Q: Is it possible for foreigners to enter in the real estate development business in Panama?
A: Absolutely. The Panamanian government welcomes foreigners to develop real estate in Panama.
Q: If I buy a large plot of land, what are the procedures to get residential lot development permits with the Panamanian government?
A: The first step is to get the property surveyed topographically by a Panamanian licensed topographer / engineer. Second, you need a Panamanian licensed architect to design the master plan. Third, you need a Panamanian engineer to prepare the construction drawings. Fourth, you need a Panamanian licensed environmental engineer to prepare an environmental impact study. Fifth, you present the project to and get it approved by the ANAM (Autoridad Nacional del Ambiente), which is the equivalent of the Environmental Enforcement Agency in the USA. Sixth, you present the project to the municipal engineer to get the construction permits. Depending on the project, there may be additional steps necessary in terms of permitting.
Q: What is the time frame and cost to obtain permits for developing residential lots in Panama?
A: The time frame and cost depends on the size of the project, and the region you are developing in. Some projects can take years to obtain permits and cost upwards of US$50,000, others can take as little as 3 months and cost a few thousand dollars. It really depends on the specifics of the project, where it is located, and the impact it will have on the environment. Usually, once the environmental impact studies are approved by ANAM, the other municipal permits are relatively quick.
Q: What are the costs for surveying property in Panama?
A: Currently, surveyors charge in the range of $200 per lot or per hectare (2.4 acres per hectare) for regular linear surveys (outlining the perimeter, size and borders of the property). Topographical surveyors charge from $150 up to $500 per hectare, depending on the location of the property, condition of the property, and the specifics needed (for example, if you want special information included, such as identifying specific species of trees, depth of rivers, etc.). It is important to hire a surveyor that is reliable, and who will provide accurate data, as well as computerized surveys (usually done using a program called Autocad).
Q: What do environmental impact studies cost in Panama?
A: Environmental impact studies range in price from as little as $750 to $75,000, depending on the size of the project, impact on the environment, and depending on the environmental engineer you hire for the job. For large developments with high environmental impact, we recommend hiring a top quality environmental engineering firm to handle the environmental impact study, as they have the human resources and organization to prepare a study that will get approved under harsh scrutiny and difficult circumstances. For smaller, non-impacting projects, an individual environmental engineer may suffice. However, please note that the environmental impact study is detrimental to the permitting of the project, and it is important to hire qualified engineers to prepare your environmental impact study, otherwise, if the project is rejected by ANAM, you may be forced to wait up to 2 years to re-present the project for approval.
From the Panama Offshore Services website
