Real Estate in
Panama
From The Caribbean to
the Pacific coasts, you will encounter in Panama not only a
tremendous diversity of landscapes, but a variety of real estate
properties as well. Whether you are interested in a Caribbean
island property, one of the condo in Panama City's striking
skyline, one of Bocas del Toro's charming Caribbean gingerbread
houses or beachfront homes, or one of Chiriqui's pleasant mountain
retreats, you are likely to find the piece of real estate of your
dreams in Panama.
Unlike many of its Latin America neighbors, ownership of real
estate property and/or private investment in it, is guaranteed and
protected by Panama's Constitution under Article 44. Since it was
enacted, the Civilian Code has stipulated that Panamanian law is
applicable to both nationals and foreigners alike.
With the US dollar serving as the country's legal tender, Panama
has enjoyed a significant advantage when compared to the rest of
Latin America. Real estate property has been, since Panama's
separation from Colombia in 1903, attractive to foreign investors,
particularly those from the United States.
Foreigners can own property in Panama with few restrictions.
Currently ownership can be conveyed in two ways: title and rights
of possession. Titled property is treated very similar to U.S.
real estate law. Deeds are
recorded in the public registry or "registro Publico". Rights of
possession are handled by the agriculture department and also
recorded. This system was originally set up in the land reform of
1971 to encourage homesteading of unclaimed, untitled land. Most
of the land traded in the islands is by right of possession with
the exception of town, proper.
The most important difference in the two forms of ownership is
that rights
cannot be mortgaged. Constitutionally the government cannot take
possession of private property without following a condemnation
process similar to the U.S.; the owner must be compensated for
land and improvements at fair market value.
Regarding waterfront property, by law all beaches are public,
hence all beach front properties most provided a right of way
starting from the highest tide to the property line. (The distance
may vary).
The technical aspects of property ownership and your best options
are best discussed with a qualified Panamanian lawyer.
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