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.
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 a professional specializing in the real estate sector who is in charge of intermediating in the purchase, sale, and rental of properties. Its main function is to connect buyers and sellers, providing personalized advice and managing all the legal and bureaucratic procedures involved in a real estate transaction.
Essential Criteria to Become a Real Estate Agent in Panama for United States Citizens
Similar to any role in the financial and real estate industries, becoming a real estate agent in Panama involves submitting several documents and adhering to the legal procedures. The necessary requirements include:
- Take courses and pass a written examination administered by the Real Estate Technical Board.
- Obtain a bond of ten thousand (USD 10,000) US dollars to cover negligence claims and government fines.
- Power of attorney and request for legal paper presented through an attorney duly authenticated before a notary public, attach a legal form.
- Proof of Panamanian citizenship or, in case of being a foreigner, proof of at least 5 years of residence.
- Annual payment of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
- Present proof of no criminal record.
Becoming a Real Estate Agent in Panama: Explore Its Advantages
Working as a real estate agent within the expansive real estate market in Panama requires staying dynamic and continuously informed about various property transactions and buyer interactions. Additionally, there are several advantages you can consider while preparing to be a real estate agent in Panamanian territory. These benefits include:
- Strategic location: Panama is a country located in Central America, which gives it an advantageous position to attract international investors and buyers. As a real estate agent, you can have access to an international client base and help facilitate cross-border transactions.
- Tax reduction: this benefit is one of the favorites due to the financial relief it means for the agent. For example, if you buy a property with a cadastral value below $120,000, you will not have to pay taxes on that property under Law 66 of 2017. In turn, properties with a cadastral value up to $120,000 are exempt from real estate taxes, while properties with a cadastral value between $120,001 and $700,000 are taxed at 0.5% of the cadastral value. And if the cadastral value is higher than $700,000, then the corresponding tax is 0.7% of the cadastral value.
- Developing real estate market: it is a fact that the real estate market has continued to grow like foam over the last few years, allowing you to move up as an agent in this field very quickly.
- Possibility of residency permit as an investor: another benefit that is being taken advantage of by real estate investors is the real estate investment visa program. This is based on the fact that by making a real estate investment that complies with the legal requirements established in the country, investors can apply for and obtain residency.
Legal Solutions Panama: Specialists in Legal Guidance for Establishing Your Real Estate Agency
To make a remarkable entrance into the real estate market, it’s crucial to have a company set up for this specific purpose. Therefore, if you’re in the initial stages of a project and are eager to launch in the real estate arena, the wisest choice is to seek expert assistance for establishing your business. Similarly, Legal Solutions Panama specializes in setting up companies in Panama.
Thanks to its extensive experience, the Legal Solutions team can advise you on the incorporation of your company. Their experience will help you to carry out all the procedures correctly, without unforeseen events, and with the certainty of a successful opening.
To learn more about the services they offer, you can visit here and receive a complimentary thirty-minute consultation with one of their experts.