For your convenience, our most common customer questions are answered right here.
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Q: When reserving or identifying a property, is it through escrow/title?


Q: Is title insurance required for a loan? Is seller required to supply title insurance?

Not required.

Q: What is the process of opening a bank account in Panama?

Same as in USA

Q: What type of title does buyer hold? Fee simple act….

first a contract for a unit, then when finished the building we transfer title to you at the same time we collect the differnce pending.  Tille is Title of a unit same as the USA.

Q: What are the normal fees for a transaction?

for the costumer there is only fee to register the property on his name at the moment titke is transferred, but its minimal

Q: What is the procedure for real estate investors that flip?

THE PROMISSORY BUYER shall be entitled to assign this agreement or its rights hereunder only with the written consent of THE PROMISSORY SELLER.
Any such assignee must fully assume all of the obligations of THE PROMISSORY BUYER hereunder by written agreement.

Q: What are the tax consequences for profit on a flip?

he will have to pay income tax of the profit

Q: Can a US citizen use a 401K or IRA to buy property in Panama?

this can help to get a loan, but developer only requiremement is to collect payment.

Q: What is the process to establish residency?

investing more than $300,000 or for retirement proof that he earns more than $2,000 x month.

Q: Is there homeowners insurance?


Q: Is there a tax lien certificate stating there are no taxes or leins on the property?

The project is not built yet, in order to transfer title when project finished yes the builder has to have all cleared before transfer is allowed.

Q: Can someone set up a LLC or Corporation and what are the tax consequences?

can set an LLC or Corporation, you will pay income tax in the us for only the difference of what you pay in Panama.

Q: Does earnest money deposit go to an escrow company? Is it held there until the closing? Is there some sort of insurance policy that can be purchased that would protect down payment on a property that has not been built yet?

Doesnt go to an escrow account, but we can get insurance for the deposits.

Q: Is it safe to buy a Panamanian corporation shares that hold title to real property?

Not safe. Better to buy with transfer title. When you buy a corporarion you assume responsability of the corporation, so in that case you will need more document making previous owner reponsable for what ever might come up from compromises of that corporation. I recommend you buy with transfer tiltle, then no risk.

Q: What documentation is required for foreigners to purchase in Panama?

only his passport information

Q: What documentation is needed to qualify for a loan?

We will need the following

1. Copy of your passport and a second ID
2. General Income tax returns (two last years)
3. Two bank reference letter
4. Job reference letter (if applies)
5. Latest 6 months of your personnal  bank account statements
6. Copy of the purchase contract.

Q: What is the interest rates? How much down? How long is loan for?

The interest rate will vary from 5.75% – 7%