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Panama Constitution: Private Property and Property which belongs to the State and Framework for Island Property

Article 257 explains what property in Panama belongs to the State: 

Artículo 257- Pertenecen al Estado:

1. Los bienes existentes en el territorio que pertenecieron a la República de Colombia.
2. Los derechos y acciones que la República de Colombia poseyó como dueña, dentro o fuera del país, por razón de la soberanía que ejerció sobre el territorio del Istmo de Panamá.
3. Los bienes, rentas, fincas, valores, derechos y acciones que pertenecieron al extinguido Departamento de Panamá.
4. Las tierras baldías o indultadas.
5. ... 

Translated to English:

Article 257 - The State owns:

1. The existing assets in Panama that belonged to the Republic of Colombia.
2. The rights and actions which the Republic of Colombia had as owner, in or outside of the country, because of the sovereignty which they exercised on the territory of the Isthmus of Panama. 
3. The assets, income, properties, securities, rights and actions which belonged to the old Department of Panama.
4. Lands which are fallow or free of ownership rights.
5. ...

This means that as of entry into effect of the original constitution (and the latest constitution adopted in 1972 as amended), all lands which were fallow or had previously been freed of their existing ownership (whether by eminent domain or otherwise) passed into ownership of the State. 

Private property is guarantee by Article 47 of the Constitution

Artículo 47- Se garantizará la propiedad privada adquirida con arreglo a la Ley por personas jurídicas o naturales.

This states Private property acquired in accordance with the law by legal or natural persons is guaranteed. 

Article 48, however, indicates the obligations which are engendered by ownership of private property, and when expropriation or eminent domain may be exercised. 

Artículo 48- La propiedad privada implica obligaciones para su dueño por razón de la función social que debe llenar.
Por motivos de utilidad pública o de interés social definidos en la Ley, puede haber expropiación mediante juicio especial e indemnización.

Private property implies obligations for the owner due to the social purpose which it must fulfil. 

Expropriation, by a special hearing and indemnification, may occur for reasons of the public good or social interest as defined in the Law. 

Eminent domain or expropriation is further explained here. 

Article 291, on the other hand, indicates the restrictions regarding ownership by foreigners and limits the State's ability to sell island property: 

Artículo 291- Las personas naturales o jurídicas extranjeras y las nacionales cuyo capital sea extranjero, en todo o en parte, no podrán adquirir la propiedad de tierras nacionales o particulares situadas a menos de diez kilómetros de las fronteras.
El territorio insular sólo podrá enajenarse para fines específicos de desarrollo del país y bajo las siguientes condiciones:

1. Cuando no sea considerado área estratégica o reservada para programas gubernamentales.
2. Cuando sea declarado área de desarrollo especial y se haya dictado legislación sobre su aprovechamiento, siempre que se garantice la Seguridad Nacional.

La enajenación del territorio insular no afecta la propiedad del Estado sobre los bienes de uso público. En los casos anteriores se respetarán los derechos legítimamente adquiridos al entrar a regir esta Constitución; pero los bienes correspondientes podrán ser expropiados en cualquier tiempo, mediante pago de la indemnización adecuada

Translated to English:

Article 291 - Foreign nationals, whether natural or legal persons, or local legal persons with foreign capital, whether partial or total, may not acquire private or public property which is situated less then ten kilometres from the borders. 

Island property may only be alienated for specific development purposes of the country and under the following conditions:

1. When it is not considered a strategic region or reserved for government programs.
2. When it is declared an area of special development and specific legislation has been adopted regarding its usage, as long as National Security is guaranteed.

The alienation of island property does not affect the ownership of the State over public assets. 

In the aforementioned cases, rights legitimately existing at the time of the adoption of this Constitution shall be respected; but the corresponding properties may be subject to eminent domain at any time, upon the payment of adequate indemnification. 

Last modified 26-Sep-2007 17:38 -0400

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Last modified 26-Sep-2007 17:37 -0400