The do's and don't's of investing in land

If there was a hair salon called “Confusing Panama Real Estate Jargon”, would you get your hair cut in it? That's why we have broken down the types of land investment and terms that may at first hit you in the face like a blind sparrow. Things like title and right of possession aren't terms to be scared of; they should be your friends. Here, let me introduce you both...

In Panama, a foreigner can own property with the same rights and protections of a Panamanian citizen. The Investment Stability Law was created, back in 1998, to encourage foreign investment just like that which you are thinking about. This law was designed to protect foreign investors for ten years and provides a shield from tax changes, customs duties, and both municipal and labor laws. (While you probably won't need this law very much, it can be fun to memorize, then shout out in an argument with your friends for no apparent reason. “It's all because of the Investment Stability Law of 1998, I tell ya!)

Let's say you are looking into buying a property in the name of a corporation. You'd then be privy to a twenty-year exoneration from real property tax granted by the National Registry of Tourism. This exoneration covers the corporation as long as the land you purchase is used towards tourism-related activities. Additionally, the government also grants a one-time exoneration from import duties to put towards the materials, remodeling, and furnishing of said construction. These property tax exemptions apply to all new construction and are determined from a sliding scale (depending on the value of the property).

1. Titled Property

Titled properties are the most reliable and straightforward type of land investment and Panama has a semi-reliable Public Registry system: the office which maintains a record of all titled properties throughout the isthmus. Information regarding titled properties is readily available through the Public Registry but you'll probably want a specialist doing this for you, as finding your information can be like finding a Spanish needle in an English haystack. By using a specialist, such as your attorney or perhaps your title insurance representative, you'll want to be issued, in writing, all information on said property. Some to keep an eye out for:

- Mortgages
- Ownership history
- Covenants
- Fence lines
- Encumbrances
- Encroachments
- Maps
- Shared driveways
- Verification of tax payments
- Verification of owner
- Verification of utility bills
- Liens
- Registered surface area

THE REMAINDER OF THIS REPORT, AS WELL AS OTHERS ARE AVAILABLE NOW IN THE PANAMA REAL ESTATE REPORT: A PROJECT WE HAVE BEEN WORKING ON: TO CREATE THE FIRST AND MOST RELIABLE REAL ESTATE GUIDE TO BUYING IN PANAMA. ORDER IT HERE!!!

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