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 Público". 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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