Titled Properties:
Most Bocas's property buyers prefer to ensure that a property holds a title registered in the National Registry of Panama to secure their purchase.
During the process of selling or purchasing a titled property, the deed transfer is signed before a notary, and the title is duly registered in the public registry under the buyer's name.
Since the property is owned by an individual and not by the government, as in the case of a "Right of Possession" (ROP), the new property owner must pay annual property taxes to the government based on the purchase price. By registering your property as "Family Patrimony" will result in a property tax amnesty on the initial $ 120,000 of the property's registered value on the National Registry. Furthermore, when the owner sells their property, they must pay the government a 5% sale tax based on the selling price.
Typically, banks will only grant mortgages on titled properties, registering liens on the title as security for the mortgages.
Right Of Possession Properties (ROP)
Panama has a unique law that allows individuals to live on government-owned land and make improvements such as planting trees, growing food, and building structures such as cabins, houses, storage sheds, and more. This law is known as the "Right of Possession" (ROP), which provides legal permission to live on government land. You are entitled to live on the property once you have legally acquired a property with a Right of Possession.
Since ROP properties are not registered with the National Registry of Panama, you must ensure that the person selling you the property owns it. Make sure to hire a Bocas del Toro attorney to help you investigate the eligibility of the ROP certification and land investments.
Over 85% of Bocas del Toro Archipelagos properties are ROP, meaning they have a "Right of Position" certificate from the national authorities as property ownership. A ROP possessor can file documents to purchase the land from the Panamanian authority and thus obtain a title for the same ROP property.
An ROP owner is not required to pay annual property taxes to the government or a sale tax when he transfers his ROP ownership to a new owner.
You can buy and own an ROP or titled property in Panama just with your passport…no bank account is needed—Panamanian Law 54 grants foreign investors the same rights and freedoms as Panamanian natives.
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