Posted by Maria Arias on July 27, 2017 | Real Estate Advices | 0

Types of Properties in Panama

It would seem easy to search for properties in Panama whether for housing, business or investment. There are three different types of properties in Panama and laws that regulate them.

Titled Property

Property titles in Panama are very similar to those of "fee-simple" in the United States. Panama has a Public Registry with a department that oversees the registration of properties titled in the nine provinces of the country.

The titled property is the most preferred type since it is easily checked in the Public Registry system, and also provides the safest form from the investment point of view. Titled properties in Panama incur an annual property tax, when it is recorded with values above US $ 30,000.

Property on Probate Law

This type of owner property is the state, which is "occupied" or "used" by Panamanian individuals (or Panamanian organizations) over a long period of time. Possession rights are generally granted to "possessors" by means of a simple documentary certification, issued either by the Mayor, chief of police.

Possession rights are not applicable to the collection of property taxes, however, the improvements made to the property, if they could be subject to the application of municipal or national taxes.

Concession Property 

This is a state property, where the state has granted a concession to an individual or an organization for a specific purpose, such as real estate development, hotel, or other purposes.

Concessions in Panama are generally granted for a maximum period of 20 years (renewable), however, some concessions are granted up to 40 years (renewable).

Usually concessions are given in coastal or state protected areas where title deeds are not allowed by law.

Unlike Property on Possession Rights, Concession Ownership is guaranteed by the government through a Specific Contract, so that there is very little risk for the investor.

Buying a property in Panama