There is definitely more to Panama than a canal!
Panama is fast becoming one of the world's top retirement
destinations and also a world class tourist location - particularly for
adventure and ecotourism. Long overshadowed by its neighbors such as Mexico and
Costa Rica where mass tourism is now the norm, Panama has been relatively
unknown except to travelers with special interests such as world record deep sea
fishing, birding, river rafting and rain forest experiences. All these exciting
opportunities together with gorgeous beaches and great surfing, kayaking and
diving, ensure Panama has something for everyone. It has an interesting cultural
background, from stone age indigenous peoples (still in evidence) to the history
of conquistadors and now a modern society with infrastructure that is first
world. Panama is still a country where you can see a myriad of birds including a
quetzal while sitting alone in a rainforest, rather than having to join many
tourists viewing one quetzal. From the Caribbean to the Pacific, imagine these
choices on your doorstep! In addition Panamanians are some of the friendliest
people you will ever meet. All this makes Panama and ideal location for
retirement or a second home.
Little surprise then in the May/June issue of Modern Maturity
magazine (the AARP magazine with the largest circulation of any consumer
magazine in the world, upwards of 20 million subscribers) rated
Boquete
, Panama , the fourth best retirement destination in the world.
International Living rates Panama even higher on their list at No.1. As well as
the picture perfect highlands of Boquete , Panama has a perfect location for
every taste; from a cosmopolitan capital city to palm fringed beaches, cool
mountain climates and tropical resorts, however the best fact is that it is
affordable! There are many financial incentives for retirement. If you are
looking for a
second home
or a
retirement
option , then Panama should be at the top of your list. A smart choice
indeed!
With an US style infrastructure, Panama offers an easy
transition particularly for US retirees. 75-80 million Baby Boomers will reach
retirement age in the next 10 years in the US alone. US Government statistics
show that most of them will not be able to sustain their current standard of
living by relying on savings, assets or pensions. More than ever before, U.S.
baby boomers are considering retirement outside the U.S.A. Having traveled far
more extensively and being more active and adventurous than previous
generations, they are also identifying the need to maximize their diminishing
retirement incomes, so the idea of overseas retirement is appealing to many.
Discovering a less stressful environment also has a definite allure! The
families of the North Americans who lived in Canal Zone during the 90 years of
North American presence look back at their “Paradise Lost” and very often
return. Living and retiring overseas was once an option available only for the
wealthy, it is now an affordable trend.
Copa Airlines,
the national airline of Panama , in alliance with Continental Airlines is
increasing its direct flights to an additional number of US cities so it is easy
to visit with family and friends. Incidentally, in April 2004, Copa was named
Best Airline in Central America, Mexico and the Caribbean by SkyTrax, an English
market-survey company that conducts the World Airline Survey, the largest
airline passenger survey in existence. Copa also has an impressive “on time”
flight record!
Interest in Panama does not only come from the United States
; many Canadians are heading further south than Florida for their “snowbird”
sojourns - and staying for retirement. The increasing cost of living,
overcrowding and higher crime rates in Florida , encourages them to take a
slightly longer flight south! A weekly charter flight from Toronto is now
scheduled.
Despite the distance, Europeans are not unaware of the
affordable opportunities that Panama has to offer. The Expatriate Telegraph
(offshoot of a venerable British newspaper) suggests an alternative retirement
destination to the usual venues of Spain , France and Portugal that retirees
should consider, a “ warm, adventurous and inexpensive place to retire,
Panama also offers
an attractive incentive program for retirees ”. Again Panama compares most
favorably with the more usual European choice of retirement destinations with
its lower cost of living and great climate, not to mention the financial
incentives.
The
international mainstream press is also waxing lyrical about Panama, articles in
National Geographic, Travel and Leisure, New York Times, LA Times Boston Globe
and Harpers Bazaar are stimulating interest with descriptions such as “the most
beautiful retreat in the world and almost undiscovered” (Harpers). “Known mostly
for its canal, Panama is in fact an undiscovered tourist paradise” (Boston
Globe). Articles like these ensure that tourists and retirees are discovering
Panama very quickly.
So why is Panama gaining in popularity among retirees,
investors, and part-time expatriates? Not only because of increased publicity -
Panama has more amenities, lower costs and lower crime rates than many other
traditional retirement locations. In fact Panama 's advantages are unrivalled.
Apart from tax advantages and privacy advantages, consider the following
- Panama has a stable government and a growing economy
- The US dollar
is the legal tender. Panama has a stable economy that has been based upon
the U.S. Dollar since 1904
- Residents pay no tax on foreign earned income
- Foreigners can buy and own property in Panama with the same rights and
protections as Panamanians citizens.
- Pensionado program (retiree incentive program), the best in the world, is
not necessarily age related and the benefits are considerable
- Tourism investments have exemptions from import duties, construction
materials and equipment, income, real estate taxes, etc.
- Property tax exemptions apply to all new construction on a sliding scale
according to value
- English is widely spoken
- The US presence in the country for many years has lead to a US style
infrastructure with a number of familiar names and businesses
- Panama has a number of US standard health care facilities and services with
many US trained English speaking doctors available.
- Panama has a reliable communications system with fiber optic telephone lines
and much of the country has ADSL internet
- Panama is one of the best offshore havens in the world
Last but not least, Panama is beautiful. From cool mountain
retreats like Boquete, to affordable beachfront property, or cosmopolitan city
apartments overlooking a stunning harbor, the choice is yours. With real estate
prices beginning to rise, you also have an opportunity to make a considerable
return on your investment if you buy now. Rental property is in high demand
particularly in the highland areas, so even if you are not looking to retire for
a while this is an opportunity to get into the market and earn a return on your
investment in the meantime. To view properties, farms, houses, condos, islands
in different parts of Panama ,
visit our Real
Estate Marketplace .
There has never been a better time to
invest
in Panama . Not only is there tremendous interest in Panama as a tourist and
retirement location, economically Panama is gaining strength. The new
administration, under President Martin Torrijos, elected on May 1 st 2004 with a
strong popular majority, has the momentum to carry out measures to promote
growth. The plans to enlarge the
Panama
Canal , and participate in additional free trade associations, will
stimulate the economy still further.
Panama's
Colon Free Trade Zone (CFZ), established in 1953, is the largest in the
Western Hemisphere and contributes substantially to the country's economy.
Panama has consistently maintained one of Central America 's highest per capita
gross domestic product. In March 2004, the International Monetary Fund recorded
4% real term growth for 2003, and forecasts are positive for the future. The
U.S.A. is still the largest user of the Canal and Panama 's foremost trading
partner, central banker and is influential regarding its monetary policy.
To encourage long term foreign investment, Panama does not
require special permits, authorization or registration to qualify investors. The
1998
Investment
Stability Law protects foreign investors for ten years following the
registration of an investment, shielding them from changes in tax, customs
duties, municipal and labor laws. Major companies doing business in Panama
include Federal Express, DHL, PriceSmart/Costco, Marriott Hotels, Holiday Inn,
Sheraton Hotels, Kansas City Southern Railways, Continental, Delta and American
Airlines, Warranty Company of the Americas and Hutchison Whampoa, to name but a
few. You will find just about every US franchise on the streets of the larger
cities from MacDonalds, Dominos, KFC, Pizza Hut, TGIF to Dunkin Donuts etc;
luxury clothing lines such as Nautica and Liz Claiborne have stores in Panama
City . You will feel right at home.
Over 80 banks have full service branches here including HSBC,
Scotiabank, Dresdner, BNP/Paribas; there are no “brass plate” banks here. Panama
is a
growing
international financial center with good communications and first world
amenities.
Considered to
be the best retirement program in the world, the
Panama
Pensionado program offers retirees excellent incentives including
- Import tax exemption for household goods
- Tax exemption to import a new car every two years
- 25% discounts on utility bills
- 25% discount on airline tickets and 30% on other transportation
- 15% discount on loans made in your name
- 1% reduction on home mortgages for homes used for personal residence
- 20% discount on doctor's bills 15% on hospital services if no insurance
applies
- 15% off dental and eye exams
- 10% discount on medicines
- 20% discount on bills for professional and technical services
- 50% discount on entrance to movie theaters, cultural and sporting events
- 50% discount at hotels during Monday to Thursday, 30% on weekends
There are many more discounted items than we have space to
list here. Once you have qualified as a Panamanian resident with a pensionado
visa you qualify for these benefits.
Click here
to view all general requirements to qualify for a pensionado visa are listed
on However, the main requirement is proof of a minimum income of $500 per month
plus an additional $100 for each dependent. This program is not age related
provided you have a pension. Foreign residents of Panama, regardless of the type
of visa they obtain, who are over the age of 55 years for a woman and 60 years
for a man, are entitled to most of the retiree incentives listed above with the
exception of the importation of tax free cars.
The cost of living in Panama is lower than the US and much
lower than Western Europe . For example, electricity costs approximately 10 - 12
cents per kilowatt hour depending on the area, water and trash collection around
$7 per month. Direct TV, telephone and internet services vary according to the
plans chosen. Direct TV with a wide choice of English language channels is
approximately $50 per month. Locally produced vegetables, meat and fish are
priced considerably lower than in the USA although imported items may be
slightly higher. The minimum wage for housemaids or gardeners is 88 cents per
hour. Local beer at the supermarket costs 30 cents per can, a coffee in a
restaurant may be as little as 30 cents.
Panama currently has an undervalued real estate market;
however as has happened in countries like Costa Rica , Mexico and Ireland ,
prices are beginning to rise as more people discover the advantages Panama has
to offer. As a potential real estate investor there are several areas to
consider where you will find maximum growth opportunities.
Boquete in the Chiriqui Highlands has a
perfect spring-like climate at an elevation of a little over 3000 ft., with
clean air, clear water, and a welcoming community. On the lush green hillsides
gourmet coffee is grown and at times the smell of roasting coffee sends
wonderful aromas through the town. If you love Colorado , Oregon or British
Colombia, you will love Boquete. The cost of property here can vary enormously
depending on the location and availability of access and utility supplies. Land
can still be found in outlying areas for less than a dollar a square meter but
would probably require the installation of roads and power and water lines.
Property closer to town can be priced from $10 to $100 per square meter
depending on location and views. Building costs vary according to requirements;
a home with high end US style finishes and fittings can vary from $50 to $75 per
square foot, costs for simpler construction using cheaper materials can be much
lower. There are few completed homes for sale and the rental market is one of
demand rather than supply. Rental property is a good investment here.
Check our real estate
listings for an overview of available properties in this area or
contact our Boquete office .
Panama City is an
affordable cosmopolitan location for those who prefer city life. With a skyline
reminiscent of Manhattan or Singapore , the high rise buildings tower above the
ocean or rain forest. High class restaurants, first class hotels and fast food
outlets, are here for all tastes and pockets. Entertainment is varied, the
latest movies, concerts featuring foreign and local performers of all genres,
every kind of sporting event – baseball is arguably the most popular sport and a
number of Panamanian players are found in US major league clubs. Mention Mariano
Rivera and the New York Yankees and you will make friends immediately! Shopping
options range from local markets to multi million dollar super malls and luxury
goods. The Amador Causeway has a number of great restaurants, yacht clubs and a
duty free shop, it is also a great place to bicycle, jog or walk with sea
breezes and a great view of the stunning Bridge of the Americas . Panama City
even has a rain forest within its city limits.
There are two main real estate opportunities here. Beautiful
apartments with fantastic ocean views are available in price ranges to suit all
pockets. Many have the use of a pool, spa and children's play areas. You can
still find apartments for less than $150,000.00 but be sure to check out the
location before you buy, as in all big cities some areas have advantages or
disadvantages that are not immediately apparent to a newcomer.
Check
our Panama real estate for current listings and price range or
please
contact our Panama City office for real estate advice and we will be happy
to help you find the right property for your new life.
The jewel of Panama City is Casco Viejo. Don't be dismayed
that many of the buildings are in disrepair, look closer and you will see many
remnants of French and Spanish colonial architecture; some properties are
gradually being rescued and have become restaurants, bars, studios and small
hotels in an area that could well become another New York City Soho. The
Presidential Palace and the National Theater are located here as well as a
monument to the French who made the first attempt to build a canal. Purchase and
restoration of properties in this area receive incentives from the government in
the form of tax exemptions and discounted mortgages. Even your rent is tax
deductible expense. In a few years this could be one of the most sought after
parts of the city. From apartments to palaces the opportunities are
limitless.
Bocas del Toro is one of the last affordable
areas of the Caribbean , and the archipelago of
Bocas del Toro
is stunning. Palm fringed islands, white sand beaches, in fact Bocas has
everything you ever imagined for the picture perfect tropical retreat to hang
your hammock. The real estate opportunities for beachfront properties, teak
plantations, and island hideaways are here in abundance. Caribbean beach front
property at prices that are still affordable is too good an opportunity to
dismiss. Lots here start as low as $32,000.
Check our
Bocas del Toro real estate listings for examples of properties and costs, or
contact our office in Bocas.
Panama's Public Registry is well respected and shows proof of
ownership and clear title to property However it is strongly recommended that
you carry out due diligence on any property you wish to purchase, even in a
development. Searches should be carried out in the Public Registry.
Title insurance is strongly recommended and the
BusinessPanama Group is the exclusive agent of one of the largest US title
insurance companies.
Read our
article for a better understanding of buying a property in Panama .
The legal department of the BusinessPanama Group will be
pleased to assist you with the legal requirements for all aspects of real estate
purchase. The preferred method for most expatriates to hold property is in a
Panamanian Corporation. BusinessPanama can offer competitive costs and efficient
service to provide Panamanian or offshore corporations, foundations and trusts
as required.
In the BusinessPanama Group, we have experienced licensed
real estate brokers, lawyers and other professionals to assist you on any
service you may need.
We can help you with:
- Buying a property in Panama City , Bocas del Toro, Boquete, Islands or
Mountains
- Forming a company to own your property and protect your assets
- Legal services to purchase the property
- Applying for your residence program
- Title insurance
- Home owners insurance
- Bank mortgage financing
- Relocation
- Others
We aim to provide you a " One Stop Solution " for all your
services in Panama . Here at BusinessPanama our bilingual staff will provide you
with expert advice and expedite your requirements.
Please contact us in
Panama City
or
Boquete
so we may welcome you to Panama and help to make your transition to your new
location as smooth as possible.
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