Real estate license in Panama: What United States nationals need to know
Business

Real estate license in Panama: What United States nationals need to know

Brigette J. Stringer

Due to the boom and multiplicity of businesses in Panama, in addition to its attractive economic stability, numerous entrepreneurs have become interested in the real estate market in recent years. The variety of properties and the benefits of their transactions in terms of profits are some of the most attractive points for an entrepreneur in United States to specialize in real estate.

Nevertheless, it is highly recommended to stay updated on the latest developments in Panama’s property market if you aspire to become a real estate agent and wish to secure success in your journey.

What is a real estate agent?

A real estate agent is an expert in the property market responsible for facilitating transactions involving buying, selling, and leasing properties. The primary role is to connect buyers with sellers, offering tailored guidance and handling all the legal and administrative processes essential for a real estate deal.

Essential criteria for United States citizens to qualify as a real estate agent in Panama

As with any position in the financial and property market, becoming a real estate agent in Panama entails submitting specific documentation and adhering to the legal procedures in place. The necessary requirements include:

  • Complete courses and successfully pass a written exam conducted by the Real Estate Technical Board.
  • Secure a bond worth ten thousand (USD 10,000) US dollars to address negligence claims and government penalties.
  • Submit a power of attorney and a legal request through an attorney, duly authenticated by a notary public, and include a legal form.
  • Provide evidence of Panamanian citizenship or, if you are a foreign national, demonstrate a minimum of 5 years of residency.
  • Pay an annual fee of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
  • Show evidence of a clean criminal record.

Becoming a real estate agent in Panama: uncover some of its advantages

Being a real estate agent and working in the wide real estate market in Panama means being in constant movement and informing yourself about all possible property transactions and deals with buyers. Likewise, there are some benefits that you can take into account in your preparation as a real estate agent in Panamanian territory. These are:

  • Strategic location: Positioned in Central America, Panama offers a prime location for attracting global investors and buyers. As a real estate agent, you can tap into an international client base and assist in cross-border transactions.
  • Tax reduction: This advantage is highly favored due to the financial ease it provides the agent. For instance, purchasing a property with a cadastral value below $120,000 exempts you from taxes on that property under Law 66 of 2017. Properties valued up to $120,000 are free from real estate taxes, whereas those valued between $120,001 and $700,000 incur a tax rate of 0.5% of the cadastral value, and for values exceeding $700,000, the tax is 0.7%.
  • Developing real estate market: The real estate sector has consistently expanded in recent years, offering agents rapid advancement opportunities in this field.
  • Possibility of residency permit as an investor: A significant benefit for real estate investors is the real estate investment visa program. By undertaking an investment that meets the country’s legal criteria, investors are eligible to apply for and obtain residency.

Legal Solutions Panama: Specialists in Guiding Your Company’s Incorporation as a Real Estate Agent

To make a remarkable entry into the real estate market, it’s crucial to have a company set up specifically for that purpose. If you’re in the early stages of your project and aim to excel in the real estate sector, seeking assistance from experts is the wisest move to help establish your business. In this regard, Legal Solutions Panama is a firm that specializes in the process of setting up companies in Panama.

With their wealth of experience, the Legal Solutions team is well-equipped to guide you through the process of incorporating your company. Their expertise ensures that all procedures are handled correctly, minimizing surprises and paving the way for a successful launch.

To learn more about their services, you can explore this site and avail yourself of a complimentary thirty-minute consultation with one of their experts.