Business

Legal tips for Canada citizens becoming real estate agents in Panama

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Due to the boom and multiplicity of businesses in Panama, in addition to its attractive economic stability, numerous entrepreneurs have become interested in the real estate market in recent years. The variety of properties and the benefits of their transactions in terms of profits are some of the most attractive points for an entrepreneur in Canada to specialize in real estate.

Nevertheless, staying updated on the latest developments in Panama’s property market is the wisest course of action if you’re aiming to become a real estate worker and achieve success in this field.

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 Canada Citizens to Become a Real Estate Agent in Panama

As with any position in the financial and real estate industries, becoming a real estate agent in Panama requires submitting a variety of documents and adhering to the legal steps. The necessary qualifications include:

  • Complete courses and successfully pass a written test conducted by the Real Estate Technical Board.
  • Secure a bond of ten thousand (USD 10,000) US dollars to cover any claims of negligence and government penalties.
  • Provide a power of attorney and a request for legal documentation, submitted through a lawyer and properly notarized, along with a legal form attachment.
  • Provide proof of Panamanian citizenship or, if a foreign national, evidence of at least 5 years of residency.
  • Make an annual payment of twenty-five (USD 25) US dollars for Stamp Taxes.
  • Submit proof of a clean criminal record.

Becoming a Real Estate Agent in Panama: Explore Its Advantages

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: 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 significant impact in the real estate market, it’s crucial to have a dedicated company in place. If you are in the early stages of your project and eager to excel in the real estate market, seeking assistance from specialists can be your best move. Legal Solutions Panama is an expert firm in establishing companies in Panama, poised to support your business setup.

With their wealth of experience, the Legal Solutions team is well-equipped to guide you through the process of incorporating your company. Their expertise ensures that all procedures are handled correctly, minimizing surprises and paving the way for a successful launch.

To learn more about their services, you can explore this site and avail yourself of a complimentary thirty-minute consultation with one of their experts.