Thanks to Panama’s flourishing business scene coupled with its appealing economic steadiness, a significant number of entrepreneurs have shown a newfound interest in the real estate sector in recent years. The diverse range of properties available, along with the lucrative opportunities they present, make real estate a particularly appealing venture for an entrepreneur in United Kingdom.
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 is a real estate agent?
A real estate agent is an expert in the property market responsible for facilitating transactions involving buying, selling, and leasing properties. The primary role is to connect buyers with sellers, offering tailored guidance and handling all the legal and administrative processes essential for a real estate deal.
Essential Criteria for United Kingdom Citizens to Become a Real Estate Agent in Panama
As with any profession in the financial and real estate industries, working as a real estate agent in Panama entails submitting various documents and adhering to the legal procedures. The necessary requirements include:
- Complete required 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 potential negligence claims and governmental penalties.
- Submit a power of attorney and legal request via a lawyer, duly notarized, along with a legal form.
- Provide proof of Panamanian citizenship, or if foreign, evidence of at least 5 years of residency.
- Make an annual payment of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
- Submit documentation certifying no criminal record.
Exploring the Advantages of Being a Real Estate Agent in Panama
Working as a real estate agent within the expansive real estate market in Panama involves staying dynamic and keeping well-informed about all potential property transactions and negotiations with clients. Additionally, there are various advantages to consider as you prepare to become 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 Business as a Real Estate Agent
To make a remarkable entry into the real estate market, it is crucial to have a business entity dedicated to that purpose. So, if you’re initiating a project and aiming to soar in the real estate sector, seeking the assistance of professionals who can guide you in setting up your business is a wise decision. Legal Solutions Panama is a firm that specializes in establishing 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.
For more information about their services, you can explore their site and take advantage of a complimentary thirty-minute consultation with one of their experts.
