Real Estate, from abroad to Panama

Panama is having a Real Estate Boom nowadays, and a lot of foreigners are coming to our country in order to invest in Real Estate.

In principle thie is a very lucrative activity, and if done properly it can result in a very good investment. Nevertheless, there are some points, in the legal and economic points of view to take into consideration: Prices are climbing without any order whatsoever and can be subject to all kinds of roller coaster ups and downs; and there are a lot of title/ possession / issues regarding the land in the countryside of Panama.

The first problem cannot be solved, but measures can be taken prior to an acquisition:

1. Check the values of surrounding buildings or lands in the public Catastro

2. Check the facts, location etc of the promoters if it is a new building

3. Contact as many real estate brokers as you can in order to have a variety of prices

4. Talk to banks and appraisers, look for serious partners

Our firm can gladly assist you, also with our affiliate real estate company.

The second problem can be solved, but can take time, check with us:

1. Title research in the Public Registry office

2. Litigations pending in civil courts

3. Possession rights inquiry

4. Measures, permits

5. Construction and urban boundaries and regulations

For more information contact us at infoweb@laglawyers.com

Offshore/ onshore companies in Panama

Panama is known for its offshore corporations around the world, and most of the people (even its most frequent users) think of them as the offshore company per se, as opposed to the onshore company.

This thught is not far from the truth, but it is not quite accurate.

it is true that the treatment one can give a company will render it on or offshore, but actually the scturcture is the same. For instance, there will be no difference, in the essence of the incoporation deed of an offshore company or a distribution company that operates in Panama with all its employees.

The difference will be the activity carried out in Panama, and the activity carried out offshore.

The main situation from that activity is that Panama has a territorial principle that rules its taxes. Any activity carried out offshore, which produces revenues, these revenues won't have to be declared in Panama, whereas the ones carried out here, will have to be declared and will pay taxes. The same happens with the commercial license tax; a company with a commercial license will have to pay taxes based upon its operation (the one that the issuance of the license was based upon), aside from its revenues tax.

For more information go to http://www.laglawyers.com/