Foreign Ownership Guide
Purchasing In Burica
Many international buyers are unfamiliar with Panamanian real estate law, particularly as it relates to properties located near an international border.
Fortunately, purchasing property in Burica can be a straightforward process when handled through an experienced Panamanian attorney.
The property is currently held through a Panamanian legal ownership structure established by experienced legal counsel. This ownership model has been used successfully for many years in the Punta Burica region, where there is an established international community of foreign property owners.
Throughout the purchase process, the buyer’s attorney will explain the available ownership options and recommend the structure most appropriate for the buyer’s individual circumstances.
Step 1
Purchase Agreement
After agreeing on purchase terms, buyer and seller execute a purchase agreement outlining:
Purchase price
Deposit
Closing date
Due diligence period
Conditions of sale
Step 2
Due Diligence
The buyer’s attorney conducts a complete review including:
Property title
Survey
Property taxes
Corporate documents
Existing permits
Utility information
Property boundaries
Closing requirements
Step 3
Ownership Structure
Panama offers several legal methods of holding real estate.
Depending upon the buyer’s objectives, ownership may be structured through:
Sociedad Anónima (S.A.)
An S.A. is a Panamanian corporation commonly used to hold real estate and business assets. Benefits can include simplified transfer of ownership through the sale of shares, estate planning advantages, privacy, and liability separation. Annual franchise taxes and registered agent requirements generally apply.
Private Interest Foundation
A Panamanian Private Interest Foundation is frequently used for estate planning, long-term family ownership, and asset protection. Unlike a corporation, it has no shareholders; instead, it holds assets for beneficiaries according to its charter and regulations.
Security
Properly established ownership structures can provide:
Continuity of ownership
Estate planning flexibility
Privacy
Simplified transfer of interests in some situations
Professional legal administration
Ongoing Maintenance
Most ownership structures require:
Annual government fees
Registered agent
Corporate or foundation records
Compliance with Panamanian law
Property tax payments
Routine accounting as applicable
Important Note
Every buyer’s situation is different.
For this reason, all purchasers are encouraged to retain their own independent Panamanian legal counsel. The information in this guide is intended as a general overview and should not be considered legal or tax advice. The final ownership structure should be determined in consultation with qualified legal professionals.