| The capital is Panama City and the main language | | | | agriculture, which records their possession. |
| is Spanish. In spite of the better economic | | | | Properties with title deeds could be mortgaged |
| growth, nearly one-third of the Panama population | | | | but the Panama obtained through rights of |
| is living below poverty line. To attract direct | | | | possession could not be mortgaged. Building |
| foreign investments, the government of Panama | | | | permits could be obtained locally without too much |
| had been provided special Panama real estate | | | | difficulty. |
| price offers and significant tax discount and | | | | The government of Panama had announced a |
| incentives to foreign investors in estate for sale | | | | moratorium on property taxes for all new |
| and Panama rentals. | | | | constructions for 20 years. However, the |
| The enactment of Law No. 8 by the government | | | | investors in estate for sale should pay a 2% |
| of Panama is considered one of the most modern | | | | transfer tax at the time of the sale of the titled |
| and comprehensive steps to boost tourism | | | | property. Apart from Law 8, the Panama Law 54 |
| investment. Under this law, international real | | | | also offers protection to foreign investment in |
| estate investors obtain 100% exemptions on real | | | | Panama real estate listings and Panama rentals. |
| estate taxes, income tax, other related taxes, | | | | Under this law, foreigners enjoy the same rights |
| and import duties for construction materials and | | | | as local citizens. |
| equipment. The government has also created | | | | They are allowed to possess all profits of their |
| special zones to promote tourism-related Panama | | | | investments and repatriate capital dividends, |
| real estate investment that provide multiple tax | | | | profits, and interest accrued on their investments |
| exemptions and substantial tax holidays. This had | | | | without any restrictions. However, the investors |
| created a greater awareness among international | | | | should comply with Article 16 of the Law 54, |
| investors about the prospects and profitability of | | | | which imposes certain compliance stipulations on |
| the Panama listings in recent years. | | | | international real estate investors. This article |
| International investors do not have any | | | | should be studied thoroughly by international |
| restrictions in estate investments. They could | | | | investors before putting their money in Panama |
| obtain property ownership either through direct | | | | real estate for sale or Panama rentals. Still, the |
| titles or through rights of possession. All title | | | | positive gestures of the Panama government to |
| deeds of properties are recorded in the public | | | | international investors provides ample scope for |
| registry. On the other hand, rights of possession | | | | profitable estate ventures both in short-term and |
| relate mainly to untitled and unclaimed lands and | | | | in long-term perspectives. |
| they are handled by the department of | | | | |