Off plan investors in Panama can look forward to a straightforward process with the minimum of fuss – there is an amount of red tape to get through, but appointing a local trusted lawyer to help in proceedings will do the world of good for a transaction.

There are two ways of obtaining property in Panama – the first, and easiest, way is through titled property. The lawyer can simply check details with the local Land Registry to make sure there will be no pitfalls with the property and that the seller is the legal owner of the property. The other method is through what is known as ‘right of possession’ – this method applies to a lot of properties in protected areas, national parks and beachfronts and is a riskier manner in which to obtain property. Basically it involved purchasing the rights to live in the property and on its land, but there is no actual physical ownership – whilst it isn’t the case that this will all go wrong, it is riskier than owning a property outright.

Once a property has been decided on and the necessary checks have been carried out by the lawyer, the buying process can begin. First of all a Promise to Purchase agreement is drawn up – a kind of pre-contract – and a deposit is usually paid. After this has occurred a number of things can take place – it can be worked out how funds will be transferred, any issues with the property can be worked out and everything is generally put into place. Once everything is sorted, the main contract is signed and sent to the Public Registry of Panama, where the title deeds are signed over to the buyer and the purchase is complete. All remaining fees and taxes are then paid in full.

Applicable fees include notary, lawyer and some taxes, and rates vary from region to region.