When buying or selling assets in Panama, utilizing an escrow service is crucial for a secure and transparent transaction. Unlike some jurisdictions where lawyers directly manage escrows, Panama requires a licensed entity to handle these services. Our firm acts as your legal representative, safeguarding your interests throughout the entire process, whether you are the buyer or the seller.
We specialize in creating Panama-compliant sales contracts that are integrated into the escrow instructions. Our comprehensive approach ensures that you receive exactly what was agreed upon, with our firm monitoring every step of the escrow process.
Our meticulously crafted escrow instructions provide you with a fully protected position, both during and after the transaction.
While direct asset sales between amicable parties are possible with basic precautions, they lack the robust protection offered by a formal escrow. For transactions involving cooperative parties, we can advise on alternative safeguards.
In scenarios where a Panama Bearer Share Corporation owns the asset, the sale involves transferring the corporation’s stock. This grants the buyer control of the corporation and, consequently, the underlying asset.
A Panama Private Interest Foundation can also engage in asset transactions, with or without an escrow. As a distinct legal entity, a foundation has the right to own, control, and transact its assets, separate from the personal assets of its beneficiaries or protectors.
Real estate transactions in Panama commonly utilize escrows to guarantee clear title. Our firm is highly experienced in real estate escrows and provides comprehensive guidance throughout the entire buying or selling process. We represent only you, ensuring no conflicts of interest with sellers or developers.
Using a Panama escrow is an effective way to channel business sale proceeds into a Panama Corporation or Foundation. Consider transferring business ownership to a Panama Corporation or Foundation before the sale. A Panama Corporation can be owned by a Panama Foundation, further distancing you from direct ownership. Under Panama law, a foundation is not ‘owned’ by anyone, even its beneficiaries or protectors. Control can be maintained through a general power of attorney and management agreement, if needed. The escrow deposits funds into your Panama Bank Account belonging to the Panama Corporation or Foundation (where you are a signatory but not the owner). Panama public records will not reflect the change in corporate ownership.
For the sale of non-Panama real estate owned by a Panama Corporation, an escrow in Panama facilitates the transfer of the corporation’s shares. This gives the buyer control over the corporation and its assets, specifically the real estate. The real estate title remains unchanged in its respective country, as the corporation’s ownership simply changes hands. Panama Corporation ownership is not publicly recorded, and there’s no requirement to report ownership changes.
The sale of boats and marine vessels in Panama follows a similar principle. The boat is titled to a Panama Corporation, and ownership of the corporation is transferred via a sale (with or without an escrow). This gives the new owner control of the corporation and its assets (the boat). The boat’s registration remains unchanged, as it’s still titled to the corporation.
If you require legal assistance to facilitate the purchase or sale of assets in Panama, we are ready to act as your legal representatives. Contact us today to discuss your needs.