Purchasing real estate in Panama can be a profitable, satisfying experience. The country is far more advanced than Costa Rica, but real estate prices (in general) are far lower. Foreigners have the same property rights as Panamanian citizens, and if you purchase your real estate through a corporation (very easy to set up) you will be exempt from property taxes for 20 years. However, you need to be very careful when buying property through a real estate agent. Fraud is rampant throughout Panama, and little is being done to stop it. In 1999 the Real estate Technical Board (Junta Technica de Bienes Raices) of the Republic of Panama was formed. Supposedly this government agency has the power to consider complaints arising from any real estate transaction, and to impose any sanctions that are deemed necessary. This includes anything from a reprimand up to a revocation of an real estate agent’s license, so they can no longer sell property in Panama. This all looks good on paper, but in fact the Board has proven to be almost completely impotent in stopping real estate fraud in Panama. Case in point: my first real estate property purchase in Panama was done through a company called Great Land Panama. The owner of the company, Khadine Smith, defrauded me out of thousands of dollars when she charged a 30% commission. She then turned around and stole $20,000 from the landowner, by not paying him the price that was in his contract. I had to talk with five attorneys before I could even find one who knew how to file a formal complaint with the Real estate Board. The complaint was filed in May of ’08, after which I heard nothing for more than six months. Finally in Dec ’08 I was able to get in touch with a senior official on the Board. He informed me that this particular Panama real estate agent had four other complaints against her, involving millions of dollars. The Board had not yet investigated any of these complaints, but he assured me that they would â€get around to it very soon.†Bottom line †she is still out there ripping off unsuspecting foreigners, and will probably continue doing so for the foreseeable future. So what is one to do? It’s fairly simple; make sure that you either work directly with the landowner or with a foreigner who is already developing a project, with no intermediaries. I personally know several â€gringos†in my area of the Azuero Peninsula who are working on various projects, and none of them used an agent for their real estate property purchase. If you don’t speak Spanish I can help you with translation services, as well as guiding you through the entire process of purchasing property and real estate in Panama. Feel free to contact me at www.thePanamacollection.com, and I would be happy to help you in any way I can. About The Panama Collection Stafford Industries has scoured Central America to find the best value in real estate investments. After years of research, Panama was selected for its pristine beauty and relatively undiscovered land. Once you make the decision to own a piece of paradise, why not make it complete with your custom dream home? It would be our pleasure to help you every step of the way from lot selection through final construction. We are bi-lingual in both English and Spanish. Phase 1 development is currently underway and offers fantastic pricing to those who act now. This 102-acre project features 16 oversized lots ranging in size from 3 to 12 acres.
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