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The real estate investment potential in Panama has been growing tremendously. In the Republic of Panama, foreigners have the same rights as Panamanians when purchasing and holding property. |
A stable and strong political and economic situation, welcoming community, safe environment, low crime statistics, excellent incentives for retirees added with the natural beauty and ethnic diversity in Panama, appeals to the increasing number people interested in real estate investment.
The dream of owning a second home, retiring or making an investment in a tropical paradise can become a reality in Panama as the foreign source income is not taxable in Panama. Since the Panamanian economy is stable and enjoys healthy annual growth, international confidence in Panama is strong and inward direct investment is relatively free flowing. The government has placed a series of taxation breaks and incentives to continue encouraging this investment as well.
Panama City, located on the Pacific Ocean and merely an hour drive from the Caribbean Coast, is a cosmopolitan modern metropolis. It has a huge skyline with high-rise buildings overlooking the Bay of Panama. Apartments and condominiums to suit all budgets are available for purchase. Most of them have ocean views making an excellent investment option for rental or potential appreciation. The properties along the Avenida Balboa to Costa del Este through Punta Paitilla, Punta Pacifica and Coco del Mar are worth investment.
Single family homes and condominiums are available in attractive suburbs. Suburban areas are increasing in popularity for property investments. In the outskirts of Panama City, excellent properties are available for developers and individuals. The remote location makers cost of the property more reasonable. However, utilities or roads are far from here.
The Pacific beaches with small beach communities are along the InterAmerican Highway. Surrounded with mountains, they experience cooler temperatures with ocean views. Retreats in mountain sites like El Valle and Altos de Santa Maria are very popular with expatriates while the up-market resorts of Punta Barco, Vistamar, Buenaventura and Coronado with its elegant beach properties and golf course appeals to real estate investors. Foreign investors also are buying properties and homes in other beach developments in San Carlos, Corona, Santa Clara and San Jose.
Bocas del Toro islands with rain forests are surrounded by palm-fringed golden sands and turquoise waters. Beautiful Caribbean beach properties are available for purchase. The Pacific Coast of Chiriqui offers secluded beaches of black or white sand including island property. Developments are beginning at Barqueta, Boca Chica and Puerto Armuelles. Boquete, voted one of the top 4 best retirement destinations in the Western Hemisphere by well known international magazines, lies in the cool Chiriqui Highlands. Investing in real estate in Boquete is fast becoming a popular choice. The cost of living is very reasonable here as there is no need for heating or air conditioning and the local vegetables and fruit is not just good in taste but are incredibly cheap.
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Other nearby areas like Volcan, Potrerillos and Caldera are attracting major investor interest. The properties in the beautiful beaches of the provinces of Veraguas and Los Santos are also high in demand. The best known areas are Lajas, Torio, Cebaco Island, Bahia Honda and Santa Catalina in Veraguas; and Pedasi and Cambutal in Los Santos. |
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The Pearl Islands, Veraguas Islands including the Coiba Paradise declared as the National Marine Park and the Parida Islands off the Pacific coast of Chiriqui offer incredible opportunities for purchasing land to develop hotel, residential resorts, marinas and golf clubs. They are now available for purchase by foreign investors under the new Law 2 of 2006.
Panama does not have a multiple listing service for realtors. The services of a licensed realtor offer some protection if the purchase is found to be untitled or in contentious ownership. A reputable, licensed realtor researches the property before it is offered for sale. It is always wise to ask to see a copy of the real estate license. The realtor must be able to give you the finca number of the property (every property has one regardless of type or size).
It is important to ensure the property is titled with a registered plan. The lawyers can confirm that the survey matches the registered boundaries even within a development. When purchasing in a development, it should checked that the master plan has been approved and utilities and roads are guaranteed.
When purchasing an existing building (or having a home built), the lawyer should check that the building permits and occupancy permits have been granted. Without title to the land, plus all permits and registration of the mejoras (construction) on improved land, the buyer will be unable to obtain approval for the 20 year tax exemption on your property.
The Public Registry in Panama is an institution that offers security for the investor and guarantees transparency in the transfer of real property. Any liens, mortgages, attachments etc. are recorded against a property. The lawyer can obtain a certificate from the Registry to show the status of the property. All properties should be verified in the Public Registry and the purchase and change of ownership must also be registered.
Source: www.businesspanama.com
