The purchase process involves 8 structured steps: from property search and due diligence, through notarization and Public Registry recording, to final tax registration — typically completed in 30 to 60 days after deed execution.
Purchase Process - Step by step
01
Search & Reservation
First contact
- Identify the property and negotiate price and terms with the seller
- Execute a reservation or holding agreement backed by a deposit
- Engage K&B legal counsel for full transaction support
02
Due Diligence
K&B managed
- K&B verifies title, liens, encumbrances, measurements & boundaries at the Public Registry
- Buyer conducts physical inspections of the property
- Topographic survey recommended to confirm land measurements on site
03
Preliminary Agreement
K&B managed
- K&B drafts or reviews the Promise to Purchase Agreement
- Best acquisition structure defined: individual, Panamanian Corporation, or Private Interest Foundation
- Parties sign the Agreement; buyer pays initial deposit (typically 10%)
04
Escrow Agreement
Optional
- Recommended for buyers without a Panamanian bank account
- K&B Trust Services acts as intermediary to receive and hold purchase funds
- Funds released to seller only once the deed is duly registered with the Public Registry
05
Formalization of Transfer
K&B managed
- Seller pays applicable transfer taxes and provides good standing certificates
- K&B prepares the Public Deed for notarization
- Both parties sign before a Notary Public; remaining balance paid to seller
06
Registration
K&B managed
- K&B registers the deed with the Public Registry of Panama to legally transfer ownership
- Escrowed funds released to seller upon successful registration (if applicable)
30–60 days from deed execution
07
Update at ANATI
Land Authority
- K&B submits the registered deed to the Land Authority (ANATI)
- Ownership and cadastral value updated to reflect the new buyer
- Purchase price becomes the new cadastral value — basis for property tax
08
Property Tax Payment
DGI - Tax Authority
- Buyer ensures compliance with property tax payments at the DGI
- Tax assessed quarterly; annual payment also available
- K&B advises on available property tax benefits if used as primary residence
8 steps — full transaction overview
01
Search & Reservation
02
Due Diligence
03
Preliminary Agreement
04
Escrow (optional)
05
Transfer Deed
06
Registration
07
ANATI Update
08
Tax Compliance
K&B Fee Schedule
| Service | Fee | Details |
|---|---|---|
| Legal Assistance — Real Estate Purchase | 1% of purchase price | Covers all steps from due diligence through registration |
| Escrow Agent (K&B Trust Services, Corp.) | 1% of escrowed amount | Minimum fee: US$1,000.00 |
| Notary & Registration Fees | Quoted separately | Provided upon confirmation of purchase price |
| A detailed quote including notary and Public Registry fees is issued once the purchase price is confirmed by the buyer. | ||
Acquisition structure options
| Structure | Recommended for | Key advantage | K&B support |
|---|---|---|---|
| Individual (personal name) | Primary residence / single buyer | Simplest structure; direct ownership | Full |
| Panamanian Corporation (S.A.) | Investors, rental properties | Liability protection; estate planning flexibility | Full |
| Private Interest Foundation | Wealth structuring, family succession | Asset protection; confidentiality; succession planning | Full |
Your private wealth management firm — K&B Family Office
kb-familyoffice.com
Legal Services
This document is for informational purposes only. Fees and processes are subject to change. K&B Family Office provides comprehensive legal and fiduciary support throughout the real estate acquisition process in Panama.