A Panama Guide

A welcoming community, safe environment, low crime statistics, excellent incentives, together with the natural beauty and ethnic diversity that is Panama, the isthmus of Panama appeals to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement, coupled with investors and adventurers the world over, Panama has something for everyone.

Opportunities in Panama for both business and investment are increasing as the potential is appreciated. Panama stands alone in its unique set of laws and openness, boasting a well-established dollar-based economy, stable political situation and economic growth, sustained by its Canal (and its subsequent expansion), the Colon Free Zone (the second largest Free Zone in the world), and an unparalleled international financial system the second largest international banking centre in the world after Switzerland, with more than 150 banks from 35 countries. A sophisticated CBD, healthcare system, solid infrastructure and the highest level of communications infrastructure in all of Latin America and the Caribbean.

Panama
Is one of the top three countries in Latin America for quality of life
Offers the best retiree incentive program in the world
boasts first-rate medical services at the only Johns Hopkins International Medical Centre in Latin America
has a perfect climate of 25-30 degrees centigrade year round
Because of its unique geographical positioning Panama does not suffer natural disasters such as hurricanes, earthquakes etc
Foreign investors can operate with the same rights and incentives as locals
Panamanian tariffs are the lowest of all the Americas
Panama is a shoppers paradise, be it Chanel, Gucci, Canon, LG or Toyota
Private education is excellent with many international schools
Less than 2% inflation increase over the past forty years
No property taxes on new constructions
Cost-of-living is low, especially with the exchange rate
If you combine these unique offerings with the advantage that foreign source income is not taxable in Panama, many are concluding that Panama offers a terrific package.
In 2003 for the first time tourism topped the Canal and the Free Trade Zone as the country’s top revenue earner.
The growth in tourism leads to increasing investor interest in this sector and there are incredible opportunities for tourist related services and accommodations, encouraged by government incentives in a number of designated areas, called Special Tourism Zones, of which Santa Catalina, Veraguas, Panama is one
IPAT, the national tourism bureau has zoned this area precisely because of its outstanding natural beauty and as a result it will soon see a strong rise in interest from further a field. It has been a best-kept secret by Panamanians for a long time and is now beginning to seduce many a traveler, adventurer, investor, and developer. Growth in the area is inevitable; therefore, those who seek to invest early will reap the largest returns.
This is where Big World Villas, the unique development project is due to celebrating its ground breaking procedure in early 2008.
It is the first such development in the area and offers investors a relaxed lifestyle surrounded by pristine coastline, untouched rain forest and endless opportunities for outdoor adventure.

Santa Catalina is a beautiful town located 300km south-west of Panama City and is the best the best access point for the well-renowned Coiba National Park a UNESCO World Heritage Site. It is also known for having one of the best surf breaks in Central America whilst boasting breathtaking scenery and an outstanding natural environment. World-class fishing is plentiful along the coastline and surrounding islands. Marine activities such as sport fishing, scuba diving, snorkeling and jet skiing opportunities are said to be some of the best in the world.

Have you ever considered investing in a commercial or a residential property in Panama? Have you thought about buying a property to let out to the increasing number of tourists in the area? Panama currently holds a lot of promise for investors, as the influx of tourists and people immigrating to the country is on an upward rise. The Panamanian tourist economy has strengthened, with the revenue exceeding that of the exporting trade of the Colon Free Zone for the first time in years.

Panama is a stable country; which further enhances the attraction of investing in the real estate market. Retirees from North America and Europe have been immigrating to Panama in recent years to take advantage of the low cost of living, as well as the political stability in the area. There are a great deal of incentives which has appealed to the older generation, who can enjoy life to the full in Panama with discounts on homes, health care and entertainment. Several retirement homes and villas have been built around the country to fill this increasing demand of real estate.

The tourist trade has also been on an upward climb, and Panama is seeing a need for new hotels and villas to rent out to the visitors. People interested in investing in the country would be wise to develop accommodation as well as leisure centers and entertainment facilities. People on holiday will not only want a place to live, but they will want to enjoy themselves a well. Investors have the opportunity of building much needed sports complexes, bars and restaurants to cater for the large numbers of people visiting every year. Some of the former army bases have already been converted for these purposes, although there are still some that remain for sale.

Panama has a lot to offer investors; with properties still reasonably priced and almost certain to bring in returns. Panama has offered incentives for those wishing to invest in the country, especially in areas that need a little bit of renovation. Real estate typically gets cheaper the further inland you go and the further away from the bigger cities. Although many of these areas offer beautiful scenery and surroundings, they may be lacking in certain amenities such as water and electricity. The money that you saved from buying a remote property will be put into the renovations of the place instead.

Investing in real estate in Panama can potentially be a very good investment. Whether you decide to buy a villa to rent out, or a home to sell, it would be a good idea to remember that location is a very important factor. Although you may find a dream property with views on the beach; the most important question is whether the surrounding area is as attractive. Both tourists and people looking at buying in Panama need to be close to local facilities. Although the idea of living in a secluded area appeals too many, things such as grocery stores will need to be in close proximity.

To ensure a good investment with good property yields; remember that location means everything. There are several great areas in Panama with increasing amounts of people visiting every year. Holiday makers will want to be fairly close to entertainment options, restaurants and beaches. Think carefully and you are bound to make a good investment in Panama!

Introduction – Multiplaza Mall in Panama City is now host to a Louis Vuitton Shop and a Chanel Store. Multiplaza Mall has always been the high-end mall of Panama. It is now possible to buy high-end Swiss watches like Breitling and Omega along with Montblanc pens and now we have these two high-end boutique stores as well.

Discussion – Can Panama support these high-end stores? We have had Nautica and Hilfiger for some time down here and they seem to do well but they are hardly high end stores, high middle class products would be more descriptive of them. Do we have enough people willing to spend $900 on a purse or sunglasses, which is thrice what the average worker makes in Panama in a month? We have had Cartier and Rolex stores in Panama City for some time. There is also a Maserati, Ferrari and Porsche dealership as of recent in Panama City. We do see a fair amount of Porsche Cayenne SUV’s running around but precious few Porsche cars. It is very rare to see a Maserati or Ferrari but if you go to the causeway on a Sunday afternoon you will see the car collectors do their drive by just for an excuse to drive the car. We do not have a Bentley or Rolls Royce Dealership. Maybe I should say – yet.

High End Goods and Crime – Panama has no car jackings, or if there are any no one ever hears about it. There is no place to go with all the traffic the thief would surely be caught within blocks. People would see the crime, get on their cell phones and the police would soon show up on motorcycles and that would be the end of it. Now what happens if women start to carry $1900 Vuitton purses? Will kids make a running grab for them hoping to sell them for $50 in the local neighborhood? Will the kid be able to tell what is an expensive purse and what is not? Will the kids need a Fagan type guy to train them and to fence the goods? Of course the contents of a $1900 purse would be of interest to the thief as well. Panama City has had a number of enterprising vendors who managed to get Vuitton franchises without even having a storefront (just kidding) and they have placed a lot of Vuitton, Chanel looking products into the country, which may confuse the thieves. What if people take to wearing $20,000 gold and platinum wristwatches in Panama? How will the thieves react to that? One can make a temptation readily for some thief by wearing a $20,000 watch in a country where the average wage is $300 a month.

What Next – Well if Vuitton and Chanel are here we can expect the rest of the high-end designer labels to start opening up? They generally do not like to want to miss out on a market that brands like Vuitton and Chanel are in. Are we going to see Bloomingdales, Saks Fifth Avenue, and Neiman Marcus opening up here? I would think you could safely bet on it. I would think antique dealers and art galleries will soon follow. Then we will see ultra high end branded restaurants charging outrageous prices for small portions of food like Emerils. We already have rumors that the Hilton Hotel people are going to open up in Panama City and more high end branded hotels can be expected.

Implications – It could be that Panama real estate is just on the way up and the peak prices are far from what they are now. All these high-end retailers have site location analysts that are good or else no one would use them. If they are giving the green light to Panama this is significant information. Panama real estate may be selling for $5,000 a sq. meter or more before you know it. One of the arguments against the high prices has always been the lack of an infrastructure. The city is cleaning the bay, which will actually create something like a useable waterfront. They have plans to manage the traffic. The houses are going up. The hotels are coming in. The airport is being expanded at this time. A cruise terminal is being built. The Canal is being expanded. The Causeway is already developed and looks as good as any Causeway anywhere in the world. This could be it, put on your seats and take the ride the might just get off the ride a lot richer than when you got on.

Introduction – At the end of May 2007 it has been reported that the Panama Banks have collective assets of over $55,000,000,000 (55 Billion dollars). This is 17% higher than the preceding year (2006). Seventeen percent is very respectable growth by any standards.

The Panama banks reported net gains of $444,000,000 in the first five months of 2007. This is 19% higher than the same figure reported in the year 2006. They are even growing in profits.
This year two new banks have opened in Panama and five others are in the process of getting their doors opened now. Business is good.

Discussion – This is no mystery to us. Panama is currently the most secure jurisdiction for asset protection. Panama has truly anonymous bearer share corporations and truly anonymous foundations. There is no recording of ownership for either in any database or registry. The bearer shares of the corporations do not need to be held by anyone in particular and need not be kept in Panama and the shares can be made out in blank. The books and records for the corporation or foundation can be kept anywhere in the world. Panama bank secrecy laws are among the tightest anywhere in the world. Panama has no tax treaties of any sort with any country. Panama has no mutual judgment collection treaties of any sort for collection of any sort of civil judgment. Panama has some of the best banks in the world. People are finding out that the Switzerland of South America is actually better than Switzerland.

Conclusion – We expect to see more and more banks opening up in Panama. We are seeing floods of new accounts being opened in Panama from investors coming from many different countries. Since Panama is the number one retirement haven as well as being the number one tax haven, this means even more dollars are flowing into the banks as the people move here to enjoy their retirement years in a tropical paradise with low crime, low prices, nice beaches, good fishing and warm weather.

Panama is an ideal retirement location for somebody who would love the idea of having either the Atlantic or the Pacific Ocean on his doorstep. It is a country for those who appreciate nature in all its forms, from sparkling clear waters to intricate coral reefs, from towering mountains and volcanoes to diverse variety of birds and other wildlife.

Panama is very accessible to those who wish to retire there. For pensioners, Panama has the Tourist Pensioner Visa. This Visa allows a retiree to settle indefinitely in Panama without citizenship provided that he annually report to the Panama Immigration Department to prove that he is still receiving pension from the government or a retirement corporation. The monthly pension minimum requirement is $500. And this should be backed by pension statements. The minimum age requirement to be a pensioner in Panama is 55 for women and 60 for men.

When you have a Pensioner Visa, you will have some importation tariff breaks as well as generous discounts. You can have a swinging good time in Panama because you are generally entitled to receive 50% of the recreational and entertainment activities. You will have the means to travel all over Panama because you have public transportation as well as hotel accommodation discounts. Aside from these, you have discounts for medical services and monthly utility bills. This Visa doesn’t come with a passport, but it entitles you to get a national identity card to facilitate your financial and official transactions.

Panama is not only for people who expect a monthly pension. Panama also welcomes those retirees who have received a lump sum upon retirement. In this case, retirees who can give proof that they have enough retirement money will be given a Private Income Retiree Visa. Before this type of Visa is approved, money should be deposited with the National bank of Panama and the account returns should give the retiree a minimum monthly income of $750. Unlike the Tourist Pensioner Visa, this type of Visa loses validity every 5 years so a renewal must be undertaken by renewing the bank account deposit. This type of Visa also grants one use of a Panamanian passport though without the benefit of nationality.

As a Private Income Retiree Visa holder, you will get a one-time duty-free exemption privilege when you import household goods. The maximum duty-free import amount is $10,000. And every couple of years, you will have an exemption for importing cars.

One other way by which you can spend the rest of your days in Panama is through the Person of Means Visa which is awarded to people who have a one-year certificate of deposit in any Panama account. The minimum amount of deposit required is $200,000. There is going to be one other renewal on the second year where the deposit also needs to be renewed. Upon the next renewal, the Visa becomes permanent and after five years of being a permanent Person of Means Visa holder, one can apply for nationality.

From the first moment you step off the plane upon landing in Panama, you will feel as welcome as if you were at home. This is not because of the tall buildings of Panama City, the exotic beaches or the humid tropical weather, but because the people that you will encounter and get to know during your stay will be some of the nicest and most welcoming people you could ever meet.

Most foreigners who are planning a visit to Panama think that they are coming to a typical Central American, Spanish speaking country. While this is partly true, there is much more to be said about the people and culture of Panama. Panamanians love their country with a true passion, and many are willing to share that love with anybody willing to listen. The people of Panama represent all different backgrounds and nationalities, but in this small yet spread out country they have managed to develop a society of great importance to the rest of the world. Panama exemplifies how people from different backgrounds and pasts can live peacefully together in a unified community. Homeless people, wealthy people, middle class working people and everything in between coexist in Panama. One major difference noticed between Panamanians and the rest of the world is that Panamanians do what they have to do to survive without complaint, with the mentality that if they work hard, the rest will take care of itself. The people of Panama work to live rather than live to work, so that they have money to get by but know that family and happiness make up a more important part of life.

Even if none of Panama’s sites remind you of home, the people will make you feel right at home. Walking along the streets of Panama, you can find families playing in parks, elderly men reading the newspaper while talking about how to solve the world’s problems and women offering to sell you their handmade goods. Panama’s people are unique, and only want the best for their country and everyone in it. Once you visit Panama, you may not want to leave. The Panamanian people, accompanied by the beautiful scenery and a booming economy, will soon make Panama one of the top destinations to visit on the planet.

The continual goal in overseas property investment is to try to find a destination ready to take off on the tourism, international business and economic fronts – and to find it before the majority of the market has been able to get there. This entails an element of risk as to whether the development will be as rapid or as impressive as the predictions indicate.

In many ways, it is somewhat strange, then, that one of the most touted investment destinations in the overseas property market is a country that has long been visited by rich tourists, already has a business district with a large number of multinational companies, and is one of the most important locations in the world for sea-borne trade.

Panama is seen as the most stable country in Latin America, perhaps not that surprising given the fact that the US has been present there since the inauguration of the Panama Canal 100 years ago. A referendum has recently been passed to allow the expansion of the Canal, permitting the largest of supertankers to begin using the route, therefore generating even more revenue for the country.

The economic growth rates in Panama have also been impressive – GDP grew by six per cent last year and is projected to rise by a further seven per cent by the end of this year. The revenue generated by the canal alone tops $500 million per year (£244 million), in a country of just three million people. The advantage of revenue from the trade route is that every other country in the world that uses it has a vested interest in protecting it to preserve their own trade systems. Therefore, the stability and safety of the State of Panama is virtually guaranteed.

The long-standing association of the United States in Panama has also ensured that the infrastructure of the country has developed significantly beyond that of its neighbours, with good road, rail and air links with many parts of the world.

More importantly from a property investment point of view, there are very few restrictions on foreign investment in the country, and the government has allowed 10 to 12-year tax exemptions on new construction projects to allow developers to explore the market for property investors. This has led to a significant increase in the amount of new projects coming onto the market in recent months.

The competition between these developments has kept property prices within the affordable bounds of an emerging market, though rapid appreciation is also reported. This is no doubt being pushed on by interest from the US market looking for alternatives to Florida and Mexico for holiday homes.

Another important consideration for UK buyers is that Panama is sufficiently Americanised for property to be priced in US Dollars. With the current exchange rates, property in Panama is even better value than it was just a few months ago.

As the real estate market in Panama develops and attracts more and more foreign investment, the developments on offer are growing significantly in standing. Currently under construction is the Los Faros development, a site of three towers containing over 1,700 properties being marketed by agents Feltrim. The central of the three towers is set to become one of the tallest residential developments in the world at 84 stories, and offers two-bedroom condominiums from $292,000 (£142,773).

In addition, there will be the world’s largest Trump development right on the water’s edge. Ocean Palace will be a condo-hotel resort with its own private beach and yachting marina on the Punta Pacifica in Panama City. The 949 properties will share the 66 floors with a top-quality hotel. Owners will also be able to make use of the Trump casino, seven swimming pools and, the piece de resistance, a yacht to transport them to the private beach club on Contadora Island, one of the 100 islands that make up the Pearl Islands just off the coast. Studio hotel apartments are available from $375,000 (£183,356) through Escapes2.com.

The hotel apartment concept is an attractive one for many overseas property investors, giving as it does, good opportunities for the property to be rented through the hotel itself, and managed on a daily basis. Should you be able to find a hotel with high occupancy rates, the returns from renting out this type of property are potentially impressive.

“Panama has attracted foreign investors both young and old since Noriega was toppled from power and stability came back into the country” says Charlie Pritchard of Churchill Innovative Solutions, who are marketing another condo-hotel project at Megapolis in Panama City.

The attraction for retirees as well as investors is backed up by Ian Cunningham of Escapes2.com: “Panama is a leading destination for retirement; the country offers substantial discounts to retirees on travel, medical and living costs, and as long as you have a monthly pension of $500 per month (£244), you can apply for a pensioned visa, regardless of age.”

Living costs are favourable for residents, and far below the levels of the UK, while price inflation of general goods is at around two per cent.

Combining the advantages of the investment proposition and the attraction for residents, the argument for investing in property in Panama is persuasive – you may want to keep it under your hat

Choosing a place to live after retirement was never been simpler! Would-be retirees have two great options in front of them. They can spend the life in the US or can consider buying a house outside their country.

It is a fact that most people find their budget inadequate for covering costs of quality retirement living options in the United States as the prices have really rocketed these days. Although the housing industry has witnessed a downturn in recent years, it is still expensive. Most Americans now fear that they shall not be able to afford the retirement they have always dreamt of.

It is regrettable that the costs of finer retirement living alternatives supersede the financial resources of the average retiree. As a consequence, many Americans are considering leaving the country to find a retired life which is affordable to them. Thinking outside the box or thinking beyond America simplifies matters as it cuts down drastically on options and expenses. Thinking outside the box means, thinking outside the US.

Of late, the editors of Live and Invest Overseas have noted six different places which are great options for residing after retirement by spending less than $1500 a month. Panama is first on this list meaning Panama is the best place to settle down after retirement.

Panama is passing a golden time with high economic growth and smooth political stability. The first world alike infrastructure and high standards of living shows Panama’s strong and thriving economic growth. Over the last few decades, Panama’s geographic location attracted retired people from the US and Europe to settle down. The retired people also find it extremely easy to shop in Panama as its local currency is the US dollar.

Panama offers a lot of offshore islands where retired people can relax in the beaches. The country has the most stunning pristine beaches in the world. As tropical climate remains all over the country, Panama is the best choose to enjoy a soothing weather. Additionally, Panama offers a wide range of tourist attractions and gambling facilities.

As Panama is the best place to settle down after retirement, the housing companies of the United States became interested in the discovery of Panamas valued real estate properties. These days, many US based companies are coming in and investing in Panamas real estate sector. However, local real estate companies are very efficient and offer lucrative prices. A retired person can get a luxurious apartment or a single family house with half of the price compared to buying the same in the US.

Overall, Panama has got everything that would be retired people seek before settling down.

Travel to Central America has always been very expensive from the US. However, the trade routes into Panama have consistently provided an opportunity for discount travel airfare to and from Panama. The amount of discount is often a function of the type of cargo and the actual form of air transport you are willing to accept.

Traveling as Cargo

Many of you may be surprised to learn that Panama may have more airfields available for light cargo planes than any single state in America. Practically every cocoa or marijuana field has its own private landing strip providing the capability to load fairly substantial amounts of cargo. In such cases, discount travel airfare from Panama might be necessary for the cargo owner. Thus, if you are not a very qualified liar, you might expect to spend some time in jail in the arrival city in the US. In such cases the discount travel airfare from Panama may in fact be more expensive than a regularly scheduled flight!

Discount travel airfare to Panama is much less adventurous. The simplest thing to look for is a two engine small passenger plane that is making frequent trips to Central America. Contact the pilot directly and negotiate your discount travel airfare to Panama. These guys think they are beneath the radar, and the fact that you know they are going to Panama for a reason that is not very popular with the DEA, can result in a very low discount travel airfare to Panama. However, one must understand that such discount travel may not be to the desired port or city, and further negotiation of the discount travel airfare to Panama is not possible once airborne.

Traveling as cargo in such a manner is not the safest or preferred way for those of us who wish to avail discount travel airfare to Panama.

Traveling Alone

For those traveling alone, here is a note of caution. When entering into the deal for discount travel airfare to or from Panama, please do it with at least one friend. Safety is in numbers and flying as a group in the manner suggested would result in far less trouble for you and your friends. You may even end up in a legitimate location in Panama and spend some quality time together. As with all vacations, time spent in planning your trip carefully usually pays off. Research the carrier, the airfields involved and the class of service provided.

3 Months and 5 Days

I came to Panama with little knowledge of the Spanish language, very little knowledge of the country of Panama, and next to no knowledge of the culture. It has now been 3 months and 5 days that I have been living in Panama City.

Some things that I have come to learn is that the food is just simply amazing, the country couldn’t have a more diverse and beautiful landscape, and the people are one of the kindest.

First arriving in Panama I was in awe struck with the variety of ethnic foods that Panama offers. A traditional Panamanian dish will consist of a combination of, patacones (fried plantains), fried yuca, sancocho (like a potato and chicken soup), rice, beans, and some sort of meat dish. In a third world country, which Panama is, you would think they wouldn’t really stray far from that. Being that Panama is a melting pot of cultures; it is directly reflected in the type of food that you can find all over Panama, especially in Panama City. I have come to find that German, French, Italian, Greek, Mexican, Colombian, Lebanese, Chinese, Japanese, and American food is easy to come by here. Every dish that I have been served that isn’t Panamanian, tasted as if I was eating it straight from its country of origin. I haven’t had a foreign dish here at a foreign restaurant that had a sort of a Panamanian flare to it; they all seem to be pretty right on.

The province of Panama has all the hustle and bustle that any major city in the U.S. has, the Darien province is one of the wildest jungles on the planet, the province of Chiriqui is filled with numerous amounts of rivers, a volcano, and mountains, and the province of Bocas del Toro is an island true to its form. With the nine provinces that make Panama this beautiful isthmus that it is, traveling through each and everyone one of them is quite mind boggling considering the vast variety of eco-systems you come encounter with. Waterfalls, lakes, rivers, oceans, mountains, rainforests, beaches, wild animals, a jungle, and a huge city all make up this beautiful country of Panama.

Whether I need help spelling the word “yuka,” translating a paragraph, or making a reservation at a cabana on the beach, my coworkers always drop the tasks that are occupying them at that moment in time and help me with whatever needs to be taken care of. I have had friends who have gotten rides around town in the province of Veraguas, as well as I have had people be extremely patient with me while I am trying to ask for directions in my broken Spanish. I also found that people on the streets here enjoy a friendly hello as you are passing by them.

All in all, I love Panama. I never thought it would be what it is. Everyday I encounter something new and exciting and hope you decided to venture our here too.