Save Money on Your Real Estate Purchase
How to Save Money on Your Real Estate Purchase in Panama
Are you considering investing in real estate in Panama? It’s essential to understand all the costs involved beyond the purchase price. Taxes, fees, and legal services can add up quickly, impacting your overall expenses. In this post, I’ll break down the main costs associated with buying real estate in Panama and provide valuable tips on how to save money throughout the process.
Key Costs for Buying Real Estate in Panama:
1️⃣ Property Transfer Tax: This tax, based on the property’s registered value, ranges from 2% to 4%. For instance, a $300,000 property would incur a tax of $6,000.
2️⃣ Public Registry Fees: These fees, ranging from 0.5% to 1.8% of the property value, cover the registration of the property transfer. For a $300,000 property, you can expect to pay approximately $5,400 in fees.
3️⃣ Notary Fees: Buyers are responsible for paying notary fees, which range from 0.5% to 1% of the property value. For a $300,000 property, anticipate fees of around $3,000.
4️⃣ Legal Fees: Hiring a lawyer to assist with the transaction incurs fees ranging from 0.5% to 1% of the property value. For a $300,000 property, legal fees would amount to approximately $3,000.
5️⃣ Bank Transfer Fees: Transferring funds internationally may result in bank transfer fees, depending on the banks involved. For instance, transferring $300,000 from a US bank to a Panamanian bank might entail fees of around $1,500.
Tips to Save Money on Your Real Estate Purchase:
1️⃣ Negotiate with the seller to lower the purchase price or share certain costs. Asking the seller to cover a portion of notary or legal fees can save you thousands of dollars and make your offer more appealing.
2️⃣ Compare service providers to find the best combination of quality and price. Research different notaries, lawyers, and banks to secure favorable rates and fees.
3️⃣ Explore alternative payment methods like cryptocurrency platforms or escrow services to avoid bank transfer fees and mitigate exchange rate losses.
Investing in real estate in Panama offers great potential, but understanding the costs and seeking savings opportunities is crucial. By following these tips, you can reduce expenses and make your Panama real estate purchase more affordable and financially advantageous.
If you need further assistance or advice on buying real estate in Panama, feel free to reach out to me.
