Panama is one of the most beautiful and well-developed countries in Latin America. A country with a rich history, Panama is all about culture, civilization and wildlife. Panama property has captured the eye of keen investors and those looking for a second home. The present prices are low enough for every person to afford a property in this marvelous state. The property taxes are (for construction permits issued after Sept. 1, 2006 these exemptions apply): value up to $100,000: 15-year exemption, value from $100,000 to $250,000: 10-year exemption, value over $250,000: five-year exemption.

Still, there are certain aspects that must be taken into consideration before purchasing an affordable Panama property. There are several basic laws that must be respected when it comes to buying Panama real estate. These laws are important for local and foreign investors, being introduced for legally transacting the buying/selling process of Panama property.

The first step for any buyer is finding the right property. Next, the buyer will have to make a down payment, showing his genuine interest in buying that Panama property. Customary, there is a 10% offered as down payment, the sum becoming the property of seller as soon as the final transaction is successfully completed.

The ‘promise to purchase' agreement is the next thing to be done; this agreement is actually quite critical to the entire process. This contract includes the necessary legal description of the transaction being executed. The parties involved in the process will be registered thanks to this legal agreement that is of paramount importance when it comes to performing a legal transaction. All necessary information will be included right in this document; for instance, this agreement will include the property description, the necessary terms of the deal and the entire legal identification of the participants.

Any potential buyer should also pay attention to the fact that this country has plenty of opportunities when it comes to its real estates. There is a wide range of properties available on the current market. Panama property is broken down into two different types: ‘the titled land' and ‘the right to possess". Understanding these two types is vital in order to genuinely understand the exact type of property you are going to buy. The titled land is the used term for all properties that are likely to be recorded in the Public Registry. By choosing such a property you will be provided with a formal history of ownership. This history is already available and it includes any liens or other claims against that particular property. Panama real estate that is titled cannot be sold without having a clear title thus making the entire title search an important step in the whole process. Therefore, it is wise to note that the buyer can purchase title insurance.

The right to possess property was established in order to encourage inhabitation of unclaimed and untitled land. For ‘the right to possess' Panama real estate, you have must hire a good attorney because of the legal issues that could arise if proper procedures have not been followed in a legal manner by previous owners. It is of paramount importance that you and your attorney follow the exact and proper procedure in order to get a great deal on the new real estate.

Panama property can be regarded as an excellent investment, with the purchase process being simple and with steps easy to follow. Having a good and experienced lawyer is essential, helping through every step of the process. Buying a property in Panama is, without doubt, a profitable and easy transaction.