We can assist you in arranging your non-resident mortgage in Panama.

The Republic of Panama is perhaps the ideal destination for anyone looking for serious financial privacy and no taxes, corporate or personal. Its proximity to the growing Latin market makes it a natural base for world business operations and, in spite of its history, it isn't directly under the thumb of either the U.S. or (unlike Bermuda and the Cayman Islands) the U.K.

Nearly every major world bank has a full-service branch office in Panama, with representation from Japan, Germany, Brazil, and the U.S. As in Wall Street or the City of London, Panama City's business district high-rises bear the logos of Chase, Lloyds, Dai-Ichi Kangyo, Swiss Bank Corp., Republic National, Credit Lyonnais, and Dresdner.

Titled property is not unlike "fee-simple" titles in the USA. The Panamanian Public Registry has jurisdiction over the registration of titled properties throughout the country. Titled property is verifiable through the Public Registry system and is guaranteed by the constitution of the Republic of Panama. Titled property can also be mortgaged. The bank will register a lien against the title as collateral on the loan.

Titled properties are subject to annual property taxes when the registered value is over US$30,000 unless the buyer has obtained an exemption for the construction of a new dwelling. This is a pro-rated tax exoneration based on the value of the dwelling. Buying titled property normally requires the following procedure:

1. Promise to Purchase Contract: A small down payment is made at the signing of the promise to purchase contract. The down payment secures the property and establishes time for the title search and to coordinate payment arrangements for the closing. Registering this contract at the Public Registry ensures the property cannot be sold to another party during the escrow period.

2. Title Search: A proper title search includes: a) verification that the seller in fact has title to the property and it is free and clear of encumbrances, liens, or other issues that could affect the free disposition or transfer of the title; b) a review of the official survey map, and a professional surveyor to physically verify the map points on the property (to avoid future boundary conflicts); c) verification of utility debts (water and sewage d) verification of payment of property taxes and/or of the tax exemption.

3. Buy-Sell Contract: This contract is registered at the Public Registry and the final balance is paid to the seller, or an escrow agent. Payment is made when the title is transferred to the buyers' name. Payment can be issued by a bank, contingent on receiving from the seller proper title to the property. The buyer can open a bank account (or get a mortgage) and then formally request that the bank issue payment as soon as it is presented with the registered public deed transferring title to the buyer. Real estate agents normally get paid only when the sale closes.
 
There is a panel of Banks offering mortgages to the majority of foreign nationals for the purchase of houses, condo's and even land and construction. On new property they will lend up to 80% of the asking price or valuation whichever is the lower.  The bank will offer the loan over 30 years depending on the age of the client, to a max. age of 75.  Current interest rates vary between 6% and 6.75% depending on the loan.