Investing in Panama

This section of the document examines the range of complelling reasons that can be cited for considering investment in Panamenian real-estate.

• The"Low down "
  Most experts agree that Latin America is the place to invest if one is looking to achieve substantial capital gains and good yields on property investment. Panama is extremely well placed to take advantage of this investor interest in Latin america. This is an absolutely ideal time to invest in Panama as prices are still very low.
  
  
• Strong Resale and Rental Market
  Panama's economy has a strong focus on banking; in fact, it is often referred to as the banking capital of latin america. It doesn't end their, however; consider also the Panama Canal, a booming tourist industry and ever increasing in-flux of ex-pats seeking out its incredibly favorable retiree conditions. So, there are plenty of high-earning and hogh-net-worth individuals to be found in Panama City.
  
  It's not difficult to see how these factors make for an increasingly robust resale/rental market. Clearly, this market is based on very solid and positive foundations. Currently the supply of prime location quality real estate is falling behind the demand, wich creates an immediate investment opportunity!.

• Low Purchase cost.
  Panama city is a thriving city and real estate in Panama is correspondingly on the up. However, Panama is yet to be discovered by th mass market, so prices are still low.
  You can purchase property from as Little as c.$110/ft2, even in prime residential/water-front areas, and from c. $250/ft2, for the ultimate bay-front properties.
  
  This really ideal time to be buying property in Panama... this is the opportunity All property investor are looking for!
  
• Great Borrowing Options Available
  Of course, all this investment potential is no use, without the tools to take full advantage, and thankfully, Panama doesn't disappoint here, either; High loan to valuation mortgages are available with low interest rates. There's a good choice of Panama City banks (e.g. HSVC, Banco General, Scotia etc.) offering 30 yr max term 80% LTV financing to foreigners (subject to status) looking to buy properties in Panama. These loans typically feature variable interest rate that are currently near their lowest level in over twenty years (currently around 6.25%). Also, there are now more than 150 international banks with branches in Panama.
  
  
• Major infraestructure Development on-going
  The Panama goverment has been instrumental in kick-starting inward foreing direct investment into the real estate sector. This influx of investment ganarates its own momentum in terms of capital appreciation. The good news doesn't end there, however; major infraestrcuture development is ahead, including: Better roads, creation of new aconomic zones with tax incentives and special high tech facilities designed to nurture a high-tech economy boom. Significantly, there's also the widening of the Panama Canal (a stone's throw from Panama City investment opportunities). A mammoth project, due to run for the next 10 years, spelling very positive news for sustained high rental yields and occupancy rates.
  
  All of these plans illustrate that the Panamenian government are committed to a sustained program of making their country more desirable, their people more wealthy and their economy more stable. These are all great indicators that the fledgling investment property sector in the country is being built upon solid and sustainable foundations.
  
  
• Solid Economy
  Panama City is one of the most modern urban centers in Latin America, boasting around 150 banks from all over the world. Panama is known as the financial heart of Latin America and, as such, ranks as one of the most important banking centers globally. Of course, also home to the incredible Panama Canal, Panama commands enormous strategic imprtance. In addition to this pivotal role within Latin america, Panama also benefits from the lowest inflation rate and hence, undeniably the most stable economy in Latin America.
  
• Stable Currency
  The national currency (technically the "Balboa"), is matched on a 1:1 basis with the US$, and for all but minor transactions, the US$ is normally used. Naturally, being allied with the world's foremost currency has its benefits, and the net result has been monetary and price stability almost unique in emerging markets.
  
  
• Personal Safety in Panama
  Panamá is a very safe place to be out and about, in a recent global survey, Panama was given a safety rating in the highets class (alone with the United States), thus meaning it's amongst the world's safest places. These results come direct from the Pinkerton intelligence Agency.
  
  
  
• Tax Incentives
  In addition to all the background factors tha make Panama a great investment prospect, one should also cosider that it offers significant benefits in financial legislation terms too:
  
  There are significants tax incentives offered to investors in Panama. First, there are no exchange control in existence. Second, foreign investment is welcomed and can be freely repatriated, so extracting gains from panamain no problem.
  Third, Capital Gains Tax is very slow. Finally, 20 year exoneration is also available for property tax on some new construction projects, with 5+ years on most others.
  

• Retirement Benefits
  Agencies around the world rate Panama the number one place for retirees, and for good reason. Aside from the "near perfect" climate, personal safety and not to mention the hospitality of the locals, there are a host of additional government benefits to retirees in Panama. Small wonder the real estate market is responding as retirees are buying their second homes there.
  
  The benefits include :
  
  
• Importation of all your personal/household goods and a car free of taxes.
• Right to import a new car every tow years free os taxes.
• 25% off domestic and international airline tickets.
• 50% off entertainment including movies, concerts, theatre (movie ticket for $2.00)
• 25% off restaurants
• 50% off hotel accommodations Monday-Thursday
• 30% off bus, boat and train fares
• 10% prescription medicines
• 15% off dental and eye exams
• 50% off closing costs for home loans
• 30% off hotels from Fridays through Sunday
• 15% off fast food restaurants
• 15% off hospital bills (if no insurance applies)
• 20% off doctor's consultations
• 20% off professional and technical services