Location Panama The Real Estate Book

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Editor in Chief General Manager Irma Marengo Editor Linda Card Writers Andrew Wilkins Linda Card Graphic Design Falina Pérez de Valverde Cover photo PEPPOPHOTOGRAPHY Photography Alfredo Maiquez Irma Marengo Jorge Sánchez Bobby Pereira PEPPOPHOTOGRAPHY Red Frog Beach Island Resort Rob Stokes Stephen B. Goodwin / Shutterstock.com Collaborators Andrea Cooper Inside Panama Real Estate Map sponsored by: Ventas y Servicios Chuas mapi.com.es Location Panama The Real Estate Book es publicado por Avenue A. Publications, Inc. Las opiniones y recomendaciones de los autores y artistas que aparecen en Location Panama The Real Estate Book no necesariamente reflejan las opiniones de la empresa. Location Panama The Real Estate Book no asume responsabilidad por los productos o servicios que se anuncian en la revista, ni por errores de contenido impreso. No está permitido reproducir, total o parcialmente en contenido de esta publicación sin previo permiso escrito de Avenue A. Publications, Inc. © 2013 Todos los derechos reservados. RUC: 1119547-1-564065 D.V. 92 Impreso por Panamericana Formas e Impresos, S.A. quién solo actúa como impresor. Impreso en Colombia

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CONTENTS Part 1: Welcome to Panama.......................................................................11 Geography and Climate...........................................................................................11 Panama’s Exciting Past.............................................................................................12 Panama’s Politics......................................................................................................15 Boats, Trains and Balboas – Panama’s Economy in a Nutshell................................16 Hub of the Americas................................................................................................20 Ready to Retire?.......................................................................................................21 The New Millennium................................................................................................22 Living in Panama.......................................................................................................22

Part 2: Panama – The City of Changes...................................................25 Navigating in the Capital..........................................................................................25 Getting to Know Panama City..................................................................................26

Costa del Este..............................................................................................27

Coco del Mar................................................................................................27

San Francisco................................................................................................27

Punta Pacifica...............................................................................................29

Punta Paitilla ................................................................................................29

Obarrio.........................................................................................................29

Marbella .......................................................................................................31

El Cangrejo...................................................................................................31

Bella Vista.....................................................................................................31

Casco Antiguo.............................................................................................33

Canal Zone ..................................................................................................35

Panama Pacifico...........................................................................................37

Other Neighborhoods.................................................................................37

What to See and Do When you Visit Panama City..................................................38

Part 3: The Provinces....................................................................................40 Panama....................................................................................................................41 Cocle.........................................................................................................................43 Herrera.....................................................................................................................45 Los Santos................................................................................................................45 Chiriqui....................................................................................................................47 Veraguas..................................................................................................................49 Bocas del Toro..........................................................................................................50 Colon.......................................................................................................................52 Darien......................................................................................................................53 Comarcas.................................................................................................................54

Part 4: Purchasing Real Estate in Panama............................................55 Types of Real Property in Panama...........................................................................55

Titled Property.............................................................................................55

Rights of Possession Property......................................................................55

Concession Property...................................................................................56

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Handling the Finances...................................................................................57 Obtaining a Mortgage...................................................................................57

Escrow Services.................................................................................58

Title Insurance...................................................................................58

So You Want to Buy an Apartment...............................................................59 What About Renting?....................................................................................61 Professional Services.....................................................................................62

Real Estate Brokers...........................................................................62

Finding a good lawyer.......................................................................62

Taxes as related To real estate......................................................................63

Real Property Transfer Tax.................................................................63

Property Taxes..................................................................................63

Tax Exonerations And Real Estate Laws........................................................64

Special Tax Exemption Law................................................................64

Special Tourism Zones Exemption.....................................................65

Inheritance and Gift Taxes..................................................................65

Law 2 of 2006.........................................................................65

Law 6 of 2006/2007................................................................65

Law 8 of 1994 ........................................................................65

Law 41 of 2007.......................................................................66

Law 50 of 1999.......................................................................66

Law 80 of 2009.......................................................................66

Law 481 of 2012.....................................................................66

Part 5: Moving to Panama The Different Types of Immigration Visas Available.....................................67

Tourist Visa........................................................................................67

Residency and other Visas.................................................................67

A Closer Look at Visa Options......................................................................68 Benefits of the Pensionado Visa....................................................................69 Working in Panama........................................................................................69 Moving to Panama.........................................................................................70 What to bring?...............................................................................................70 Bringing your Pet to Panama.........................................................................70 Education.......................................................................................................72 Utility Services in Panama..............................................................................74

Electricity Providers...........................................................................74

Water and Trash Services..................................................................74

Telephone, Internet and Cable TV Providers.....................................74

Mail Forwarding.............................................................................................74 The Media in Panama.....................................................................................75 Newspapers......................................................................................75 Radio ................................................................................................75 Television...........................................................................................75

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Photo by IM Panama Canal Administration Building

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WELCOME TO PANAMA You may have seen the images on TV or sprawled across glossy magazine pages, extolling Panama’s natural wonders and endless charms as a tourist destination. Luscious rainforests and resplendent wildlife in contrast with sleek cityscapes and a vibrant nightlife have caught your eye and now you want to experience this incredible country first hand. One thing is a certainty; the friendly Panamanian attitude will capture your heart and before you know it you will have returned for a second and even a third visit. After reading stories about people moving here to retire or to live full or part-time, some of you may even be thinking more long term. LOCATION PANAMA is designed to let you explore what Panama has to offer and to be used as a reference guide for your first visit, to help you make an informed decision when buying property and to help you when you eventually do make the move to live here. You are definitely not alone in looking at Panama as a possible place to visit or even to live. Moving to Panama is a popular choice for those looking for a second or vacation home or for retirees seeking a more comfortable lifestyle. There are many reasons why this is happening. Panama is a relatively inexpensive place to live when compared to the average “first world” country. Panama has well-developed infrastructure, with Panama City being among the most modern and prosperous cities in Latin America. The city boasts ocean views, a skyline reminiscent of Miami and promises

excellent shopping, great restaurants and entertainment. Outside the city, the country is blessed with countless pristine beaches on both the Pacific and Caribbean coasts, thousands of islands, tropical rainforests and remote mountain hideaways. Real estate is still affordable, especially when compared to other popular destinations, and once you are ready to make an investment, you will find a banking system that is efficient and provides all of the services that you might require. Forming a corporation to start your business is straight-forward, and Panama needs professional and skilled workers. In addition, it is quite easy to obtain residency as a retiree and the government offers resident retirees of all nationalities various discounts on products and services. Are you ready for a change of pace? Ready to get away from the daily grind or those cold northern winters and wake up to the sound of birds chirping in a real tropical paradise? Then get out the map and begin your exploration of Panama! Whether you are looking for a secluded country home in El Valle, a simple beach hideaway on the Cocle coast or a minimalist loft in Panama City, there are options galore. Panama is ready to welcome you with a smile.

GEOGRAPHY AND CLIMATE Panama, located approximately 9 degrees north of the equator, is known as the heart of the Americas and forms a land bridge of some 29,339 square miles connecting North and South America. The country is shaped like a lazy “S” and borders with Costa Rica to the northwest and Colombia to the southeast. The Caribbean Sea lies to the north and the Pacific Ocean forms the southern coast of this narrow isthmus, which is much longer than it is wide, being less than 60 miles wide at its narrowest point. The topography consists of mountains, hills, wide coastal plains, extinct volcanoes, virgin rainforests and dry tropical forests.

the hurricane belt, and, unlike its northern neighbors, has not experienced any appreciable volcanic activity since the now dormant Baru last erupted in about 500 AD. For most of the country, the tropical climate is divided into ‘winter’ or rainy season from midMay to December and ‘summer’ or dry season from mid-December to mid-May. Temperatures remain fairly constant throughout the year, averaging 80°F/27°C in the coastal areas and becoming cooler and less humid in the highlands. Mountain areas such as Boquete boast spring-like weather year round with an average temperature of 68°F/20°C.

Panama’s unique geographic location is also responsible for its immense natural wealth. Its vast biodiversity is unparalleled and can be traced back to the emergence of the isthmus more than three million years ago, considered by some scientists as one of the most significant geologic events of the past 60 million years. The land bridge that was formed separated two great oceans creating the ocean circulation we see today and allowing the flora and fauna of the northern and southern continents to interact.

During the dry season, humidity levels are lower and there is a pleasant breeze, both day and night. The rainy season brings almost daily showers to most of the country but it rarely rains for more than a couple of hours, with intense downpours that can deposit incredible amounts of water in a short period. Then the sun comes out, along with a refreshed atmosphere and lowered humidity. The Caribbean coast can get over double the Pacific Coast’s rainfall, with some areas receiving more than 9 feet of rain per year.

Panama offers 12 distinct ecological zones and boasts more than 14,000 identified plant species, including over 1,200 native orchids, nearly 1,000 bird species and of the 5,000 known animal species on Earth, 1,500 of them live in Panama.

You will soon discover that Panama’s heat and humidity is much more bearable than it sounds and acclimatization does not take long. Most homes and offices have air-conditioning - some people have jokingly referred to Panama City as Latin America’s coldest city and nights are usually much cooler than during the day.

Another distinct advantage for Panama is that it lies below www.locationpanama.com

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Photo by: Bobby Pereira Fort San Lorenzo - Colon

Photo by: Bobby Pereira Fort San Lorenzo - Colon

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PANAMA’S EXCITING PAST

The adventure story that is the history of Panama tells of vast treasures; of conflicts between empires; of daring fortune hunters; of dreams both realized and unfulfilled; of tremendous success and total failure. After Columbus set foot on the isthmus during his fourth voyage in 1502, the Spanish claimed the area for the Spanish crown and in 1510 created the first permanent settlement in the New World at Nombre de Dios on the Caribbean coast. Shortly afterwards, Vasco Nuñez de Balboa fought his way through the thick jungle to arrive on the Pacific coast, where in 1519 the original city of Panama was founded, becoming the first Spanish city on the western coast of the Americas and the launching point for the conquest of Peru. It was from here that the Camino Real, or Royal Road, was built linking the two coasts. A few years later another road was built, El Camino de Cruces, linking Panama with the Caribbean using the Chagres River. At the terminus of this route, Fort San Lorenzo was built and the ruins of this fort can still be visited today. This road served the Spanish for over 300 years to haul plundered treasure in one direction and trade goods in the other. Throughout this time, the Spanish were beleaguered by English and Dutch pirates, especially Sir Francis Drake and Henry Morgan. Drake was responsible for sacking Nombre de Dios and causing the Spanish to move to Portobelo in 1597 as this harbor was easier to defend. Portobelo flourished as the main port of the Spanish Main and, until the early 18th century, was the site of an annual trading fair that took place when the fleet arrived from Spain. Today you can visit the old forts and the reconstructed Customs House where millions of dollars worth of plundered gold and silver were stored before being loaded onto the galleons and shipped to Spain. In 1671, Henry Morgan crossed the isthmus and ransacked and burned Panama, resulting in the building of a new town on the site of what is now called Casco Antiguo. Within its heavy stone walls, religious, military and civilian buildings were constructed along with seven bastions to protect against pirate attacks. The area has seen many architectural influences over the years, with many classic buildings that have been or are being renovated. Along with Panama Viejo, this area was classified as a World Heritage site by UNESCO in 1997. One tale of failed dreams was the attempted settlement of the Darien by the Scots in 1698. Wanting to expand their influence, the Scottish government financed an ambitious plan to establish a colony on the isthmus of Panama in the hope of establishing trade with the Far East. Unfortunately, due to opposition by the British government, disease and inadequate provisions, out of the original 2,500 settlers that set off, only a few hundred survived. With a loss of over £500,000, the Scottish economy was almost bankrupted. It has been argued that the Darien Scheme crippled the country’s economy to such an extent that it was the cause of the union of Scotland with England. In the mid-1800’s, Panama’s location once again pushed it to the forefront, when the California Gold Rush precipitated the construction of the first transcontinental railroad connecting Colon with Panama City. After the first 20 months of work, only 7 miles of track had been built with an untold cost in lives of the imported workers. Initial gold rush-bound ‘49ers paid an astronomical $25.00 to travel these 7 miles and another $10.00 to walk the remaining distance on the right of way. This bonanza allowed the company to escape bankruptcy and complete the track for a total cost of over $7,400,000. On January 28, 1855, the world’s first transcontinental train ran from ocean to ocean and, when combined with steamship service, it reduced travel times from the US east coast to California from six months to just over two.

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As early as the 16th century, Panama had been considered a potential route for a canal to join the oceans and facilitate trade, but it was not until 1880 when, fresh from his success with the Suez Canal, Frenchman Ferdinand de Lesseps began his attempt to join the two oceans. His downfall was trying to build a sea-level canal like the Suez. After 8 years, technical difficulties, tropical disease, financial mismanagement and corruption caused the Panama Canal Company to declare bankruptcy. In the early 1900’s, Panama had been a province of New Granada (which was later renamed Colombia) for over 70 years and it was an unstable relationship at best. Philippe Jean Bunau-Varilla, a Frenchman stranded in Panama after the collapse of the French attempt, successfully lobbied the US government into selecting Panama as the site for a canal and for the appropriation of some $40 million for the construction. There was just one thing in the way – the Colombian government’s cooperation. In 1903 Bunau-Varilla worked with various Panamanians to declare independence and persuaded the US to station a gunboat off the Caribbean coast to prevent Colombian forces from interfering. Two weeks after the declaration of independence, acting as Panama’s ambassador to the US, he negotiated a treaty granting the rights to build the canal and for the land on either side of the canal to belong to the US government, creating the Panama Canal Zone. The Hay-Bunau Varilla Treaty is also called “The Treaty No Panamanian Signed”, though Panama later agreed to the terms whereby the United States was to receive rights in perpetuity to a canal zone extending five miles on either side of the canal route. A 30-year period of military dictatorship began in 1968 when then General Omar Torrijos led a coup that ousted the democratically elected president Arnulfo Arias. Torrijos consolidated his power and ruled until his death in an airplane crash in 1981. He was known for his intolerance of political opposition but he also instituted a range of social and economic reforms with an aim to assist the lower classes. Torrijos is probably best known for negotiating the return of the canal area to the Panamanian people. The initial treaty was a source of conflict since the beginning, but in 1964, tensions erupted into riots over the sovereignty of the Panama Canal Zone. This event is considered one of the main reasons for the decision to negotiate the 1977 TorrijosCarter Treaties, which eliminated the Hay-Bunau Varilla Treaty and allowed the gradual transfer of control of the Canal Zone to Panama. After the death of Torrijos, two other military officers ruled until General Manual Antonio Noriega seized power, considered at the time an ally of the US government. Even with several presidents who were “duly elected” between 1984 and 1989, Noriega was the de facto ruler of Panama until his ousting by the US invasion. US intervention in Panamanian politics was frequent throughout the century, usually at the request of one Panamanian faction or another. Probably the most significant intervention was Operation Just Cause, when in 1989, US troops invaded the country and captured Noriega, who was convicted on drug charges and served twenty years in a Miami prison. In 2010 he was extradited to France, where he served another two years for money laundering. The final chapter of Noreiga’s saga has been written. He returned to Panama in December 2011, and was taken directly to El Renacer prison, where he will serve another twenty years for the murder of a political opponent. After the US invasion, Panama re-established its democratic government and has enjoyed political stability, with five consecutive, popularly elected governments. 1999 was the year of closure and turnover. At the end of July, the last US soldier left Panama and all US military bases on the isthmus were shut down ending an 88year military presence. That same year on December 31st, the full administration of the Panama Canal was turned over to the Panamanian people under the direction of the Panama Canal Authority.

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Stephen B. Goodwin / Shutterstock.com


PANAMA’S POLITICS

Photo by: Bobby Pereira

Today, Panama enjoys a stable political climate with current president, Ricardo Martinelli, elected in 2009 and remaining in office until 2014. Panama is a representative democracy with three branches of government: the Executive and Legislative branches elected for 5-year terms, and an independent appointed Judiciary. The Executive branch includes a president and vice president and the Legislative branch consists of a 71-member National Legislative Assembly. The government is one of the largest employers in the country and government jobs are highly sought after. Panama has a multi-party system, and the power base changes somewhat with each election. The next general election will take place in 2014, with several political parties vying for position. President Martinelli represents the Cambio Democrático (CD), or Democratic Change Party, with 36 seats in the National Assembly. The party’s ideology can be described as Liberal Conservatism. Martinelli is a successful businessman and owner of a large chain of supermarkets in Panama. While some may question his methods, he has a proven record of tackling tough projects and getting results. The largest party in the country is the Partido Revolucionario Democrático (PRD) or Revolutionary Democratic Party, with 17 seats in the Assembly. Founded in 1979 by Omar Torrijos, the party is generally described as center-left on the political spectrum. While the party still carries the stigma of its association with Torrijos’ military dictatorship, it has shown superior organizational skills and was the first party to hold primaries for all of its candidates. This party held power from 2004 to 2009 during the term of President Martin Torrijos, son of Omar Torrijos. Currently holding 13 seats, the second oldest party on the isthmus is the Panameñista Party (PP), known for many years as the Arnulfista Party after its longtime leader and 3-time president Arnulfo Arias. This party held power from 1999 to 2004 under President (and widow of Arnulfo Arias) Mireya Moscoso, whose government was plagued by scandals and alleged corruption at all levels. Other parties include the Movimiento Liberal Republicano Nacionalista (MOLIRENA) or the Nationalistic Republican Liberal Movement, with four Assembly seats, and the Partido Popular or People’s Party, with one seat. Keeping track of the changes in the political scene in Panama is a full-time job and as the 2014 election approaches, more alliances, challenges and changes will definitely be seen. www.locationpanama.com

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Photo by: Jorge Sanchez

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BOATS, TRAINS AND BALBOAS – PANAMA’S ECONOMY IN A NUTSHELL Panama’s economy is based primarily on a well-developed services sector that accounts for nearly 80% of GDP. With banking, commerce and tourism as the predominant sectors, services include the Panama Canal, whose income has soared since the turnover to the Panamanian government, rising steadily year-over-year, from $769 million in 2000 to over $1.74 billion in 2011 according to figures from the Panama Canal Authority. In 2006 a nationwide referendum approved an expansion project for the canal, estimated to cost over $5.25 billion for the creation of a third set of locks capable of handling modern container ships, cruise liners and tankers — also known as Post-Panamax — that are too large for its current capacity. The expansion project is on budget and on schedule to open in 2015. Without a doubt, the Canal is at the core of the country’s economic activity. Nevertheless, as you will often hear and read, Panama is much more than a Canal. Located at the Caribbean entrance to the Panama Canal is the Colon Free Trade Zone (CFTZ), the largest free trade zone in the Western Hemisphere and second only to Hong Kong in the world. But what makes Colon unique is that almost all of the world’s major shipping routes pass through it. Served by four ports, 3 on the Caribbean side and one on the Pacific, and with over 2900 companies doing business within its confines, the CFTZ grew by over 31% in 2011. The zone employs over 30,000 individuals directly, and approximately 60,000 indirectly. Revenue from the zone represents 7% of Panama’s GDP. From 2007 to 2010 the volume of transactions within the zone increased 34%, from $16 billion to $21 billion. Panama is also well known for its vibrant banking community, with over 90 banks and representation offices registered with the Bank Superintendent’s Office. Total net assets within the International Banking Center were reported at over $100 billion as of June 2012. Unlike many other countries, Panama does not have a central bank, which has created a completely market-driven money supply. Panama also operates with the US dollar as its de facto currency. The country, therefore, must buy or obtain dollars by producing or exporting real goods or services; it cannot create money out of thin air. This market-driven system has created an extremely stable macroeconomic environment. Panama is the only country in Latin America that has not experienced a financial collapse or a currency crisis since its independence. Panama’s ultra-conservative banking policies helped spare the country from many of the economic woes faced by other countries. In fact, the country’s economy has been growing at a staggering rate. Consider these percentages, as reported by the government: 2008 2009 2010 2011 2012 Economic Growth

9.1

4.1

7.8

10.8

11.0

Inflation Rate

7.3

2.1

2.4

4.7

5.0

Unemployment Rate

5.6

6.7

6.5

4.5

4.6

Forecasts for the future of Panama’s economy are all positive, with 8% growth anticipated in 2013. Panama has the one of the fastest-growing tourism markets in Latin America, as demonstrated by consistent increases in the number of visitors year-over-year. From 2010 to 2011, the total number of visitors, including tourists, cruise ship passengers and day visitors, increased 11.9% to over 1.6 million, and since then it has surpassed 2 million. Tourism is fast becoming Panama’s principal industry in terms of GDP and generation of jobs. Panama has been a popular destination for the cruise ship industry for many years and currently operates three cruise ship ports, two in Colon and one on Amador Causeway. Four of the world’s leading cruise ship companies make port in Panama, namely Holland America, Princess, Celebrity and Royal Caribbean. Now, the government is studying the construction of a new port in Panama City, near the Balboa Yacht Club, which would open new routes to both North and South America. More cruise ships means more passengers, many of whom may arrive early or extend their stay to explore more of Panama. In 2007, Panama’s Tourism Authority (ATP) announced a 40 million dollar, 5-year advertising campaign designed to attract even more tourists and tourism investment. The campaign is clearly reaping results by developing innovative and useful programs and services. Several unique efforts by ATP indicate their commitment to promoting tourism here. One is the free health insurance for all tourists who enter the country through Tocumen Airport. This program, underwritten by Generali Insurance Company, affords free coverage for thirty days for accidents, hospitalization, medical services, medical transport, medications, even travel insurance including lost baggage, missed flights and lost documents. www.locationpanama.com 17


Another tourism incentive program is the Free Stopover. Travelers who arrive at Tocumen en route to other destinations via Copa or United Airlines may change their flights free of charge. They may choose to stay and visit Panama for up to three days without any additional fees from the airlines, then continue on with their itinerary. These two programs represent real benefits for visitors to Panama. One economic advantage Panama has over its neighbors is the use of the US Dollar as legal tender. Panama’s national currency is the Balboa, named after Spanish explorer Vasco Nuñez de Balboa. The US Dollar is freely circulated and accepted for all financial transactions. The only Panama bank notes ever issued occurred during the Government of President Arnulfo Arias. Known as the “Arias” issue, these notes circulated for only 6 days in 1941 and, when the government was overthrown, the notes were recalled and most were destroyed. Panama still mints coins in denominations of 1, 5, 10, 25 and 50 cents, which are made from the same metal and in the same size and shape of the equivalent American coins. In 2011 they introduced a one Balboa coin, known as a “Martinelli” after the current President.

Photo by: Jorge Sanchez

Commercial activity in general is also on the rise, with growing health and insurance service sectors and very strong retail sales growth. The largest, most popular and upscale malls include Multiplaza Pacific, Multicentro and Metromall, housing luxury boutiques such as Chanel, Cartier, Ralph Lauren and Louis Vuitton. These join Albrook Mall, Los Pueblos, El Dorado, and Los Andes as major retail outlets in Panama City. The latest addition is the Westland Mall in Chorrera, just west of the city on the PanAmerican Highway, with 300 outlets, developed by Los Pueblos Group (also developers of Albrook Mall). These malls are actively marketing Panama as a shopping destination. With a significant presence on both coasts, the country’s port system has established Panama as a world-class maritime center. Manzanillo International Terminal, operated by Stevedoring Services of America, is considered the largest and most productive container trans-shipment terminal in Latin America. Two other important ports, located at each end of the waterway (Balboa and Cristobal), are operated by Panama Ports Company (PPC), a member of the Hutchison Port Holdings. Taiwanese shipping giant, Evergreen, operates the third container terminal near Colon. The nation will soon begin the construction of a new “megaport” on the Pacific coast. Panama expects to become the region’s principal multimodal logistics center in the coming years, combining sea, land and air transportation of cargo. One key to the multimodal center is Panama’s railroad. Having fallen into disuse after being turned over to the Panamanian military in 1979, it was reborn after an $80 million investment by the Panama Canal Railway Company, a joint venture between Kansas City Southern and MiJack Products, who were awarded a 50-year concession to rebuild and operate the line. The revitalized railroad provides an efficient 47-mile long intermodal link between the Pacific and Atlantic ports and complements the existing hub transportation infrastructure provided by the Canal, the Colon Free Trade Zone, the Port terminals, highways and airports. In addition, it offers a luxurious passenger service allowing travelers to enjoy a scenic journey through lush rainforests with picture-perfect views of the Panama Canal. This service caters to both business executives commuting between Panama City and Colon, as well as tourists traveling from Colon’s cruise terminals to Panama City.

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HUB OF THE AMERICAS Photo by: Jorge Sanchez

For many years, Panama has realized the importance of trade liberalization and has various free trade agreements (Singapore, Taiwan) or partial preferential agreements (Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Mexico) in place. Panama has also been very active in the Free Trade Area of the America’s negotiations, even hosting the Secretariat for 2-1/2 years. On October 31, 2012, the US-Panama Trade Promotion Agreement went into effect, eliminating tariffs on many products that are shipped both ways. In 2007, Panama was invited to become an Associate Member of the MERCOSUR free trade block, providing preferential trade status with these South American trading partners. Having free trade agreements with both northern and southern neighbors will indeed assure Panama’s position as Trading Hub of the Americas. Other significant advances in liberalization have been made on the home front with the privatization of the telephone and electrical distribution industries. With the sale to Cable & Wireless of the state owned telecommunications company and subsequent deregulation of the telecommunications industry, intense competition has lowered rates for long distance and cellular phones dramatically in recent years. Panama’s strategic geographic position has also meant that it is now the regional hub for telecommunications and the Internet with several major Network Operations Centers and direct access to all major fiber optic networks servicing the Americas. Due to this reliable and dedicated access, government incentives and a relatively strong English-speaking workforce, a fertile ground for the setup of call centers was created. The largest of these is probably Dell Corporation’s regional center located in Panama Pacifico (the former Howard Air Force Base), which opened in 2003 and expanded in 2011, with over 2,500 employees. 20

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In addition to the confluence of shipping traffic through the Canal, Panama’s Tocumen International Airport is considered to be the hub for air transportation in the region. COPA Airlines, Panama’s national carrier, links their flights to and from South America with their flights to North and Central America and the Caribbean. Continental, Delta, Spirit and American Airlines all offer daily flights to their hub cities in the US. TACA Airlines services all major cities in Central America as well as connecting to the US; Mexicana has recently returned to Panama with flights from Mexico City; Iberia flies direct from Madrid, Spain and KLM has flights from Amsterdam . In all, no less than fifteen international carriers serve Tocumen Airport. As of October, over 1.2 million visitors entered Panama through Tocumen Airport in 2012, an increase of 14. 6 % over 2011. This follows on the heels of an increase of 10.9% from 2010 to 2011. A major, multi-phase expansion and modernization of the airport was completed from 2006 through 2012, adding a total of 40 new gates. The first phase included systems upgrades and terminal renovations, while the second phase added commercial space and a new passenger terminal. Passenger capacity doubled from five to ten million per year with these improvements. But that’s just the beginning… the next phase is a new $300 million south terminal and infrastructure that will add 20 new gates. The long-term vision is for development of an aerotropolis, known as “Panatropolis,” over the next ten to fifteen years. This ambitious, multimillion-dollar investment project will include a business center, industrial park, shopping and convention centers, hotels, restaurants and residential areas. It is the first such project in Latin America and represents a major investment opportunity.


READY TO RETIRE?

The influx of foreign visitors to Panama is constantly on the increase, whether for business or for pleasure. It is hard to tell what is driving what, but parallel to Panama’s increasing popularity as an international tourist destination, its reputation as a great place to retire and invest has also spread like wildfire. Recently, various magazines and retirement websites have pushed Panama as a prime retirement destination. Why? In relation to other popular retirement destinations, both domestic and international, Panama offers affordable real estate opportunities, low crime rates, first class health services, and one of the best retiree benefit programs in the world. During a visit to any hotel or restaurant, you will overhear a variety of languages: English, French, German, Italian and, of course, non-Panamanian Spanish. Not only has the hotel industry expanded to accommodate these visitors, the number of restaurants has multiplied in the last few years as well. Especially in the Calle Uruguay area of Bella Vista and along Via Argentina in El Cangrejo, you will find numerous gourmet offerings as well as all kinds of ethnic cuisine. Culture shock is not drastic. As with any other country, there are significant differences, but the US influence on Panama is evident and makes the transition to living in Panama relatively easy for North Americans. When it comes to shopping, new

residents will feel right at home with the large supermarkets stocked with all kinds of international brands at good prices. Electronics and home appliances are also well priced and the selection is as good as or better than elsewhere. Panama is very welcoming to foreign retirees (or “jubilados” in Spanish), with an easy application process for the Resident Visa that requires proof of monthly retirement income and minimal paperwork. All resident retirees, regardless of nationality, receive numerous discounts on goods and services such as movie tickets, hotel accommodations, restaurants and prescription medicines, to mention just a few. Many are surprised to hear that foreigners who buy property in Panama enjoy the same rights and protections as citizens and there is no tax on foreign earned income. With these incentives added to the tropical climate and overall low cost of living, it is no wonder that many of the projected 100 million plus baby boomers who will reach retirement age over the next three decades are looking to Panama as a potential retirement home. As people around the world begin to realize Panama’s advantages, and the demand for real estate increases, the price you will have to pay for your own little piece of paradise will also increase. But having said that, with a little patience and dedication, finding the right city apartment, country home or bungalow by the beach at the right price is surely possible.

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THE NEW MILLENNIUM Until the end of the last century, the local market consisted of smaller apartments for a growing middle class and larger luxury apartments for the established upper class. Then, around 2000, almost overnight developers began to witness a change in buyers as more foreigners, especially North Americans, were looking to purchase land, houses or apartments in Panama. Developers and real estate agents quickly changed their marketing strategies to attract a large and reputedly wealthy foreign crowd. Advertisements, billboards and magazines began catering to this new English-speaking market. Some developers chose to do most of their marketing outside of Panama and some even have international sales offices. Now, the entire country is engaged in infrastructure and development projects of all types. A new airport at Rio Hato and expansion of the David airport to accommodate international flights are in progress. New highways to Colon, Boquete, and Chitre are underway or already completed. New hospitals are under construction in Los Santos, Colon, Aguadulce and Santiago, expected to open in early 2014, with more in the planning stages. Commercial properties have boomed in Coronado, Santiago, David and, of course, Panama City. Residential developments range from affordable, first-home family units to exclusive, world-class estates. While the Big Boom of previous years may have slowed, there is still tremendous growth and investment happening all over the country, and that presents opportunities.

Photo by: Bobby Pereira Bridge of The Americas

LIVING IN PANAMA Before we get into the details and nitty-gritty, an overview of what it is like to live in Panama may be helpful. Getting around is easy and safe. The Pan-American Highway bisects the country from west to east, and is the main artery for land travel. While some sections are only two lanes and a bit rough, plans are in place to widen and resurface these stretches of highway. Having your own car is ideal, and it is no problem to buy one in Panama. If you are just visiting or prefer not to own a car, rentals are available at major airports and cities, such as the provincial capitals. Taxis are inexpensive and the main form of transport for many Panamanians. The bus system is also reliable and very affordable throughout the country. The National Bus Terminal in Panama City includes bus lines to all parts of the country, and local services operate in all the provinces. Air travel passes through Tocumen International Airport or Albrook Domestic Airport in Panama City. There are regular flights between David and Panama City, Bocas del Toro and Panama City, and several smaller airfields in outlying areas and islands. Charter flights can be arranged as well. With goods from all over the world passing through the canal, Panama has easy access to global imports. As a result, stores offer an impressive range of foods and other products on their shelves. Major grocery store chains include Riba Smith, El Rey, Romero, Super 99, and Machetazo, many with locations throughout the country. Gourmet products are becoming more common due to 22 www.locationpanama.com


customer demand, especially in Panama City. Chances are you will find whatever you are used to buying at home, with the exception of specialty or locally produced items, at lower prices than are typical in North America or Europe. Fresh produce is plentiful and in stock yearround. Panamanian cuisine may not be world-famous yet, but it is certainly tasty! Sancocho chicken soup is a national favorite, made with lots of root vegetables, corn on the cob and rich chicken broth. Seafood is abundant, and you haven’t tasted Panama until you’ve tried at least two or three varieties of ceviche - fish, shrimp or octopus in a tangy lime dressing. For breakfast, hojaldre (fried dough, like a donut without sugar) and tasajo (smoked meat) are always on the menu. No meal is complete without arroz con guandu, rice and pigeon peas. To satisfy your sweet tooth, choose from a variety of cakes such as guineo (banana), piña (pineapple) or zanahoria (carrot), flan, or a fresh fruit licuado (smoothie). Shopping might be considered a national sport in Panama, at least in the capital! Mega malls house all the major brands such as Columbia, Hilfiger, Guess, Nautica, GNC, and Nike, and recent additions include top-end retailers such as Chanel and Cartier. Smaller retailers are the real backbone of the economy, with locally owned businesses competing with major chains. Pharmacy chains Arrocha, Metro and Revilla offer department store variety at multiple locations. Panama even has its own “box store” PriceSmart (formerly Costco), comparable to Walmart. If you can’t find what you’re looking for locally, several companies offer shipping services from the US to Panama, so shopping online is a cinch. One major consideration for many retirees is healthcare, and here Panama really shines. With first-class facilities in Panama City, including a Johns Hopkins affiliate hospital, all medical services are available. Panama has a dual private-public health care system, and one interesting feature of this system is that the same doctors work in both private and public hospitals in most of the country. This elevates the level of health care provided at all facilities, to all patients, and keeps it affordable. Insurance plans are available at some of the private hospitals, and coverage is offered by international carriers that are recognized world-wide. Excellent health care is provided in Panama at a fraction of the cost of a typical US facility. As a result of the Spanish conquest, the primary religion in Panama is Roman Catholic. Due to the presence of so many foreigners from around the world over the years, Panamanians exhibit great religious tolerance and religious freedom is guaranteed by the constitution. Other faiths represented here include Baptist, Seventh Day Adventist, Jehovah’s Witness, Buddhism, Ba’Hai, Judaism and Evangelism. Spanish is the official and dominant language of Panama, and it will aid you and enhance your experiences here if you speak some Spanish. All legal transactions are conducted in Spanish, and English translations are easily obtained. However, more and more Panamanians are realizing the value of learning English, especially the younger generation. In many industries, such as banking, tourism, logistics, medical, and legal, English is widely spoken, and many professionals are bilingual. In the Caribbean areas of Bocas del Toro and Colon, English is the primary language, spoken with a very noticeable accent, mon! With what we have gathered here in Location Panama we hope to provide you the information you need to make an informed decision about relocating to and/or investing in Panama. Let’s take a closer look at what Panama has to offer…

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Photo by: Alfredo Maiquez

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THE CITY OF CHANGES Founded in 1519 by Pedro Arias de Ávila as the jumping off point for the conquest of South America, Panama City has been at the center of trade for the Americas ever since. Starting with the conquest of Peru and other South American countries, expanding with the construction of the railway and the Canal and continuing today, Panama City holds an important strategic location when it comes to global commerce. With its strikingly modern skyline and warm tropical climate, Panama City has been called the Miami of Latin America. When compared to other major cities in Central America, this cosmopolitan capital appears to be much more advanced in terms of architecture, infrastructure, shopping and nightlife. It is usually referred to simply as Panama, or “La Capital.” Panama is really three cities in one; the ruins of Panama Viejo, the colonial quarter known as Casco Antiguo or Casco Viejo, and the modern city that now surrounds the two original cities. One thing that is readily apparent in Panama is the diversity of its population. You will find people from just about everywhere in the world, many of whose ancestors came to the isthmus during the construction of the railway and the Canal and stayed. One other item of note is that you will find a lack of racial tension. Panamanians are very tolerant of other cultures since their own is so inextricably tied to the many races and cultures that have settled here from afar. With 1.7 million inhabitants as of the official census of 2010, Panama City is home to half of the country’s population and growing fast; so fast, in fact, that you can actually witness the changes taking place daily. With every week that passes, the buildings under construction grow taller, new skyscrapers begin construction, more restaurants open, more stores and offices appear, and infrastructure projects transform the cityscape. For a large city, Panama is a safe place to live and work. Many websites extol the lack of crime in Panama and rank it as one of the safest tourist destinations in the world. Actually, the average tourist or foreign resident has about the same chance of experiencing crime as they would in any similar sized city in North America or Europe. As with any city, there are areas that one should not venture into, especially at night, but the neighborhoods we will describe here are the areas where both Panamanians and foreigners live safely. Panama City boasts a wealth of opportunities and activities to keep both residents and tourists occupied. It offers great shopping, whether for clothes, foodstuffs or more exotic items. Recreation is abundant, from horseback riding to whitewater rafting, from enjoying a morning on the golf course to a day at the beach, and all of this can be found within or close to the city. Panama City is also well known for its nightlife; restaurants serve dishes from around the world, nightclubs keep you dancing until the wee hours of the morning and new modern casinos offer entertainment, gambling, sports and shows.

NAVIGATING IN THE CAPITAL Panama has a substantial lead over most other Central American cities in terms of infrastructure. Not only are Panama’s highways and roads generally better maintained, but Panama also enjoys a modern water distribution system providing safe drinking water to the majority of its residents, in all but the most remote locations. In 2006, a $516 million, four-stage plan for water and sewage treatment was initiated, which will provide stateof-the-art facilities to the city and surrounding areas when it is completed in 2013. Ask anyone who has lived in Panama for even a short time and their biggest complaint would be the traffic – at times the streets are at a standstill. Not really any different than the freeways of Los Angeles or the gridlock of New York City, but we are spoiled living in a city that is relatively compact, and when it takes more than 30 minutes to get somewhere, that’s 15 minutes too long! The north and south “corredores” or toll highways have alleviated some of the transit problems, but they can reach capacity during rush hours. A new Coastal Belt (Cinta Costera) was completed in record time along the Pacific shoreline, and in addition to easing traffic snarls, its parks and green areas enhance access to this coastal area. Recognizing the importance of bus transport for many city dwellers, the government addressed the problem of Diablos Rojos head on. These “red devils” are transformed school buses that clogged the streets of the city, competing for passengers while spewing exhaust. The new Metrobus system has replaced these outdated relics with efficient, clean, air-conditioned buses that have greater passenger capacity and regular routes throughout the city. The most ambitious undertaking in progress is retrofitting Panama City with a subway system, called Metro de Panama. With a budget of $1.45 billion for four lines, subterranean and elevated tracks, and ultra-modern stations, it will no doubt be the pride of Panama when completed. The first line is in the works and expected to open in early 2014. When you first start to explore Panama City, whether you are driving or walking, finding your way around can be confusing. Panamanians seldom use street names and directions often include landmarks that have long since disappeared. There are four main streets that run east-west, starting at the waterfront with Avenida Balboa and the Cinta Costera, followed by Calle 50 (50th Street), which has one way traffic going east, then Vía España, with one way traffic going west and finally the Transistmica (Ave. Simon Bolivar). Running north-south, the main roads are Frederico Boyd, Via Brasil and 12 de Octubre, along with many other smaller streets. One other main thoroughfare that you will hear about is Tumba Muerto, literally the Grave of the Dead, whose real name is Vía Ricardo J. Alfaro. This main thoroughfare crosses the city at a curving angle connecting with the Transistmica at both ends. Many streets and avenues are one-way, so vigilance is required when navigating in the city.

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Photo by: IM Views from gated community in Costa del Este

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GETTING TO KNOW PANAMA CITY The following sections will explore Panama City’s main neighborhoods so you can get a feel for the different areas of Panama and what each has to offer. We will describe each one’s real estate market and their available facilities and amenities. In general, available properties are all condominiums or apartments, except where houses are noted to be on the market. Reference to pricing is based on square meters, the standard unit of measure for real estate in Panama. We are including average prices in the open real estate market as of January, 2013. Of course, pricing changes constantly, so those listed here are only for the purpose of comparing the relative fair market value of properties in different parts of the city. Starting on the east side of the city and moving west, let’s take a tour…

Costa del Este

Perhaps the most prestigious area of the city, Costa del Este lies east of downtown just off the Corredor Sur. Clean, wide, tree-lined boulevards with all underground utilities meander through this development of gated communities. Home to a veritable who’s who of Panama, private homes in some sections start at $1.6 million, while the lowest priced houses fall in the $700,000 to $900,000 price range. New high rise condos round out the residential options, with oceanfront buildings offering every imaginable amenity for $2500 to $3000 per square meter. Other condo projects on the outer edges are more affordable, at $1700 to $1900 per square meter. With ample green spaces and solid infrastructure, Costa del Este is one of Panama’s most well-planned neighborhoods, resembling a United States suburb more than a typical Panamanian neighborhood. It is designed to be completely selfcontained, with shopping plazas, all types of stores, supermarkets, restaurants, banks, schools, and service stations. Costa del Este includes a Business Park with office space, and an Industrial Park with light manufacturing and production companies. This is an ideal locale for those who can work from home or within the community, because traffic along the Corredor Sur into the city gets snarled during peak hours.

Coco del Mar

Moving westward, Coco del Mar is situated along the shoreline, stretching from the ruins of Panama Viejo to San Francisco. Coco del Mar boasts peaceful tree-lined streets and a slower-paced atmosphere. Long-time residents of this neighborhood have struggled to keep the number of buildings within its perimeter under control and have been quite successful at it, and many have wonderful ocean views. There are some very upscale homes within Coco del Mar, owned by affluent Panamanian families representing “old money.”Some of the older properties around the edges are being replaced with tall apartment buildings. This residential area has few services or stores, so a vehicle is a necessity. With its privileged position and limited new construction, properties here are purchased almost as soon as they are placed on the market.

San Francisco

One area that has transformed from private homes to condominium towers is the neighborhood of San Francisco. This area lies between Marbella and Coco del Mar stretching along the ocean shore. Home to the ATLAPA Convention Center and the Four Points by Sheraton Panama, this mainly residential neighborhood also houses small shopping plazas, boutiques and restaurants. The area has a cozy feel, with small streets and a comfortable mix of locals and foreigners. Businesses tend to be located on Calle 50, Via Israel and Via Porras, the main roads running through the area, where you will find a few 24hour supermarkets and large multi-department drug stores. San Francisco boasts three other large landmarks. The first is Parque Omar, one of the city’s largest parks, built on a former golf course and very popular with adults and children alike. There is a walking/jogging track around the perimeter of the park, many areas where children play sports, playground sets, a swimming pool and a public library. The second big landmark is the enormous MultiPlaza Pacific Mall. Built on what used to be Panama City’s local airport, this mall has become a shopping mecca for its plethora of name brand stores, from Cartier to Louis Vuitton. Finally, the ATLAPA Convention Center, located across from the Sheraton Hotel, is the preferred location for most of the country’s exhibitions, and hosted over 70 conventions in 2012. The apartment buildings being built around San Francisco tend to be smaller and lower in price, from $1600 to $1900 per square meter, mixed with other more costly units. They are attracting the growing Panamanian upper-middle class and young professionals, who want to move closer to work and enjoy the proximity of shopping and other services, as well as budget-minded foreigners. Some of the buildings have limited views over the Pacific. The small and exclusive neighborhood around Parque Omar called Altos del Golf is home to some of Panama’s most extravagant single-family homes. These residences enjoy excellent views of the park along with the convenience of this central location. For reference, prices for single-family homes such as these within Panama City start at $400,000 to $600,000, and go up to over a million dollars. www.locationpanama.com

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Photo by: Bobby Pereira Aereal views of Punta Pacifica and Punta Paitilla

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Punta Pacifica One of Panama City’s most esteemed addresses is Punta Pacifica, built on a man-made peninsula jutting into the Pacific Ocean. This is the site of several high status structures. The much touted Trump Ocean Club, a 62-storey multiuse building with hotel, casino and residential units is located here. Torres de las Americas is a massive complex of three high rise buildings that house international corporate headquarters, and contain the most expensive office space in the city. Hospital Punta Pacifica is widely known as one of the best hospitals in Panama, due to its affiliation with the Johns Hopkins Medical System. So it is no surprise that property prices here are among the highest in the city, with $2300 to $3000 per square meter being typical. This area underwent tremendous development from 2006 to 2008, with numerous high rise condos sold. These projects have now been completed and are being delivered, with plenty of units on the market as re-sales or new offerings. While Punta Pacifica occupies a privileged position and has attracted a very wealthy group of residents, there is limited access for vehicles and traffic backups occur daily in both the morning and the evening. However, you are within walking distance to the small Paitilla mall, a 24-hour supermarket, banks, stores and restaurants, and to the MultiPlaza Pacific Mall. The current buzz in Punta Pacifica is all about the new Ocean Reef development. This ambitious project, similar to The Palm in Dubai, will consist of two man-made islands with a marina between them, accessed by a causeway extending from Punta Pacifica. Lot prices start at $2 million, with a maximum of 100 private homes planned for this ultra wealthy community.

Punta Paitilla Punta Paitilla is located at the start of Avenida Balboa with road entrances directly in front of the MultiCentro Mall and connecting to the area around the MultiPlaza Mall. The neighborhood is comprised of a series of looping streets lined with mainly residential apartment buildings, with a few single-family houses in the center of the zone and along the waterfront. There is a mixture of older and newer buildings, with some of the earliest being more than 30 years old. Landfill on the western-most point has allowed for the construction of even more towers and most of the single-family homes have been sold with condominiums taking their place. Jutting out into the Pacific, many of Punta Paitilla’s residents are afforded great city and ocean views depending on the location of the building, although some buildings have had their view obstructed by new construction. Via Italia, a wide, tree-lined boulevard, circumnavigates the neighborhood and is the main thoroughfare. The beautiful oceanfront park next to the Union Club, with its shaded walkways and children’s play area, is a popular meeting point for children and adults alike. Punta Paitilla is a very centrally located neighborhood that offers a significant level of amenities. Here you will find various banks, a large 24-hour supermarket, small specialty stores, a post office and most of the services that one might require. In addition, the city’s two main malls are both within a few minutes’ drive or walk. Due to its practical location and great views, Punta Paitilla has been a favorite neighborhood among the more wealthy Panamanian families for many years. It was an enclave for American civilians working either at the Embassy or on the military bases and has, for many years, been home to executives of multinational companies and foreign diplomats from around the world. Because it is home to the city’s largest synagogue, it is a favorite neighborhood for Jewish families. Today Punta Paitilla is an area of little growth, as it is fully developed with older buildings. Most of the properties here may not appeal to foreign investors due to their age and lack of modern upgrades.

Obarrio Situated between Calle 50 and Via España, with Avenida Samuel Lewis running through the middle, the small neighborhood of Obarrio, once a residential neighborhood, is now primarily a commercial sector. This middle to upscale area is home to a variety of boutiques, jewelry and high-end furniture stores, and is known as the banking district of the city. Some of the larger houses remain, but most have disappeared to make room for new developments. Amid the office and banking towers populated by insurance companies and law firms there are a few smaller condominiums in the $1600 to $1900 per square meter price range.

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Photo by: Jorge Sรกnchez Balboa Avenue - Bella Vista

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Marbella Adjacent to Obarrio and making up the heart of the financial and commercial district sits Marbella. Originally, this small neighborhood consisted of mostly single-family dwellings but pressure for more space – both residential and commercial – has brought on a transformation from houses to skyscrapers. Many old houses have either been replaced with office or apartment buildings or have been converted into restaurants, bars and boutiques. Numerous banks, insurance companies and other businesses have their headquarters here, and it attracts young executives who want to live close to their offices. Main landmarks include the MultiCentro Mall, situated on Avenida Balboa attached to the Majestic Casino and Radisson Decapolis Hotel, and the Centro Medico Paitilla Hospital. There are also two large medical centers hosting almost every type of specialist. Because most of the properties here are older or commercial locations, Marbella is a local market, with few residential offerings for foreigners.

El Cangrejo A charming neighborhood that has been a favorite among Panamanian families for years is El Cangrejo. Its tree-lined streets have a warm neighborly feel and many of its buildings have been around for years and, until recently, the majority of them were only a few stories high. El Cangrejo’s central location allows access to most services, including supermarkets, banks, restaurants and other businesses, all within walking distance. Via Argentina is a hub for restaurants and nightclubs, with a wide variety of choices, including some of the most traditional coffee shops in town. There are a couple of modern gyms in this area for those who want to work out, and the good sized Andres Bello Park is a popular meeting place for local residents, with facilities for both children and adults. Along with its wide range of accommodations comes a wide range of people who live here, including expats, locals, retirees, artists and young singles. El Cangrejo is pedestrian friendly and safe, with a relaxed and casual atmosphere. Its residents have been able to ensure that areas such as the park are not negatively impacted by new projects, thereby helping to preserve the feel of their neighborhood. El Cangrejo is similar to San Francisco in the range, type and price of condos available and it has already proven to be popular with both local and foreign investors. There are some bargains to be found here as well, with apartments occasionally selling for $1000 per square meter. El Carmen is another older, low-rise neighborhood next to El Cangrejo. It has much the same feel and is within walking distance of El Cangrejo, with good buys on units that need some renovation.

Bella Vista After the Casco Antiguo, Bella Vista is Panama City’s oldest neighborhood. Many of its beautiful houses were built in the 1930s and ‘40s and its charming streets are shaded by enormous old trees. Sadly, some historic homes have been demolished to make way for newer and taller buildings, while, fortunately, others have been preserved as government offices, restaurants, businesses and shops. Besides its central location, Bella Vista’s old-town feel is one of the neighborhood’s most attractive features. Centered around Balboa Avenue and Calle Uruguay, this area has become the city’s de facto entertainment and dining hub, with everything from a TGI Friday’s to a Lebanese hookah bar, along with the hippest night clubs. Parque Urraca, covering about four city blocks on Balboa Avenue, offers residents lots of shade, a playground, a baseball field and space for soccer and other activities. This park is scheduled for a major rejuvenation in the months to come, which will further boost the desirability of this area. There is some development taking place in Bella Vista, mainly in high rise apartments with prices ranging from $1800 to $2700 per square meter. These new buildings are replacing some of the older houses or smaller apartment blocks that greatly contributed to the character of this area. It is still a prestigious area and considered to be a desirable address. For those who want to live in Bella Vista but prefer to be a little removed from the sounds of its busy streets, La Cresta is an excellent option. Perched on a hill that overlooks the city, the views are breath-taking from this vantage point. With space at a premium and limited parking, there are few, if any, new developments in La Cresta. Buyers must be on the lookout for re-sales and be prepared to invest in renovations to upgrade existing dwellings. Balboa Avenue and the Cinta Costera run along the shoreline at the southern edge of Bella Vista. Nearly every building on Avenida Balboa was demolished to make way for new structures, and it is now an architectural showcase. The overall style is one of luxury, ultra-modernism and height. Some of the towers constructed include a hotel and casino along with commercial, retail and residential units. There are units available that are under construction as well as re-sales, and while prices are lower than their peak in 2008, they still command from $2000 to $2500 per square meter. www.locationpanama.com

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Photo by Bobby Pereira Casco Antiguo

Casco Antiguo The Casco Antiguo or Casco Viejo, Panama’s second capital city, is a historic colonial area recognized by UNESCO as a World Heritage Site. You might also hear this district referred to as San Felipe, the official name of the city district. With an area of only 38 blocks, boasting a unique combination of Spanish, French and early American architecture, there is a definite limit in supply of living accommodations, evidenced by the high prices. Ongoing restorations are changing the face of this neighborhood from dilapidated and run-down buildings to beautifully restored masterpieces. This urban rejuvenation has resulted in a surge of new boutique hotels and stores, bars, nightclubs and restaurants. It has become a popular destination for locals and visitors who make their way into this city within a city, to enjoy a drink or meal under the stars. The one big advantage of Casco Antiguo, its limited supply of heritage buildings, is also a drawback. Opportunities are limited and those properties that do appear do not stay on the market for long. Prices are among the highest in the city at $3000 per square meter. Older buildings in this UNESCO site create other concerns and limitations. The government controls redevelopment with strict guidelines as to what you can and cannot do, and the building’s structure may limit you with respect to how much you can create in the limited space available. The Cinta Costera is being extended to wrap around the waterfront perimeter of Casco Antiguo, and it is unclear if or how this may affect real estate in the sector. Nevertheless, many locals and foreigners find the idea of living among these quaint cobbled streets irresistible and have seized the chance to buy and restore homes and buildings, and in doing so are breathing new life into this gem of a neighborhood.

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Photo by: IM Albrook - Former Canal Zone

Canal Zone – Albrook, Clayton, Corozal, Cardenas and Quarry Heights In the years after the signing of the Torrijos-Carter treaty, areas of the Canal Zone were gradually returned to the Panamanian government. In 1993, a new government entity, the Inter-oceanic Regional Authority (ARI – Autoridad Regional Interoceanica in Spanish) was created to administer and develop the some thirty-three thousand hectares of land and the approximately 7,000 buildings that the US turned over to Panamanian control. ARI’s mandate was to take advantage of all this real estate, selling or leasing it to companies for light manufacturing, maritime services and trans-shipment services. Housing in many of these “reverted areas” was auctioned off through a select few real estate companies that specialized in the Canal Zone during this time. Albrook and Quarry Heights, part of Cerro Ancon, were two of the first to go on the block and many of the houses in these areas have been totally renovated and now barely resemble their original design. In these and the other areas, a few “Zonians” (foreigners who worked and lived in the Canal Zone) stayed behind and many Panamanians bought homes in these areas, lured by the abundance of trees and parks and the laid-back residential atmosphere. Adding to the appeal of this part of the city are the Metropolitan Park, the Reina de Torres Anthropology Museum, and the US Embassy in Clayton. Nowadays, the neighborhoods of Albrook, Clayton and Cardenas are still considered among the most attractive in the city. Construction regulations have been successful in limiting the population density of the new buildings with only a few low-rise apartments being allowed. Gated communities of renovated houses and duplexes are popular with foreigners who work in the area, with rents ranging from $2500 to $7000 per month. The most exclusive address in the reverted areas is the Embassy Club, where homes start at $800,000. Not all of the housing is so inaccessible, fortunately, and condos can be found that rent for $1800 per month. Stores, restaurants, supermarkets and pharmacies have quickly opened to cater to local residents. In Albrook you will also find the Marcos A. Gelabert Airport, Panama’s domestic airport with local flights to the many islands and interior destinations. Close to the airport is the National Transportation Terminal , the main terminal for buses to all parts of Panama and beyond. Next to the terminal is the incredibly popular Albrook Mall, with 400 stores listed on their website, catering to all budgets. The mall has expanded a number of times, houses a multiplex cinema, huge food court, even carnival rides, and is now considered the largest mall in all of Central America. A highway overpass is under construction near the mall and airport to ease traffic congestion, and a large hotel being built at the bus terminal will be a great convenience for travelers. These and other reverted areas offer a variety of opportunities, from raw land available for both light commercial and residential development to re-sales of renovated housing. Worthy of special mention is the City of Knowledge, built entirely on the former Clayton military base directly across from the Miraflores Locks of the canal. The City of Knowledge is an expansive campus of academic facilities, scientific research centers, non-governmental organizations and technology companies, alongside a convention center, theater, cafés, sports fields, and a Holiday Inn Hotel. Among the occupants are the Red Cross, the United Nations, Copa Airlines Training Center, UNICEF and UNESCO. An example of the work done by the ARI, the City of Knowledge offers incentives for high tech and educational enterprises when operating within their boundaries, and has become a highly respected and successful entity. www.locationpanama.com

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Photo by Bobby Pereira Panama Pacifico, former Howard Air Force Base - Canal Zone

Panama Pacifico The most ambitious project currently in progress among the reverted areas is Panama Pacifico at the site of the former Howard Air Force Base, outside of the city just west of the canal. The government of Panama has designated this as a special tax area, providing incentives and tax exonerations for developers, resulting in the desired effect of attracting international investors. This mixed-use project has a long-term 25 year plan, and is now in its fourth year. Ultimately it will include just about everything you find in a city: residential units, shopping centers, a business park, warehouse facilities, light manufacturing plants, science and technology companies, schools, restaurants, banks and other service providers. What makes this community special is the significant amount of green space that is being preserved, and the high quality infrastructure. Current pricing is in the $2000 per square meter range, and this must be considered a long term investment. In a few years, Panama Pacifica may be viewed as the most impressive and sought-after address in Panama City.

Other Neighborhoods Certainly there are many other neighborhoods in Panama City that receive less attention because they are further removed from the tourist hotspots. In “barrios” such as El Dorado, La Alameda, Bethania and Los Angeles you’ll find a less international crowd and more affordable prices for single family houses, duplexes and apartments. Dos Mares is an up and coming neighborhood, just north of downtown near El Dorado. With slightly higher elevation it offers nice views over the city, and prices are affordable. Another area at a distance from downtown is Brisas del Golf, not far from the Panama Golf Club. These sectors are becoming more desirable for middle class families who do not need to commute daily into the city, because traffic can be heavy. Chorrera, just west of the city, is an expanding “bedroom community” for commuters who work in the city. With the brand new Westland Mall, widened and newly paved highway and affordable housing, this is an attractive area for many middle class Panamanians. The city is also gradually expanding towards the east and brand new residential developments are emerging beyond Costa del Este en route to Tocumen Airport, with easy access through the South Corridor.

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Photo by Bobby Pereira Aereal views of the Casco Antiguo and the Causeway

WHAT TO SEE AND DO WHEN YOU VISIT PANAMA CITY When you come to Panama City, you have many choices regarding how to occupy your time. As an introduction, here is an overview of some of the city’s best features. Starting with historical attractions, Panama Viejo is the oldest and original settlement in Panama City. The ruins are preserved as a UNESCO World Heritage Site, along with the other old city, Casco Antiguo (also called Casco Viejo). While not much remains of Panama Viejo, it is interesting to stroll the grounds and go to the top of the old cathedral tower. The site features a museum and artisans market. As mentioned previously, Casco Antiguo is in the throes of an urban revitalization, with many structures being restored to their former glory. The cobble-stone streets, cast iron filigree detailing, and architectural styling are reminiscent of other similar colonial cities, such as New Orleans’ French Quarter or Guatemala’s Antigua. A walking tour of Casco Antiguo will include the Iglesia de San José (home of the legendary golden altar), Plaza de Francia, Plaza de la Independencia, also known as Plaza Catedral, Plaza Bolívar, the Presidential Palace, called the Palacio de las Garzas, the National Theatre, and Las Bovedas (the former jail). With many up-and-coming cafés, 38

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boutiques, hotels, bars and restaurants along its narrow streets, Casco Antiguo is definitely a hot spot in the city. It is also home to the Panama Canal Museum, the most extensive collection and explanation of the construction and functioning of the canal. The Religious Colonial Art Museum is nearby, in the Church and Convent of Santo Domingo, and dates back to the 1700s. Other museums of note in the city are the Museum of Contemporary Art, with frequently changing exhibits, and the Reina Torres de Arauz Anthropological Museum, which explores Panama’s distant past. The easiest way to see the Panama Canal while in the city is to go to Miraflores Locks, about a 30 minute ride north of town. The observation deck provides an awesome view of the locks and transiting ships. You may visit the small museum and gift shop, and enjoy a meal at the Miraflores Restaurant. From the locks, head to Cerro Ancon, a high hill in the middle of the city. On the way up, stop at the Canal Administration Building to appreciate the murals that commemorate the construction of the canal. Then head to the top of the hill for a spectacular, 360° panoramic view of the city below.


The Amador Causeway, with views of the entrance to the canal on one side and the city skyline and Bay of Panama on the other, is another popular spot, especially on weekends. Originally an officer’s enclave and golf course during its Army base days, the causeway joins three small islands and is now the site of a large marina and cruise ship dock, condos, restaurants and shopping centers. It is also home to the Smithsonian’s Marine Exhibition Center, part of the larger Smithsonian Tropical Research Institute, the Figali Convention Center, a major concert venue for top artists, and the unique Frank Gehry-designed Museum of Biodiversity, which is scheduled to open to the public in 2013. Plans have been submitted to widen the causeway to four lanes, which will certainly improve traffic flow. Land has been secured next to the museum, and bids have been accepted for the construction of a new convention center to replace the ATLAPA center, at a cost of over $190 million. Panama’s Tourism Authority operates the ATLAPA Convention and Event Center, now located in San Francisco. Host to international events from all over the globe, ATLAPA is a huge facility with extensive accommodations and equipment for every conceivable type of convention, exposition or conference. It also houses the Anayansi Theater, which presents live stage and musical productions. Panama City has a lively theatre community, with productions offered throughout the year at Ateneo, National Theater, La Quadra,

Anita Villalaz Theater, ABA Theater, Teatro en Circulo, and the Theater Guilds of Balboa and Ancon. For those who prefer films, movie theaters abound in the city. All of the large malls house multiplex cinemas, including Cinemark theaters at Albrook Mall, Los Pueblos, and MultiCentro Mall. The Metro Mall, MultiPlaza Pacific and Westland Mall are home to Cinepolis theaters. Ticket prices are usually very low for first run movies, which are either dubbed in Spanish or subtitled. Panama City has plenty of green spaces to enjoy the tropical flora and fauna. The Metropolitan Park occupies a hill in the middle of the city, with hiking and biking trails, and a scenic overlook at the top. Parque Omar is hugely popular with joggers, walkers, families, and pet owners as a refuge from the surrounding streets and skyscrapers. The Cinta Costera has opened up the waterfront in the center of the city, with miles of paved pathways, sporting fields, sitting areas and playgrounds. About 30 minutes north of the city, Soberania National Park stretches along the banks of the Panama Canal. The Summit Zoo and Botanical Garden are located within the park and make a great day trip for families. You will find more than enough to occupy your time in and around Panama City.

Panama Viejo

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THE PROVINCES


The province of Panama is the most populous of Panama’s nine provinces and the second largest in terms of land area. Located on the south or Pacific coast of the country, it borders with the provinces of Darien, Colon, Cocle and the Guna Yala Comarca. Not only is Panama City the country’s capital, it is also the seat of the provincial government. The province includes several offshore islands, such as the Pearl Archipelago, which includes Isla Contadora, Isla San José and Isla Viveros, as well as Isla Taboga located in the Gulf of Panama. The extensive coastline boasts many popular beaches such as Punta Chame, Playa Gorgona, Playa Coronado, Punta Barco, and Rio Mar. Panama City is definitely the focal point of the province, but there are many other attractions as well. Parque Natural Metropolitano, Altos de Campana National Park, Chagres National Park, Las Cruces Trail National Park, and Soberania National Park can be found within this province. World-class tourism developments such as the Coronado Golf & Beach Resort and the Intercontinental Playa Bonita Resort are two of the bigger hotels in the province, but there are numerous smaller tourist developments found throughout the region. The province of Panama straddles the southern or Pacific entrance to the canal and boasts two bridges, the Bridge of the Americas and the Centennial Bridge, which are the only land bridges between North and South America. Offshore, in the Gulf of Panama, lie the Pearl Islands, or in Spanish, Las Islas de las Perlas, named for the abundance of pearls found there. This group of over 100 islands includes Isla del Rey, the largest, Isla Contadora, the most well known, and Isla Viveros, along with many tiny, uninhabited islets. Contadora is a vacation destination, with an air strip, private villas and resorts. Developments are appearing on other islands as word gets out about this idyllic, unspoiled tropical locale. The islands are easy to reach by ferry, private boat, or charter flight. To the east of Panama City, past Tocumen Airport, the province is sparsely populated. However, the weekend getaway of Cerro Azul, about 50 minutes drive from Panama City, is popular with Panamanians and foreign investors. This is the closest place to Panama City where you can find a cool climate, tranquil atmosphere and breathtaking views, thanks to its elevation. The western side of the province, across the bridges, is becoming increasingly developed as areas that have been attracting foreigners for years grow and new areas open up. Panama Pacifico is a multi-use, multi-phase development on the site of the former Howard Air Force Base that will ultimately include residences, commercial space, industrial and business parks, all while preserving the surrounding forest. There are also very large areas of low-income housing, such as

PROVINCES

PANAMA Arraijan and Chorrera, which are designed for the Panamanian market, targeting families that work in the city but want to live in a suburban environment. Highway improvements and the new Westland Mall are making these areas more accessible and more desirable. The first beach development in the Panama province was Coronado. First developed over 60 years ago, this area boasts some of the oldest beachfront homes as well as more recent condominiums and private homes. Coronado has grown significantly in the last several years, with large commercial centers, office buildings, and restaurants lining the highway. Major retailers including Novey, Machetazo, and Felipe Motta all have stores in Coronado, making it an even more attractive choice for those who want to live on or near the beach. Along this same stretch of beach are a number of developments targeted toward foreign investors and wellto-do Panamanians interested in beachfront property. One of the advantages of purchasing a property in a beachfront development is that many developers offer property management services, so investors can purchase property and expect a return on investment without even moving to Panama. The beach areas of Gorgona and San Carlos may be of interest for future development. As the city’s suburbs move farther west, and the new airport in Rio Hato makes this section easier to access, growth is likely. Even Punta Chame, a remote spot at the end of a long peninsula, is gaining recognition and attracting tourism providers.

Provincial capital: Panama City Area: 11,670.92 km² / 7,250 mile² Population: 1,713,070 inhabitants (2010) Note: all population figures in this section are as reported by the Panamanian Institute of Statistics and Census per their 2010 national census. Principal industry: The Panama Canal, International Banking and Commerce, Shipping, Tourism Main areas of development: Panama Pacifico, Panama City, San Carlos, Coronado, Gorgona, Punta Chame, Chorrera, Arraijan Airports: Domestic airport at Albrook with scheduled flights to many destinations within Panama and connecting through David to San Jose, Costa Rica; International airport at Tocumen with daily flights to North and South America, the Caribbean and Europe

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Somewhere in the Coclé coastline...

COCLE The next province as you move west along the coast is Cocle, also located on Panama’s southern coast, bordering Panama, Colon, Veraguas and Herrera. Cocle is primarily an agricultural area, but the coastal area is a tourist mecca with several megadevelopments. The Royal Decameron Beach Resort, Playa Blanca Resort, and Wyndham Grand Playa Blanca, all in Farallon, attract thousands of visitors each year. The JW Marriott Panama Golf and Beach Resort in Rio Hato and Sheraton Bijao Beach Resort in Santa Clara are full service resorts on the beach. The beaches in this area are some of the best along the entire Pacific coast. Cocle provides much of Panama’s produce and is most famous for the production of sugarcane, rice, cattle, shrimp, and a variety of citrus fruits. The provincial capital, Penonome, is fast becoming a major commercial center with the influx of new residents to the surrounding area. A government sponsored Seafood Market, a new hotel and additional retail outlets reflect recent investments in Cocle. The rural area around Penonome is generating interest from land investors, who are purchasing large lots to either develop or subdivide. Noted for its cool, refreshing climate, a very popular destination within Cocle, for both nationals and foreigners, is El Valle de Anton, a beautiful and exotic valley located in the crater of an extinct volcano. El Valle is the only place in the country where you can find square trees, and the Nispero Zoo is one of the best places to see the famous golden frogs. The valley is also popular for hiking, rappelling, bird watching, horseback riding and cycling. For years, the Sunday Market has been attracting visitors looking for great deals on local handicrafts and produce. Cocle artisans are known for their hand-woven hats and their pottery, featuring colorful bird, animal and human designs.

Cocle is also home to many archeological sites, and notable artifacts have been recovered from burial sites and ruins throughout the region. Two of the most important sites are El Caño and Sitio Conte, which was the location of a major archeological find in 1940. Both these sites are currently being excavated, with support from the National Geographic Society and the Smithsonian Institute. The two major development and investment areas of Cocle province, El Valle and the beaches, are solid choices for real estate opportunities. Whether seeking a full-time retirement home or a vacation property with income potential, both areas are desirable for their activities (golf, water sports, hiking, and more), scenic beauty (mountain vistas, oceanfront panoramas) and value. Provincial capital: Penonome Area: 4,927 km² / 3,060 mile² Population: 233,708 inhabitants (2010) Industry: Agriculture (Sugarcane, Coffee, Corn, Rice, Cattle, Shrimp, Salt), Tourism Distance from Panama City to Penonome: 92 miles / 148 km Main areas of development: El Valle de Anton, Santa Clara, Farallon, Playa Blanca Airport: The Scarlett Martinelli International Airport is presently under construction in Rio Hato. Expected to accept flights by the end of 2013, the airport will provide direct service to the popular destinations in Cocle province and western Panama province.

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Photo by: PEPPOPHOTOGRAPHY Corpus Christi celebrations

Photo by: PEPPOPHOTOGRAPHY

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Located on the Azuero Peninsula, Herrera is a small province bordered by Cocle, Los Santos and Veraguas and touches the Pacific Ocean. Herrera is an agricultural region, with few tourist attractions yet developed. The interior of the province is mostly farmland, cattle pasture, small towns and sugarcane. Herrera is the birthplace of Panama’s most famous alcoholic drink, “Seco Herrerano”, a clear liquor distilled from sugarcane, often served with fruit juice, tonic water or even milk. The capital of Herrera is Chitre, a bustling little city located near the coast with a small business center that includes shops, supermarkets and services. Tradition is very strong in Herrera with Carnival being the highlight of the year in Chitre and in many of the smaller towns such as Ocu. For Panamanians and visitors seeking the carnival experience, these towns have become more popular in recent years, since their festivities are considered more traditional than those of larger cities. This area is also recognized for its clay pottery, which can be seen on display along the streets of Chitre, and examples of Spanish architecture are evident in the Cathedral of San Juan Bautista and the Herrera Museum.

PROVINCES

HERRERA The road to the Azuero Peninsula turns south from the PanAmerican Highway at Divisa. This road is being widened and improved, which will make access to the area easier and faster.

Provincial capital: Chitre Area: 2,336.3 km² / 1,450 mile² Population: 109,955 inhabitants (2010) Principal industry: Agriculture (Corn, Sugarcane, Seafood, Dairy, Produce), Alcohol, Leather, Pottery, Cement Distance from Panama City to Chitre: 155 miles / 250km Airport: Airstrip at Chitre with capability for charter flights

LOS SANTOS Los Santos is also located on the Azuero Peninsula, bordering Herrera and Veraguas. The capital city, Las Tablas, is a small town renowned for being the center of Panama’s Carnival and visitors come from around the world to partake in the parades and other festivities. Las Tablas is a very traditional Spanish town with a rich colonial history, featuring a central plaza surrounded by historic churches and government buildings. Los Santos also boasts a few museums; the Museum of Nationality, the Museum Belisario Porras and the Museum Manuel F. Zarate. Other attractions in the area include an archeological site called the Sitio Arqueologico Cerro Juan Diaz, the Church of San Antanacio and the Church of Santa Librada. Los Santos Province offers visitors over 125 miles of coastline, with many well-known beaches, especially in the areas of Pedasi and Tonosi. The popular surfing beach Playa Venao hosts international competitions and constantly attracts surfers from around Panama and the world. Snorkeling is another popular pastime, especially in the waters surrounding Isla Iguana, a national wildlife refuge known for its clear blue water, white sand and abundant iguanas and frigate birds. Sport-fishing is a major attraction along the Pacific coast, with tournaments drawing anglers from around the world. The nature preserve at Isla de Cañas is an important turtle nesting site and is visited by migrating humpback whales.

With its stunning beaches and rugged coastlines, the areas around Pedasi, Tonosi and Las Tablas have become very popular with foreign and local investors. A large variety of properties are available in this province, from beachfront lots or homes, to ocean view lots of all sizes, to large undeveloped parcels, with an equally broad range of prices. French architect Gilles Saint-Gilles was captivated by the land around Pedasi and has created a boutique hotel and master-planned community that offers large home sites, apartments and much more. This region is becoming more desirable due to the recent improvements in infrastructure resulting in easier access. Provincial capital: Las Tablas Area: 3,804.6 km² / 2,364 mile² Population: 89,592 inhabitants (2010) Principal industry: Agriculture (Cattle, Seafood), Polleras (Panama’s National Dress), Tourism Distance from Panama City to Los Santos: 175 miles / 281 km Main areas of development: Pedasi and surrounding coastline Airport: Airstrip at Pedasi with capability for charter flights

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CHIRIQUI Chiriqui, located in the western-most region of Panama, is bordered to the north by Bocas del Toro, to the west by Costa Rica, to the east by the Veraguas and to the south by the Pacific Ocean. It encompasses mountains, rolling hills and coastal plains, but is probably most well known for its highland regions of Boquete, Volcan and Cerro Punta. David, the capital of Chiriqui, is Panama’s third largest city and is the agricultural and commercial center for the thriving cattle industry of this area. Many large businesses have outlets here, including supermarkets, department stores and even a membership shopping store, with more appearing regularly. Two private hospitals provide first class medical services to the area’s ever-growing expatriate population, and its reputation as a destination for health care is growing. The highlands of Chiriqui are noted for their pleasant climate and stunning landscapes. Early settlers to this area were mainly of northern European origin, and traces of this can be seen both in the people and in the architecture. Chiriqui is world famous for its coffee plantations, as well as oranges and strawberries, and is definitely the breadbasket of Panama. Spread around the dormant Baru Volcano, the highest point in Panama at over 11,400 feet, the highlands of Chiriqui have become one of the most sought after retirement and second home destinations in the Americas. Boquete, in particular, which is located to the east of the volcano, has boomed over the past several years with dozens of developments from gated communities to single house lots being snapped up by people from around the world. Drawn by the year-round, spring-like climate, the abundance of wildlife and a quiet lifestyle, it is no wonder that this area now has thousands of expatriate residents. Tourists and backpackers also come to the highlands by the plane and busload, especially those with an interest in birds. This is one of the few places in the world that bird enthusiasts can regularly see the reclusive Resplendent Quetzal, a colorful

Photo by: IM

species of tropical bird, endemic to and thriving in the cloud forests of Panama. Since Boquete has grown so much and land prices have multiplied, people have expanded their search for property and now major developments are happening in other highland areas such as Volcan and Cerro Punta, small towns on the western slopes of Baru Volcano, and in the coastal areas of La Barqueta, Boca Chica and Las Lajas. Chiriqui province is poised to experience renewed interest and growth due to the expansion of the airport in David, the improved highway between David and Boquete, and other infrastructure improvement projects in the works. The financial downturn of 2008 slowed real estate activity somewhat in this area, and a recovery is now evolving.

Provincial capital: David Area: 6,547.7 km² / 4,068 mile² Population: 416,873 inhabitants (2010) Principal industry: Agriculture (Cattle, Tomatoes, Coffee), Tourism, Commerce Distance from Panama City to David: 275 miles / 444 km Main areas of development: Boquete, David, Caldera, Volcan, Cerro Punta, La Barqueta, Las Lajas Airport: Enrique Malek International Airport in David with domestic flights to and from Panama City and international flights to and from San Jose, Costa Rica, recently expanded with a longer runway for more international flights and a new passenger terminal

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Photo by: IM

PROVINCES

Coiba National Park

VERAGUAS Veraguas is the only province that extends to both the Caribbean and Pacific coastlines. Its capital city, Santiago, is the fourth largest city in Panama and the commercial center of Panama’s agricultural lowlands. Nearby is the town of San Francisco de la Montana, famous for its gorgeous church with baroque architecture, dating back to the beginning of the eighteenth century.

In addition to the islands, mountains and jungles, Veraguas also has some beautiful beaches. Its most famous beach, Santa Catalina, is known throughout the world among the surfing community, and is the starting point for exploring Coiba and the surrounding waters. This area provides great recreational opportunities not only for surfing and scuba diving but also for world-class deep-sea fishing.

Veraguas also encompasses the Cordillera Central, Panama’s Central Mountain Range, with spectacular highland terrain, continuing westward into Chiriqui. Veraguas offers close contact with nature, where visitors can explore rainforests, mountains, beaches and islands, which boast more than 200 varieties of orchids, more than 400 species of birds, as well as an impressive diversity of mammals, reptiles and insects. Within the boundaries of Veraguas, you will also find Panama’s most famous (or rather, infamous) island, Isla Coiba, for many years a dreaded prison colony that closed in 2002. Now the island is the center of Panama’s largest marine national park with approximately 75% of the land covered by ancient stands of forest. Coiba is home to rare plant species endemic to the island and tree species that have disappeared from the mainland due to deforestation. The waters surrounding the island are teaming with marine life and here lies one of the largest coral reefs on the Pacific coast of the Americas. Coiba is also the beginning of the underwater mountain range that includes Costa Rica’s Cocos Islands and Ecuador’s Galapagos Islands, making for an incredibly unique dive experience. Other smaller islands off Veraguas’ coast include Cebaco, Jicaron and Gobernadora. Onshore, you will find the Santa Fe National Park, Yeguada Lagoon Forest Reserve and the Montuoso Forest Reserve.

Santiago, the provincial capital, is a growing city and logical stopping point for travelers. Buses stop here for food and facilities on their routes between David and Panama City, and the highway is lined with franchises and small businesses. A huge new hotel and convention center and the expansion of existing enterprises bode well for the future of Veraguas.

Provincial capital: Santiago Area: 11,239.4 Km2 / 6,983 mile² Population: 226,991 inhabitants (2010) Principal industry: Agriculture (Corn, Sugarcane, Rice), Timber, Tourism Distance from Panama City to Santiago: 154 miles / 249km Main areas of development: Santa Catalina, Santiago Airport: Airstrips in Santiago and on Isla Coiba with capability for charter flights

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PROVINCES

BOCAS DEL TORO Photo courtesy of: Red Frog Beach Island Resort

Bocas del Toro is located in the far northwestern portion of Panama, bordering with Costa Rica. Comprising both the mountains of the Cordillera Central and numerous islands and cays in the Caribbean Sea, Bocas is a very popular area for tourists and expatriate residents alike. The capital, located on Isla Colon, is known as Bocas del Toro or Bocas Town. Over the past few years, this small, unassuming town has become a very popular tourist destination. With its Caribbean feel and proximity to the surrounding islands, tourists flock here to enjoy boating, bird watching, scuba diving, snorkeling, surfing and fishing. Much of the province, particularly the mainland, remains relatively untouched and this is where investors are looking for their own piece of paradise or to create a development for others to enjoy. The waters surrounding some of the islands have been declared a Marine National Park and some controversy has arisen over the possible effect of development on the surrounding environment. Many of Bocas’ smaller islands are home to different, endemic species of the poison dart frog – perhaps the most famous of these are the red frogs of Bastimentos Island. Concerns over the fragile habitat of these and other indigenous species have led to a dialogue aimed at balancing development and environmental protection in the province.

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While this island paradise may appeal to many people, it is important to keep in mind that much of the property in Bocas del Toro is remote and can only be reached by boat. An adventurous spirit is helpful to those settling here. Investors in Bocas also need to be aware that much of the land here is not titled and therefore one needs to be especially careful in carrying out due diligence. Land that is not titled is called “Rights of Possession” or ROP, and legal issues may arise regarding ownership of this type of property.

Provincial capital: Bocas del Toro Area: 4,643.9 km² / 2,885 mile² Population: 125,461 inhabitants (2010) Principal industry: Agriculture (Bananas, Pineapples), Tourism Distance from Panama City to Bocas del Toro: 372 miles / 599km Main areas of development: Isla Colon, Isla Bastimentos, Isla Carenero Airport: International airport on Isla Colon with domestic flights within Panama (Panama City and Changuinola) and international flights to San Jose, Costa Rica


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PROVINCES

COLON Panama’s second largest city, Colon, located at the northern, or Caribbean, entrance to the Panama Canal, is also the capital city of Colon Province. This province extends along the Caribbean coast of Panama and borders the Panama and Cocle Provinces to the south and the Guna Yala Comarca to the east. Colon is probably most famous for its Free Trade Zone, the largest in the western hemisphere and second only to Hong Kong on a global scale. The two cruise ship ports in Colon are used by all the major lines, bringing thousands of visitors every year from around the world. Unfortunately, Colon does not have the best of reputations, although the government is trying to change this by implementing various social programs and restoring some of the city’s buildings. Colon has some incredible architecture that some investors are trying to save. There are few, if any, tourist attractions in the city itself but the province has much to offer. Large tourism developments include the Melia Panama Canal, a full-service luxury hotel on the banks of Lake Gatun, and on the border with Panama Province you will find the Gamboa Rainforest Resort with its many exhibitions and extensive services. The canal expansion project is well underway and is bringing significant attention and investment to the area. The province of Colon is where Panama’s history started and where trade with the “Old World” was centered for the Spanish conquistadors for many years. The port city of Portobelo is now a quaint and laid-back town where tourists can visit the ruins of the forts and other Spanish-era buildings such as the restored Customs House and the Church of the Black Christ. Isla Grande, located close to shore, a short drive past Portobelo by 52

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Photo by: IM Isla Grande

the town of La Guayra, is a destination in itself. Popular for water sports, surfing, snorkeling, diving, and boating, the island offers a variety of accommodations, restaurants, and nice beaches. The Gatun Locks of the Panama Canal are a short drive to the west of Colon, with a visitor’s center and observation deck to get a close-up look at the ships passing through. Fort San Lorenzo, located just beyond the locks, is popular not only for history buffs but also for nature lovers since this area is rich in wildlife and birds. Since much of the land along the coast of Colon province is Rights of Possession, making an attractive purchase depends on your risk tolerance and proper due diligence. Large and small parcels are available for development or private dwellings. The highway between Panama City and Colon has shortened the trip considerably and made new sectors accessible. Much of this corridor is protected as canal watershed, but there may be opportunities for real estate that is outside of protected areas. Provincial capital: Colon Area: 4,868.4 km2 / 3,024 mile² Population: 241,928 inhabitants (2010) Principal industry: The Colon Free Zone, Ports, Logistics and Tourism Distance from Panama City to Colon: 47 miles / 76km Main areas of development: Costa Arriba (Portobelo, La Guayra) Airport: Airport in Colon with capacity for charter flights, currently being expanded to accept international flights


PROVINCES

DARIEN The Darien is located at the far eastern end of Panama, sharing a border with Colombia to the east, and Panama province to the west. This is Panama’s largest province and it is rugged, sparsely populated, and offers very few amenities for tourists or investors. Steep mountains and thick jungles cover the province and it has many beaches, some of which are quite beautiful. The capital, La Palma, is located where the Tuira River empties into the Bay of San Miguel and can be reached only by plane or boat. The Darien is the last safe haven for many endangered species and is considered one of the most complete tropical ecosystems in the Americas. The Darien National Park covers almost 1.5 million acres and includes what is known as The Darien Gap, a large swath of mainly uninhabited swampland and jungle that separates Panama from Colombia and prevents vehicle traffic from traversing the length of the Americas. The Pan-American Highway ends some 176 miles from Panama City at Yaviza, and from there transportation in the Darien is by boat or by plane.

Photo by: IM Bahía Piñas

There is little, if any, investment opportunity in the Darien.

Provincial capital: La Palma Area: 11,896.5 km² / 7,390 mile² Population: 48,378 inhabitants (2010) Principal industry: Agriculture (Seafood, Corn, Rice, Banana,) and Timber (Cedar, Balsam, Oak) Distance from Panama City to Yaviza: 176 miles / 284 km Airport: Several airstrips throughout the province with regular scheduled flights to Panama City or capacity for charter flights

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PROVINCES Photo by: PEPPOPHOTOGRAPHY

COMARCAS

There are three Comarcas, or autonomous indigenous regions, in Panama, where land has been set aside for the three main indigenous groups: Guna Yala, Ngobe- Bugle and Embera-Wounaan.

Guna Yala Comarca (2010 population 33,109) was

formerly known as San Blas and stretches 232 miles along the Caribbean coast from Colon province to the Colombian border. The name means ‘Guna Land’ or ‘Guna Mountain’ in the Guna language. More than 360 islands comprise this area and only about 36 of these islands are inhabited by Guna communities, with a further 13 villages located on the mainland coast. These Caribbean islands are spectacular and, while the Guna’s autonomy rules out any investment possibilities, there are opportunities to enjoy the islands as a tourist. Tourism has become a major player in the Guna economy due to the revenue generated by the island lodges and the tours they offer their guests, such as eco-tours to the mainland, fishing, snorkeling and visits to neighboring villages, including cultural shows and indigenous handicraft markets. Local artisans offer the traditional Molas, panels of reverse embroidered fabric featuring geometric designs and patterns of animals and fish. Another traditional art is tagua carving - intricate and colorful renditions of local animals and fish carved from seeds of the Tagua tree, a large nut known as “vegetable ivory”.

The Ngobe-Bugle Comarca (2010 population 156,747) is located between Chiriqui, Veraguas and Bocas del Toro. It is home to the Ngobe-Bugle people (formerly called the Guaymi), Panama’s largest indigenous group. This tribe was once known as a tribe of fierce warriors, who wore an ornament called the Chaquira. The Chaquira remains a symbol of their culture, and is a hand-beaded, jewelry collar

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that is a source of income for the tribe. One of the poorest of the indigenous peoples, they are struggling to balance the need for developments to improve the economy of the Comarca and provide better living and educational opportunities for their youth, with the desire to protect their environment. The Embera-Wounaan Comarca (2010 population 10,001) is actually two non-contiguous areas within the Darien. This Comarca is extremely remote, with no roads, and is home to mostly Embera people with a Wounaan minority. Due to their migration from the Choco province of neighboring Colombia at the end of the 18th century, the Embera and Wounaan tribes share a cultural past that continues today, even though they speak distinctly different languages. As with the Guna, the Embera and Wounaan are accomplished artisans and produce elaborate and detailed tagua carvings. In addition, the basket weaving of the Embera and Wounaan is gaining an international reputation and these beautiful baskets are popular souvenirs, selling for high prices at North American art markets. There are also Embera villages along the Chagres River where some of the original tribes settled after looking for more fertile hunting ground. The area around these villages is now national parkland and thus much of their hunting way of life has been curtailed. These villages now offer authentic experiential tourism with day trips and even overnight stays in their villages, where tourists can gain an insight into their centuries-old culture. Because they are autonomous areas and the land is owned by the inhabitants, it is not possible to purchase property in the Comarcas, nor are there any investment opportunities.


PURCHASING REAL ESTATE IN PANAMA

Photo by: Jorge Sánchez

When looking at purchasing real estate in Panama, one needs to be aware that there are three types of real property, or land, in Panama recognized by the government. These are Titled (Titulado), Rights of Possession (Derecho Posesorio) and Concessions (Concesiones). Let’s look at these three categories, as the terms and their implications can be confusing.

TYPES OF REAL PROPERTY IN PANAMA Titled Property North American buyers may be familiar with the term “fee-simple”, which means you own the land outright and have full rights of possession. Panama’s Constitution guarantees the right to own land for both its citizens and foreigners. All titled properties are measured and registered at the Public Registry, which verifies the “title” of the property in the owner’s name. Because the title is verifiable and provides guaranteed rights, banks are able to issue mortgages by registering a lien against the title for collateral. Purchasing titled property, whether it is raw land, a house or an apartment, is very straightforward. Whether negotiating directly with the owner or working with a real estate agent, it is important to have everything in writing and to specify the terms and conditions, such as payment dates and amounts. An attorney should be consulted to write the initial agreement between you and the owner. This Promise to Purchase Agreement (Contrato de Promesa de Compraventa) is signed by both the buyer and seller and a small down payment is given to secure the property, giving the buyer time to conduct a title search and verify the seller’s ownership and discover any liens against the property. The buyer also has time to arrange financing or to set up a corporation to hold the title, if these are needed. This contract is registered at the Public Registry, preventing the seller from offering the property to anyone else prior to closing the deal. Keep in mind that all legal documents in Panama are completed in Spanish, and all real estate transactions are recorded in Spanish. If you do not read Spanish you may obtain an English translation of the documents, which is advisable before you sign them. It is vital to hire a competent attorney to handle the title search at the Public Registry. Your lawyer will also ensure that the property has no liens or other encumbrances that would affect the transfer of the title. The title search should also include a review of the survey maps as registered with the Land Registry office (Catastro). A professional surveyor may be needed to verify the map coordinates and land boundaries in order to avoid any future conflict. Your lawyers will also need to ensure that there are no debts owed to the main utility companies such as water and electricity, and that all pertinent taxes have been paid. Once your due diligence has been completed to your satisfaction, both parties then sign a formal Buy-Sell Contract (Contrato de Compraventa) which stipulates that the seller must sell the property to the buyer and that once the initial payment has been made they cannot sell the property to anyone else who may come along with more money. Both the buyer and the seller are protected from the other party pulling out of the contract with penalties stipulated by law. It is recommended that you use an escrow agent to handle the transfer of funds in order to protect your interests and allow for a smooth transfer of title into your name. www.locationpanama.com

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Closing or Title Transfer occurs when the ownership officially transfers from the seller to the buyer and the transaction has been registered with the Public Registry. If the property is held by a corporation, the buyer may choose to purchase the corporation, and the shares are then simply transferred to the buyer’s name without any need to transfer the title. If an escrow agent is not used your lawyer may prepare a “Promise to Pay Letter” from your bank, which guarantees full payment to the seller once the title transfer is registered at the Public Registry. This solves a common problem, where the seller wants full payment when they sign the transfer documents, prior to the actual registration at the Public Registry. You want to avoid the situation where the deed is not registered or is rejected by the government and you have already paid the seller in full and have little or no recourse. Using an escrow agent or having a Promise to Pay Letter from your bank ensures you receive title and assures the seller that they will be paid.

Rights of Possession Property The second category of real property is owned by the government of Panama, but may be possessed by a person who lives on the land for a long time and claims it for their own. The intent behind this process is to allow farmers to have legal rights to the land they farm. This type of real property is not titled, but the person living on the land may obtain a Certification of Rights of Possession. When government owned property is “occupied” by a Panamanian individual or organization for an indefinite but usually lengthy period of time, possession rights may be granted through a simple certification document issued by the municipality, the governor, mayor or another government agency such as the Department of Agricultural Reform. There are no property taxes on these lands, as the possessor does not own the land. However, any structures on the land may incur either municipal or national taxes. It is possible to purchase Rights of Possession property, and the process is similar to titled property, but it is risky and much greater due diligence is required to safeguard one’s investment. Again, it is necessary to have a Promise to Purchase contract signed by both parties and a small down payment has to be provided. These contracts cannot be registered at the Public Registry but should be authenticated by a public notary. Due diligence is much more involved since you cannot easily verify the Rights of Possession through a central office. Buyers need to take extra precaution during this process and a competent lawyer experienced in this type of work is definitely needed. Your lawyer needs to verify the Certification of Rights of Possession and ensure that it was issued by a competent government authority and that it correctly describes the property in terms of location, size, boundaries and neighboring property owners. The existing survey will need to be verified and should match all the details on the Certification of Rights of Possession. A physical inspection is needed to ensure that the seller has established physical occupation, that there is no opposition by third parties and that your surveyor has identified all boundary limits in order to avoid any future conflicts with your neighbors. At the time of this survey, it is recommended that the property be marked and fenced to delineate its boundaries. If you are planning to build a certain type of structure or to develop a project on the land, for example a hotel or marina, you will need to ensure that there are no national or municipal regulations restricting this type of project in the area. Once your due diligence is finished to your satisfaction, then a Buy-Sell Contract is written between the two parties. It is 56

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recommended that you use an escrow agent so that the final balance due to the seller is only paid once the Certification of Rights of Possession has been transferred into your name by the relevant and competent government authority. A public notary should authenticate all documents, since these cannot be registered at the Public Registry. Because ROP land does not have a registered title, banks may not approve loans or mortgages against this type of real estate. As with titled land, if the Certification of Rights of Possession is held by a corporation, the shares of the corporation can be transferred instead of transferring the Certification of Rights of Possession. At this time (2013), only Panamanian Nationals have the right to apply for legal title to Rights of Possession land. The laws governing the titling of ROP land have changed more than once, and in the past foreigners had this option as well. Thus, you may encounter individuals who purchased ROP land and were able to obtain title to it. Unless the law changes again, this is not possible, and foreigners buying ROP land must be aware of the legal limitations they face regarding holding title to their property.

Concession Property Certain land areas are protected by the government and cannot be titled or given Rights of Possession status. However, interested parties may be able to lease this land from the government through a Concession. Concessions are given to an individual or corporate entity for a specific purpose, such as a real estate development or tourism project. Most concessions are granted in 20-year renewable periods with certain areas, such as the Amador Causeway, offering 40-year renewable leases. There is very little risk to the investor in a Concession agreement since the government guarantees the concession terms. There are two restrictions regarding real property ownership in Panama that every potential buyer should know. One states that no foreign person or entity may own land within 10 kilometers of a national border. The other states that no one, foreign or national, may own land within 22 meters of high tide along the Pacific coastline, or within 10 meters along the Caribbean coastline. Concessions may be available for the latter.


HANDLING THE FINANCES Obtaining a Mortgage In North America, it is primarily your credit rating that determines your eligibility for a loan or a mortgage. In Panama, it is your ability to repay the loan and what is called the “loan-to-value ratio”. The type of property you want to buy also determines whether or not financing will be readily available. Not surprisingly, the easiest types of property to get financing for are titled with improvements (buildings) that have an existing infrastructure and are located in the city or another developing area of the country. Real estate loans and mortgages are available through many banks in Panama. Interest rates are comparable to those in North America, but the application process may be quite different. The list of documents required by the lending institution will be lengthy and exhaustive, and any error or irregularity may delay the process. Buyers who hold a Pensionado Visa are entitled to a 1% reduction in the mortgage interest rate, and a 50% reduction in closing costs and fees related to a real estate transaction. A real estate lawyer will be able to help you with all of the paperwork, some of which you will need to obtain from your home country, and these may need to be authenticated by the nearest Panamanian consulate or through the “Apostille” process, an internationally recognized form of certified authentication. Unfortunately, Canada is not a signatory to this agreement, so all Canadian documents would need to be certified by the nearest Panamanian consulate in Canada. “Know Your Customer” is very much on the minds of Panamanian bankers and solid references from your banking

institutions at home are vital, as are the commercial or personal reference letters they will request. Your mortgage must also be covered by a Panamanian life insurance policy with the bank as the beneficiary. The cost of this policy will be paid by you and the older you are the more expensive this will be. You will also be required to have fire insurance on any structures. Shopping for mortgages takes time and patience; you need to meet with the bank’s officers, fill in a multitude of forms, get things translated, consult with your lawyer, and you may have to visit various banks in order to find one that will provide financing for your particular situation. Even if the property you want to buy is owned by a corporation and you will be transferring the shares into your name, banks will lend money to the company by attaching the mortgage to the real estate property. You will also be asked to provide a personal guarantee for the loan and take out a life insurance policy as above. In general, banks will loan up to 70% of the purchase price, meaning you will need a down payment of 30%. The maximum term is generally 25 years, with an age limit of 75 years. This means that in order to be approved for a 25 year mortgage your age may not exceed 50. Likewise, if you are 60 years of age, the maximum term would be 15 years. These terms may vary for commercial or investment properties. Reputable mortgage brokers are a valuable resource for those who need assistance navigating this procedure, and there are several in Panama.

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Escrow Services When buying real property there is a time between paying for the property and actually receiving the title in your name, during which time many things can happen and when you need to protect yourself from any fraud, forgery or false ownership. Escrow services exist to provide protection to both the seller and buyer during this time. An escrow agent acts as a neutral third party, holding one party’s funds until the second party fulfills a promise, and then releasing those funds as instructed. The escrow agent is given very specific instructions as to the circumstances under which they can release the funds to the seller. Once those conditions have been met, and only then, will the funds be released, thus protecting both the buyer and the seller. There are a few escrow companies in Panama, as well as real estate companies, law firms and financial institutions that offer this service. There is no regulatory body overseeing escrow agents in Panama and they do not have to be bonded, as is the norm in other jurisdictions. Your lawyer needs to ensure that the written contract with the escrow agent is very specific regarding the agent’s duties, requirements and the conditions for the disbursement of funds.

Title Insurance Title insurance protects the buyer from encumbrances or defects related to the title that might arise after the sale. Until a few years ago, this type of protection was unknown in Panama. Today, title insurance is available through a few Panamanian companies offering legal and real estate services, as well as international title insurance companies. Coverage is available to those who purchase property outright, and to those who obtain a loan or mortgage. Some banks may require this insurance to cover the amount of the loan. Even with the guarantees provided by Panamanian law and the strict procedures established by the Public Registry, it is always wise to protect your investment. Your realtor, banker or attorney can help you locate a title insurance provider, and considering the minimal cost involved, it is certainly worth investigating.

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SO YOU WANT TO BUY AN

APARTMENT

With so many new projects to choose from, many foreigners are looking at the condominium or apartment market either for investment purposes or as a place to retire or live for part of the year. In Panama, condominiums are known as Propiedades Horizontales (Horizontal Properties), or PH, which you will see in front of many building’s names. The first step in looking for a suitable condominium or apartment is ensuring you are working with a licensed real estate company who can assist you in finding just what you are looking for. You will also need a reliable lawyer to handle the contracts, title search and escrow process, as described in the previous section. With no nation-wide Multiple Listing Service (MLS), it can be hard to find the right condominium and you may see the same unit listed with various agents at different prices. Many of the new condominium projects are also sold directly by the developer with no real estate agent in the middle.

Your negotiation skills are the key to getting the condominium you want at the right price. Do not be afraid to bargain and be sure to ascertain which amenities and fixtures are actually included in the apartment you are buying. The model may show all the appliances and finishes whereas your unit may come empty. You also need to be careful with projects that are being offered for sale but are still in the planning or construction phases. The developer may show you floor plans, 3D renderings, sample finishes in their model unit, all of which may change before the building is complete and you can occupy your apartment. It is extremely important that your lawyer ensures all these details are included in writing in your purchase contract. Purchase contracts must be in writing since verbal agreements are not enforceable in Panama. These contracts also need to be signed by someone authorized by the seller and this may not be the salesperson with whom you are dealing. Anything they promise verbally should be translated into your written contract before you sign it.

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Your lawyer should also obtain a copy of the condominium documents on file with the Ministry of Housing (MIVI), which include the building’s plans and the condominium’s articles of incorporation and bylaws. These will be in Spanish but you can get them translated by any Certified Public Translator. You and your lawyer need to read these carefully to avoid any loopholes that will favor the developer in the case of any dispute. Here are some common questions that you should ask when considering purchasing an apartment or condominium, whether it is a new development or an older unit in an established building: •What are the monthly maintenance fees and what do they include (water, gas, garbage removal, security, use of social areas)? •Do all apartments pay the same fees or are they based on square footage or another factor? •How many parking spaces are assigned to each apartment, are there extra ones for sale or rent? •Where are the parking spaces for my apartment? Are they accessible or tucked away in a corner? •How many visitor parking spaces are there? •Is there separate storage space available – included or for rent or sale? •Will there be commercial or office space in the building and what will their maintenance fees be? What type of businesses will be allowed (you don’t want to be living over a noisy nightclub)? •Who selects or elects the first homeowners board of directors 60

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(the owners or the developer)? •Does the developer have a continuing vote on the condominium board? •With an established apartment, what assessments have been imposed and are there any current or future assessments planned? Ask for a certified audit of the homeowners association’s financial records. There have been a few instances where the developer has either cancelled or drastically changed the project prior to, or shortly after beginning construction. They offer to cancel your contract and refund your deposit and then turn around and try to resell the unit at a higher price. Another common complaint is the completion date. With so much construction going on, developers fall behind due to lack of manpower and/or materials. To protect yourself from this, you need to ensure that there are penalties in your purchase contract against the non-performance of the developer. Beware of clauses that state that “up to 5% extra may be charged to cover the increase in the cost of materials during construction” – you can be sure that you will be charged this full amount. Remember to double check what is included. Normally in Panama new condominiums do not include any fixtures, appliances, air conditioners, water heaters, window treatments or furniture. These may be offered as optional extras by the developer, but you may be able to find a better deal on your own. If you do decide to have the developer install some of these items, make sure your contract is very specific with brand names, model numbers, sizes, etc. Remember, if it is not in writing, you may not get it.


WHAT ABOUT RENTING? There are two ways to answer this question: as the potential renter, and as the potential landlord. Let’s start with the second option. Some buyers may be interested in purchasing real estate as income-producing property, and this is certainly an attractive option in Panama. Perhaps you have funds to invest, and there are few choices more solid than land. Perhaps you plan to move to Panama in the future, and want to buy now and place your property in the rental market. Or perhaps you plan to live in Panama part-time and would like to have your home occupied during your absence. In any case, be assured there is a vibrant rental market in Panama with good opportunities for return on investment, with a few caveats. Rental rates are typically lower than those in North America or Europe, so thorough calculation of cost versus revenue is important. Building or remodeling a modest home or apartment may be more cost-effective and easier to rent than investing in a luxury, high-end property. Location will be a major factor, as Panama City is a very different market from other parts of the country. If you will be an absentee owner, contracting with a reliable and experienced property management company will be mandatory. The surge in foreign residents and growth of real estate development have brought a corresponding increase in property management services. They may be affiliated with a realty company or law firm, or independent, and your real estate broker or attorney should be able to provide you with some referrals. A well-defined contract of services and fees is recommended.

Finally, rental laws in Panama generally favor renters rather than landlords, and you need to know your legal rights and restrictions. Again, your team of professionals will be invaluable in guiding you in this area. As a potential renter, you, too, need to know your rights and restrictions. Standard procedures here in Panama may be quite different from your home country. A rental contract specifies all the terms of the lease, clarifies responsibilities, and protects both the renter and the owner. Many who offer advice on relocating overseas strongly urge that you rent for a period of time before buying property. This may be wise if you are not familiar with the country and want to explore different areas before settling down. It also allows you to investigate utilities, infrastructure, social life, shopping and services before making a commitment. Renting may also be necessary if you are building a home and need a place to live during construction. Rentals in Panama are sometimes handled through real estate or property management companies and this is where your search should start. Listings can be found at web sites such as craigslist or encuentra24 and in newspaper classified sections. In the provinces, sources are more informal and listings will be posted on grocery store bulletin boards and other locations. Word-of-mouth works, too, so ask around! www.locationpanama.com

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PROFESSIONAL SERVICES Real Estate Brokers Under Panamanian law, a real estate broker is defined as someone who is engaged in the profession of acting as an intermediary in the selling, buying or renting of real properties. They normally work on a commission basis as payment for services rendered between the property owner (the seller) and the buyer or renter. A real estate brokerage company may have real estate agents working directly with clients, listing and showing properties. All real estate brokers and agents in Panama must be licensed, a process that requires studying the applicable laws and regulations and passing a strict written examination. Only then may an agent represent property sellers or buyers for a commission. There are many people out there acting as, or claiming to be, “real estate agents” who are not licensed. These unlicensed agents may not know all of the laws and regulations that pertain to your situation and therefore cannot adequately advise you. It is strongly recommended that you work with a licensed real estate broker to ensure that all transactions comply with current laws. Lists of licensed agents can be obtained through the two national associations: The National Union of Real Estate Agents (UNACOBIN) and The Panamanian Association of Real Estate Agents (ACOBIR, website www.acobir.com/eng/ ). Before getting started with a realtor, be sure to ask to see their license. There are some exceptions to the licensing requirement. Developers can hire people to sell their own projects without a license and some people work as “representatives” or “consultants” and are paid a fixed salary or fee rather than a commission. A private owner can sell his own property without having a license. Real estate agents should act in good faith, whether they are representing the buyer or the seller, and should inform their client about anything that might affect the property in question, such as any zoning restrictions or known conflicts with neighbors. Agents are not supposed to offer any property for sale without having express permission to do so. All agents are required to have a $10,000 bond against malpractice and any complaint against unethical behavior can be lodged with The Ministry of Commerce and Industry (Ministerio de Comercio e Industrias), which is responsible for the issuance of real estate licenses. Complaints can also be lodged with either of the two associations if the agent is a member. The Association of Real Estate Agents, ACOBIR, now has a Multiple List Service, exclusively for its members (website www. mlsacobir.com). However, there is still no nation-wide Multiple Listing Service (MLS) in Panama and the result of this is that sellers may list their property with several real estate offices and agents. With everyone competing, there is little incentive for professional cooperation between brokers or agents. You may also see different prices for the same property as the owner has stated his price and each agent adds their commission on top. There are certainly many reputable, professional real estate brokers and agents, both Panamanian and foreigners. Shop around, check references and licenses, and find someone with whom you can communicate well to help you find the property that is right for you.

Finding a good lawyer Retaining a good lawyer is essential for any business or real estate transaction and Panama certainly has an abundance of qualified lawyers. Most real estate brokers can provide you with a list of attorneys with whom they work. You may ask your friends or colleagues for recommendations, and take your time in selecting a lawyer with whom you would like to work. Do not hesitate to visit and interview several attorneys before selecting someone to represent you. Panama has very strict requirements for becoming a lawyer, which include passing a bar exam and obtaining a license to practice. You need an attorney who specializes in real estate law, and should ask about their experience in handling real estate transactions, in handling title searches and in creating the necessary contracts and related documentation. If you are planning to purchase from a developer, do not make the mistake of using the project’s lawyers to represent your interests. It is very important to have your own independent counsel. Unless you are a fluent Spanish speaker, you need to find a lawyer who can communicate with you in English. Fortunately, many of the country’s professional people speak English, so finding a bilingual lawyer is not difficult. Legal fees are regulated by law but these are minimums so you will find lawyers charging anything from $50 an hour to well over $500, depending on their experience and specialty. Fees may be determined by an hourly rate, a particular service, or a percentage of the amount of a real estate transaction. English contracts are not valid in Panama; they must always be made in Spanish. The translation of legal documents from Spanish to English is recommended in order for you to understand them, and this must be done by a Certified Public Translator who stamps and certifies that the translation is accurate and true. Translators charge between $10.00 and $20.00 per page or they may charge by the hour. Your lawyer will be able to put you in touch with a selection from which you can choose. 62

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TAXES AS RELATED TO REAL ESTATE

As with any country, Panama has a variety of taxes. Some we deal with on a daily basis, such as ITBMS, the 7% sales tax on goods and services. The following is a discussion of taxes related to real estate.

Real Property Transfer Tax

Economics and Finance is responsible for the collection of annual property taxes. The fiscal year runs from July 1 through June 30 in Panama, and property taxes are due by August 31, but a few payment options are available. All properties with a value greater than $30,000 pay property tax according to the following scale:

Upon the sale of any property, the seller must pay a real estate transfer tax when the title is transferred. As of 2013, this tax is set at 2% of either the current registered property value or the sales price, whichever is higher. The current registered property value is calculated from the original purchase price (or the value submitted to the Public Registry) plus 5% for each year of ownership.

plus plus

There is also a 3% advance of capital gains tax that is assessed at the time of sale. Both the transfer tax and advance capital gains tax are generally paid by the seller.

plus plus

If the property is held within a Panamanian corporation, and the shares of the corporation are transferred (rather than the property deed), the government imposes a share transfer tax of 5% of the sale price.

Property Taxes Property taxes are due every year based on a percentage of the assessed value, as established by law. Taxes are only due if the value of the property, as registered with the Public Registry, is more than $30,000. The tax assessment is based on the value of the land and all improvements and structures. The Ministry of

1.75% of the value from $30,000 to $50,000 1.95% of the value from $50,000 to $75,000 2.10% of the value above $75,000.

For example, a property valued at $100,000 would have the following annual tax: the first $30,000 is exempt the next $20,000 x 1.75%= $350.00 the next $25,000 x 1.95% = $487.50 the next $25,000 x 2.10% = $525.00 Total Tax = $1,362.50

There is an alternative progressive tax that may be applied to properties for which all taxes are paid up-to-date that is based on a voluntary declaration of value that must be accepted by the national tax authority. These rates are as follows: plus plus

0.0% for values under $30,000 0.70% of the value from $30,000 to $50,000 0.90% of the value from $50,000 to $75,000 1.00 % of the value exceeding $75,000 www.locationpanama.com

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Using the same sample property valued at $100,000 the annual tax would be: plus plus

the first $30,000 is exempt the next $20,000 x 0.70% = $140.00 the next $25,000 x 0.90% = $225.00 the next $25,000 x 1% = $250.00 Total Tax = $615.00

The assessed tax rates for condominiums are set differently, as follows: 0% on values under $30,000 0.75% on values $30,000 to $100,000 1.00% on values over $100,000 Rights of Possession property is not subject to property taxes, because it is owned by the government.

TAX EXONERATIONS AND REAL ESTATE LAWS There are a number of laws in Panama that relate to real estate development, protection of the environment, protection of consumers, the promotion of tourism and real estate development, and foreign investment. Due to the complexity and variety of real estate laws and taxes, it is extremely important to be represented by a competent real estate attorney who is knowledgeable about the current status of the laws. Due diligence is required in all aspects of property and legal transactions. Laws are always subject to change, and as of 2013, these are the tax exemptions and laws most likely to affect real estate sellers and buyers.

Special Tax Exemption Law The government of Panama, in order to encourage investment in real estate development, has implemented property tax exemptions on structures. These exemptions apply to the property rather than the owner, so they continue to apply when the property is transferred. Since the exemption is for the structures, taxes on the land itself (if valued at more than $30,000) still must be paid. 64

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For new structures permitted for occupation by December 2011, the exemption is for 20 years. After this date the exemption depends on the value of the structures and improvements, as follows: For those valued up to $100,000 the exemption is for 15 years For those valued from $100,000 to $250,000 the exemption is for 10 years For those valued over $250,000 the exemption is for 5 years Commercial and non-residential structures and improvements qualify for a 10 year exemption regardless of value. These figures are current as of 2013, and always subject to change.

Special Tourism Zones Exemption The Panamanian Tourism Authority (ATP) has designated nine specific Special Tourism Zones, from Chiriqui to the Darien. Each of these zones has natural and cultural attractions that are considered ideal for ecological tourism. Certain projects developed within these areas are granted 15 year exemptions from income taxes, property tax exemption including the land, plus 20 year exemption from specific other taxes . Housing developments do not receive this exemption, but hotels, golf courses, tennis courts, restaurants and other related ventures may qualify.

Inheritance and Gift Taxes There are no inheritance taxes in Panama. Taxes on gifts of properties vary, depending on how close of a relationship there is between the donor and the receiver.

Law 2 of 2006 Known as the Islands Law, this legislation sets out strict regulations governing the use and development of coastal and island lands. The goal is to encourage investment in infrastructure and tourism while protecting the fragile ecosystems of waterfront land. Concessions for land use are typically granted for 40 or 60 years, and may be extended for 30 years. Specific requirements regarding the location of the land, its intended use, and financial as well as environmental impact plans, must be met.

Law 6 of 2006/2007 This law was passed in 2006 and enacted in 2007, and relates to urban development projects such as condominiums and apartment buildings. The law prohibits promoters and developers from advertising or selling their properties until their Master Plan has been approved. Fines are imposed against developers who violate this law. Other provisions of the law require that local authorities form committees to approve projects in their communities, thus giving them greater control over the decisionmaking and approval processes. The overall intent of the law is to prevent fraud in the construction industry and protect consumers.

Law 8 of 1994 The Tourism Investment Law is one of the most encompassing laws for tourism development in Latin America, regulating all aspects of investment in the tourism industry, from hotels to marinas to travel agencies, and also the creation of tourist development zones. This law jump-started tourism investment, and now some of the world’s largest hospitality companies have a presence in Panama. The law is also applicable to smaller companies. The minimum investment (not including the purchase of the land) in a tourism-related venture in the interior of the country is $50,000, or in metropolitan areas it is $300,000. The project must meet specific guidelines and be approved by ATP’s Board of Directors. Once qualified, the benefits include: •20-year exemption of any import taxes due on materials, furniture, equipment and vehicles •20-year exemption on real estate taxes •Exemption from any tax levied for the use of airports and piers •Accelerated depreciation for real estate assets (except the land) of 10% per year •Exemption from taxes or assessment on capital investment in the project •Exemption from income taxes on interest earned by investors

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Photo by: Jorge SĂĄnchez

Many other references to specific types of businesses and properties are included in this law, which is very extensive and has successfully increased tourism investment in Panama.

Law 41 of 2007 Patterned after similar laws in Singapore and Switzerland, this legislation provides tremendous tax incentives to multinational corporations to locate their headquarters in Panama. One of the major benefits is that multinationals licensed under this law qualify for a total tax exemption on income generated outside of Panama. This law also created the Panama Pacifico Special Economic Area and a new government agency to oversee its development and operation. Located at the site of the former Howard US Air Force Base, Panama Pacifico is a multi-use project that will ultimately include residential, commercial, light industrial and manufacturing, and service related components within its perimeters. Many tax exemptions, employment incentives and government simplifications are provided to specific types of business activities through this law.

Law 50 of 1999 The Preferential Interest Rate Law assists first-time home buyers by offering a reduced mortgage interest rate to those who qualify. The law has been modified a number of times, most recently in March, 2012. To qualify the home must be new construction, residential, titled, and carry a mortgage of $35,000 to $120,000 for no more than 15 years. The home buyer must meet certain requirements, and those who do receive a subsidy of 2 percentage points off the market rate on their mortgage interest.

Law 80 of 2009 This law addresses the issue of titling Right of Possession (ROP) land in coastal zones and islands of Panama. It stipulates that certain types of land are prohibited from titling, such as mangrove swamps, indigenous lands, and protected areas. Provisions of the law state that individuals or corporations who have occupied ROP land for at least five years may obtain title from the government. Initially the law stated that there would be no charge for the first five hectares of land titled, but there is some confusion about whether or not this is still in effect. The law spells out in detail the fees for obtaining title based on the amount and location of the land.

Law 481 of 2012 A new Tourism Incentive Law was passed by Panama’s General Assembly that promotes investment in smaller tourism projects in the interior of the country. For a minimum investment of $250,000 in a province other than Panama, qualifying projects will benefit from property tax exemption, on the land and structures, for 15 years, as well exemption from taxes on imported building materials. There are also provisions of the law that provide incentives for hotels under construction in Panama City with a minimum investment of $8 million. There are plenty of other laws and decrees on the books affecting real estate, taxes and tourism. As the political and economic climate changes, so will the rules and regulations that govern transactions and investments. For now, the incentives are very attractive and offer a variety of options for home buyers and developers looking to locate in Panama.

We invite you to come and take a look around! 66

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THE DIFFERENT TYPES OF IMMIGRATION VISAS AVAILABLE There are a variety of immigration visas available for people wanting to move to Panama and a good immigration attorney will be able to guide you in choosing the right one for you. Options for visas cover a broad range of circumstances, including temporary and permanent residency, work visas, and some that allow you to apply for citizenship and/or a Panamanian passport. The laws that pertain to immigration and visas have been designed to promote foreign investment, benefiting the local economy, and in some cases, the local environment.

Tourist Visa

Of course, the first visa most visitors receive is the Tourist Visa. This visa is issued by the Department of Immigration upon entry into the country, whether by vehicle, plane or boat, and is valid for 90 days. Entry requirements are: a valid passport with at least three months validity remaining; a completed Immigration Form (provided at the time of entry); proof of the means to leave the country or continue

your voyage (plane or bus ticket, or proof you have a vehicle); proof of economic solvency of at least $500, usually in the form of a credit card or travelers’ checks. There are other stated requirements in the law, but these are not typically enforced.

Residency and other Visas

Here is a list of the most common immigration programs and the types of visa that pertain to them:

Programs offering an Immediate Panamanian Passport: •Immediate Passport Program

Programs offering Permanent Residency and Citizenship: •Friendly Nations Visa •Self-Economic Solvency Visa •Small Business Investor Program •Tax Free Processing Zone Investor Program •Reforestation Visa •Retiree or Pensionado Program

Programs offering a Temporary Work Visa only: •City of Knowledge Work Visa •Marrakech Treaty Visa

Programs offering a Temporary Immigrant Visa only: •Missionary Visa •Student Visa •Agricultural Investor Program www.locationpanama.com

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applicants. You can invest at least $300,000 in titled real property in Panama; you can deposit $300,000 into a time deposit (CD) at any Panamanian bank; or you may invest a total of $300,000 in a combination of titled real property and time deposit. An additional $2000 investment is required for each dependent that will be accompanying the applicant. The one stipulation that must be made clear is that any property purchased must be in the personal name of the applicant or a Panama Private Interest Foundation; it cannot be owned by a corporation even if the applicant is the sole owner of that corporation.

A Closer Look at Visa Options Panama offers one of the world’s best benefit programs for retirees and, therefore, of particular interest is the Pensionado or Retiree Visa. This program is designed to allow foreigners to live legally in Panama once they are retired or are collecting a pension. One of the interesting things about this regulation is that there is no minimum age in order to qualify. If you are over 18 years of age and are collecting a pension, you can qualify. The main requirement is that the applicant’s pension or retirement income must be at least $1000 per month and it must be received from a recognized institution, either a government or corporation. If the applicant has any dependents that will be accompanying him, then another $250 per month is needed for each dependent. Applicants must prove the source of their income through notarized and authenticated documentation. It is important to note that the Pensionado visa does not permit the individual to work in Panama. A husband and wife applying for this visa may have a combined income of $1000 per month and meet the income requirement. If an applicant’s income is less than $1000 but at least $750 per month, they may purchase real estate valued at a minimum of $100,000 and qualify for this visa. Once approved, applicants and their dependents will receive a Permanent Residency Card, and they may apply for a Panamanian Identification card, known as a cedula. With the cedula, after five years the person may apply for citizenship, and if granted, they may apply for a Panamanian passport. One of the newest and most flexible visa possibilities is the Friendly Nations Visa, approved in 2012. If you are a citizen of one of the 47 designated “friendly nations” you may apply and obtain immediate permanent residency once you are approved. The visa requires the deposit of at least $5000 in a Panamanian bank account (economic solvency) and proof of economic or professional activity. This means either owning a business or company in Panama, or being employed by a business or company in Panama. This visa allows individuals to work in Panama if they obtain a work permit from the Ministry of Labor. The Self Economic Solvency Visa offers three options for 68

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This visa provides permanent residency after two years on a provisional visa, and after five years of permanent residency you can apply for citizenship. Another program is the Small Business Investor Visa, which is designed for those wishing to start a small business or move their small business to Panama. This visa requires a minimum investment of $160,000 in any new business venture or the formation of a corporation. The applicant must obtain a commercial business license, register with Social Security, and hire at least five Panamanian employees who are enrolled in Social Security and are paid at least the minimum wage. The applicant is issued a two year temporary visa, then a permanent residency visa, and after five years they may apply for citizenship. The other relatively easy visa to apply for is the Reforestation Investor Visa. Not only are you able to gain residency but you are helping Panama’s environment by investing in an approved reforestation project. This visa requires a minimum investment of $80,000 in at least five acres of titled land that is part of a reforestation project or forest plantation authorized by ANAM (Panama’s Environmental Authority). A two year residency visa is granted, and after five years the individual may apply for citizenship, and for each dependent an additional $2000 is required. There are advantages and disadvantages to all of the different types of visas and only a qualified and experienced immigration attorney can make sure you are making the right choice. He can also advise on the different paperwork that is required for each option, which is important, as some of the required documentation that you will acquire from your home country needs to be certified and authenticated by the Panamanian consulate or through the Apostille process. You should determine which documents you need as early on in the process as possible to avoid lengthy delays during authentication. All legal matters are conducted in Spanish, so these documents must be translated into Spanish by a Certified Public Translator who will stamp and certify the translation as true and accurate. Some of these documents may also need to be certified by the Ministry of External Affairs. All visa applications require a Criminal History Background Check issued by a national, federal or central law enforcement agency in the applicant’s home country. Obtaining this document usually is not difficult, but it may take several months, and an application may not be filed without it. Thus, the sooner this process is initiated, the better.


WORKING IN

Benefits of the Pensionado Visa Here is a list of the benefits of the Pensionado Program. These benefits are applicable to holders of a Pensionado Visa regardless of age, and to permanent residents of Panama, either citizens or foreigners, who have reached the age of 55 for women and 60 for men. •50% discount on entrance tickets to recreation and entertainment activities, such as movies, theaters, sports and other public productions •Discounts on public transportation, including 30% on intercity buses, trains and boats, and 25% discount on air fares for both national and foreign airlines (when the ticket is purchased in Panama) •Discounts off the regular prices of hotels, motels and pensions of 50% Monday to Thursday and 30% on Friday, Saturday and Sunday •25% discount on food consumed by the individual in all restaurants, except for the small street cafés that do not require a license to operate •5% discount in fast food establishments •15% discount off the total cost for services in hospitals and private clinics •10% discount on prescription drugs •Discounts in the following medical services: o 20% discount off consultation fees for general medicine doctors and specialists

o

15% discount on dental services

o

15% discount on optometric services

o 20%

discount for all prosthetic devices or items such as wheelchairs

•20% discount on technical and professional services •25% discount off electrical bills on consumption up to 600KW (normal rates apply thereafter) •25% discount on basic phone services, as long as the phone service is in the name of the individual, it is a residential phone, and it is only one phone (the normal tariffs apply for additional phones) •25% discount on water services as long as the monthly consumption does not exceed $30.00, the bill is in the individual’s name, and the bill is residential and is the prime residence.

PANAMA

With an unemployment rate below 5% and a need for trained and well educated professionals, Panama is a good option not only for retirees, but also for those who are still in the workforce. Considering the economic conditions and lack of job opportunities in North America and Europe, Panama becomes an even more desirable destination. For those seeking to diversify their income with offshore corporations, Panama says “bienvenidos” (welcome!). Foreigners who wish to work in Panama must obtain a work permit through the Ministry of Labor. Certain occupations are forbidden to foreigners, and these are veterinary and medical doctor, attorney, engineer, and architect. Also, foreigners are forbidden from owning retail businesses. There are several specific circumstances under which one may apply for a work permit, and a competent attorney is necessary for consultation and to complete the process. If you plan to apply for a visa, you need to give careful consideration to the issue of employment. Some types of visas allow you to work (once you obtain a work permit), some allow you to own a business and employ Panamanians, and others do not permit you to work under any circumstances (the Pensionado Visa, for one). Any foreigner may own a corporation through which they conduct business (other than a retail business), and they may take proceeds from the business. Most businesses in Panama are open Monday through mid-day Saturday and most employees work 45 hours per week. Pay days are typically the 15th and the last working day of the month. Employees are enrolled in the Caja de Seguro Social, which ensures medical and retirement benefits. In January 2012 the minimum wage in Panama was increased to a range of $432 to $490 per month, based on the type of work and location, but for domestic and farm workers it is less. Professionals with college degrees can expect to earn from $700 to $2500 per month, depending on occupation, location and years of experience. In general, salaries do not compare to those in the US, Canada or Europe, but, of course, neither does the cost of living. Those who do choose to work in Panama are required by law to pay income taxes on income generated within the country. If employed by a Panamanian company, the employer will deduct the required taxes, and annual individual tax returns are due by March 15th. As of 2013 the individual income tax rates are as follows:

Earned Income of less than $11,000 is exempt

Earned Income of $11,000 to $50,000 is taxed at 15%

Earned Income over $50,000 is taxed at 25%

Other rates and calculations may apply to foreign residents, corporations and unearned income, and a variety of deductions may be applied. Whether you open a corporation, operate a business from your home, or work for a Panamanian company, you will need a trustworthy and qualified accountant to assist you with recordkeeping and tax filing. Accountants in Panama are licensed by the Ministry of Commerce and Finance as CPAs, and there are two professional organizations; ACONTA (website www.acontapanama. org) and Colegio de CPA (website www.colegiocpapanama.org). It is worth the time and effort to seek referrals and interview several accountants before contracting with one. www.locationpanama.com

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MOVING TO

PANAMA Once you have found your new home and applied for your visa, you will be thinking of your move to Panama. Assessing your personal belongings is a major task: what to bring, how to get it here, and what to do with the shipment when it arrives. If you have the Pensionado visa, you are allowed a one-time exemption from import duties for household goods, up to a value of $10,000. So it is worth it to consider which treasures you want to bring with you, and what you can replace when you get here.

What to bring?

There are no hard and fast rules to this question, as it is definitely a personal matter, but here are some guidelines: Furniture: There are furniture stores to suit most tastes and budgets, although the selection is less than you will find in the US or Europe. Panama City and David have the most stores and malls, so they are the best places to shop. You can also order out of catalogs in the US and have the items shipped here, although this can be a little costly. Furniture prices are similar or slightly higher than those in North America. If you have special furniture or antiques, then you will certainly want to ship those items here. Local craftsmen can custom-make furniture in wood or metal, often at reasonable prices. Kitchen appliances: As with furniture, the selection of household appliances, called White Line or Linea Blanca here in Panama, is complete. Most of the name brands you are familiar with back home can be found here and other brands from South America compete in price while providing similar quality. For your kitchen gadgets, those coming from North America have no worries in terms of compatibility as Panama runs on 120v house current and uses the same type of plugs. Europeans will have to invest in inverters or buy new appliances here in Panama. Entertainment: All of your North American audio-visual entertainment equipment is fully compatible here in Panama. On the other hand, electronics have always been a good buy here, with prices as good as, if not lower than, in the US, and the selection is excellent. If coming from Europe, you will most likely need to purchase this type of equipment here as televisions and other AV equipment are designed for a completely different system. It may be wise to bring computers from your home country because the majority of computers here use the Spanish language for their keyboards and operating systems. Relocation and Shipping: A good relocation service can help with all the logistics, such as getting your shipment from your old house to your new house. They can do as much as you want them to do, including contracting a local shipper to come and pack and collect your belongings, consolidating your shipment if it doesn’t fill a complete container, unloading the goods and clearing them through customs in Panama and delivering them to your new house. Ask 70

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people in Panama who they have used and talk to a few companies, and you may find that some are more familiar with shipping from your former home than others. Most people ship their belongings by sea container; it is less expensive than by air and with the regular container ship routes, transit times are not very long at all. Depending on the visa that you have applied for or have received, you may be allowed to import your personal belongings with no tax or duty. Your lawyer and the relocation people can advise you about this. Vehicles: Deciding whether or not to bring your car or truck to Panama is a big decision. The Pensionado visa allows the import of a new car every two years, duty free. However, there is still a lot of paperwork to be completed and the process can be long and drawn out. You may want to research the availability of your car model, and thus parts, here in Panama. It is easy to buy a vehicle here, and prices may be lower than your home country. Both gasoline and diesel options are available, with brands from Japan, Korea, China, the US and Europe, in economy through deluxe and heavy-duty models. All vehicles must be inspected and registered annually, and basic insurance coverage is required.

Bringing your Pet to Panama

It is not difficult to bring your pet to Panama so long as you comply with the regulations. There are many animal lovers here, and excellent veterinary care is available. If you are flying, the first step is to check with the airlines and confirm their regulations and requirements for traveling with a pet. In Panama the Ministry of Health governs the importation of animals, and you must obtain a permit from the Department of Agricultural Quarantine. Here is a list of the basic requirements:

For Cats and Dogs

1. Vaccination Card provided by your veterinarian and certified by the USDA 2. Health Certificate also provided by your veterinarian, dated within 10 days of your arrival and certified by the USDA 3. These certificates must also be authenticated by a Panamanian Embassy, or apostilled by a Secretary of State 4. Certificate of Origin stating where the animal was born 5. Completed Import Form, available at Tocumen Airport from the Ministry of Health 6. The Ministry of Health will inspect all the paperwork upon arrival at Tocumen Airport and a veterinarian will check your pet. The fee for bringing a pet is $16, and if you arrive when a vet is not on duty, there are additional charges. 7. If your pet is quarantined by the Ministry of Health for the standard 40 days, the fee is $10 per day. 8. A Home Quarantine option is available for a $130 fee. You must promise to keep your pet inside your home for the required 40 day quarantine period. A Request for Home Quarantine letter must be delivered to the Ministry of Health at least 2 weeks before your arrival. The key is to plan ahead and be sure you understand and obtain the required paperwork from your vet and the government.

Exotic Pets Exotic pets take quite a lot more work and their entry into Panama is not guaranteed. Panama is a signatory to CITES (Convention on International Trade in Endangered Species of Wild Fauna & Flora) and therefore you must meet all of the requirements for the transport of a CITES listed species. Even with a CITES authorization, the final decision is still with the Panamanian authorities, specifically ANAM, Panama’s Environmental and Wildlife Protection Authority.


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EDUCATION

Photo by: Jorge Sánchez

Public education is mandatory through the sixth grade in Panama, but many families opt to send their children to private schools. Because of this demand and healthy competition among the schools, there are a number of very good educational institutions in Panama, most of them in the city. Tuition can be costly, and most private schools have a one-time, up-front matriculation fee that can be quite high. If you are coming to Panama with children, here are some schools worth investigating.

The King’s School

Located in Bethania, Panama City, The King’s School is wellestablished with a long-standing reputation for excellence.The school accepts students for pre-school through 12th grade and provides a variety of activities. In addition, they offer day care for toddlers, including lunch and a snack. More information is available here: www.kingspanama.com

Metropolitan School of Panama

A recent addition, in 2011 this school began offering grades K- 9 and will eventually expand through 12th grade. It is a member of the Council of International Schools that plans to offer an International Baccalaureate Program, with instruction in English, Spanish and Mandarin. The school is situated within the City of Knowledge in Panama City. For more information go to www.themetropolitanschool.com.

Colegio Episcopal de Panamá (Episcopal School of Panama)

Located in El Carmen, Panama City, Episcopal, as it is commonly known, offers a private, bilingual education to students from preschool to 12th grade. The school is a member of the National Association of Episcopal Schools, a US-based organization. For more information, go to www.cep.edu.pa.

Balboa Academy

Located in the City of Knowledge in the former Canal Zone, the Balboa Academy is a private school that offers an American-based curriculum from pre-school to 12th grade to both Panamanian and 72

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foreign students. All classes are in English with Spanish taught as a second language. For more information, go to www.balboaacademy.org .

The International School of Panama

The International School of Panama is a private school offering an international curriculum, taught in English, to students from Kindergarten to 12th grade. The school is associated with the International Baccalaureate Program and accredited by the Southern Association of Schools and Colleges. The school is located in the Altos de Cerro Viento area. For more information, go to www.isp.edu.pa.

Interamerican Academy of Panama

Academia Interamericana has two campuses, one in Cerro Viento and the second in Costa del Este, both in Panama City. They offer bilingual education from pre-school to 12th grade, with nearly thirty years of service to the community. For more information, go to www.aip.edu.pa.

Colegio Brader

This Catholic school is considered by many to be one of the top 3 schools in the country. Located on the east side of the city in Chanis, not far from Costa del Este, the school opened in 1991. They offer pre-kindergarten through 12th grade and a wide range of activities including sports, theater, folklore, chorus, debate and book clubs. There’s more information here: www.colegiobrader. edu.pa

International Academy of Boquete Located in the highlands of Chiriqui Province, this bilingual school has a good reputation among foreigners and Panamanians alike. Classes for pre-school through 9th grade are offered, and additional grades up to 12th are being added annually. The school has ambitious plans for a new campus to be built in the near future. For more information, check here: www.aib.edu.pa/ web .


Coronado International School If you don’t want to live in the city, this school is one alternative. They offer fully bilingual education for preschool children through high school. Located at Colinas del Mar, Coronado Beach. There’s more info here: www.corointschool.com.

The Oxford School Dating back to 1984, this long-standing institution has expanded several times and now offers pre-kinder through 12th grade. They teach the National Curriculum of England and are an authorized testing center for the University of Cambridge. In addition to their campus at Edison Park, El Cangrejo in the city, they have a second campus in Santiago, Veraguas Province. For more information, go to www.oxfordpanama.com/oxford/index.jsp.

FURTHER EDUCATION

Panama has many universities, both public and private, with more and more options available. A few of the top universities in the country are the Catholic University of Santa Maria La Antigua (www.usmapanama.com), the University of the Isthmus (www. sitio.udi.edu), and the Latin American University of Science and Technology (www.ulacit.ac.pa). Florida State University (www.panama.fsu.edu) and the University of Louisville (www.qlu.ac.pa) both have campuses here, and McGill University (www.mcgill.ca/pfss) has a partnership program with the Smithsonian Institute. These facilities offer Bachelors and Masters degrees, with the same certification that would be awarded in the US, but degrees at these colleges are considerably more affordable. Other institutions include ADEN Business School (www.aden.org), INCAE Business School (www.incae.edu/en), West Coast University (www. westcoastuniversity.edu.pa), and the International School of Medical Sciences (www.isms.edu.pa.)

SPANISH SCHOOLS

If you are interested in learning Spanish, which will prove to be extremely helpful to you, there are a number of schools in the city and in areas popular with foreigners such as Boquete and Bocas del Toro. The following is a list of established schools. Independent, private tutors are also easy to find.

Berlitz, Marbella, Panama City www.berlitz.com.pa/

Casco Antiguo Spanish School, Panama City www.cascospanish.com

EPA!, Punta Paitilla, Panama City www.studyspanishinpanama.com

Spanish Panama, El Cangrejo, Panama City www.spanishpanama.com

ILERI Panama, El Dorado, Panama City www.ileripanama.com

ILISA, Bella Vista, Panama City www.ilisa.com/panama

El Paraiso Spanish Language School, Bocas del Toro www.elparaisoschool.com/about_panama.htm

Habla Ya, Boquete, Chiriqui and Bocas del Toro www.hablayapanama.com

Spanish by the River, Boquete, Chiriqui Spanish by the Sea, Bocas del Toro Spanish in the City, Panama City

www.spanishatlocations.com/spanish-school-locations/ panama/

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UTILITY SERVICES IN PANAMA Once you move to Panama, you will need to apply for the different services that you will need in your new home. These will include electricity, water, trash service, telephone, internet, and television. The process for obtaining these services is essentially the same as in any other country, although it can sometimes seem a little frustrating. You will need to go personally to the offices of the different service providers to request the service. If you don’t speak Spanish, you may want to have someone with you who does since business is conducted in Spanish in Panama. Be sure to take your passport and your visa card, if you have one, as they will want copies. In the case of telephone, electricity, internet and cable TV, you will need to provide proof of residence. A bill from another utility provider is the standard proof, but if it is the first time you are requesting utilities to your property, you will not have this, and so either your rental contract or title deed will be required. If you want the utilities to be in the name of your company, then you will also need to bring your company papers. Be sure to check with each provider as to what they will require in your particular circumstance as these requirements do change from time to time. As mentioned above, retirees and the elderly are entitled to a discount off some utility bills. You may apply for this when you open your utility account, and will need either proof of age or your Pensionado Visa card.

Electricity Providers

Gas Natural Fenosa and Elektra Noreste, S.A. (ENSA) provide electricity throughout the country. Which provider you use will depend on where your home is located. Gas Natural Fenosa serves Panama City and western Panama, Bocas del Toro, Chiriqui, Cocle, Herrera, Los Santos and Veraguas provinces, with offices in all these locations. For more information, check here: www.gasnaturalfenosa.com.pa. ENSA provides electricity to eastern Panama, Colon, and Darien provinces, Guna Yala Comarca and the islands of the Pacific. They have offices in Panama City and Colon. Check here for more information: www.ensa.com.pa.

Water and Trash Services

All potable water in Panama is provided by IDAAN (Instituto de Acueductos y Alcantarillados Nacionales), and they have offices throughout the country. Before buying real estate it is a good idea to inquire about the reliability of water delivery in the area. Municipalities have their own trash pickup services, so you will want to ask about this, too. In some cases, the water and trash pickup are on the same monthly bill, in others they are separate.

Telephone, Internet and Cable TV Providers

The enormous increase in cell phone and internet usage in Panama (and around the world) has resulted in an increase in the number of providers. There is fierce competition among the various companies that provide these services. They offer packages, or a 74

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la carte items, with a range of cable TV channels, local and longdistance options, and internet speeds. Not all companies operate in all areas of the country, so it is important to research what services are available, from which providers. Cable and Wireless offers fixed line and cellular phone service, internet and cable TV: www.cwpanama.com Cable Onda provides fixed line phone, internet and cable TV services: www.cableonda.com Claro offers cell phone and internet services, and in some locations, satellite TV: www.claro.com.pa/tengo.aspx?s=596 Digicel has cell phone and internet services available: www.digicelpanama.com MobilNet/MobilPhone offers cell phone and internet services, as well as message services, data networks, and shortwave radio: www.mobilphone.com Movistar (Telefonica) has cell phone coverage throughout the country: www.movistar.com.pa Sky TV offers satellite TV services: www.skyTV.com

Mail Forwarding

The mail service in Panama is very different from the mail service in the United States and Canada. Perhaps the biggest difference is that mail is not delivered to your door in Panama. Mail boxes, or “Apartados Postales” are available in branches of the Post Office, “Correo”, and these work very well for domestic mail. They are affordable, costing less than $20 per year, and there is a branch of the Post Office in most neighborhoods of Panama City and other cities around the country. Nevertheless, these mailboxes should not be relied upon for mail coming from abroad. It can take a very long time to arrive and its arrival is far from guaranteed. If you are sending something abroad from Panama, you will find the Post Office to be relatively efficient and the rates for overseas mail are not expensive. Most expatriates, and many local families, obtain an account with one of the mail forwarding services. These services all provide you with a mailbox and street address in Miami, Florida where you can receive letters, magazine and parcels. With your US-based address you can receive magazine subscriptions at domestic rates rather than paying for international delivery. You can even receive courier packages (DHL, FedEx, etc.) and registered mail using the street address and these will be received on your behalf by the depot in Miami. Your mail is then forwarded to your provider in Panama on at least a weekly basis and, depending on the company, you can have this delivered to your office or home or it will be kept by the mail service at their office until you can pass by and collect it. Fees are based on the amount of mail you receive with most providers charging a minimum monthly fee for a set volume plus overage charges; others charge you only on what you receive with no minimum. These services are reliable and make receiving your regular mail, as well as magazine subscriptions and online shopping, straightforward and affordable. The following is a list of some of the mail forwarding services in Panama. Airbox Express: www.airbox.com.pa/ptye/default.htm Air Facilities: www.airfacilitypty.com/english/index.php Bongo International: www.bongous.com/country-information/ us-to-panama.php MailboxesEtc: www.centam-mbe.com/index.php Miami Express: www.miamiexpress.com/en Panamail:

www.panamail.net


Photo by: Jorge Sรกnchez

THE MEDIA IN PANAMA Newspapers

Television

Other publications of interest to foreigners include The Visitor (www.thevisitorpanama.com), El Bajareque (www.elbajareque. net), and The Bocas Breeze (www.thebocasbreeze.com/wp/), all bilingual publications, and El Informe (www.elinformedavid.com), the newspaper of Chiriqui, published in Spanish. The Miami Herald International Edition, in English, is available in Panama City and sometimes in other locations, including David.

Channels available include: Fox, Fox Life, CNN, Sony, WB, E! Entertainment, FX, Universal, TNT, Discovery Channel, A&E, Food Network, the History Channel, Animal Planet, National Geographic and Travel & Living. Movie channels include: HBO, Cinemax, Cinecanal, Movie City, the Film Zone, MGM, Turner Classic Movies and TNT. For the youngsters there are Cartoon Network, Discovery Kids, Boomerang, Nickelodeon and Disney Channel. Sports aficionados will be able to watch Fox Sports, ESPN, ESPN2, Speed Channel, NFL Network and Turbo. Cable and satellite packages may include many more channels, and your favorite program or network may, or may not, be among them.

Panama has six main newspapers, three of which are respectable news sources and three are tabloids. The three principal newspapers are La Prensa, El Panama America and La Estrella. La Prensa is definitely the market leader. They all have their news online at www.prensa.com, www.epasa.com, and www. laestrella.com.pa respectively. La Estrella is the only newspaper with information in English; there is a small daily pullout covering the main headlines. Newspapers cost around $0.50 from Monday to Saturday and $1.00 on Sundays and can be purchased in grocery stores, convenience stores and from street vendors. Annual newspaper subscriptions are affordable should you wish to have the paper delivered to your office or home each day.

Radio

The number of radio stations in Panama is remarkable considering the size of the country. In general, Panamanians like music, and they listen to the radio as a source of news and information, so radio is popular. The majority of the stations are in Spanish with a mix of Latin pop, rock and Panamanian music. Many stations are available online, and a list of stations can be found here: www.streema.com/radios/country/Panama?page=1. A few stations broadcast in English at least part of the time, including Power Hot Mix 100 FM, Cool 89.3 FM, Radio 10 88.1 FM, Tropical Moon 88.9 FM and Ultra Stereo 98.9 FM.

Local channels include TVN, RPC and Telemetro, all of which provide local news and sports, broadcast in Spanish. Most programs will be in Spanish and most movies will be dubbed in Spanish. Some programs are available with the SAP (Secondary Audio Programming) feature on enabled TV sets. Cable providers may offer English, French, and Chinese language channels as well. Programs and movies broadcast in English will usually have Spanish subtitles. The US networks (ABC, CBS, NBC and PBS) are not available due to licensing restrictions from the FCC, but other popular cable networks are offered by the cable and satellite providers. The number and selection of English language channels varies by provider, so it pays to shop around.

While the information about Panama provided in this book is far from exhaustive, we hope that you find it interesting and helpful. If it has peaked your interest and encourages to you come and explore this beautiful country and all that it has to offer, either as a visitor or with the intention of making Panama your home, then we look forward to welcoming you soon. For regular updates, useful links and more information, please visit our website at www.locationpanama.com www.locationpanama.com

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