When purchasing real estate in Panama, many concerns develop in the minds of foreign investors because of the uncertainty that comes along with buying anything from a different country. You may be worried about the process being unfamiliar or the paperwork being difficult to decipher. These are legitimate concerns, however when buying real estate in Panama, just a little research will help relieve some of these concerns. The same goes for foreign investors who may be concerned about their right regarding ownership of property in Panama, which is a crucial point of concern for any foreign investor looking to buy real estate in Panama. However, there are reasons to feel more comfortable than you might imagine concerning foreigner rights of ownership of property in Panama.
Under Article Forty-Four of Panama’s constitution, ownership of real property and/or private investment in the property is guaranteed and protected. Like the US Constitution and other constitutions from other counties, Panama’s constitution is equally as binding and important to the people of Panama and the government. Therefore, if you’re a US citizen, treat Panama’s constitution like you’d treat the US Constitution when dealing with purchasing real estate in Panama.
Here is what Article Forty-Four of Panama’s constitution says regarding purchasing real estate in Panama:
“… Private Property is guaranteed as long as it is acquired in accordance with the law by natural person or legal entity.”
Ever since the Civilian Code was created, the enacted code has stipulated that Panamanian laws can be applied to both nationals and foreigners when purchasing real estate in Panama. This particular code in Panama regulates all general contracts under the principle of “autonomous of the will”, and is important to consider when purchasing real estate in Panama. The Constitution of Panama states in article eighteen that particulars are free to act in all matters which are prohibited by law.
In article three of Law number thirteen (1993), which in fact pertains to condominium law, specifies that the owner of real property in Panama can mortgage, transfer, or use his or her property in all kinds of legal acts, among living persons or by cause of death.
It is important to know your rights as a foreign investor when purchasing real estate in Panama, but not only to protect your property of real estate in Panama, but also to understand that your rights in Panama as a foreign investor in real estate in Panama are not incredibly different from your rights as an investor in real estate in the United States. If you are still uncertain about your rights, or anything else concerning the purchasing of real estate in Panama, please read on for more articles on this site to learn more about real estate in Panama.