The Investment laws in Panama are very friendly towards foreigners. Foreigners are allowed to buy land and Panama Real Estate almost freely. They are given the same protection as Panamanian citizens. Property Tax exemption is given to companies for twenty years from the date of purchase for properties bough for business purpose. New buildings also will get the same exemption. Companies engaged in tourism promotion are exempted from property tax as long as they do the same business.

There are two types of ownership of land in Panama. One is the ownership of titled property. Such ownership is absolute. They are registered with the Registry of land. There is another type of ownership which is called right to possession. It does not confer the absolute ownership to the buyer. The buyer has the right to possession and right to do business there only. Foreigners are not permitted to buy land within 10 miles of the border area.

The cost of land is much less in Panama than in the US or Europe. To have a property transaction you must obtain the services of professionals. The help of an attorney and a real estate agent are necessary. The attorney will take care of all the legal matters.

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