Panama Real Estate
And Property Sales
Panama Land Investments
Panamas retiree benefits are among the best anywhere. Inexpensive real estate, a low cost of living, fabulous scenery and relaxed pace put this gem at the top of the list for Americans on a fixed income.
Panama is one of the best places in the world for retirees today,
combining a low cost of living, near-perfect weather and one of the
world's best discount programs for retirees, with up to 50% off
everything from public transport to movies, mortgage rates, doctor's
visits, electricity, restaurants and airfares.
When you compare
Panama with its neighbors, you'll see that it has more amenities than
traditional retirement spots such as Mexico and Costa Rica, with lower
costs and crime rates. In Panama, you'll encounter less red tape and
less interference from local authorities.
To encourage long-term
foreign investment, Panama requires no special authorizations, permits
or prior registration for foreign investors. The Investment Stability
Law, passed in 1998, protects foreign investors from any change in tax,
customs, municipal and labor rules for a period of 10 years after an
investment is registered. Major companies doing business in Panama
include Federal Express, DHL, Sears, Price Costco, BellSouth, Kansas
City Southern Railways, Continental and American Airlines, Warranty
Company of the Americas and Hutchison Whampoa. Plus, you'll find just
about every American franchise you can imagine on the streets of Panama
City.
And there are other incentives for foreigners to spend time here, invest here … or retire here. For example:
Newcomers who buy or build a new house won't owe any property taxes for 20 years.
Residents pay no taxes on foreign-earned income.
Tourism investments have 20-year exemptions from import duties, fees for
construction materials and equipment, and income, real estate and other
taxes.
The U.S. dollar is legal tender in Panama, which insulates
its economy from global shocks. During the Asian monetary crisis of
1998, Panama became one of the healthiest economies in Latin America.
Once you become a resident "pensioner" of Panama under the Tourist
Pensionado Visa, you are eligible for the most appealing program of
benefits for retirees available anywhere in the world right now.
Now, you may be thinking: "Pensioner? Retiree? That leaves me out."
Not
necessarily. The rules for becoming a "pensioner" and qualifying for
this visa program in Panama are probably not what you'd expect.
In
fact, anyone over the age of 18 may apply and can qualify as a
pensionado in Panama. All you need is a guaranteed pension income of
$500 per month ($600 for a couple). It must be a pension from a
government agency (e.g. Social Security, disability, armed forces,
etc.) or a defined-benefit pension from a private company. Sorry, but
an immediate, fixed annuity doesn't qualify.
As a qualified pensioner in Panama, you would be entitled to:
- 50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events, etc.)
- 30% off bus, boat, and train fares
- 25% off airline tickets
- 50% off hotel stays Monday through Thursday, 30% off Friday through Sunday
- 25% off restaurant meals
- 15% off at fast-food restaurants
- 15% off hospital bills (if no insurance applies)
- 10% off prescription medicines
- 20% off doctors' consultations
- 15% off dental and eye exams
- 20% off professional and technical services
- 50% off closing costs for home loans and more
Panama is also perhaps the most accessible retirement haven for Americans.There
is a frequent nonstop service to Panama City's Tocumen International
Airport. It's a 2½-hour flight from Miami on American Airlines and
COPA, Panama's national airline, which also flies from Los Angeles and
Orlando, Fla. Continental flies from Houston, and Delta flies from
Atlanta. Aeroperlas and Mapiex Aero are two domestic carriers that
offer daily flights throughout Panama.
Beware,
however, that as accessible as Panama is to the U.S., it's still a
foreign country. There are certain cultural differences that you can
either accept and embrace . . . or try to ignore and become miserable
and frustrated.
Time moves at a more leisurely pace in Panama. A
one-hour wait might mean two, and a simple meal out with friends can
turn into dancing "tipico" at a local disco until five in the morning.
It takes a certain disposition not to lose your cool when, for example
-- and this happened to a friend living in Panama City -- the computer
repair man phones to say he is estoy llegando (on his way over to your house),
only to arrive two days later without explanation . . . but ready to work.
Panama
has one of the lowest costs of living in all Central and South America:
A U.S.-style home can be built for about $40 per square foot; unskilled
labor costs $6.40 per day; a full-time live-in maid costs $120 to $160
a month; a beer at a bar costs 35 cents; a cup of coffee, 30 cents; a
haircut and shave can cost as little as $2; an afternoon at a beauty
salon is $8; electricity is about 10 cents per kilowatt-hour; water
bills are $18 per year; telephone service costs roughly $30 a month;
Internet access is $14 a month; wireless is available for a bit more;
cellular-telephone service costs about $30 a month plus a per-minute
charge of around 22 cents; and cable TV will cost you about $30 a month.
As a foreign resident, if you buy or build a new house, you won't
pay property taxes for 20 years, nor will you pay taxes on
foreign-earned income. Personal income tax is based on a sliding scale
from a minimum of 4% to a maximum of 30%. A Value Added Tax of 5% to
10% is charged on most products and services. Transfer taxes on real
estate are paid by the seller, and there is no inheritance tax or gift
tax.
The three best
places to buy real estate in Panama are: the mountains of Boquete, the
beaches of the Pearl Islands, and the First World metropolis of Panama
City.
Boquete: Boquete sits in Panama's mountainous
Chiriqui region at an elevation of about 3,500 feet. It's quiet,
unspoiled, uncrowded. Mountains, rivers, waterfalls. Lush green hills
and great masses of red and purple flowers. This is coffee country, and
in harvest season the Indians come down from the hills to find work.
The men call and sing to each other as they pick. Their children run
through the fields and play in the streams.
The climate in
Boquete is ideal, spring like year-round with reasonable daytime
temperatures, cool breezes, and chilly nights. Beachfront living is
nice, but the mountains of Boquete are hard to beat. If you like
Colorado, you'll love Boquete.
Three-bedroom custom-built houses start at $138,000 and ocean-view lots are under $30,000.
Pearl Islands: If you're searching for sand and sun, Panama has that in abundance.
The
island of Contadora, the seventh biggest of the 90 named islands in the
Pearl Islands archipelago, is in the Bay of Panama, just off the coast
of Panama City.
This is the stuff of travel-magazine cover
photos: turquoise waters, 13 white-sand beaches, secluded coves, bright
red and yellow fishing boats, swaying palm and cashew trees, giant
coral reefs, coconuts, mangoes, parrots, hummingbirds, pelicans, sea
turtles and bright tropical flowers . . . with occasional sightings of
gray and orca whales just off the island's shores.
Today the
island is a closely guarded secret playground for wealthy and famous
political leaders, writers, entertainers and businessmen -- not just
from Panama but from all over the world.
Renovated beachfront villas start at $160,000.
Panama City: Panama
City is probably the least expensive place in the world to live in a
First World city. Here you'll find world-class restaurants, every
imaginable luxury, hundreds of multinational businesses . . . all at
about half the price you'd pay in Miami, or any other U.S. city for
that matter.
Furnished studios start at less than $60,000,
beachfront condos from $77,000. A two-bedroom, 1,300-square-foot
apartment in the banking district in a building with a pool and gym
costs around $150,000. A two-bedroom apartment with views of the bay
and maid's quarters costs $160,000 (and rents for $1,100 per month).
By Kathleen Peddicord, International Living
