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

Thanks to the surge and diverse nature of businesses in Panama, coupled with its appealing economic steadiness, a significant number of entrepreneurs have turned their attention to the real estate sector in recent years. The wide range of available properties and the lucrative potential of their transactions present some of the most enticing reasons for an entrepreneur in United Kingdom to dive into 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 does a real estate agent do?

A real estate agent is an expert focusing on the real estate industry, responsible for facilitating the buying, selling, and leasing of properties. Their primary role is to link buyers with sellers, offering tailored guidance and overseeing the various legal and administrative processes involved in real estate transactions.

Essential Criteria for United Kingdom Citizens to Become a Real Estate Agent in Panama

Like any job in the financial and real estate sector, to work as a real estate agent in Panama, it is necessary to present a series of documents and comply with the legal process. The requirements are:

• Complete relevant courses and successfully pass a written examination conducted by the Real Estate Technical Board.
• Secure a guarantee bond of ten thousand (USD 10,000) U.S. dollars to cover potential claims of negligence and government penalties.
• Submit a power of attorney along with a legal request through an attorney, duly authenticated in front of a notary public, and include a legal form.
• Provide evidence of Panamanian citizenship or, if foreign, proof of a minimum of 5 years of residency.
• Make an annual payment of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
• Submit documentation confirming no criminal record.

Being a real estate agent in Panama: discover some of its benefits

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: Nestled in Central America, Panama boasts a prime spot to attract global investors and buyers. As a real estate agent, you’ll have the opportunity to connect with an international clientele and assist in facilitating cross-border deals.
• Tax reduction: This advantage is highly favored due to the financial ease it offers agents. For instance, purchasing a property with a cadastral value under $120,000 means you won’t have to pay taxes on it, as stipulated by Law 66 of 2017. Furthermore, properties valued up to $120,000 are exempt from real estate taxes, while those with values between $120,001 and $700,000 incur a tax rate of 0.5% on the cadastral value. If the value exceeds $700,000, the applicable tax rate is 0.7% of the cadastral value.
• Growing real estate market: The real estate sector has seen significant growth in recent years, providing a rapid path for advancement for agents in this vibrant field.
• Chance for residency permit as an investor: Real estate investors can leverage the real estate investment visa program, allowing them to apply for and permanent residency by making property investments that meet the country’s legal criteria.

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 wealth of experience, the team at Legal Solutions can guide you through the incorporation of your company. Their expertise ensures that all processes are completed accurately, avoiding unexpected issues and guaranteeing a successful launch.

To learn more about the services they offer, you can visit here and receive a complimentary thirty-minute consultation with one of their experts.