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 Kingdom 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 is a real estate agent?
A real estate agent is a skilled specialist in the property market, tasked with facilitating the buying, selling, and leasing of properties. Their primary role is to bridge the gap between buyers and sellers, offering tailored guidance and handling all the legal and administrative processes associated with property transactions.
Essential Criteria for United Kingdom Citizens to Become a Real Estate Agent in Panama
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:
- Complete relevant courses and successfully pass a written examination conducted by the Real Estate Technical Board.
- Secure a guarantee bond of ten thousand (USD 10,000) U.S. dollars to cover potential claims of negligence and government penalties.
- Submit a power of attorney along with a legal request through an attorney, duly authenticated in front of a notary public, and include a legal form.
- Provide evidence of Panamanian citizenship or, if foreign, proof of a minimum of 5 years of residency.
- Make an annual payment of twenty-five (USD 25) U.S. dollars for Stamp Taxes.
- Submit documentation confirming 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 continuously gathering information on potential property transactions and negotiations with clients. Additionally, there are several advantages to consider while preparing to become a real estate agent in Panamanian territory. These include:
- Strategic location: Positioned in Central America, Panama enjoys a favorable location, drawing international investors and buyers. As a real estate agent here, you’ll have access to a global client base, aiding in cross-border transactions.
- Tax reduction: This is often a preferred advantage for agents due to the financial relief it provides. For instance, purchasing property with a cadastral value under $120,000 exempts you from paying property taxes, as per Law 66 of 2017. Moreover, properties appraised up to $120,000 are not subject to real estate taxes, those valued between $120,001 and $700,000 incur a tax rate of 0.5%, and properties surpassing $700,000 are taxed at a rate of 0.7% of their cadastral value.
- Expanding real estate market: The real estate market has experienced significant growth in recent years, providing agents with opportunities to advance rapidly within the industry.
- Residency permit opportunity as an investor: Real estate investors can benefit from the real estate investment visa program. By making a qualifying real estate investment that adheres to national legal standards, investors may apply for and secure 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’s crucial to have a company set up specifically for this purpose. If you have a budding project and wish to thrive in the real estate field, seeking the assistance of experts can be a strategic move in establishing your business. In this regard, Legal Solutions Panama is a renowned firm that specializes in launching businesses in Panama.
With their wealth of experience, the team at Legal Solutions can guide you through the incorporation of your company. Their expertise ensures that all processes are completed accurately, avoiding unexpected issues and guaranteeing a successful launch.
For more information on their services, feel free to visit their webpage and take advantage of a complimentary thirty-minute consultation with one of their experts.