The process of buying property in Panama isn’t always a straightforward one, but–with the right help–it may be a lot easier than you think. We’ve outlined the process from start to finish and defined some of the key terms, to help make relocating to your dream destination a little bit easier.
Photo: Chuck Holton
Before You Start Shopping for Panama Property
- Take your time. Panama is a buyer’s market. There are plenty of properties available, ranging from planned communities in quaint villages to undeveloped land in remote locations. Don’t feel pressured to make a hasty decision.
- Do your homework. Get to know the country. Start virtually, and then come explore the surroundings for yourself. Narrow down exactly which part of this Central American paradise you’d like to call home. Panama offers mountains, beaches, and city living. And depending on where you go, you might even find several of those in close proximity to one another. Also consider how close you’d like to be to major cities, airports, and the best healthcare. Make sure you spend plenty of time in the area to which you plan to relocate. See what it’s like in the different seasons. Picture yourself living there. Get to know some natives and local expats. Find the places you’ll eat and shop. Figure out how you’re going to spend your time in your new environment and what activities the area has to offer.
- Understand the different types of property. Panama has both titled and untitled property that can be yours to inhabit. However, they’re treated quite differently.
- Titled property works just as you’d think. It belongs to you. The title gets transferred to your name and recorded in the Registro Publico, or public registry.
- Rights of Possession (ROP) property is different. The Panamanian government owns title to the land, but you have the right to use the property any way you’d like…just as if it were your own. That is, all except for one important factor: You don’t have to pay property taxes. A full understanding of ROP property requires a little background knowledge of how the concept came to be. It is essentially the original model of real estate, where land rights were granted by the king in exchange for a fealty, or tax. The king protected your rights to the land as long as you remained in good standing. (Think U.S. property taxes.) Some estimates indicate that as much as 90% of land outside of Panama City is untitled, so it isn’t nearly as uncommon as you might think. So don’t let ROP property scare you. ROP land definitely has its risks, but the key is to resolve any issues on the front end by doing your due diligence before you buy. The right team of real estate and legal experts can do all the necessary homework on a property you’re considering, or in some cases they may already have. Let me reiterate that part about choosing the right team. Make sure you go with someone who has experience evaluating Rights of Possession properties in Panama and has a proven track record of success in this area. When done correctly, ROP property can be an excellent investment.
- A Note about Squatters: Both ROP and titled land that is unoccupied can sometimes be inhabited by squatters. After a certain number of years, squatters can actually be granted rights to the property. As a precaution when buying either type of land, it’s important to first check it carefully for signs that someone might be squatting on the property. Go spend some time there. And once you own the land or the rights, the laws are very clear on what measures you can take to prevent squatters from setting up on it.
- Learn the implications of the different types of property for visa requirements, tax exemption, and loan qualification. Because the two types differ it’s important to make sure you’re shopping for the right one. For instance, tax exemption is an excellent perk of buying ROP land. However, because you don’t hold the title, you can’t use it for collateral or a qualifying investment for a residency visa. While property taxes often do apply for titled property, there are some tourist areas where tax exemption applies, even for income earned on rental property. Buying property in the name of a corporation created and controlled by you is another good option to provide strong asset protection and better control over taxes. Setting up a corporation in Panama is a fairly simple and inexpensive process. An attorney can help you with the paperwork and requirements.
- A Note about Financing: While financing can be difficult to obtain in Panama, it is possible. Panamanian banks will offer mortgages to foreigners. However, it is necessary to first build credit in Panama. Seller financing is often a good option, but it’s important to buy only from a credible seller and have all contracts carefully reviewed by an attorney.
Building Your Team
- Find a real estate professional you can trust. The real estate climate in Panama is very different than in countries like the U.S. There are few regulations governing real estate practices. Many agents are unlicensed. There’s no multiple listing service (MLS) and little cooperation between agents. Even commissions vary greatly, ranging from 3 to 10%. Overall, there’s simply no fiduciary duty imposed on Panamanian realtors to protect your interests. So keep in mind that they only make money if they sell you a property, take everything they say with a grain of salt. The best advice we can give is to do your due diligence and make sure you choose a real estate professional who is reputable, someone who understands your goals and will work with your best interest in mind. Run a search on them to see if their name turns up any negative information. Feel free to contact us if you need a recommendation.
- Decide if you need to hire an attorney. Given the intricacies and potential complications of a Panamian real estate transaction (as well as the fact that all the paperwork is in Spanish), it’s probably a good idea to have an attorney to assist you along the way. Just like with any other professional, spend the time to research and find someone reputable. Make sure to spell out what you’d like for them to do. They can assist with the title search, researching rights on ROP properties, registering the title once the property is yours, obtaining English translations of all documents, and interpreting both translations for accuracy. It’s always a good idea to get a quote up front for their services, and it can never hurt to get multiple opinions.
- If needed, find a bank or private escrow company to handle the actual monetary transaction. Due to the potential for corruption and the difficulty of defending yourself in the legal system if a situation were to arise, you should generally avoid giving money directly to the seller or real estate agent. Like many aspects of real estate transactions in Panama, it all ultimately depends on the reputation of the entities with which you’re conducting business. If there is a need for concern, your attorney should be able to handle the disbursement of funds. However, some aren’t willing to do so. In such cases, a bank or private escrow company, can take care of it for you. The wire transfer from a U.S. bank is simple, since there’s no currency exchange, and generally takes around three days to be credited on the Panama side. You can then authorize them to issue the funds, in the form of a certified check, once all obligations have been met.
The Buying Process
- Step 1: Deposit and Contract. Congratulations! You’ve found your tropical paradise to call home. The first step is to sign a contract for purchase, often called a promise contract, and pay a deposit. The contract spells out all the terms and contingencies, the agreed upon purchase price, the deposit amount paid, and the time frame for closing. The deposit is non-refundable, except in a case where certain contingencies aren’t met. The contract itself is binding and enforceable in court.
- Step 2: Title Research. This step will likely be the longest and most complicated in the buying process. Request the title (or government issued Verification Certificate for ROP land) from the seller. It should include the name of the owner and a description of the property. The seller should also provide a map of the property. Consider having a survey completed, particularly if one hasn’t been done before. A survey would verify the exact boundaries of the property, which even the seller himself might not be completely sure of. While Rights of Possession properties obviously require a lot more research to verify that the seller does indeed possess the rights to the land, it’s important to note that research on a titled property is every bit as important. Make sure there’s a clear title, with no liens or other legal issues, before you buy.
- Step 3: Bill of Sale. Obtain the proper form and complete a bill of sale, which shows the name of the buyer, the seller, and the price paid for the property. This document is given to the Notary Public who finalizes the sale and is also used for determining the value of the property for income tax purposes.
- Step 4: Title Transfer. This portion of the transaction is handled by a Notary Public, who holds much greater power than those in the U.S. In Panama, a Notary Public is a high-ranking official who handles all legal aspects of a transfer of land or land rights, among other responsibilities. They will create create a new title, or certificate, which is then approved by the Chief Notary.
- Step 5: Transfer of Funds. Once all of the previous steps have been completed (and not before!), the final step to property ownership in Panama is the actual handing over of the money. The bank or escrow company you’ve chosen will issue a certified check to the seller, as well as separate checks for commissions or other service charges.
- Step 6: National Registry. Once the purchase of titled property has been completed, the title can then be recorded in the public registry. This final step makes it official! You now own your very own piece of paradise with nothing left to do but enjoy the fruits of your labor.
- A Note on the Buying Process: When working with many firms, the steps above may be transparent to you. A company skilled in real estate transactions will often handle many of the above aspects and include the fees in your closing costs, saving you a lot of time and energy.
Tips for Buyers
- Stay out of court. Panamanian courts can be very unfriendly to foreigners and often even corrupt. This is the main reason it’s so important to do your due diligence on the front end.
- Understand the special nature of beachfront property. All Panama beaches are public access. This means the public owns the first 20 meters from the high tide mark.If you buy beachfront property and plan to build a structure that extends into the water (e.g. a pier or even an entire home on stilts above the water), you’ll need to obtain a concession to do so. This process can take years, and no building permits can be obtained until this step is completed. When buying property that already has such structures, make sure that the seller can prove that the proper concessions were granted. (Note that this limitation only applies to the area in and immediately adjacent to the water. The rest of the land is yours to do as you see fit.)
- Avoid gimmicks. Steer clear of anything that sounds fishy or too good to be true. Remember what we said about realtors and the things they tell you. Investigate any and all unusual-sounding deals carefully.
- Use caution when buying in a planned community. Carefully review the development’s CCR’s, or covenants, conditions, and restrictions. Walk away if a builder says they haven’t been written yet. Believe only what’s spelled out in the document, not verbal promises made by the developer.
- A project is only as good as its developer. Because Panama is a thriving retirement hotspot, it is unfortunately riddled with amateur developers trying to make a buck by selling you grandiose dreams of the future. They may try to convince you to get in now in the early stages, with assurances that they’ll later build roads, shopping centers, and restaurants. Make sure they have a proven track record, as there’s always a chance these structures may not get built. If a grocery store right around the corner is a must-have for you, go with a property that already has one.
What other strategies do you use for buying property in Panama?
When you move from a city to a small expat town, it can be extremely hard to fit in.
Here are 13 rules to set you on the right path for small town living as an expat .
In a city, rhythms and lifestyle are so different compared to a small town. Time is of the essence, you have anonymity if you want it, and your actions are rarely judged. If a chance encounter with someone significant occurs in the city, you jump to take advantage of opportunity before it disappears forever.
This is not customarily the case in a small town; in fact, it’s almost the opposite, jumping on an opportunity to meet someone might backfire from being perceived as too aggressive.
Here are 13 rules to set you on the right path, even if you are the new guy.
1. Relax and Take Your Time
People living in small communities have their routine down. They have their friends, activities, and habits already defined. Be aware of this, making room for you means changing their routine, so give it time. Take it slow and be patient, social opportunities will come up without you pushing too hard.
2. Don’t Gossip
Gossiping is very common, everyone knows everything about one another. Gossip can be traded like currency, who slept with who, who is having business trouble, who said what at the last party. You will be challenged to not get involved, not to give your opinion, but do not perpetuate gossip. If you stay out of the gossip circle you are not in danger of creating a relationship based on gossip, (which never last) and even better, you will show you can be trusted. This is what leads to strong long term relationships with good people.
3. People Come Out of the Woodwork
Often the most intriguing people are not at the party. When someone has a good happy rhythm in a small town they often are not looking to be seen. They have found a magic formula and don’t need to socialize at parties to fill a void, these people can be very interesting and discovering them can be a real find.
4. You Are Not a Mind Reader
Try not to interpret everyone else’s actions as liking your or not liking you. Avoid this mind trap, it will lead to nothing but self consciousness and being miserable. Let it go, don’t waste time worrying about what so and so said, or why so and so didn’t call you for their birthday. Stay busy and stay the course great opportunities are in front of you.
5. Respect the Locals
Small towns were there before you got there and will be there when you leave. The residents who are there have a history, which can make them seem irrational at times. For example someone may hate someone else for something that happened 10 years ago, but they won’t let it go. Do not judge; respect the history even if they are not over it yet, chances are they never will be.
6. Understand the Game
Newcomers to small towns predictably look for acceptance. The quickest path to acceptance is to prove your dependability. So, sticking to your own business, and being authentic when social opportunities present themselves is the fastest route. No need to be a recluse, take advantage of every encounter you have, just don’t force it. Do not try get to know people quickly, this goes against the rhythm. You are new to them, and new is an unknown quantity. Once dependability has been established then progress can be made.
7. Stay Busy
Find things you love to do with or without people. Sometimes it is lonely, but if you have a passion that fills your time it will be a giant help as you slowly build up trust and friendship.
8. You Will See People You Know All the Time
You really don’t need to be a social butterfly to get to know people. In fact, limiting your exposure is a good idea. If it’s a small enough town, you will have unplanned interactions with people all the time, at the store, the gas station, parties, etc. Remember there is a finite amount of people, so friendship is a marathon, not a sprint. You may be able to build lasting relationships just from seeing the same person every morning at your favorite breakfast joint.
9.Track Record Matters
Don’t treat people differently based on who you think is watching. This gets noticed in small places. Treat people the same no matter who is watching. Your track record will precede you, people talk. Its up to you, do you want a positive track record or a negative one.
10. Be Mysterious and Unaffected
This is a great way to meet no one and be lonely in a city, but in small towns it can be an excellent strategy. People want to hang out with intriguing people; if they believe you don’t need them, they will come calling. If they think you have a needy personality they will avoid you like a leper. Walking this fine line is laborious, but knowing it exists is really the point.
11. Don’t Hang Out with Your Buddies Too Much
It is so easy to get lulled into habitually socializing with the same people every weekend, hanging with them at parties, or inviting them over all the time. The problem with this is socializing too much can eventually destroy the relationship. Don’t take great friendships for granted, be disciplined and manage your friendships to keep them interesting for the long term. Novelty is highly valued commodity in a small town.
12. Secrets Will Get Out
Secrets have a way of revealing themselves when given enough time. Avoiding the need for secrets in general is smart, but if it is necessary, take the time to discover who you can trust first. You need a reliable network of friends. Hold off on being impulsive with classified information or behavior until you know who is who.
Costa Rica has been called a paradise by many, but according to Promed, council for the international promotion of Costa Rica Medicine, it is also a health care paradise, a place where tourists can come to receive quality medical treatment at a fraction of what they would pay back home.
Sound a little too good to be true?
A survey conducted by Patients Beyond Borders (the most trusted source in medical travel) can clearly illustrate this point, for in 2011 a patient could expect to pay:
- $88,000 for a coronary artery bypass graft in the United States or $9,500 in India
- $33,000 in America for a hip replacement, or $12,500 for the same procedure in Mexico.
This is why the medical tourism industry is booming and why more and more people are opting to leave their homes behind to hop on a plane and seek medical attention elsewhere. In fact, according to Helmut Wachowiak, a Professor at the International University of Applied Sciences in Germany, the global medical tourism market is worth 40-50 billion dollars and is growing about twenty percent each year.
For many people, the idea of combining medical treatment with a vacation may sound a bit odd, but with medical tourism companies like Dr. Holiday out there to build itineraries around medical appointments, it can be a convenient and cost efficient option.
The simple truth is, people need affordable, quality medical treatment, and the idea of recuperating in a tropical paradise like Costa Rica often tips the scales.
So what makes Costa Rica the right choice?
To begin with, Costa Rica is in close proximity to the United States, immediately giving them an edge over Asian and South American countries. And to top it off, U.S. citizens don’t even need a visa to enter.
While the idea of leaving your home and jetting off to a foreign destination to receive medical treatment may sound daunting, according to Promed, Costa Rica has one of the best public health systems on the American continent. If you choose to receive treatment in Costa Rica, you can rest assured that you will be treated by certified professionals working in an internationally accredited hospital like the Clinica Biblica Hospital in Costa Rica’s capital, San Jose.
The Clinica Biblica Hospital was the first facility in the region to receive Joint Commission International Accreditation, which is a set of standards designed by a group of global health care professionals. And to accommodate foreign patients, many establishments, including the Clinica Biblica Hospital, have international departments that offer visitors concierge services like accommodation information and sightseeing tours.
While it is true that some American doctors try to discourage medical tourism, saying that the quality of treatment and follow-up care might not be as good as back home, the standard of care in the private sector of Costa Rica is considered high by both the medical community and past patients.
What medical treatments are available?
The health care professionals in Costa Rica offer numerous treatments at much lower rates, treatments like:
- Plastic surgery
- Dermatology
- Gastric bypass surgery
- Neurology
- Orthopedics
- Cardiology
- Ear, eye and throat care, and
- high risk pregnancy
But currently, one of the most in demand medical tourist procedures in Costa Rica is dental care.
Dental care in Costa Rica
Massimo Manzi, the Director at Promed, estimated that 40,000 medical tourists came to Costa Rica in 2011, and of those 40,000, around 15,000 came seeking dental treatment.
Again, this is mainly cost related, and since, according to Biotech Business Week, 45% of American’s don’t have dental insurance, it should come as no surprise that they are searching for alternative options.
Receiving dental care in Costa Rica will cost 30-40% less than in the United States (Deloitte Center for Health Solutions). So for many, the choice is quite simple; they can spend a large amount of money getting a crown back home, or they can take a medical vacation to Costa Rica, get the crown for less, and then spend a few extra days relaxing on the beach.
Medical tourism might not be for everyone, but it’s a serious option that many people are choosing to try. So if you are in need of medical or dental treatment and you expect the bill to be overwhelming, do your research, pack your bags, and get the medical/dental attention you need as you take a little vacation to gorgeous Costa Rica.
photo by Nick Chik
If you’re a would-be expat who’s searching, not for a promise of what a tropical destination could be, but for the world-class lifestyle it delivers today…look no further than the beaches of Puerto Vallarta, Mexico.
This popular retirement haven and tourist hotspot already has almost every luxury for which the other destinations yearn. At only a slightly higher price tag. Recently named one of the top overseas retirement options by the longtime former editor of International Living, Puerto Vallarta was also named AARP’s best place to retire internationally and was dubbed the world’s friendliest city by Conde Nast Magazine.
Puerto Vallarta’s Location
Puerto Vallarta lies on Mexico’s Pacific Coast at the junction of the states of Nayarit and Jalisco. Situated in Banderas Bay, the region is divided by the River Cuale. It sits at the foot of the Sierra Madres, so as you move inland its pristine beaches give way to quaint hillside villages.
The area shares the same latitude as the Hawaiian islands and enjoys an almost perfect climate. It’s mostly dry and sunny year round, with temperatures ranging from 80 to 85 degrees by day, which drop to between 55 and 65 degrees at night. Summers (roughly June to October) are hotter and more humid.
Another important factor to note about Puerto Vallarta’s location is that it is comfortably removed from most of the more dangerous cities in Mexico, many of which are in close proximity to the U.S. border and whose crime rates and drug trafficking are well documented by U.S. news sources.
Accessibility
A more appealing aspect of Mexico’s proximity to the U.S. is the ease of access for those who wish to make it their retirement destination. Not only could you inexpensively travel back and forth as needed, but you’d have no trouble convincing friends and family back home to come and visit.
Now given the fact that Puerto Vallarta offers the same or better amenities than many desirable U.S. cities, you might have some difficulty getting them to leave. Luckily you won’t have to go far to drop them off at the city’s own international airport, which has direct flights to many major cities across the U.S.
Development
While the climate and accessibility of Puerto Vallarta are great, they’re not what sets this desirable retirement destination apart from the rest. Unlike many similar tropical locations, this region does not claim to be up-and-coming. Puerto Vallarta, by contrast, has already arrived.
Thanks to decades of investment into the area by developers, as well as the Mexican government itself, the area boasts a highly developed infrastructure and many modern amenities. Its paved roads, power plants, high-speed internet, water treatment and distribution facilities, cable television and other features easily rival that of any U.S. city.
In addition, the area offers quality healthcare, including modern hospitals, highly-trained English-speaking physicians, and even those practicing alternative healing methods.
photo by risket O
Puerto Vallarta’s Cost of Living
So, exactly what is the price tag on this piece of Latin American paradise? You might be surprised to find out that you can get by on a mere $2000 per month in Puerto Vallarta and that decent housing can be found for as little as $700 monthly.
While this is still higher than the cost of living in nearby Panama, and certainly more than that of countries like affordable Ecuador, it’s considerably less than its U.S. counterparts. By comparison, this is a far cry from what you would pay for the same lifestyle in any U.S. city situated on the picturesque Pacific Coast.
Activities and Amenities
Essentially it isn’t the cost that should be compared to other retirement cities in Latin America. It’s the amenities. Few other places offer the same number of dining, entertainment, and other leisure options.
For instance, it would be absurd to imagine renting a boat slip in a California bay for as little as $100 per month. In addition to the high level of infrastructure and other conveniences, Puerto Vallarta boasts a wealth of options for your amusement.
With seven golf courses, numerous marinas, world-class dining, shopping malls, beachside restaurants and nightlife, there’s no shortage of things to do.
Due to its location, the region offers activities such as hiking, zip lining, horseback riding, and other attractions. Also available are opportunities for absolutely anything you ever wanted to do in the water. From snorkeling to surfing to fishing to boating to scuba diving…Puerto Vallarta has it all. Due to the established expat community, the area also has numerous cultural attractions such as museums, theaters, and festivals.
Puerto Vallarta’s Expat Community
Speaking of expats, Puerto Vallarta has its share. More American retirees relocate to Mexico than any other country. The influx of U.S. retirees has rendered the need for Spanish almost useless in Puerto Vallarta. In addition, the country, and Puerto Vallarta specifically, is also home to expats from nations across the globe.
The area is a melting pot of cultures, and has greatly benefited from their influence. Those who have gone before have only paved the way for the hosts of expats that are to come. For that, we thank them.
Do you want to explore the world and telecommute? Can you work from your laptop? If so, here are 9 awesome places where you should be doing it.
1. Matapalo, Osa, Costa Rica
Watch Scarlett Macaws fly by as you talk to your friends back home in their cubicle.
Photo Credit: Photography critiques
2. Lake Yojoa, Honduras
Sip some of the world’s best coffee while updating your cloud files.
Photo Credit: aaronernestoortizlopez
3. Barra de la Cruz, Mexico
Check your emails between swells.
Photo Credit: Acer Acera
4. Boca Chica Island, Panama
Kick your feet up in a glass house, watch the monkeys hop from tree to tree while on your next conference call.
Photo Credit: Emerging Terrains
5. San Juan del Sur, Nicaragua
Watch the sun set, while your friends are stuck in traffic.
Photo Credit: Sean9141
6. Playa Las Flores, El Salvador
Turn casual Friday attire into beach attire: flip-flops are mandatory.
Photo Credit: AdventuraCuscatleca
7. Caye Caulker, Belize
Trade in your windowless cubicle for the word’s best vista.
Photo Credit: Mukster
8. Playa Canoa, Ecuador
Dine on freshly caught fish at your next business dinner at Canoa Ecuador.
Photo Credit: Read George
9. Lake Atitlan, Guatemala
Click send, then hit the water for some kayaking.
Photo Credit: Mike Sten
Got any better places to telecommute? Let us know in the comments.
Intransit.tv takes us on a video tour of Nicaragua’s second colonial city, Leon. Join in with the locals who are hosting the city’s colonial rival, Granada, in a baseball match and enjoy some authentic Nicaraguan food with our video guide, Peter.
Leon, Nicaragua is the second largest city in Nicaragua. And after Granada, which is better preserved, León has the best colonial architecture in Nicaragua.
Visiting here means you are relatively on your own. There will be the sporadic backpacker here and there, and as of late, tour groups have taken to visiting as well, but this is still a university town, and off the beaten tourist route.
The Ecuador 3 Count, where we bring you 3 Ecuador stories that you shouldn’t miss.
Photo Credit: Rinaldo Wurglitsch
1. Why Are You Waiting? 4 Fantastic Reasons Why Now Is the Time to Invest
First Up: Not so long ago, you would have been nuts to invest in Ecuador. Socialistic leader Rafael Correa has just secured another 4 year term and vows to keep at his “citizen revolution”, which so far, is unfavorable for Western investors. Foreign direct investment now stands at less than 1% of GDP – but there are reasons to consider Ecuador for investment. We’ve listed the top 4 reasons to take the leap and invest in Ecuador.
2. Why Haven’t You Checked Out Cotacachi?
Next Up: One reason for Ecuador’s popularity with the retired gringo set is the climate. Many move to Cuenca and Quito, but there are also the spectacular Ecuadorean Andes. As expat Susan Haskens found, not only is Ecuador budget-friendly, it also comes with spectacular views.
3. Here’s Why Alice Traded in Cleveland for Cuenca
When Alice Goers decided to retire she know it would be beyond Cleveland, Ohio. Moving overseas was something else entirely, an idea that, when she began planning for her retirement, didn’t even occur. Alice made a list of all the things that were important to her in retirement, and then she began researching everything she could on the idea of retiring to a new country where she might find those things. She found it all in Cuenca, Ecuador.
Panama has long been an attractive destination for expats of all ages, with its favorable residency requirements and unmatched retiree benefits. But if you were thinking you had a few more years to slave away in a cubicle and a few more dollars to save before you could make your move to this Central American haven…
Think again.
In a recent executive decree, Panama’s President Ricardo Martinelli signed into effect a new visa option for those who want to escape the ever-tightening choke hold of the American government, but aren’t quite yet able to get by on their current retirement savings… Retiring to Panama Just Got Easier!
What’s different about Panama’s new visa?
The new visa, called the Immediate Permanent Residency visa, gives instant residency status to those who wish to engage in professional and economic activities, start a business, or get a job in Panama. This is in contrast to options such as the pensioner’s visa that explicitly prevents retirees from taking jobs away from Panamanians.Also different are the solvency requirements. Instead of an investment of anywhere from $60,000-$300,000, the new visa requires a mere $5,000 in a Panamanian bank account. Another benefit is the option of obtaining citizenship after five years in the country, something that isn’t offered at all by many of the other visas.These are all perks that can benefit retirees as well. It gives them the opportunity to work if they want (or if they can’t afford not to), and it basically serves as a fast pass that sends them directly to the head of what was once a long line of steps toward immigration.
What prompted the President’s decree?
Over the years Panama’s government has implemented a number of incentives that have made the country an extremely attractive place to do business. As a result, its economy has been growing at a tremendous rate, experiencing a whopping 10.6% increase in 2011 alone. This, coupled with an unemployment rate of only 4.5%, has led to a shortage of educated, trained, English-speaking workers.
The government recognizes that the long-term solution is, of course, education. They have already begun to pour millions into the country’s education system. But for the meantime the best way to find qualified labor is to import it. They’re looking specifically for “workers in growth sectors such as logistics, tourism, banking, and those making Panama a regional hub for multinational companies,” explained Minister of the Presidency Demetrio Papadimitriu.
What would it be like to work or own a business in Panama?
Panama’s business community is heavily English-speaking, recognizes the U.S. dollar as its official currency (alongside the balboa), and bears an awful lot of other similarities to the States. Well, on the surface at least. Panama’s laws are much more favorable to investors and businesses. There are fewer restrictions on banks and corporations and much greater financial privacy. The country is home to several large duty-free zones, and personal taxes are reasonable as well, with none levied on income earned outside of the country.
Who qualifies for the new visa?
The new visa is available to those who hold a passport from one of 47 specific countries (currently, as the number has increased several times since the initial decree) “that maintain friendly, professional, economic, and investment relationships with the Republic of Panama,” including the U.S. and Canada. A full list is included below. Also eligible are applicants’ dependent spouses, children under 18 (or between 18 and 25 if they’re students), dependent parents, and family members with disabilities.
In order to qualify, applicants need $5,000 in a Panamanian bank (plus $2,000 for each dependent) and one of the following: evidence of investment in Panamanian real estate, proof of ownership in a Panamanian business or corporation, or a letter and contract of employment from Panamanian company. Throw in a clean police record and a passport, and you’re well on your way to personal and financial freedom.
What are the first steps towards obtaining immediate residency?
Because the employment requirements must be met before the application can be completed, you should probably start there. You’ll need a work permit, which is issued by the Ministry of Labor. The next step is finding a job or setting up a corporation, which is not a very difficult or expensive process in Panama. However, since several government entities are involved and the paperwork is all in Spanish, it wouldn’t be a bad idea to hire a competent attorney to assist you with the whole process.
What are the “specific countries” that are recognized by the decree?
Alphabetically, the 47 countries are Andorra, Argentina, Australia, Austria, Brazil, Belgium, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Finland, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Norway, Malta, Monaco, Montenegro, Netherlands, New Zealand, Poland, Portugal, San Marino, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Switzerland, Sweden, Taiwan, United Kingdom, United States, and Uruguay.
Costa Rica’s forests cover less than 0.03% of the Earth’s surface, yet it contains nearly 5% of the planet’s plant and animal species. Clearly this tiny country is an incredible place to experience our planet at its most abundant!
1. Ballena National Marine Park – Puntarenas, Central Pacific Region
This unique park is along one of the more remote stretches of Costa Rica’s coastline, on the southern end of the Central Pacific region, and encompasses several beaches. The park gets its Spanish name for a peculiar sandbar formation at Playa Uvita beach that goes straight out toward the ocean before splitting and curving in two directions, much like a whale’s tale.
Photo Credit: David Herskovits
2. Palo Verde National Park – Guanacaste, Pacific Coast Region
This is an undiscovered jewel in the Costa Rican park system. The animal population is spectacular. The trail system leaves something to be desired, but this certainly means fewer crowds, and there are a number of areas that can be explored by boat.
Photo Credit: Rod David
3. Caño Negro Wildlife Refuge – Alajuela, Costa Rica – Nicaraguan Border
Nature cruises through these wetlands are quite popular, but don’t worry, there are thousands of acres to explore. A boat trip here or in Tortuguero, or Damas estuary is certainly the easiest and maybe the best way to see a lot of wildlife on your visit to Costa Rica.
Photo Credit: David Berkowitz
4. Manuel Antonio National Park – Quepos, Pacific Coast Region
For a tame, up-close glimpse of the rain forest and some of its more photogenic inhabitants, Manuel Antonio National Park is a favorite. Located on the central Pacific coast, Manuel Antonio is one of Costa Rica’s most visited—and smallest—national parks.
Photo Credit: Emmanuelle Bourgue
5. Monteverde Cloud Forest and Biological Reserve – Monteverde, Cordillera de Tilarán Mountain Range
Costa Rica’s most famous cloud forest reserve is packed with an astonishing variety of life: 2,500 plant species, 400 species of birds, 500 types of butterflies, and more than 100 different mammals have been catalogued so far.
Photo Credit: Jardín Botánico Nacional
Let us know where you get up-close-and-personal with nature in Costa Rica.
What could be better than taking a trip to the gorgeous tropics of Central America? How about making the trip affordable?
Due to the booming tourism industry, this may seem easier said than done, and unfortunately, many once budget-friendly destinations, are no longer so. But that doesn’t mean it’s not possible.
Each year tourists from around the world come to experience the tropical climate, Latin culture and exotic beauty of Central America, but many don’t realize that it can be done on a budget.
Costa Rica, Panama, Nicaragua, and El Salvador are four popular Central American countries that can be truly experienced without breaking the bank in the process.
First Stop, Costa Rica
The most popular tourist destination on the list, and arguably the most tourist friendly, Costa Rica can tend to be a bit pricey But don’t worry, there are ways to keep your costs down.
In big cities like San Jose, prices will typically be higher, so hop on a bus and head for one of the smaller beach towns. A five hour direct bus to a town like Santa Theresa will cost you around ten dollars.
Remember to exchange your money into the local currency colones, as usually only expensive items/places accept American money. Seek out cheap accommodations at a hostel (around ten dollars) and start exploring the beauty of Costa Rica.
On to Panama
Photo: Martha de Jong
Although the tourism industry here is not quite as developed as their northern neighbor Costa Rica, Panama is just as beautiful and the prices are often lower. Again, buses will be the cheapest mode of transportation and hostels your best bet for reasonably priced accommodations (around twelve dollars for a bed). As a perk, many hostels will have communal kitchens, so take advantage of the local market and cut another cost by cooking your own meals. If cooking on vacation isn’t for you, try to avoid restaurants aimed at tourists and instead look for street stalls and small cafes.
Next It’s Nicaragua
Photo: McMallan
Just north of Costa Rica, Nicaragua, known as the land of lakes and volcanoes, is cheaper and attracts a lot less tourists. In fact, you can catch a bus from Costa Rica to Nicaragua for just a few dollars, but remember, you will have to pay a fee of seven or eight dollars to get into the country. Once you are in Nicaragua, exchange your money into córdoba’s and head for small towns like El Trasito, Popoyo and Playa Maderas to soak up the sun and experience the amazing surf. If you visit Isla de Ometepe, be sure to hike up the double-volcano nestled in a lake filled with fresh water sharks, or you can try remote Little Corn Island for cheap kayaking and snorkeling.
Last Stop – El Salvador
Photo: Amber and Bryan via flickr
While El Salvador may not be as popular a tourist destination as the others, most who visit are pleasantly surprised. The people are friendly and welcoming and there are many wonderful, and cost efficient things to enjoy, like taking a trip to the beach town of El Tunco just an hour from the capital San Salvador. Yes the food is a little pricey, but the hostels are cheap and the surfing and swimming is unbeatable. Explore San Salvador on a five dollar bike tour that takes place every Thursday night, or take a leisurely stroll around the city to check out the politically-charged street art.
Ready to go? Remember these tips:
- Take advantage of local transit. While bus rides may be longer, the cost is substantially less.
- Eat like a local. Avoid tourist-targeted restaurants and look for low-key local spots.
- Make the most of happy hour.
- Visit “free” national parks for hiking and observing nature and wildlife.
- Stay in a hostel. Typically group and private rooms are offered.
- Surf and swim – it’s free!
It’s a common misconception to think that a good holiday means an expensive holiday. Cliché but true, the best things in life are free, especially when you are somewhere as beautiful as Central America. The sun, the mountains, the beaches, the surfing, it’s all free and all unforgettable. If you are not overly concerned with five star transport and accommodation, Costa Rica, Panama, Nicaragua, and El Salvador can all be yours at a reasonable cost. So do your research, book your plane ticket and get ready to discover the wonders of Central America without putting a dent in your wallet.
Guatemala 3 Count, where we bring you 3 stories that you shouldn’t miss.
San Lucas, Guatemala tranquil yet growing quickly.
1. This Booming Location in Guatemala Might Surprise You
First up: San Lucas, Guatemala is booming, despite being one of the smallest municipalities in the nation. With a record number of housing developments fueled by its ideal weather conditions, abundant water, and situated on the Inter-American highway it has quickly grown into an attractive location not to just live, but also start a business.
2. Get Beyond Guatemala City (2 Secret Places Expats Should See)
Next up: Guatemala City is a chaotic home to 3.2 million people, and with a high crime rate, this is not a place that lures tourists. Instead head outside the city and go for the mountain highland town of Chichicastenango and the Mayan ruins of Tikal, the country’s best-known former Maya city.
3. How Guatemala is Carving Out a Utopia Lifestyle
Finally: The main street of Paseo Cayala, a nearly independent city on the edges of Guatemala City is a new start for a nation riddled by violence and crime. In this area the backers of Cayala hope to build Guatemala’s private city, targeting elites looking to escape crime and enjoy an unusual degree of autonomy from the chaotic capital.
Does the thought of becoming an Expat scare you? Here are nine tips on helping you make a smooth transition into life abroad.
1. Be Certain About Your Move
Moving is stressful. Go for the right reasons. If possible, visit the country before you make up your mind and most importantly, make your OWN opinions.
2. Will Your Benefits Follow You?
If this is a corporate move you might luck out and be eligible for relocation benefits. Ask, it’s worth knowing. If you are on Social Security, check with the embassy, the more information before the move, the more comfortable you will feel.
3. Make a Budget
Taking the time to make a budget is sometimes the difference between a successful relocation and a disaster. Before you go, find out what you can expect as your new cost of living…budget for the unexpected!
4. Insurance – What Type and Where?
Take the time and prearrange for the appropriate insurance (such as health, life, and travel) for yourself and your family. Find out what type of health care options, even insurance, and infrastructure are available to support you, especially if you suffer from a medical condition that requires treatment or medication.
5. Banking – Here or There?
More than likely you will need to open a bank account in your new country – look for information on the one that suits you best. Bring reference letters from your bank at home. Is it wise to keep your current account open? Most likely yes; do your homework and find out what foreign transaction fees you might incur. At the very least, you’ll need to tell your current bank that you’re moving.
6. Can I Take My Credit Cards?
Your credit card companies will need to be informed you’re moving; it is wise to also see if the cards you hold are widely accepted.
7. Will You Need to Exchange Currency?
When moving abroad you might not be using the same currency as your homeland. Therefore, even a 5 per cent shift in the exchange rate can make a huge difference in how far your money stretches. There are websites which can help, checkout www.x-rates.com and select the currencies. It provides historic information and you will know whether your exchange rate is good – and whether to wait a few more days before you run to the bank.
8. Yes, There Is Paperwork
Use this rule: if you might need it, take it. No matter how insignificant a document seems, it’s better to have it on hand, than be without. Chances are, at some point, you’ll have to show it to someone. Important documents you will want to think about include: birth certificates, police reports (often needed for immigration processing) wedding certificates, educational certificates, and medical certificates (including those for your pets).
9. Go Ahead, Make Friends!
Friends are like a security blanket, whether locals or fellow expats, nothing will help you feel more at ease than being able to rely on the assistance of your friends when you need it. Socializing is not time wasted, it’s what makes a new country feel like home. Picking up and moving to a new country can be both a bureaucratic and emotional nightmare at the best of times, but if you are prepared, you stand a good chance of a stress-free relocation.