The types of Bocas del Toro real estate properties you are going to find are: titled properties, rights of procession (ROP) and concessions.
Titled Property
Titled properties are the best properties to buy in Panama. Titled property is the most preferred type since it is easily verifiable in the Panamanian Public Registry system, as well as provides the most security from a Panama real estate law and investment standpoint. Titled properties also generally incur annual property taxes.
Right of Possession Property
Right of possession property is similar to “squatter’s rights” as was common in North America many years ago and is governed by a different set of Panama real estate laws than titled property. ROP is government owned property that is “occupied” or “used” by a Panamanian individual (or Panamanian organization) over time. Possession rights are generally granted to the “possessors” through very simple certification documents. Possession rights do not incur property taxes, although registered improvements over possession rights property may incur taxes at a municipal and/or national level. Most ROP properties can become titled through a procedure of purchasing the land from the government.
Concession Property
Concession property is government owned property, where the government has granted a concession to an individual or organization for a specific purpose, such as a real estate development, over-the-sea hotel, marina, or other purposes. Concessions in Panama are generally granted for a maximum of 20 year (renewable) periods. Concession Property is normally in special coastal or other governmentally protected areas where titles are not permitted by law, something very popular in Bocas del Toro. In many cases, real estate developments over concession property offer investors time-share or fractional ownership arrangements, which are very common in Mexico and other resort-type coastal areas around the world. Unlike Possession Rights property, Concession property is guaranteed by the government through a specific contractual agreement, so there is very little risk to the investor, and title insurance companies will generally offer title policies or guarantees to investors for peace of mind.