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Panama is fast becoming one of the world's
top retirement destinations, particularly for adventure and ecotourism.
Panama has long played " second fiddle" to countries such as Mexico and
Costa Rica where mass tourism has been the norm for many years, but no
more... With a modern infrastructure that is first world. The word
is getting out that Panama is still a country where you can enjoy the
natural beauty in relative solitude, rather than having to join
thousands of tourists battling over limited resources.. Perhaps
most importantly, Panamanians are some of the friendliest people you
will ever have the good fortune to come across. All this makes Panama a
fantastic location for retirement or a vacation/investment
property.
In the May/June issue of
Modern Maturity magazine rated
Boquete , Panama , the fourth best retirement destination in the
world. International Living rates Panama even higher on their list at
No.1. The picture perfect highlands of Boquete would be reason
enough to consider Panama, however the fact is that it is still
affordable makes this an opportunity not to be overlooked! The
Panamanian government now offers a myriad of financial incentives for
retirement/ investment. If you are in the beginning stages of your
search, Panama should be moved right to top of your list. The smart
money is moving to Panama!
Retiring overseas was once an option available only
for the wealthy, it is now an affordable option for nearly everyone.
With an US style infrastructure, Panama offers a virtually seamless
transition for US citizens. Better yet, the low cost of living means
your retirement savings will go alot further to providing you a worry
free retirement.... so the idea of overseas retirement is appealing to
many. Discovering a less stressful environment also has a definite
allure!
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.
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 cerrency. 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 for Sale page .
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 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'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.
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