#real estate in Panama

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Tax Implications for Real Estate Buyers and Sellers in Panama

Panama's tax code is subject to periodic changes; therefore, any person contemplating a tax burden resulting from real estate purchases ought to seek the advice of a qualified professional who knows about tributary matters.

The following is a general overview regarding taxes related to the most common sale and purchase types of real estate transactions. It is not to be considered as complete or as advice.

1. Property Taxes

Any location or any type of REAL ESTATE IN PANAMA, whether urban or rural, is eligible to pay property taxes. If the following conditions are met according to Article 764 of the Panamanian Tax Code then one can get some exemptions from property tax, these conditions include:

All properties registered at a value of $30,000 or less, including improvements of land, for example, construction.

Land devoted only to agricultural operations such as agriculture and registered with the Ministry of Agriculture and Development at no more than $150,000.

The real estate tax basis should be understood as a fusion between the value of the land and the improvements of the property; it is any construction on the land, appraised by the Land Commission, which is known by the name Oficina de Catastro. A real estate transaction at a price higher than the appraisal value can then be recorded with the new, higher value, making it the new basis for taxation.

Property taxes exemption

One can enjoy an exemption of property taxes for 20 years in Panama properties for which the occupation permits were issued before 2011 December. However, property tax exoneration in Panama has changed today.

Registration value determines the number of years a property enjoys free from taxes today.

Any property will automatically grant 20 years of exoneration if registered under $120,000 in value. For properties whose values amount to a range between $120,000 and $300,000, exoneration for 10 years is granted. For improvements if the values are over $300,000, 5 years of exoneration can be applied.

The thing of prime interest is that, although the real estate itself benefits from the exemption in terms of paying tax, the piece of land where it sits doesn't unless it is worth under $30,000 on record. In whichever case the immovable property of the property, the tax about land should be paid at the initial days. It is divided proportionately among all of the individuals on the premises within that area of land and tends to range within $500 yearly.

In the case of acquiring a Panama property whose registered value qualifies it for property tax exemption, the difference between the sale price and original registered value will determine the property tax amount to be paid. For instance, in the event of a resale property being sold at $400,000, while the original registered value of the same property stood at $240,000. The seller is responsible for the payment of the property taxes over the period for which the seller has owned the property calculated over the difference amount of $160,000 so that he may transfer the property and get it registered as sold.

seller can be exempted from paying tax imposed on the new price paid provided that such exemption falls within the timeframe for the exoneration. It typically takes around 6 months and some legal costs. We suggest you employ a competent accountant or attorney specializing in this type of transaction.

2. Income Tax from Rentals

Those having a rental income are exempted from national and municipal taxes, administrative costs, maintenance and repairs, and depreciation of the property.

3. Value Added Tax

Value-added tax is a sales tax that applies to the imported goods, products sold, or services rendered in Panama. The individual receiving rental income in Panama is taxed under this, at a flat rate of 7% of the gross rent. If the monthly revenue is less than $3,000 and the average annual revenue is below $36,000, the tax will be exempted in the last tax year.

4. Real Property Transfer Tax

When selling or transferring a property, the Real Property Transfer Tax is imposed and computed on the higher of the aggregate value, be it the sale price or the registered value, together with the improvements. The tax rate is 2% of the higher value out of the two, and an additional 5% for every year that the property has been owned.

5. Capital Gains Tax

Capital gains tax is a flat rate of 10% computed on the net gain realized from the sale of the property.

Know the time to pay your Panama real estate taxes.

Panama's real estate tax season happens 3 times annually, at the end of April, August, and December.

How to check the amount of real estate taxes due

You can apply online from a DGI tax authority or revenue agency for your unique Taxpayer ID if you don't have one already. An NIT is a number that is assigned uniquely to taxpayers and this number allows them to view their taxation information in an online platform which is offered by the tax authority website. No service charges are needed to acquire a NIT or to use the online system. You can also print certificates of good standing for property taxes that are being paid.

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Discover Panama Real Estate: Investment and Lifestyle Opportunities

Panama is unique in the sense that it is a country that has amazing potential for development. Yet still has breathtaking natural scenery from tall city buildings to sandy beaches to the towering mountains in the background. This little pearl of Central America is not only a perfect place for a vacation but for making investments in property as well. Panama can be considered the world’s most attractive country to invest in mainly because of its rapidly maturing economy, stable political system and attractive real estate in Panama.

In this article, many aspects of Panama real estate are discussed, including investment opportunities and the quality of life any person getting to live or invest in this warm climate would enjoy.

Why Panama? The Appeal of Real Estate in Panama for Foreign Buyers

As is seen, the major strength of Panama is the combination of economic efficiency and the availability of attractive tourist areas. Its markets are dollar operations based, meaning that exchange risks do not come into the picture, while its banking systems are fairly developed and well developed to encourage investment.

Another factor is also that Panama has a very liberal policy towards foreign buyers. In contrast to some other nations, it permits freehold title to properties for foreign residents with limited conditions. Its business environment, together with initiatives such as the Friendly Nations Visa, lures foreigners and retirees.

Also, it is reported that Panama provides one of the lowest costs of living in Central America. On average, as far as healthcare, groceries and utility bills are concerned, costs are considerably lower than in many countries in the West. The relative cheapness of the property in comparison to many neighbouring countries makes it a sought-after place to call home and a nice place to put your money into as well.

Opportunities in Panama Real Estate Investment

Luxury real estate in Panama has the prospects of short-term speculation and long-term investment returns. It has the mainstream markets of Panama City, Coronado Monte Líbano, and other diversified areas like Boquete.

Panama City, being an economic hub of Panama with a lot of international business, becomes a favourable area when it comes to rent-seeking or lease opportunities. As stated, properties in this city experience steady appreciation mainly because of the development which continues to take place. Coronado, which is a coastal town, is ideal for those looking for vacation rental since this area is mainly occupied by tourists and retirees.

Another additional advantage of the country is tax incentives. From the above view of tax incentives, new construction of properties is fully exempted from the payment of property tax. Also, the increasing popularity of tourism everywhere in Panama pushes the demand for popular short-term accommodation, thus being a good investment opportunity here.

Lifestyle Benefits of Panama

In Panama, you have an opportunity to enjoy a comfortable tropical life. The country has a favourable warm climate of tropical nature almost all year round and simply stunning geography, which is perfect for mothers with children – fans of in-door outdoor activities alike. The Pacific coast beaches are ideal for rest and fun in water activities, including snorkelling as in the Bocas del Toro and the San Blas Islands or pursuing tranquillity in the high hills of Boquete.

The people of Panama are very friendly, and it is a very diverse nation, so expats will feel at home here. English is currently used by a significant population, especially in urban areas, meaning that it is easier for foreigners to make their way into the country. This is especially true when considering the flavour of Panamanian life including culture, cuisine, festivals, and the rest.

Another is healthcare which is another great attraction in the country of Panama. The country is known to provide quality medical services at a very low price as compared to North America. Most of the hospitals have linkages with these world-class universities, and therefore, hospitals guarantee quality services to their clients. Here are some of the suggestions about the city that can offer you properties and living under luxury real estate in Panama.

Panama City

Panama City is the financial centre of Central America and, therefore, features modern high-rises, good apartments, and first-rate infrastructures. And it’s best suited to people who want to acquire upmarket residential or commercial properties. The availability of clubs, elegant restaurants, and shopping malls also make it ideal for those who prefer to live in the city.

Coronado

It is a preferred tourist destination as well as a retirement village. Thanks to its location close to Panama City, beautiful and quiet beaches, and golf courses it is perfect for developing vacation homes and rental purposes.

Boquete

Situated in the mountainous region, Boquete has become famous for its fractious climate and rich vegetation. It is also among the best places that seniors visit to seek solitude. Houses here include log cabins to mansions. Thus, there is a solution for every wallet size in one way or another.

Bocas del Toro

In a nutshell, Bocas del Toro enables fans of islanding dreaming to live the life of their dreams. Its coral reef base and leisurely atmosphere make it a tourist destination and an investment attraction as well. Real estate like beachfront lots and houses, and environmentally friendly tourist facilities such as eco-tourism accommodations are usual in this zone.

The Investment Potential Behind Property for Sale in Panama

The procedure for making a real estate investment in Panama is simple. However, needs to be well-thought out. Foreign buyers are on an equal standing as the Panamanians with regard to purchasing property in Panama since most property types are unrestricted.

To invest in a property for sale in Panama, first get the services of a good real estate agent who is familiar with the market. They will help you identify properties of interest in buyer-seller negotiations and will assist in signing documents. The same applies to hiring an attorney to help ensure the title to the property and the overall transaction is legal in Panama.

Subsequently, once the property is identified, a “Promise to Purchase” is eventually signed, and then the due diligence period. When all requirements have been fulfilled, there is a last sale that follows a public deed to convey the property.

Tax Advantaged of Real Estate Investment

The Panamanian government allows several tax exemptions on real estate investments. The property that is newly purchased qualifies for property tax for as many as twenty years based on the value of the property.

But rental income is subject to tax, it is allowed to offset rental expenses such as maintenance and property management expenses. Capital gains tax applies when selling a property. However, it’s very low compared to other countries and only applies when selling the property. Seeking the services of a tax professional aims at compliance and, at the same time, aims to maximize certain incidences.

Sourcing Loans for Foreign Purchasing

It has to be noted, however, that most foreign buyers prefer cash, although they can avail of financing from the banks in Panama. Nevertheless, it is still possible to get a mortgage only after fulfilling some conditions: to prove the income and to have an account in a local bank.

The rates of interest are usually higher than in North America and in Europe. However, financing can be a possible way to keep cash. Some developers also provide such financial services whereby first-tier financing is made available to the clients, and this may, at times, be more easily granted than a loan from a bank.

Challenges to Consider about Real Estate in Panama

Real estate in Panama is a lucrative business, provided one should be prepared to meet any possible challenges. Timing of the market can be a principal issue, say, in resorts where changes in the market may reduce prices in properties and rental yields.

Real-life issues like zoning laws or property ownership issues do show that one needs an attorney with considerable experience in handling the matter. On the other hand, there are some rural areas that may not have appropriate infrastructure meaning that accessibility and utilization of utility will be well compromised.

Hire Professional To Avoid Risks

The market prospects remain positive concerning the real estate in Panama. Construction projects such as the Metro in Panama and new highways improve access and, therefore, increase the value of the property.

It also opens up more demand for residential properties in the country being a favorite of digital nomads and retirees. Besides, Panama is situated as a logistical platform for free trade, which means constant economic development for real estate activity.

Conclusion

The reasons that make Panama a perfect place to invest in real estate with qualities in terms of lifestyle, job opportunities and business environment. It ranges from the busy commercial kitty of Panama City to the sandy and lonely strip of Coronado.

In order to take the opportunities Panama real estate offers, you should get to know the market better, consult a professional and think thoroughly. Regardless of the reason, many people seek a perfect residence, a comfortable place for retirement or a good investment. Panama is the right place to be.

[panamarealestateopportunities]

Panama Real Estate Opportunities

Welcome to Panama Real Estate Opportunities – your trusted guide to discovering the hidden gems of Panama’s real estate market.

I’m Ryan, the face behind this venture, and I’m here to navigate you through the vibrant and diverse world of properties in this beautiful country.

My Journey to Panama Real Estate: Born with a natural inclination towards exploring new horizons, I found my calling in Panama – a land of contrasts and opportunities. With years of experience in the real estate industry, coupled with my extensive local knowledge, I realized that Panama’s property market was a treasure waiting to be discovered. This realization led to the birth of Panama Real Estate Opportunities, a platform dedicated to helping others find their dream property in this tropical paradise.

Why Choose Panama? Panama stands as a beacon of stability and growth in Central America. Its booming economy, rich cultural heritage, and breathtaking landscapes make it an ideal location for investors, retirees, and anyone looking to start a new chapter in life. My goal is to make your transition to life in Panama as seamless and enjoyable as possible.

More Than Just Real Estate: While real estate is my profession, the ocean is my passion. When I’m not scouting for the best properties, you can find me riding the waves, as an avid surfer. The Pacific and Caribbean coasts of Panama provide some of the most exhilarating surfing experiences, and I’m always eager to share my favorite spots with fellow enthusiasts. Fishing and boating are other pursuits that keep me connected to the natural beauty of Panama. There’s nothing quite like the thrill of a fishing adventure in the open waters or a peaceful day spent boating along the scenic coastline.

These experiences have not only given me a profound appreciation for Panama’s natural wonders but also a unique perspective on the lifestyle that this country offers. Your Guide to Panama Living: At Panama Real Estate Opportunities, we do more than just help you find a property. We introduce you to a lifestyle. Whether you’re seeking a beachfront villa, a cozy mountain retreat, or a vibrant city residence, I am here to guide you every step of the way.

Let’s Embark on This Journey Together: Your dream home in Panama awaits, and I’m here to make that dream a reality. Let’s embark on this exciting journey together. Welcome aboard!

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Beneficios de Construir tu Casa Campestre en Valle Miraflores

Valle Miraflores es uno de los proyectos inmobiliarios en Panamá que redefine la experiencia de vivir en una casa campestre. Este desarrollo combina la serenidad del campo con todas las comodidades modernas, ofreciendo una calidad de vida elevada que es perfecta para quienes buscan tranquilidad. Razones para Elegir una Casa Campestre en Valle Miraflores 🌄 Conexión directa con la…

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✌Top 100 Real Estate Corruption Scandals by Deep State

“Unveiled Secrets: The Shadowy Depths of Global Wealth and Corruption” Creating a ranking of the top 100 real estate corruption scandals by Deep State and by money volume is a massive undertaking, as it requires extensive research into global cases, many of.  which are either underreported or involve hidden funds. These scandals involve billions of dollars and have had significant global…

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FLAIR isn’t just another development; it’s a testament to refined living. Emerging as a beacon of sophistication, FLAIR unveils a world unexplored at Ocean Reef Islands.

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Villa Hermosa Bed & Breakfast for sale

Villa Hermosa is a house without equality real estate in Panama, and it is for architecture and landscaping lovers. Living in it will transport you to countries or places that evoke the pleasure of living, that arrange the structures, and their night lighting will allow you to feel like you are in a dream country house, where the sounds of nature will give peace and tranquility to the spirit and rejuvenate the energies of the body. The property has five separate structures with nearly 500 square meters (5,400 square feet) of construction in a lot of 2,663 square meters (0.7 acres). 

The first structure is the wooden cabin that serves as the master bedroom. Its design came from a Panamanian architect, and its construction is from the island of Borneo, on the other side of the world.

The wood is not local and is not treated with chemicals because it is one of the hardest woods in existence. The cabin's height allows for the best views and visual control of the entire property. It has lots of glass, allowing its residents to feel in contact with the exterior without losing the sensation of being sheltered. Toucans, white-faced monkeys, orioles, hummingbirds, and sloths are the occasional neighbors visiting the property's trees, and you can see from the cabin. The second structure is a house with three independent rooms, each with its own bathroom. The main feature of the rooms is their brick vaulted ceilings (Catalan vaults). The construction of Catalan vaults is not from Panama. Instead, the owner hired a master vaulter from Mexico to build these wonderful and oversized crafts. Looking at the brick ceilings and their intricate details is the best remedy for falling asleep naturally.

The third structure is where the hearts rejoice: the kitchen! It has a terrace and a full bathroom. It is spacious enough to accommodate the demands of a chef. The kitchen's architectural feature is its 80-year-old handcrafted roof tiles and visual command of the gardens.  The fourth structure is the social area. It includes a small lobby, a den, a dining area, and a bar, with large windows visually bringing the exterior gardens into the enclosed space. This place is just amazing! The ceilings are Catalan vaults of great height and with different styles that amaze locals and strangers. It comes up as a topic of conversation between architects or engineers who have visited the property.

In the social area, you dream up new projects, plan, or chat with your significant other about the day's trivialities. The fifth structure is a large reception area. The joy of family or friend gatherings takes place here. It is an open-air plaza with a seated capacity of thirty people surrounded by nature and natural sculptural decorations and with the canopy of the property's trees as a roof. In the middle of the plaza is a bonfire, outside a clay oven and a grill.

The property is bordered by a creek, with water running all year. The sounds of the running water, the wind, and the birds complement the open and landscaped gardens spectacularly. In them, you will find local plants of all sorts, from the common ones, such as ferns most sophisticated ones, such as orchids, including heliconia’s, bromeliads, and coleus. Finally, there is a feature that we cannot overlook: the night lighting! The night lighting design is in such a way as to reduce the glare coming from the light source. For this reason, thus enhances the sensory experience when looking at what the light touches.

When the night falls, the property starts to be transformed by artificial light, and the symbiosis between architecture and landscaping comes to life. This is when one feels transported to a place like a fairy tale! As if this was not enough, this property also generates income! However, we will leave that for a discussion in case you want to approach us and talk about this property, let's me know!

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The Savvy Suppers: Coronado Retirees and Their Unending Quest for the Perfect Deal

In the world of retirement, there's an unspoken rule: Thou shalt never pay full price for a meal! Retirees, the seasoned experts of thriftiness, have honed their skills over the years and mastered the art of hunting down the best restaurant specials in town. With the precision of a military operation and the enthusiasm of a child on a treasure hunt, these retirees are on a mission to find the most delectable deals in the culinary landscape, all while wielding their jubilado discount cards should their instincts be less than perfect and a forced discount is required.

Meet the Bargain Hunters

You've seen them at your local diner, lurking in the shadows with their reading glasses perched atop their noses, scanning the fine print of menus for those elusive words: "special of the day." These retirees are like culinary detectives, armed with their trusty jubilado discount cards and a penchant for penny-pinching.

They've perfected the art of timing, too. It's as if they have an internal GPS that tells them precisely when the lunch rush will end and the early bird dinner crowd will begin. They swoop in like well-dressed hawks, ready to pounce on the early bird specials with the precision of a surgical strike.

The Quest for the Golden Ticket (Discount)

Retirees have been known to roam from restaurant to restaurant in search of the holy grail of dining discounts. Some say it's not about the food; it's about the thrill of the hunt. You'll often hear them bragging about their latest conquests, like war heroes swapping tales of daring escapades.

Picture this: A group of retirees sitting around a table, regaling each other with stories of the incredible deals they've scored. "Last Thursday, I had the two-for-one burgers at The Bench ," says Ed, the self-proclaimed king of the gourmet burger. "And don't even get me started on the half price wings at Gold Coast on Wednesdays. I practically live there!"

Navigating the Specials Minefield

It's not all sunshine and rainbows for these deal-hungry retirees. Navigating the world of restaurant specials can be a treacherous endeavor. One wrong move, and they could find themselves stuck with the chef's experimental tofu surprise, wondering if it's too late to convert to vegetarianism.

Then there's the issue of deciphering the cryptic specials lingo. "Soup of the day" can range from a comforting chicken noodle to a perplexing "mystery broth." And let's not forget the enigmatic "chef's creation," which could be a culinary masterpiece or a desperate attempt to use up leftovers.

Special Bonds and Traditions

Despite the occasional culinary misadventure, retirees treasure their special bonds with fellow deal-seekers. They form elite dining clubs where members exchange secret handshakes and share classified information on the best deals in town. It's not just about food; it's about the camaraderie and the thrill of the chase.

These savvy seniors have also developed time-honored traditions, like "Taco Tuesdays" or "Pizza Mondays," which serve as excuses to embark on their culinary quests with their friends. Their schedules are packed tighter than a suitcase on a cross-country road trip, all in pursuit of the perfect dining deal.

But what about the restaurant owners caught in the middle of this jubilant culinary crusade? Their margins are already as slim as a wafer-thin mint, and now they're faced with the challenge of giving away their culinary creations at below cost. It's a plight that keeps many of them awake at night, as they balance the need to attract customers with the need to keep their businesses afloat.

In the end, retirees have discovered that the cheapest place to eat is wherever they can find a good deal and great company. So, the next time you spot a group of silver-haired adventurers scrutinizing a menu like it's a treasure map, remember that they're not just ordering food; they're making memories and sharing stories that will last a lifetime. And, in the midst of the fun, we hope they remember the restaurant owner who's doing their best to strike a delicate balance between welcoming their cherished senior customers and keeping the lights on, and decide to leave the Jubilado card in their pocket book from time to time.

Eldon :)

[landcentury]

Cheap land deal in Panama City, Florida for $8,500.

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Exploring the Charm and Diversity of Buen Retiro, Coclé, Panama

You’re about to embark on a captivating journey through the charm and diversity of Buen Retiro, tucked in the province of Coclé, Panama. Nestled between the resplendent Pacific coastline and verdant mountain terrain, Coclé invites you to immerse yourself in its rich historical tapestry and explore archaeological treasures that shed light on Panama’s heritage. Your senses will be awakened by the…

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