Panama- A Great Place to Live and Visit

Panama is a priviledged country within Latin America . It is fast becoming a preferred location for a second or retirement home for North Americans. For its citizens, Panama is one of the top three of Latin American countries for quality of life: health, education and economic well-being. There are a number of good reasons.

Panama City is called a "second Miami " because of its sophisticated business district, high speed internet connections, the American-style infrastructure and the elegance of many of its neighborhoods. There are endless gorgeous sea-view apartments and numerous suburban subdivisions with lovely Miami-style homes. Few other Latin American cities can boast buildings of such quality construction and so many attractive neighborhoods. These same Panama City buildings were mostly built by the architect George Moreno, who is the architect for Big Creek Village!

Unlike other Latin Americans, Panamanians don't need to go shopping in Miami . Due to the lowest tariffs in the Americas , Panama is a shoppers paradise whether it be clothes, computers, electronics, or automobiles! Panamanian supermarkets can easily be mistaken for American supermarkets with their large selection of American products. Electronics stores compete in both price and selection with American stores. There are even three Price-Costco's in Panama City and one in the city of David , which is only a 2 hour drive from Bocas del Toro.

Private education is excellent; there are three accredited international schools and dozens of fine bilingual schools. At the university level, there a dozen universities, including three United States universities with branches in Panama City.

Medical care and hospital facilities are almost on a par with the USA , one of the many happy by-products of the longtime American presence in Panama.

Numerous fine local restaurants can compete in quality with almost any large American city. If you are homesick, try Bennigan's or TGI Friday's not to mention McDonalds, Wendy's, Burger King, Pizza Hut, Dominos, KFC etc.

If you're homesick, Panama is a short plane ride away from the USA . There are direct flights to and from Panama from 7 USA cities- Newark , Miami , Los Angeles , Dallas , Houston , Atlanta and Orlando . The cost for round trip flights starts at only US$365! This proximity also makes it easy on all those relatives who will want to come visit you, the Panama Canal and some of the most nature-rich rainforests on earth.

Indeed, there is a reverse migration going on in recent years. There are many stories of Panamanians in the US moving back to Panama because they find the quality of life is simply better here. Not to mention, the 50,000 Americans who used to live in the former Panama Canal zone and called Panama "home". They call Panama their "Paradise Lost". The majority are not happy living back in the United States- that should tell you something.

Even nature has blessed Panama . Due to a unique geographical position, there are no natural disasters -no hurricanes and destructive earthquakes which plague its Central American neighbors.

This is not to say that Panama is a utopia. There are plenty of problems here like anywhere else. But the time has passed, especially post 9/11, when one can presume that for quality of life, up North is NOT the only place to live.

Panama has warm, friendly people, a stable democracy, a dynamic business sector and an unusual variety of terrains.

John Le Carré, writing in The Tailor of Panama summed it up well:

"We have everything God needed to make paradise. Great farming, beaches, mountains, wildlife you wouldn't believe… people so beautiful you could cry."

Modern Maturity, the American Association for Retired Persons magazine, rated Panama as “one of the top four places in the world for Americans to live abroad”.

International Living, rated Panama as “the number one country outside the United States for a second home- based on Panama 's outstanding safety, infrastructure, climate and beauty”.

A. No better place to retire:

There is simply NO BETTER PLACE TO RETIRE than in Panama . Another Panamanian secret has been revealed during the past few years—it is a great place to retire. Panama 's popularity as a retirement destination is no accident. This country's mixture of a high quality of life, easy life style, retirement incentives and modern amenities allow persons to change their location and lives, with very little problem.

* According to Modern Maturity, a newsletter of the American Association of Retired Persons , Panama was voted as “One of the top 4 places in the world to live abroad”.

* International Living rates Panama as “the best place to live outside of the United States ”.

* According to Harpers Bazaar, “ Panama is the most beautiful retreat in the world, and almost undiscovered”.

* The Economist, an internationally recognized publication, recently stated that “ Panama has stood apart, sustained by it's canal, its banks, and it's free trade zone.”

B. Panama offers a Variety of Environments

Panama is a country of incredible beauty. The rainforests of Panama offer a diversity of flora and fauna found in no other place in the world, primarily due to the position of the Isthmus of Panama as the crossroads of the Americas . Residential environments drastically range from city, mountain, beach and island communities. If you get bored of being in the Caribbean islands, you can quickly travel to the mountains, lakes, city, Pacific beaches or Pacific Islands – everything is close by! There is always that perfect spot to suit everyone's taste.

C. Home ownership in Panama is currently at Unbeatable Prices!

First off, unlike other countries where foreigners cannot own property, in Panama , foreigners have the security of knowing that, they can own property legally and easily. Foreigners are granted exactly the same rights and protections as a local Panamanian property owner. Due to various factors, prices for Panamanian real estate have remained basically unchanged from the mid 1990s (except for "hot" areas like Boquete in Chiriqui and the islands of the Bocas del Toro archipelago). Panama real estate prices range from $100,000 for a three-bedroom, top-of-the-line apartment in the heart of Panama City; $150,000 for a two-bedroom condo in a luxurious high rise overlooking the Pacific ocean in Panama City; $175,000 for a four-plex building in the old Albrook military base in Panama City; $155,000 for a three-bedroom house with lot in the beautiful mountains of Boquete; or $164,000 for a beautiful beach front Condominium at Big Creek Village on the island at Isla Colon, Bocas del Toro.

D. Buying Real Estate in Panama is Safe

Foreigners have been buying real estate in Panama for almost a century. Panama's government promotes Panama as a location for international investors to buy and develop real estate, and they even created and passed the Law 54 (Of July 22,1998), which provisions for the Legal Stability of Investments are adopted. Panama property titles, even if owned by foreigners, are safe and protected by law, just as they are in the United States . As a matter of fact, Stewart Title Company as well as First American Title & Insurance Company (both major US title insurance companies) both offer title insurance on property in Panama.

E. As a Retiree, you benefit from numerous tax exemptions!

As a Retired person in Panama, you can benefit from numerous tax exemptions as per Law number 9 of June 24, 1987, the retiree or “pensionado” residence status requires that applicant prove a pension income of only US$500.00 per month (add $100.00 per month for each additional dependent). This law enables you to import your personal house belongings duty (tax) free. You can also import a new car (for private use) every two years tax-free. Plus, all new construction (for example, Big Creek Village ), regardless of whether the owner is a retiree or not, pays no property taxes for 20 years.

F. Panama is safe

Panama is one of the safest countries in the world. As a matter of fact, the prestigious Pinkerton Intelligence Agency gave Panama the highest rating for tourist safety in the Americas . As a constitutional democracy with no dictators and no standing army, Panama is a peaceful country with no enemies, so terrorism is not an issue here. Finally, due to the presence and international importance of the Panama Canal , Panama also enjoys international protection and monitoring by major G-7 nations.

G. Panama offers Healthy Living.

Panama ranks among the top Latin American countries in personal life expectancy (around 75 years). Most Panamanian doctors are have been trained in Europe and the United States and are fully bilingual in both English and Spanish. Panama 's private medical facilities and hospitals are among the best in the America 's and the Caribbean (many private hospitals & doctors are affiliated with major hospitals in the U.S. ). In Panama , water is potable in most of the country and in Panama City (and most other cities of Panama ) you can drink water right from the tap.

H. Panama offers an extremely low cost of living.

As a retiree, stretching your money is a major concern. Panama 's currency is the U.S. dollar and it has been since the country was founded in 1903. Panama 's banking center is the second largest in the world and just about every international bank has a branch here. The cost of living in Panama is much lower than the United States or Europe . Panama 's cost of living ranks among the lowest in Central America , in fact, much lower than Costa Rica . This is partly due to the fact that Panama does not suffer from inflation crisis as Costa Rica and other neighboring nations do. Inflation rates in Panama are some of the lowest known, on average between 1% to 2% per year. Also, since the Colon Free Trade Zone is the largest distribution center in the Americas , Panama benefits from low product costs as most products are assembled and/or stored in warehouses right in Panama before being shipped to other countries. In addition, retirees benefit from price discounts such as 50% on movies and cultural events, 30% on transportation, 25% on utilities, 15% on personal loans, 10% on restaurant eating, and 1% on personal mortgages. Retirees moving to Panama can expect that their expenses for day-to-day living to be much less than in “first-world” countries, such as the US , Canada or European nations. Nice apartments and homes in Panama City can be rented for $1,000 or less. Grocery prices are 25%-30% lower. A meal at a nice restaurant can be enjoyed for under $5. First-run movie tickets are $3.75. Concert tickets range from $20-$50. Maid service is around $150 per month. Gardeners cost under $10 a day. A beer is still only $0.50 and a bottled Coke is only a quarter at most stores.

I. Purchasing is easy in Panama.

In Panama , you can purchase just about anything you need. Panama offers a mixture of exotic cultures and with its' positioning as an international distribution center, Panama offers a wide variety of top-quality goods and shopping options. In almost every major city in Panama , there is a Price-Costco, major supermarkets that are comparable to those in the US , pharmacies, and even flea markets - the choices are extensive.

J. Keeping in touch with family back home is easy.

Panama offers the same quality communications services that you find in the US , Canada , or Europe . This enables you to keep in touch with friends, family and the rest of the world from Panama easily and efficiently. Cable & Wireless is a leading international communications provider and they offer service all over Panama , including high-speed Internet services, cellular phone networks and ADSL in-home phone/Internet capability. Plus, satellite TV through Direct TV is available all over Panama , and cable TV/Internet services through Cable Onda are also available in some parts of Panama.

K. Getting to Panama is only a 2.5 hour flight from the USA.

COPA Airlines ( Panama 's international airline that is 49% owned by Continental Airlines) now has direct flights from Houston , Los Angeles , Miami (2 ½ hours), Newark and Orlando . Direct flights from the major Central and South American cities are also available through COPA, American Airlines, Delta, Continental Airlines, Iberia Airlines, and several other major airlines.

L. Panama is convenient, low-cost, and easy living.

Panama offers all the conveniences that you would normally get in the US and more. Where in the world can you hire a full time house maid for $150 per month? Where can you hire a gardener for $10 per day? What is more convenient than having a maid and gardener to clean your home, wash your clothes, cook your food, do your grocery shopping, clean your car, and garden your yard? In Panama , all of your time is spent on either being productive at the office, or enjoying the things you love most – your children, grandchildren, fishing, surfing, hobbies, sports, etc. Panama 's cost of living is sometimes compared to that of the US in the 1950's. The main difference being the variety of modern day conveniences available in this tropical paradise. To further on the cost of living point, medical care facilities in Panama offer the same services of those in the United States, but cost 30% to 40% less (in some cases lower than that!). The prices of real estate are very inexpensive (at least for now), you can still buy Caribbean beachfront real estate for affordable prices. You can hire a trained nurse at about $450 per month. To put the icing on the cake, Panamanian Law gives all retirees discounts of 15% to 50% on hotel fares, food at restaurants, airfare, movies and many other professional services!

M. If you still are not ready to retire, Panama is the best place to do business.

Aside from being a tropical paradise, Panama is what most people consider to be the best place in the world to do business. The business infrastructure in Panama is the best in Latin America and the Caribbean due to a variety of factors;

Panama 's official currency is the US Dollar since 1904 so their are no foreign exchange or valuation concerns.
Panama 's international banking center offers a variety of financing options and top quality banking services.
Company start up laws in Panama are very flexible and inexpensive.
Panama does not restrict foreigners from owning companies, businesses, or their acquisitions, joint ventures or mergers.
Labor, rent, real estate, utilities, communications, construction, taxes, and overall cost-of-business and cost-of-living is low.
Panama ranks as one of the world's freest economies. Panama is a member of the World Trade Organization (WTO) and the Caribbean Basin Initiative (CBI). Panama is negotiating the Free Trade Agreement of the Americas (FTAA) and it is the Headquarters of the FTAA until 2003.
The Panamanian populace is more than 80% literate and a large percentage is bilingual in English and Spanish.
According to the Corporate Resources Group who did a recent business survey of 192 cities worldwide, Panama ranks as “one of the best places to live in Latin America ”.
Click here to read about why Panama is the best place to do business.
N. Panamanian laws support foreign investment and are pro-business.

There are various laws in Panama that support foreign investment and are pro-business;

Law # 54: Foreign Investor Protection Law

Panama 's law 54 clearly states that foreign investors have the same rights as nationals in Panama:

Foreign investors in Panama and the businesses in which they participate in have the same rights and duties as national or local investors and enterprises, including those that refer to the freedom of trade and industry, and export and import.
Foreign or local investors in Panama are guaranteed the right to dispose of investment profits, the right to repatriate their capital, dividends, interest and profits produced by their investments and the right to commercialize their production.
Foreign investors are awarded a 10-year stability guarantee that all legal, tax, customs, municipal and labor rules will remain identical to those in force at the time of the investment registration.
Law # 24 : Reforestation Investment Law

Reforestation in Panama is actively being promoted and the Panamanian government has granted numerous incentives for foreign investors who purchase land for reforestation purposes, or reforested land. The reforestation investors benefits are the following;

Income tax exemption for 25 years.
Investors who invest a minimum of $40,000 can obtain Panamanian residency.
Reforestation has been designated as a top-priority investment and development industry.
The Panamanian government offers protection from "squatters" or persons seeking to damage reforested lands (this crime is classified as a felony).
The Panamanian government guarantees to promote and develop the reforestation industry with the intent to make Panamanian reforestation products more marketable and profitable.
Law # 8: Tourism Investor Incentive Law

The government of Panama is actively and aggressively promoting tourism on an international basis. As part of the program, the country has passed the most modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean . The incentives of tourism investments are the following;

Property taxes (including land) are exempted.
Income tax is exempted for 15 years.
Import tax (including sales tax of 5%) is exempted for 20 years.
Financing interest is tax deductible for 20 years.
Exemption from liens due to the use of docks or airports built by the tourism entity.
Facts about Panama

Some Facts About Panama
Population: 2.7 million
Climate: Tropical
Rainy season: May to January
Dry season: January to May
Size: 29,208 sq. miles, about the size of South Carolina
Language: Spanish, English a strong second language
Government: Democratic
Religion: 85% Catholic, 15% Protestant
Ethnic groups: 70% mestizo, 14% black, 10% white, 6% Amerindian
Currency: US dollar
Economy: 75% services, 16% industry, 10% agriculture
Inflation rate : 1.50%
Unemployment rate: 14%
Major trade partners Exports: USA , Germany , Sweden
Imports: USA, Japan, Ecuador
Key domestic industries: Financial services, Free Zone operations, Tourism, Transshipment-related (Canal, Ports, logistical center activities) construction, insurance, manufacturing
Exports: Bananas, shrimp

The Environment

With its huge expanses of tropical rainforest, the isthmus of Panama is one of the most biologically diverse areas in the world. Its unique ecology stems in part from its connection to two continents.

Birds are a primary indicator of biodiversity and Panama takes a grand prize: it has 936 species of birds, more than the United States and Canada combined. Until 1996 Panama held the Audobon Society's world record for identifying the most species of birds in a single day- 357 species were counted in one 24-hour period. There are 125 animal species found only in Panama.

Panama is also privileged to be home to the Smithsonian Institute of Tropical Research, the world's primary tropical scientific investigation center, which for 80 years has been cataloging and monitoring this vast ecological heritage.

The future of the environment, particularly the protection of Panama 's fabulous rainforests is a major concern. Environmentalist groups like ANCON are doing an effective job raising awareness of the key issues.

People and Culture

Due to its position as a crossroads and transport center, Panama 's people and culture reflect it's international connections. People and cultures from all over the world meet and mix here, resulting in an atmosphere of tolerance where people know how to get along with each other.

Panama is a microcosm of the Americas with a mixture of Latin, European, black and Indian populations. 65% of Panamanians are mestizo (European-Indian mixed) and the other 35% are a combination of traditional Indians, Caribbean blacks, European and Chinese. Small but dynamic, Jewish, Arab and Hindu communities play important roles in Panama 's business community and there are a growing number of North American expatriates living in Panama.

You will find the Panamanian people gentle, friendly, fun-loving and helpful. Panamanians favorite pastime is a party. One of the most important national holidays are the Carnival celebrations in which it seems the whole country shuts down for serious partying or serious relaxation.

The presence of a large American community in the Canal Zone for almost a hundred years deeply impacted the local culture. Panamanian-American marriages abound. The quintessential American "can-do" spirit and the modernity of Panamanian character are due in part to America 's long presence in Panama.

While this unusual history as a crossroads and a country divided by an American presence has been a source of pain and grievance in the past, it has prepared Panama as few other countries, to become a popular tourist destination an play a active role in today's global village.


Information Provide by www.Panama-Real-Estate.com