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| WHY
PANAMA? |
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The city of Panama
distinguishes itself because of its cosmopolitan
nature. Its unique geographic location has
made it one of the world’s capitals-with-such-diversity.
Within an hours drive from Panama’s
modern capital city, visitors and locals
can reach untouched primary rainforest,
pristine white sand beaches, and Hispanic
colonial ruins.
If you are thinking of retirement, having
a vacation residence, or investing in the
real estate don’t hesitate to discover
this hidden paradise.
Facts
- Local Currency:
American Dollar
- Official Language:
Spanish, nevertheless many Panamanians
are bilingual (Spanish/English)
- Population:
3,309,679 (July 2008 estimate)
- Government:
Constitutional Democracy without military
- Official Time:
GMT-5 (same as Eastern time in US without
light savings)
- Voltage: 110
V
- Climate: Panama
City has a tropical maritime climate;
hot and humid. Temperatures range between
27ºC and 32ºC (80ºF and
90ºF). There are two seasons: dry
or summer from December to April, and
rainy from May to November. Even at sea
level in the rainy season, it is cooler
than the U.S. summers. As we are above
the haze and smoke level, the atmosphere
is essentially pollution free.
International
Transportation and Trade
The country’s most famous attraction
is, of course, the Panama Canal. The canal
has established Panama as not only the commerce
center between the Americas, but also as
an international business hub. Direct flights
arrive daily from most destinations in Latin
America, the US and Europe. It is a 2-3
hour flight from Miami, New Orleans or Dallas.
Tourists from around the world are lured
to Panama for its pristine nature, world
class shopping at competitive prices and
nightlife. Panama is home to the world’s
second largest Free Zone enabling tourists
to find renowned brands at much reduced
prices.
Real
Estate
Any foreigner can own real estate properties
in Panama, under the same laws as if you
were a Panamanian citizen. You can do it
under your personal name, or under an established
corporation. For financing of the property,
it is very similar to the process used in
the US. Since we have the dollar as national
currency, you will get the same financing
rates as you would in the States. We will
guide you through all the processes of acquiring
the mortgage, from the time you buy until
we deliver the property. Currently new properties
have a 20 year exoneration period, where
you don’t have to pay any kind of
real estate property tax. This was established
by the government as an incentive for national
and foreign investments.
Quality
Construction
You will be pleasantly surprised by the
high quality of our company’s and
the Panamanian construction in general.
Homes are well built and tastefully designed.
Panamanian architects attend US construction
industry conventions to keep up-to date
on the latest in construction styles, floor
plans and quality living. Another surprise
is the refreshing variety of architecture
styles. While in the rest of Latin America,
Spanish colonial dominates, in Panama modern
architecture bounds.
VISAS
As a qualified pensionado/retiree in Panama,
you will be entitled to:
- 50% off entertainment
anywhere in the country (movies, theaters,
concerts, sporting events)
- 30% off bus,
boat, and train fares
- 25% off airline
tickets
- 50% off hotel
stays from Monday through Thursday
- 30% off hotels
stays from Friday through Sunday
- 25% off at
restaurants
- 15% off at
fast-food restaurants
- 15% off hospital
bills (if no insurance applies)
- 10% off prescription
medicines
- 20% off medical
consultations
- 15% off dental
and eye exams
- 20% off professional
and technical services
- 50% closing
costs for home loans and more...
Plus Panama’s
pensionado law stipulates that anyone entering
the country as a qualified pensioner today
is guaranteed that status as long as he
chooses to stay in the country.
The
Tourist Pensioner Visa
This visa is designed for persons whose
pension from a government entity or private
corporation is $500 or more ($600 or more
for a couple per month). It is granted indefinitely.
The benefits include one-time exemption
of duties for the importation of household
goods (up to $10,000) and an exemption every
two years of duties for the importation
of a car. However, please note that under
this visa you cannot qualify to acquire
Panamanian nationality.
Private
Income Retiree Visa
This visa is for persons who don’t
have a monthly pension, are no longer working,
and have received a retirement lump sum.
As a visa requirement, that money is to
be deposited on a five-year certificate
of deposit with the National Bank of Panama,
to yield at least $750 a month (at current
rates the face value of the CD would need
to be approximately $260,000). The visa
is renewable every five years, as long as
the CD is renewed. The Private Income Retiree
Visa includes such benefits as a traveling
Panamanian passport (that however does NOT
grant nationality), a one-time exemption
of duties for the importation of household
goods (up to $10,000), and an exemption
every two years of duties for the importation
of a car.
Person
of Means Visa
Designed for those who wish to live in Panama
off their own means, without the need or
desire to work or start a business. The
person must have a one-year certificate
of deposit in any local bank of at least
$100,000. Upon applying for the first, provisional
renewal of this visa, the certificate of
deposit must also be renewed for one more
year. After renewal, the visa is granted
permanently with the right to a cedula (local
identity card). Five years after obtaining
the permanent visa, holders will be eligible
to apply for Panamanian nationality.
Investor
Visa
Designed for those who wish to establish
a business in Panama (note, though, that
some retail businesses and some professions
are reserved to Panamanians). There must
be a minimum investment of $100,000 and
minimum of three, permanent
Panamanian employees hired. It is granted
provisionally for one year and after renewal
is granted permanently with the right to
be issued a cedula. Five years after obtaining
the permanent visa, holders will be eligible
to apply for Panamanian nationality.
Small
Business Investor Visa
It is designed for those who wish to establish
a small business in Panama (note that retail
businesses and some professions are reserved
to Panamanians). There must be a minimum
investment of $10,000 and minimum of three
permanent Panamanian employees hired. It
is granted provisionally for one year, and
needs to be renewed three more times before
it is granted permanently with the right
to a cedula. Five years after obtaining
the permanent visa, holders will be eligible
to obtain Panamanian nationality.
Medical
Of course, one of the major concerns we
all face living overseas, is receiving proper
medical Attention. Excellent medical service
is available in Panama City. Hospital Punta
Pacifica recently opened and it is affiliated
with John Hopkins. Panama City is only a
three hour flight to Miami, it would be
easy to return to the states for major Medicare
treatments. Medical costs are far less than
in the states. These costs are usually under
what your normal deductibles would be anyway.
Security
& Political Stability
Panama is a Democratic Republic. After the
removal of Manuel Noriega in 1989, Panama’s
growth has been a steady progression of
investments and employment. As in Costa
Rica, a national police has replaced the
military. There is no political unrest.
Since Panama is pursuing international investment
and eco-tourism, foreigners are readily
welcome. In fact, many new laws creating
attractive incentives for the foreign investor
have been recently passed. The culture is
very similar to the U.S. Many of the same
stores and restaurants, such as Sears, Price
Costco, Bennigan’s, TGIF, and others,
have branches here. Many people have a big
misconception about Panama in thinking it
is a jungle with hammocks strung between
coconut trees. Panama City is a thriving
modern metropolis where you can get most
anything you can in the states at a lesser
price. Luxury items are readily available.
Panama has the highest rating for tourist
safety from Pinkerton Intelligence Services
and a low crime rate in general. One of
the first things foreigners who live in
Panama will tell you is how safe they feel.
In Panama City- petty street crimes that
hinder tourists in other countries are uncommon.
Panama City, like every big city has some
neighborhoods best to avoid, but in general
you can go about Panama City day and night
without worrying. This is true for most
of the country with few exceptions.
Investment
Since the U.S. dollar is the basis of the
Panama currency, it makes investing simple.
Major U.S. and international banks are well
represented. Investment in Panama can become
very profitable. As the community grows,
there is an increasing need for more lodging,
stores, restaurants and tourist orientated
services.
In its effort to offset the losses from
the Panama Canal and the closure of the
military bases, the Panamanian government
has created a host of incredible incentives
to attract foreign investment.
To build hotels,
restaurants, tourist agencies and any tourist
related business.
- Tourist related
industry:
- To develop hostels,
motels, and restaurants within the recognized
National Park tourist development zones.
- To crow and
produce natural woods.
- To buy and
restore national land marks.
For those qualifying
under these special laws, here is a brief
on some of the incentives.
The type and length of the basic incentive
will vary depending on your particular endeavor.
- 20 year tax
exoneration, from payment of taxes on
real property.
- 15 year tax
exoneration from the payment of taxes
on the companies’ activities.
- 20 year exoneration
from the local ITBM sales tax and taxes
on imported items, used solely for your
tourist business. This includes no taxes
on vehicles, furniture and any other items
not locally available in equal quantity
or quality and must be business related.
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