?
Right now the cost of property in the city and in the beach or mountains projects are still affordable (less than $ 150 per sq. feet on average), so it is the best option for retiring or just investing to buy a condo in the city and a townhouse or Villa at the beach or mountains. You can buy them both and furnish them for under $ 450,000.00 (the average small apartment or home in the US, Canada, or Europe).
How far, how fast and how much is the air fair from NY, Miami, Madrid, and Buenos Aires?
- * N.Y. 5.5 hours daily flights with COPA/Continental $ 750.00
- * Miami 2.5 hours 2 daily flights with COPA/Continental, American, Delta $399 to $ 600.
- * Madrid 9 hours 4 weekly direct flights with Air Madrid and IBERIA $ 799 - $ 899 .
- * Buenos Aires 2 daily flights with COPA/Continental $ 900.
- * Toronto - 7.5 hours - NY or Miami $ 999 to $ 1200.
Can you give me basic statistics on Panama and its people?
- * Population 3.1 million
- * Total area78.200 sq. km.
- * Currency U.S. Dollar.
- * GDP $ 13.9 billions.
- * Real GDP (% Change) 5.50%.
- * GDP Per Capita $4,450.
- * Historic Inflation Rate 2%.
- * Major Exports Bananas, Shrimp, Sugar, Clothing.
- * Major Imports Goods, Food Products.
- * Imports of goods & services $8.9 Billions.
- * Major imports trading partners Japan 33%, U.S. 11.3%, China 9%.
- * Foreign Direct Investment $1.01 Billions.
- * Value of Construction Permits $905 Millions.
- * Panama Canal Revenues $1.2 Billions.
- * Panama Canal Importance 5% World Commerce.
- * Estimate GDP Growth – 2006 / 6.2% (Moody’s Investors services).
- * Estimated Foreign Investment – 2006 $2 Billions.
