Purchasing Panama Real Estate in Government Sales
Since the US Canal Administration returned control of the Panama Canal to the country at the end of 1999, the government has
focused on selling the properties that belonged to the US Canal Administration, so called reverted areas.
These areas were lands that were owned by the administration and the decision to sell them has created investment opportunities
in land that is for sale in Panama.
Land for sale in Panama through government sales
Changes have been made to Panamanian law concerning government sales, including the implementation of Law No. 22.
The procedures for public auctions are included in Article 44 and are as follows for properties with a value less than $300,000:
- The government will publicly announce when an auction will take place.
- Those who are interested can receive documentation concerning the available property. This documentation will outline the conditions of the sale.
- Anyone who is interested needs to pre-qualify by submitting a 10% deposit of the property base price no less than 48 hours before the auction.
- Once pre-qualified, it is possible to take part in the auction; bids must be at or above the base price.
- Upon winning the auction, a public document will be issued and the winner has five days to pay the balance, or the "complete auction amount." Once the balance has been paid to the government entity that is selling the property, the winner will be issued a title transfer deed.
- If the winner does not cancel the balance, he or she will lose claim to the property and forfeit the deposit paid.
- Deposits paid by those making losing bids will be immediately returned after the auction.
The location for these reverted areas is around the Canal Zone and primarily in the Clayton area of Panama City. This area was
home to both the US Canal Administration and a military base as well.
Panama Real Estate Investments
Investments in Governments Sales have the potential to be excellent Panama real estate opportunities. The Clayton area is a
beautiful location and as these reverted areas are converted to privately owned property, the property values will likely soar.
For someone interested in a foreign investment in Panama, this could be an excellent opportunity. The government of the country
actively encourages foreign investment and has established an excellent business model for people who are interested in investing
in Panama by creating the Panama Foundation structure and anonymous corporations.
Panama's Business Services and Structure
Panama Foundations can be very helpful for someone wanting to maximize their investments and minimizing their taxes. The foundations
are anonymous, non-profit structures that allow people from other countries to "donate" their investments, potentially creating
tax deductions. In addition, foundations cannot do business, but they can own corporations that do, allowing for business
opportunities.
In addition, it is possible to own a Panama Corporation through the foundation. This is also an anonymous structure and it can
do business anywhere in the world. If for example, real estate is purchased through funds received from the foundation;
this is a totally legal, yet anonymous way to conduct business. At a later time, if there is a desire to sell the property,
the corporation can be sold instead, eliminating the 2% transfer fee that exists on real estate transaction; this would also
eliminate any capital gains taxes for the investor in his or her own country.
Profitable Panama real estate
Investing in Panama real estate is a good business move and buying land in the reverted areas through Government Sales is very sound.
By utilizing Panama Foundations and Corporations, it is possible to maximize profits and minimize tax liabilities while purchasing
land in a desirable part of Panama City.
Panama has been experiencing a relative boom in the nation's economy. Panama real estate, especially investment property in Panama, has become a very attractive option.
With the strength of the Panama banks, this trend is likely to continue.
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