Thanks to Panama’s economic surge and diverse array of businesses coupled with its appealing fiscal stability, many entrepreneurs have turned their attention to the real estate sector over the past few years. The wide selection of properties available and the lucrative advantages derived from these transactions make the real estate market particularly enticing for an entrepreneur from United States seeking to specialize in this field.
Nonetheless, it is highly recommended to stay updated on the latest developments concerning Panama properties if you’re considering a career as a property broker and aiming to build a successful career in the field.
What is a real estate agent?
A real estate agent is a specialist in the real estate arena whose primary responsibility is facilitating the buying, selling, and leasing of properties. The core duty of a real estate agent is to link buyers with sellers, offering tailored guidance while handling all legal and administrative tasks associated with a real estate deal.
Essential Criteria for United States Citizens to Become a Real Estate Agent in Panama
As with any profession in the financial and real estate fields, becoming a real estate agent in Panama requires submitting various documents and adhering to the legal procedures. The necessary criteria include:
- Complete courses and successfully pass a written exam conducted by the Real Estate Technical Board.
- Secure a bond worth ten thousand (USD 10,000) US dollars to address negligence claims and government penalties.
- Submit a power of attorney and a legal request through an attorney, duly authenticated by a notary public, and include a legal form.
- Provide evidence of Panamanian citizenship or, if you are a foreign national, demonstrate a minimum of 5 years of residency.
- Pay an annual fee of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
- Show evidence of a clean criminal record.
Exploring the Advantages of Being a Real Estate Agent in Panama
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: Positioned in Central America, Panama offers an advantageous position to attract international buyers and investors. As a real estate agent, this provides access to a global client base, enabling you to facilitate international transactions.
- Tax reduction: This perk is highly favored for the financial relief it provides agents. For instance, under Law 66 of 2017, purchasing a property valued under $120,000 means no taxes are owed on it. Moreover, properties valued up to $120,000 are free from real estate taxes. Those valued between $120,001 and $700,000 incur a tax rate of 0.5% of the cadastral value, while properties over $700,000 are taxed at 0.7% of the cadastral value.
- Developing real estate market: The real estate sector has been rapidly expanding in recent years, providing agents with the opportunity to advance swiftly in their careers.
- Possibility of residency permit as an investor: Another appealing benefit for real estate investors is the real estate investment visa program. By making a qualifying real estate investment that meets the country’s legal criteria, investors have the opportunity to apply for and obtain residency.
Legal Solutions Panama: Specialists in Legal Guidance for Establishing Your Business as a Real Estate Agent
To make a remarkable entry into the real estate market, it’s crucial to have a company set up specifically for this purpose. If you have a budding project and wish to thrive in the real estate field, seeking the assistance of experts can be a strategic move in establishing your business. In this regard, Legal Solutions Panama is a renowned firm that specializes in launching businesses 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.
For more information on their services, feel free to visit their webpage and take advantage of a complimentary thirty-minute consultation with one of their experts.