Panama City is one of the most expensive cities in the world in the world. It is also among the most modern and prosperous cities in Latin America with more than 3 million people. City high skyscrapers resemble Miami. It boasts incredible shopping, where it is easy to find any product from the USA. Over the past few years, Panama has been consistently ranked in the top ten retirement locations worldwide. A welcoming community, a safe environment, low crime rates, excellent incentives for retirees, as well as natural beauty and ethnic diversity that are Panama, all attract more and more baby boomers from North America and Europe who are looking for another option for retirement . Time to invest in real estate in Panama now!
US dollar: global currency. Small fluctuations in exchange rate parity with respect to the Middle East treaties. The cost of living is significantly lower than in Western Europe.
Economic climate. The trend towards an open economy and possible trade pacts with countries such as the United States and Mexico promote investment in Panama. There is also no expropriation or government intervention, as in many Latin American countries. A business oriented government encourages foreign investment. A government that recognizes the value of private business for a developing country supports all investments. In 1946, the business mentality of Panama led to the creation of the Colon Duty Free riot zone, which is considered the second largest free trade center in the world after Hong Kong. In addition, the government of Panama offers foreigners who invest in Panama many attractive incentives, such as legal residency and tax breaks.
Capital Gains Tax: since the entry into force of the Cabinet of Ministers (December 109, 1970), successful legislation has been passed offering tax breaks to developers. It is widely recognized that as a result of these incentives, real estate, land and property buyers have also won. This tax is applicable if the alternative 2% for the transfer tax is used for the transfer of real estate and in the presence of capital gains. This tax is also regulated by article 699, and for corporations operating sellers, a 30% fixed income tax will apply, regardless of whether the owners are foreigners. Another percentage will apply if the seller is an individual. If there is no capital gains on the transfer of property, the transfer tax of 2%, paid in advance for the sale, should be understood, since the credit for the seller will be lost.
Why retire in Panama: Panama has the best rewards program in the world for foreign retirees or retirees. In fact, anyone over the age of 18 can apply and can apply for a pension in Panama.
Some of the excellent benefits of retirement include:
Import all your personal and household goods up to $ 10,000 without taxes. The right to import a car every two years without taxes The following benefits for those who want to resign in Panama:
50% of the closing cost for home loans.
25% of international and domestic air tickets.
50% discount for hotels from Monday to Thursday
10% of prescription drugs (which are inexpensive to start with)
15% of dental and eye examinations.
30% discount on bus, boat and train.
25% discount in restaurants
15% discount in fast food restaurants
20% of visits to the doctor and surgery
50% of entertainment, including movies, concerts, theater every day.
In Panama, all banks (prescribed by law) have special discount lines for retirees. The biggest retirement benefit in Panama is that you can hire a full day maid for less than $ 300 a month.
Popular investment areas:
Panama City has become a cosmopolitan modern metropolis - in Panama there are many fantastic real estate properties with elevations that overlook the ocean and the bay of Panama. Exclusive residential areas such as Marbella, Paitilla, Coco del Mar, David, Punta Pacifica and San Francisco offer a wide selection of apartments and condominiums for sale. Suburban residential areas in the former canal zone, such as Amador Heights, Balboa, Albrook, and Clayton, offer large and attractive single-family homes and condominiums.
Casco Viejo, the oldest city on the Pacific coast of North and South America, has become a desirable place to invest in real estate, which the Government of Panama encourages the Casco Viejo government to rebuild the historic district of Casco Viejo.
Outside Panama City, there are excellent properties located in popular locations, including ChiriquÃ, El Valle and Altos de Maria. Known mainly for their colder climate, incredible flora and tranquil calm atmosphere, real estate in the highlands of Panama is ideal for those who want to retire abroad.
Bocas del Toro is another popular destination for real estate in Panama. Best known for its crystal clear waters, rich Antilles culture, unique surface architecture and a relaxed tropical atmosphere. Recently, Bocas del Toro has become a rapidly developing center for European and American expats, as well as an impressive number of tourists.
Values in the field of real estate in Panama and, above all, in these areas of the Pacific coast, are estimated very unswervingly, and since interest and growth grow to make real estate values.
Price ranges: Panamanian government incentives to restore historical investment in the district promotion of Casco Viejo county here, this area, reminiscent of New Orleans or SoHo years ago, abounds in shells of elegant buildings that shout about repairs. Outside Panama City, excellent properties are available for developers and individuals. The more distant the location, the more reasonable the cost, but keep in mind that you can be far from utilities or roads.
Real Estate in Bocas del Toro offers an excellent property on the Caribbean coast. Here palm golden sands surround the islands and turquoise waters where the rainforest meets the ocean. Here, families go by boat, enjoy water sports and the natural beauty of this beautiful place - even better, but still available.
Budget guide: Prices per square meter in Panama vary depending on the location (city, mountain, beach). In the city, you can find prices starting at $ 1,000 per square meter in a new condominium. In the mountains, the price may drop to $ 20 ... yes, this is not a typo, even in cases where you can explore the possibilities of access to this property. Many areas in the mountains do not have access roads, and local transport may not be available. On the beach prices depend on the zone. One hour from the capital, prices start at $ 600 per square meter, depending on the quality of the beach and surroundings.
Service Fees: fees charged by a notary public and state registry, totaling between $ 200 and $ 300 to register a sale and purchase agreement for the sale of real estate in Panama. Closing costs are transaction specific. For example, if the property is stored in the sellers personal name and the buyer transfers the name of the property to the Panama corporation (most recommended), then the closing costs will include;
(1) a legal fee of $ 1,200 (includes: search by title, contract of sale, closing and transfer of title deed)
(2) The fee for registering a title in the state registry is approx. From 200 to 300 US dollars,
(3) deposit fees from 0.5% to 1% of the transaction amount (depending on the transaction amount) and
(4) a registration fee of $ 1,000 for the installation of Panama Corporation.
However, if the property is owned by a Panama corporation already, and the buyer buys the shares of the corporation, then the transaction is extremely simple because there is no registration of transfer of ownership, which means there is no transfer tax on the title, and there is no transfer fee for the state registry. In this case, closing costs include;
(1) legal ownership fee (includes: search by title, purchase of equity and closure for $ 800),
(2) a change of director / resident agent of a corporation (about US $ 350) and
(3) deposit fees from 0.5% to 1% of the transaction amount (depending on the transaction amount).
The cost of a notary and public registry is approximately from 200 to 300 US dollars, depending on the specific transaction. Transfer fees are usually paid by the seller. Service charges (if a escrow company is used) are usually paid by the buyer and range from half to one percent (0.5%) to one percent (1%) of the transaction.
Mortgage: from 60% to 70% of the purchase price or estimated market value, which is less. Interest rate from 5.5% to 6.5%, plus FECI 1% per year.
