Panama Property Finders

Panama is fast becoming one of the world's top retirement destinations and also a world class tourist location - particularly for adventure and ecotourism. Panama has been known 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 on the two coasts, thousands of islands, 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 first world infrastructure.

Panama is still a country where you can see a myriad of birds including a quetzal while sitting alone in a rainforest, or even at the front of your doorstep, all along from the Pacific to the Atlantic Coast.

In addition Panamanians are some of the friendliest people you will ever meet and having English as a second speaking language makes them extremely tourist friendly.

All this, among other things, make Panama and ideal location for retirement, investment or a second home:

Easy accessibility to exotic tropical rainforests, beautiful mountain retreats, Caribbean beaches, seven living Indian cultures, American style capital city, historical sites, diving, rafting, golf, deep sea and fresh water fishing, not to mention the Panama Canal.

Panama was given one of the highest rankings for tourist safety from the Pinkerton Intelligence Agency. But as with any foreign destination, it is not advisable to walk around the streets flashing your money or valuable belongings. Panama is probably safer than where you live now.
Recently, a government study on crime in Latin America found Panama with a lower crime rate than Costa Rica, which is typically thought as the safest Latin American country to travel to. You obviously have to be careful with some neigborhoods such as El Chorrillo, San Miguel or San Felipe which are not safe for walking alone.

Panama is one of the blessed countries in Central America that is absolutely hurricane-free. Panama also has none of the major earthquakes that are so common to other neighboring countries allowing your property investment to always be natural events safe.

Six major U.S. cities have direct daily flights to Panama City: Los Angeles, New York, Newark, Miami, Houston, Atlanta and Orlando.

Since Panama has recently begun to promote itself as a touristic destination, the prices are some of the best in the market.

Panama has the most accessible virgin and diverse rainforests in the world. A bio-diversity that includes more than 1,000 recorded bird species among other wildlife flora and fauna, and national parks that cover 5 million acres.

The U.S. dollar has been Panama’s currency since 1904, although it is called Balboa for nationalistic reasons.

Panama uses the U.S. dollar as its legal tender, virtually eliminating any currency exchange risks to foreign companies operating here. The country has maintained an annual inflation rate of less than two percent for the last 40 years. Panama's economy has become one of the healthiest in Latin America, in spite of the Latin American economic crises. Panama has no restrictions on the outflow of capital or outward direct investment.

Panama is at the top of the list of the countries with best access to capital, ranking in Latin American only after Chile and Brazil, according to a report from the Milken Institute published in 2005. The test of this report took into account the economic environment, banking development, capital markets, international recognition and sovereign risk.

Panama is a member of the World Trade Organization (WTO) and is a beneficiary of the Caribbean Basin Initiative (CBI). In 2006 Panama is negotiating a Free Trade Agreement with the United States. Panama has initiated formal negotiations pertaining to free trade agreements with numerous countries and regional groups.

The Panama Canal extends approximately 80 km. (50 miles) from Panama City on the Pacific Ocean to Colon on the Caribbean Sea. It is widely considered to be one of the world's great engineering achievements having even been called “The Eighth Wonder of the World”.

Around 13,000 ships transit the Canal each year, hauling an estimated four- percent of the world's goods around the globe. About 70 percent of all trade through the Canal is coming from or heading to the U.S. and traffic is projected to increase two percent per year.

There are many tours that include a trip to the Panama Canal where a must-do is a visit to the Panama Canal Visitors Center at the Miraflores Locks, where interactive exhibits will explain the history (it took more than 250,000 people from all over the world and more than 10 years to build it) and workings of the Canal, its rich nature and waterways. Other way to get to know the canal is to take a “mini-cruise” in the Panama Canal as a day trip.

The Investment Stability Law (Law No. 54 of July 22, 1998), guarantees all foreign and national investors equal rights in terms of investments and business practices, continuing Panama's quote s long-standing policy of providing a foreign-investment environment that requires no special authorizations, permits or prior registration.

This law provides a 10 years stability as of the registration of the investment that all legal, tax, customs, municipal and labor rules will remain identical to those in force at the time of registration. This is an important guarantee to secure that no-changes will affect the amortization of investments.

Up to date, more than US$ 2 billion have been registered under the protection of this legislation, ranging from energy and petroleum to industrial and tourism development projects.

Colon Free Trade Zone is the largest in the Western Hemisphere and the second largest in the world. Created in 1948, the free zone houses 1,751 merchants, receives more than 250,000 visitors yearly and generates re-exports valued at US$6.5 billion in 2005. Just minutes away from the principal ports on the Caribbean, the Colon Free Zone provides local manufacturers with an international market for their goods.

Panama has the most modern and successful international banking centers in Latin America, with more than 85 banks from 35 countries represented. Panama’s new comprehensive banking law (Decree No. 9) meets the standards of leading financial centers around the world for transparency and regulation, and conforms to the statutes of the Basle Commission.

Some of the banks present in the center are: Citibank, HSBC, Dresdner, Bank of Boston, International Commercial Bank of China, Banque Sudameris and more.

The Republic of Panama maintains a firm commitment to fight and maintain a proactive and efficient role against money laundering and the financing of terrorism and organized crime through its different governmental bodies and in close cooperation with other jurisdictions.
Panama’s banking system has effectively achieved the following, among others factors:

As a necessary complement of the above, important legislation has been passed by the Panama Legislative Assembly and sanctioned by the President and resulted in relevant Cabinet Decrees being issued by the Executive power. These regulations, listed below, are not only in effect, but have also provided assistance throughout the region and beyond.

Law 41 of October 2, 2000, which defines the crime of money laundering with regard to the predicate offenses: qualified fraud, illegal arms trafficking of humans, kidnapping, extortion, embezzlement, corruption of public officers, acts of terrorism, international theft, trafficking of vehicles and drug trafficking.
Law 42 of October 2, 2000, which establishes as "accountable persons" in the observance of due diligence for banks, trust companies, currency exchange offices, money transfer service providers, non-bank loan companies, savings and loan cooperatives, securities exchanges, securities clearing houses, securities firms, securities brokers and investment managers.
Law 45 of June 4, 2003, by which Chapter VII to Title XII of the Second Book of the Penal Code is added therein under the heading of Financial Crimes, fraud, illegal money transfers, concealing, deleting and counterfeiting accounting books and related documents. Disclosure of classified information, omitting or denying information, price discrimination, signing of fraudulent agreements, collecting financial means without proper authorization, among other types of crimes with their respective sanction.
Executive Decree No. 78 of June 5, 2003, which modifies the name of the Financial Analysis Unit (FAU) to Financial Analysis Unit for the Prevention of Money Laundering and the Financing of Terrorism and extends its duties and responsibilities to assets related to the financing of terrorism.
Law No. 48 of June 26, 2003, which regulates the operations of money remittance companies.
Law No. 50 of July 2, 2003, by which Chapter VI, denominated Terrorism, is added to Title VII of Book II of the Penal Code and sets forth other provisions, This Law defines the crimes of terrorism and the financing of terrorism, turning both into autonomous crimes in our legislation.

This proven commitment by the Republic of Panama against money laundering and financing of terrorism includes both the public and private sector, guarantees that Panama shall continue in this crucial endeavor and fully understands the importance of international coordination and cooperation.

Panama has long had an open doors policy towards foreign investment and aggregate foreign direct investments during the period 2004 and 2005 was $1,012.3 and $1,027.0 respectively, a significant amount.

Panama has long provided several important incentives for foreign investors, including

US dollar-based economy
Low inflation and zero foreign exchange risk
Total absence of exchange controls
Equal treatment of foreign and local citizens
One of the most flexible company laws in the world
No restrictions on 100 per cent foreign-owned companies
No restrictions on mergers, acquisitions or joint ventures
Excellent tax holidays for specific investments in sectors such as tourism, maritime, real estate, mining, Colon Free Zone, exports and others
High percentage of labor force is bilingual

Panama has been ranked first in the region for low cost of living, operational cost and index of labor by the Tripartite Committee, which consists of the Economic Commission for Latin America and the Caribbean (ECLAC), the Organization of American States (OEA) and the Interamerican Development Bank (IDB).

Political Risk Services placed Panama in the top three countries of the hemisphere with the best risk-investment qualifications. Moody's and Standard & Poors have both granted high ranking to Panamanian bonds.

Nearly 14,000 ships transit the Panama Canal each year with more than 192 million tons of cargo and 700,000 passengers and crew onboard.

Ride the original railroad inaugurated in 1855 becoming the first transcontinental railroad. This important transportation means, recently restored and modernized, will take along the isthmus from Panama City in the Pacific, to Colon in the Atlantic Ocean enjoying the views of the 47 miles of the Panama Canal and the rainforest that surrounds it. Among the railroad services are:

Panama has a highway network of approximately 11,300 Km., in asphalted concrete roads. Among the roads that add importance to Panama and facilitate communication and transportation are:

Making it easy to reach almost any place in the country of Panama that you want to visit.

Panama has 27 public and 41 private airports. From these public airports, 5 are full fledged airports, meaning that they have immigration and customs services.

Our main international airport is Tocumen, known by our main Airline COPA as the HUB of the Americas, located 15 minutes from Panama City, may be easily accessed by a modem highway (Southern Corridor). The second most important airport is Marcos A. Gelabert, located as well in the capital city, providing services to national and international flights.

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 U.S. 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 anywhere you buy, be it the highlands, the city or the beach, 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.

Real estate in Panama features Caribbean and Pacific waterfront and beachfront, island, highland, mountain, rainforest and agricultural property options. Property prices are still very affordable and there are always excellent deals to be found.

Buying real estate in Panama is very similar to the way it is managed in other countries. Most properties have titles or can be titled, title insurance can be bought, traditional mortgages are available and Panama has foreign investor protection laws that guarantee the standard rights of land ownership.

Being a hurricanes and earthquakes free land, Panama is becoming a very popular destination, to go on vacations, as a country to retire or to have a second home, which has created a most amazing boom in construction, making Panama real estate investments very attractive to tourists, retirees and investors. Panama offers an excellent incentives program for retirees, great climate, lower cost of living, very low crime rates and tax advantages. For foreign investors, Panama provides several important incentives which include a US dollar based economy, Free Trade Zone, and international banking, among others.

Additionally, Panama’s real estate market has proven to be solid through the years. Real Estate Values in Panama have been appreciating very steadily, and as interest and growth increases so do the real estate values.

Furthermore, Panama has a global position, direct flights to major cities, technological resources and financial infrastructure, which are a great advantage for many investors.

Panama City has become a very modern and cosmopolitan metropolis - with many rise buildings overlooking the ocean and the Bay of Panama, a wide variety of apartments and condominiums, and also plenty suburban residential areas with single family homes, within the city and its outskirts for you to choose.

Outside Panama City, there are beautiful real estate properties and lands to develop, located in popular destinations including the coasts of the Atlantic Ocean as well as the Pacific. Another area that is currently under development are the highlands of Panama known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, making them ideal for those interested in retiring abroad.