The surge and diversity of businesses flourishing in Panama, coupled with its appealing economic steadiness, have spurred many entrepreneurs to delve into the real estate sector in recent times. The assortment of properties and the lucrative advantages of their dealings are among the key attractions for an entrepreneur in United States to focus on real estate.
Yet, for those aspiring to become a property agent and achieve success in this field, staying updated with the latest developments in the property market in Panama is highly recommended.
What does a real estate agent do?
A real estate agent is a specialist within the real estate industry responsible for facilitating the transactions of buying, selling, and renting properties. The agent’s primary role is to link buyers with sellers, offering tailored guidance and handling all the necessary legal and administrative processes involved in a property transaction.
Indispensable requirements to become a real estate agent in Panama for United States citizens
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 test conducted by the Real Estate Technical Board.
- Secure a bond of ten thousand (USD 10,000) US dollars to cover any claims of negligence and government penalties.
- Provide a power of attorney and a request for legal documentation, submitted through a lawyer and properly notarized, along with a legal form attachment.
- Provide proof of Panamanian citizenship or, if a foreign national, evidence of at least 5 years of residency.
- Make an annual payment of twenty-five (USD 25) US dollars for Stamp Taxes.
- Submit proof of a clean criminal record.
Advantages of Being a Real Estate Agent in Panama: Explore the Benefits
Working as a real estate agent within the expansive real estate market in Panama involves staying dynamic and keeping well-informed about all potential property transactions and negotiations with clients. Additionally, there are various advantages to consider as you prepare to become a real estate agent in Panamanian territory. These benefits include:
- Strategic location: Positioned in Central America, Panama enjoys a favorable location, drawing international investors and buyers. As a real estate agent here, you’ll have access to a global client base, aiding in cross-border transactions.
- Tax reduction: This is often a preferred advantage for agents due to the financial relief it provides. For instance, purchasing property with a cadastral value under $120,000 exempts you from paying property taxes, as per Law 66 of 2017. Moreover, properties appraised up to $120,000 are not subject to real estate taxes, those valued between $120,001 and $700,000 incur a tax rate of 0.5%, and properties surpassing $700,000 are taxed at a rate of 0.7% of their cadastral value.
- Expanding real estate market: The real estate market has experienced significant growth in recent years, providing agents with opportunities to advance rapidly within the industry.
- Residency permit opportunity as an investor: Real estate investors can benefit from the real estate investment visa program. By making a qualifying real estate investment that adheres to national legal standards, investors may apply for and secure residency.
Legal Solutions Panama: Specialists in Legal Guidance for Establishing Your Real Estate Agency
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 vast expertise, the Legal Solutions team is well-equipped to guide you through the process of incorporating your company. Their seasoned experience ensures that all procedures are executed smoothly, without any unexpected issues, guaranteeing a successful launch.
To find out more about their offerings, feel free to visit their site, where you can enjoy a complimentary thirty-minute consultation with one of their experts.
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