Real estate in Panama, whether residential or commercial real estate, at the time of going through the sale process must go through the transfer process of property title, which has a value of 2%.
This percentage of 2% is applied to the value registered or established in the title deed.
Another taxes that all property in Panama must pay at the time of transfer of property title, is the 3% that corresponds to capital gains, this 3% is set at the value of the property at the time of sale.
Ah, another detail that should be taken into account when transferring a title to a property in Panama is that we must cancel the charges for notary fees. These charges are in a range of $ 200.00 and $ 300.00, it is important that you have the knowledge that these fees must be paid to the Public Registry of Panama and that they can also vary greatly according to the fixed value of the property in your sale contract.
Now knowing what taxes must be paid for the transfer of a property title, now it is interesting to know who should pay these for the property transfer tax in Panama , the entity that buys or sells.
We tell you that generally in Panama the seller is the one who is responsible for paying 2% taxes for transferring the property, as well as the 3% cost for the taxes that are given by transfer of capital gains. In some cases, depending on the negotiations that are presented on both sides, this point remains open.
Purchase Transactions – Real Estate Sales in Panama
It is interesting to have knowledge of who pays these costs … in this case each of the parties makes the payment of their own closing costs.
This is because the parties usually do their paperwork with their lawyers to write the contract of purchase and sale, check purchase contract, title paperwork, deposits, tax procedures and others.
The closing costs are approximately 2% of the sale value of the property, whether it is an apartment, house or other property in Panama, it is important to be clear that these costs may vary according to the particularities that are given in the negotiations.
To finish this article we point out that the average time the transfer record takes in the Public record its 1 to 3 weeks, but if what you are looking for is to expedite the process you can cancel an extra fee and can be issued in 2 business days.
We hope that this article has been of interest for your entire process, whether it is buying a property in Panama or selling one. Remember that a house, apartment, land, commercial and industrial property must go through these procedures, and you should be advised by experts to help you expedite these procedures and not waste time and money. Find an advisor among our more than 400 real estate agents in Panama.
MLS Acobir, is the most preferred property list in Panama. Please contact us for all of your Panama Relocation and real estate needs.