Knights Bridge
Expat and real estate developer Park Wilson talks about the best Panama visa and residency options and why they’re the main ones he’d recommend to someone wanting to relocate to Panama.
Park: I’ve been an expat in Panama for about 6 years now, and one of the questions I get asked a lot is which visa is the best for other expats to pursue. Obviously, this can vary from one individual to the next, based on their specific needs. But, from my own experience and from talking to tons of other expats who have gone through the process, I could easily narrow it down to two that I think make the most sense and the non-option that has made the most sense for me.
The Pensionado Visa. And the one for Nationals of Specific Countries (NSC).
They both have their pros and cons, but in my opinion these two have the best benefits and require the least amount of effort. Here’s a little more information, including the pros and cons of each.
Pensionado Visa
The Pensionado Visa is an option designed for pensioners of all ages and comes complete with a neat little bundle of discounts and advantages for its recipients. You’ll have to jump through a few extra hoops to qualify, but the end result can really be worth it. Here’s the skinny on this visa.
Qualifications
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Monthly income of $1,000 for life from a guaranteed source such as a pension or annuity
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Or income of $750 per month and a $100,000 minimum investment in Panamanian real estate
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An additional $250 monthly income for each dependent child
Benefits
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50% off on recreation and entertainment such as movies, theaters, sports, etc.
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50% off hotels Monday through Thursday (30% off on weekends)
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50% off passports
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30% off public transportation like buses, trains, and boats
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25% off airfare
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25% off restaurants (15% off fast food)
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25% off electrical, telephone, and water service
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20% off doctors and specialists
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20% off prosthetics and other personal assistance devices
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15% off hospitals and private clinics
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15% off dental and optometry services
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10% off prescription medications
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tax-free importation of household goods, up to $10,000
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tax-free importation of a vehicle, or tax-free purchase of a local vehicle, every 2 years
The Pensionado visa also allows expats to obtain a cedula, Panama’s national identification card. It also makes them eligible for permanent residency, but not citizenship.
Some Drawbacks
While most would say it’s worth it, the Pensionado visa can be a lot of trouble to obtain. And not everyone gets it. The process takes about 6 months and requires a hefty amount of paperwork and may require you to continue to prove solvency.
Another problem is that the Pensionado visa restricts you from having a job. You can own a business that you operate, but otherwise Panama historically frowns on foreigners coming in and taking jobs away from Panamanians. So, if you don’t want the hassle or if you plan to seek outside employment, the Pensionado visa may not be the one for you.
No worries. You’ll get to enjoy most of the same discounts anyway once you reach retirement age.
Nationals of Specific Countries Visa
The other visa that I would highly recommend is one that was recently made possible in order to attract much-needed skilled labor to accommodate Panama’s growing economy. It’s quick, painless, and fairly easy to qualify. And it has the added benefit of allowing you to hold a job or start a business. It’s required in fact. Here are the qualifications for the visa offered to nationals of specific countries (NSC):
Qualifications
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$5,000 in a Panamanian bank (plus an additional $2,000 for each dependent)
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One of the following:
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evidence of investment in Panamanian real estate
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proof of ownership in a Panamanian business or corporation
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or a letter and contract of employment from a Panamanian company
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Oh, and one more thing. You have to be coming from one of these 47 countries “that maintain friendly, professional, economic, and investment relationships with the Republic of Panama”:
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, or Uruguay.
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.
Benefits
The NSC visa doesn’t have any discounts or other monetary perks like the Pensionado. Its main attractive feature is that it gives you the freedom to work, and requires a very minimal investment.
Another perk is that, because the need for workers is great, Panama’s current administration is really cranking these visas out fast. And, it’s immediate permanent residency. No renewals. No waiting. Recipients can also apply for citizenship after 5 years, something that isn’t possible with a lot of visas.
That’s why a lot of folks are calling this one the “fast track” visa. It’s great for young entrepreneurs who might not otherwise be able to afford to make such a move.
Some Drawbacks
I really can’t think of a negative thing to say about this visa. Other than the fact that it isn’t right for someone who doesn’t have the $5,000 investment or doesn’t want to have to work. Other than that, it’s a great opportunity for ambitious would-be expats.
The Non-Visa Option
Another option, or you could call it a non-option, is not to apply for any visa at all. This is actually what I’ve been doing, and it has worked out quite well. You see, U.S. citizens are automatically given a 6-month visa upon entering Panama. And there’s no limit to the number of times you can be granted this visa.
So, because I live so close to Costa Rica, it’s really no trouble at all for me to hop over the border, stay for a few days, and then head back to Panama where I get another 6-month visa. This option is fairly common. I know a lot of people who do it.
Bottom Line
If you have the guaranteed income and are ready to enjoy a retirement lifestyle, go with the Pensionado visa. The benefits are worth it. If you have less of an initial investment and want to build a business or career in a place that better rewards your efforts, the specific countries visa is your ticket.
Then again, if you don’t mind some occasional travel, then don’t get a visa at all. There are plenty of options, or non-options, available. Find the one that’s right for you.
Sometimes the real estate market in countries like Panama appears to be flat out insane.
Prices don’t make sense. Some places that hardly have any infrastructure have expensive land. How in the world do you move forward with any rational decision in a market like that?
These are the questions that led us to come up with our work on the stages of land development in Central America. If you don’t yet understand this concept, you are playing with fire when evaluating whether or not you are getting a “good deal.”
Good, now that you understand the concept of Market stages, how do you apply it to Panama?
Start by using this map as a starting point to learn the stages of the different areas in Panama.
Is it an exact model of the country? No. Is it accurate enough to help you make smarter decisions. Absolutely.
P.S. Here is a bigger version of the map.
Click for Larger Version
If you’re considering buying property in Latin America, it’s easy to see why Panama would be at the top of your list. With affordable real estate, loads of investment incentives, and favorable tax laws, it’s a great place to live and invest.
But, while narrowing your search down to Panama is easy, what comes next is much harder. With such variation among its various cities, the task of deciding EXACTLY where to buy property can be daunting, especially as an outsider.
Use this map to learn the names of the areas where expats live in Panama and narrow your search.
Click for Larger Version
Magellan Missed Out on the True Peaceful Sea
History tells us when Magellan began his search across the Atlantic Ocean for a trade route to the Spice Islands by going around South America, he became impressed with the large, peaceful body of water he encountered on the other side, naming it the Pacific. With Portuguese Brazil his first landing point, Magellan didn’t really know the Riviera Maya Mexico on the Caribbean.
The impression you receive when gazing at the Caribbean for the first time is that this incredible sea is like blue glass. The warm waves barely nibble at the shore making it seem more like an unbounded lake than an ocean body.
The Caribbean’s Natural Shelter
The Caribbean owes its placid nature to the Great Mesoamerican Reef, which shelters the mainland coasts from most storms. This reef system begins at the tip of the Yucatan Peninsula, and extends down to the Bay Islands of Honduras. The Great Mesoamerican Reef is the home to more than 65 species of stony coral, as well as over 500 species of fish and 350 species of mollusk. The vigorous bio-diversity includes the world’s largest group of manatees, as well as a number of endangered or protected species.
About the Riviera Maya Mexico
Originally called the Cancun-Tulum corridor, the Riviera Maya Mexico snuggles along the coastline of Quintana Roo, in the Yucatan Peninsula, where it basks in the uninterrupted miles of glittering white sand beaches, an amazing bio-diversity, and exposure to an ancient, technically advanced civilization.
The Riviera Maya Mexico has something for everyone. It is a favorite area for scuba diving, jet skiing, and snorkeling. For the adventurer, there are more serious pursuits.
Natural Wonders of Aktun Chen
Deep in the rain forest of the Riviera Maya Mexico, close to Tulum, is the incredible natural park, “Aktun Chen”. The Mayan name means cave with an underground river inside. There are three cenote caves at the park, with million year old stalagmites and stalactites and crystal clear water pools. For wildlife lovers, there are spider monkeys, white tail deer, wild boars, iguanas and flocks of brightly colored birds.
Cenotes, which are naturally forming sink holes, sometimes containing water, sometimes not, are found throughout the Riviera Maya Mexico. The Yucatan Peninsula is flat; so flat, it sometimes appears the only separation between land and water is the color and the towering palm trees. This creates an absence in surface rivers. They sink underground, revealing their presence only in the swirling holes dotting the landscape. Cavers have discovered a thrilling adventure in descending into the dry cenotes, that usually contain a sparkling pool of water at the bottom, delicious for swimming and for examining further underground pieces of paradise in the tunnels cut by the rivers.
Archeological Flavor
While sun-bathing on the beach is delicious, the biggest tourist attraction in the Riviera Maya Mexico is the Mayan ruins. Its ancient architecture rivals the best in Mediterranean history, stunning the viewer with its mastery of building and design, its astonishing understanding of hydraulics, its exquisite art and the massiveness of its enterprise.
Although a huge number of the Mayan ruins are still covered with growth, making it difficult to comprehend the full system of canals, roads, observatories, business and social establishments, an appreciation of their elaborate civilization can be found at Chichen Itza.
The Temple of the Jaguar
Located close to Merida, but within a day’s drive of Cancun, Chichen Itza is one of the most popular tourist destinations. The excavation site measures a mile from west to east, and approximately a mile and a half from north to south, revealing a number of buildings, some pyramids, temples, and an observatory.
Reaching the flattened summit of The Castle, a pyramid 75 feet tall, is a labor of love. At the top is a temple. In the middle of the temple is a jaguar, painted red and gleaming with inlaid jade and turquoise. Perhaps it’s just the cool shade from the sun, but you feel suddenly transformed to another dimension. The little jaguar, staring brightly, seems real, and his quizzical look seems to ask why you entered his domain.
The Highly Advanced City of Coba
The tallest pyramid in Riviera Maya Mexico resides in Coba. Reaching over 125 feet in height, a hike to the top reveals dozens of structures still moldering under jungle growth and the accumulation of sand and earth brought by the winds of time.
The most remarkable aspect about the area, however, is the remnants of a road system that had once covered the entire Yucatan Peninsula. The roads were raised, ran in a straight line, and included ramps and intersections.
The Castle by the Sea
A visit to the Riviera Maya Mexico ruins really isn’t complete without dropping into Tulum. Completed in 1,200 A.D., Tulum was a busy port and trading center during the Post Classic period. The greatest appreciation lies in the beauty of the architecture. Set precisely on the coastline, with the sea rolling close to its walls, it creates both a romantic and strategic setting. The Castillo, built on the highest point of the site, is believed to have been a lighthouse or a marker for seafarers. It has a watch tower vantage point, with views in every direction.
Life at Its Fullest
The traveler to the Riviera Maya Mexico is as versatile as the many natural wonders and modern services the Yucatan Peninsula has to offer. You’ll find anthropologists and biologists rubbing shoulders with adventure seekers, naturalists, cavers and scuba divers. For the more social, there are dazzling night spots, cozy beach clubs, and broad avenues filled with shops and restaurants.
A final touch to add to the Riviera Maya Mexico experience is visiting a spa. Located throughout the region, the Mayan spa has become a favorite destination among travelers. As much a cultural experience as a treatment, the temazcal – or house of steam – incorporates a shaman, ritual chanting and herbal remedies. The treatment may involve covering yourself with mud to help draw out the toxins. The benefits are said to include ridding toxins, cleaning the nervous system, relaxing muscles, reducing fat and stimulating the digestive and respiratory systems.
The Unforgettable Appeal
With a coastline like no other and an egg-shell sea in front of it, those features alone are enough to set up lawn chairs all over the Yucatan Peninsula. The wild bio-diversity that includes rain forest and cenotes, the open plain feeling, are the bonus features, adding dimension and versatility to the region. The ruins give silent testimony to the fact that at least two thousand years ago, a people saw the potential of this equatorial zone. They built a civilization with technologies we are only just now beginning to understand and appreciate for their precision and functional applications. Although remnants of this civilization are scattered throughout Central America, none so far have been found quite as spectacular as the giant pyramids and elaborate city hubs on the Riviera Maya Mexico.
BattenKill Canoe
Retirement used to mean that your best days were behind you. The word itself conjures up images of senior citizens gathering for breakfast every morning at the same local cafe or meeting up for their weekly game of bridge.
Retirees were those who had resigned themselves to their fixed income and holed up at home to live out the rest of their days in peace. The more well-to-do might spend a month or an entire season in Florida in a mobile home park, or maybe even a condominium. But most just counted down the days until they got put in a home and lost their last final shred of dignity.
Those days are over.
Today’s retirees are not content to waste away playing checkers and reading their AARP magazine. They’re adventuresome, fearless, and all the more vivacious because of the gusto with which they’re approaching their retirement years.
For many, retirement means something very different these days than it did even a decade ago. Those uneventful, sedentary lifestyles are being replaced with travel, exploration, and sometimes even a new start in another context.
Retirees are traveling and moving overseas more than ever before.
Travel among retirees is at an all-time high. The travel industry has recognized this demographic as a vital segment of their customer base and has begun catering to the mature traveler.
And the travel itself even looks different. Today’s retirees are less likely to spend their vacation on a crowded tour bus being shuttled from one city to the next. Many are taking a more DIY approach, planning their own adventures and steering clear of the more cookie-cutter travel experiences.
Since much of the current retired generation has traveled extensively during their working years, many are now targeting locations that are a little farther off the beaten path. If they traveled to a well-known European city years ago, they may decide to visit its lesser-traveled neighbor when they return. Multi-generational travel has also grown in popularity, as many retirees want to see the world with their children and grandchildren in tow.
In addition to their short-term travel, more Americans than ever are retiring overseas. It’s unclear just how many, but a reported 350,000 Americans receive their Social Security checks in countries outside the U.S. And in a recent study by Travel Market Report, an estimated 3.3 million baby boomers plan to retire abroad.
So what’s causing this trend among current retirees?
Maybe they’re born with it.
Americans who are currently entering retirement age are part of the “baby boom” generation, which includes those born between the years of 1946 (following the end of World War II) and 1964, when more babies were born than in any previous period in history.
While there are a number of suggestions as to why this boom occurred, many speculate that it was the result of a spirit of anticipation of future comfort and prosperity that led postwar families to want to have more children. Young couples in those days desired something better than their Depression-era parents had, and they wanted their children to have an even better life than they themselves planned to enjoy.
No doubt baby boomers came into this world with an inborn sense of optimism and an inherent drive to surpass all expectations. And this characteristic is evident in their travel and retirement decisions. Today’s retirees have a spirit that is not afraid.
Could it be a culturally-driven thirst for adventure?
In today’s world, it seems like everyone has a “bucket list.” A mental inventory, or maybe even one they’ve put down on paper, of all the things they want to do before their time is up. Add to this the fact that nearly every prime time network has a whole lineup of reality television shows set in remote destinations and featuring a slew of death-defying challenges and adventures.
There are travel magazines, travel-themed TV shows, and even entire networks tailored to those who have a desire to see the world and experience other cultures. As a result, retiring baby boomers are more aware than ever of the options that are available to satisfy their wanderlust.
Cross-country RV trips to the Grand Canyon are being replaced with 14-day cruises to Grand Cayman. And instead of weekend trips to Florida with the family, they’re heading to Peru to hike Machu Picchu with their kids and grandkids. And they’re hanging in there with the spryest of them.
Maybe it’s the calm and contentment.
As people age, studies show that their enjoyment comes less and less from the anticipation of some future event and more so from relishing the here and now. And many retirees feel like traveling to or living in another country can greatly affect their enjoyment of their current state.
For many, it means spending time outdoors and enjoying the serenity and peacefulness that nature has to offer. This may be why so many of today’s retirees choose to visit or relocate to areas with milder climates and undisturbed natural habitats.
Spending time in another location better enables retirees to avoid common stressors, like political dissatisfaction or financial worries. The absence of stress has been proven to improve health and decrease one’s risk of illness, particularly heart disease.
For this reason, many retirees are embracing the possibility of enjoying a stress-free lifestyle in those all-important latter years. Many are finding this decision to be hugely beneficial.
Or is a lack of money prompting baby boomers to retire overseas?
Still another possible reason today’s retirees may be choosing to travel and especially live overseas is the fact that they can enjoy a much lower cost of living, without sacrificing any of their quality of life.
Living in the States these days is not cheap, especially for those in retirement. The recent global financial crisis did quite a number on the pocketbooks of many American families. Many suffered severe hits to their 401k’s (an average of 18 years worth of gains). Home prices also fell 23% from 2007 to 2010.
Not everything is down, though. On the contrary, taxes have never been higher. And the average 65-year-old couple will pay $240,000 in out-of-pocket medical expenses over the rest of their lifetime, versus $160,000 a decade ago.
It’s no wonder that, in a recent Retirement Confidence Survey conducted by the Employee Benefit Research Institute, only 14% of employees were “very confident” they’d have enough money to live comfortably in retirement.
As many retirees are learning, this comfortable retirement can much more easily be found overseas. Housing costs are much lower than the U.S. average. Good health care, often as good as can be found in the U.S., can be obtained for a fraction of the cost.
Expats can often enjoy a pedestrian lifestyle, buy fresh produce from local markets, and enjoy excellent meals at local restaurants for much less than they would pay in the U.S. for the same cuisine. Add to that the abundance of inexpensive activities they can participate in, especially in more-established villages or those with a large tourist or expat presence.
And with today’s technology it’s even easier and cheaper than ever to stay connected to family back home. So, there’s one less barrier to breaking free and spending their retirement the way they’ve always dreamed.
No matter the reason, they don’t seem to be slowing down.
Whatever it is that’s prompting them, baby boomers are changing the face of retirement as we know it. The travel industry is certainly taking notice, as many of the biggest names in the industry have launched campaigns tailored towards retirees.
Interestingly, quite a few foreign countries are also jumping on the bandwagon. Between foreigner-friendly tax laws and special discounts for retirees, many nations are welcoming both tourists and expats with open arms. See for yourself some examples of what these countries are doing. A little research can help you decide if overseas retirement could be right for you.
The Nicaragua 3 Count, where we bring you 3 Nicaragua stories that you shouldn’t miss.
Photo: Bialy
1. Granada: Here’s Why Expats Are Choosing this Colonial Gem
Granada is Nicaragua’s colonial gem. Many expats are calling this city home and for many good reasons. One couple’s reasons for choosing Granada goes well beyond its famous architecture and they say moving there was an emotional feeling more than anything rational.
2. Nicaragua Fast-Tracks Huge Canal Project
Nicaragua has dreamed of building a canal for hundreds of years. Now it is pursuing a plan to give a Chinese company exclusive rights to build the largest development project in Nicaraguan history. With little information and no public debate, the canal project was made public. Nicaraguans have no idea where the funding will come from, what the proposed canal route is, how long it would take to build, what the environmental toll would be, or even how much the project will cost.
3. Nicaragua’s Beaches Among the World’s Best
Nicaragua’s beaches on Little Corn Island are now ranked among the 100 best in the world. Located nearly 44 miles off Nicaragua’s Caribbean coast, Little Corn Island is approximate one square mile and known as being “low key, undeveloped and languid”, making it a perfect destination for tourist seeking a laid-back, relaxed vacation.
If you’ve never seen a ship pass through the Panama Canal, this is your chance. Videographer Jean-Phillippe Angers filmed the ship passing through.
Enjoy!
Johny Chunga
There are many things you could say about Salinas, Ecuador. And comments from first-time visitors often fall all over the spectrum, from fabulous to formidable. And everything in between.
Indeed, to say this resort town is polarizing would be a gross understatement. It’s a place of stark contrasts, from its reception by travelers to its weather to its varying influx of tourists as the seasons change.
We’ll give you the lowdown about what there is to love and hate about this South American beach community, but first here are the facts about Salinas, Ecuador Real Estate.
Overview
Salinas is located 90 miles from Guayaquil, a bustling port city and Ecuador’s largest. The beach is divided in half by a jetty, which houses the Salinas Yacht Club. To the north is Salinas Beach, and south of the jetty lies Chipipe Beach which has a little bit more of a family atmosphere.
It’s visited mostly by Ecuadorian families who come down for the weekend. However it also draws some of Ecuador’s elite, particularly those who come to the yacht club. It’s also popular among newlyweds and could be equated to a Hawaiian honeymoon for an American couple.
The Good
First things first. There are some really great things about Salinas, Ecuador. Best of all would have to be the price tag. Salinas offers some decent amenities at a lower cost than you’ll find almost anywhere.
You can get a hotel room for $30 per night, a steak dinner for $6, and as much fish or shrimp as you can eat–prepared any way you want it–for $3 at the market. Even property prices are reasonable, as a 3-bedroom/3-bath condo (with a maid’s quarters) in one of the impressive high-rise buildings will only set you back about $130,000.
Note, you’ll probably only want to use that condo during November through January when the weather is gorgeous. Not so much the rest of the year. But we’re getting a little ahead of ourselves…
The good news is that you shouldn’t have any trouble renting your place out to some Ecuadorians who live in the surrounding areas. Many like to visit Salinas in June to September, when their kids are out of school.
Rounding out the “good” list, Salinas also offers a lot of water sports and activities. At least during the peak season, which is generally December through April. You can charter a boat for game fishing or whale watching. Adventure companies offer skydiving and parasailing. You can also try surfing or wakeboarding.
The Bad
As we mentioned, the weather in Salinas, Ecuador is really, really nice during the high season. As a result, tourists flock to it in droves. It looks like Miami in that sunbathers literally line every square inch of the beach. Well, except the part just off the promenade that’s littered with millions of painful, sharp broken seashells.
In addition to the crowdedness, or as a result of it, it’s incredibly noisy. And dirty. Cars crawl along the crowded streets, bringing in even more tourists. Street vendors line the malecon, the beachfront esplanade, hawking everything from souvenirs to shrimp on a stick.
Hosts of businesses and brands also line up to capitalize on the opportunity to market to thousands of visitors all crammed into one place. Inflatables and advertisements are everywhere, and virtually every exposed surface in town has someone’s logo plastered on it.
The Ugly
So, that’s Salinas, Ecuador in the peak season. What’s the off-season like?
Polar. Opposite.
The crowded, bustling beach is virtually empty, and the place turns into a ghost town. And all for good reason. The beautiful weather of the busy season is replaced by chilly temperatures, and the sky is overcast almost every day. This often comes as quite a shock to unsuspecting tourists, many of whom have gone so far as to describe the scene as “depressing.”
Many visitors to Salinas are also disappointed in the availability and quality of shopping and dining. This sparseness is even more exaggerated during the off-season when a lot of businesses that cater to tourists don’t operate.
There isn’t even a decent supermarket in Salinas, as the nearest one is 10 minutes away in La Libertad. This presents a bit of a problem, since safety can be a bit of a concern the farther you venture from the beachfront resort area.
During the peak season, the tourist area is patrolled by a whole battalion of police officers and private security guards. But the area farther from the coast is industrial and impoverished-looking. Again, quite the contrast from the glitz and glitter of the coast.
Then again, much of Ecuador’s coast is undeveloped. So, the amenities and infrastructure are about what can be expected for a city this size.
Salinas, Ecuador Summary
Salinas is a really great deal. But it’s only a great deal if you’re prepared to deal with overcrowded beaches, underwhelming food options, and nothing but tumbleweeds blowing down the street in the off-season.
If you’re looking for a serene, tropical paradise where you can lie undisturbed on the beach and enjoy the scenery year-round, this isn’t it.
Panama’s government has shown time and again that they are committed to enhancing the country’s attractiveness to businesses, tourists, and investors. This was recently evidenced when Congress announced a budget of $16.3 billion for 2013, which includes infrastructure projects to the tune of $15 billion to be completed over the next 5 years.
This is good news for investors, particularly those who own real estate.
This record-breaking budget is a large increase over the $14.5 billion it spent in 2012, which was already up 11% over 2011. While these expenditures may seem a bit ambitious, they’re arguably justified for a country whose economy grew a whopping 10.7% last year.
In anticipation of continued double-digit economic growth, the government has planned additions to each of the country’s airports, the building of a Metro subway system, a multi-billion dollar expansion of the Canal, and many more infrastructure projects. The $16.3 billion budget also has $8 billion earmarked for education, healthcare, housing, jobs, and other social programs.
While its economy certainly stands to benefit from the enhanced infrastructure, Panama is already a great place to invest. With a gross domestic product of $30.68 billion, its economy is the third largest in Central America and the fastest growing. Because it uses the dollar as its national currency, those in the U.S. can do business in Panama with zero foreign exchange risk.
Panama’s location and its operation of the Canal have secured it a permanent place in the international trade scene. It also boasts a tax system that is pro-business, pro-investor, and pro-foreigner. In addition, Panama’s laws are quite favorable for anyone wanting to do business there.
Real estate, in particular, continues to be a good investment in Panama. The cost of living is low, making it a very attractive destination for expats and retirees. And you can’t beat the scenery. Panama enjoys a year-round tropical climate and a setting to suit any preference: bustling cities, mountain retreats, or beachside villas. These all combine to make the country a hotspot for short-term vacationers as well.
Another reason real estate is such a hot commodity in Panama is because the country’s infrastructure, which is primed for a $15 billion facelift, is already better than you’ll find in most of its neighboring countries. Also attractive to investors are Panama’s host of government incentives, such as property tax exemptions and duty-free trading zones.
What does it mean when third-world property gains first-world amenities? For the savvy investor who can spot a great deal on real estate, it could mean the difference in buying property that’s merely a good value versus getting some serious bang for your buck.
Sure, Panama–like any other destination–has its share of overvalued real estate. No amount of improvement is going to change that (other than making it ever-so-slightly less inflated). It’s always important to do your due diligence and make sure you’re working with a team you can trust. If you do that, you could stand to gain a lot from the planned capital improvements.
Better infrastructure goes a long way to make a place more attractive to businesses, investors, and tourists. As roads and other means of transportation improve, there are fewer barriers to doing business. Airport expansions equal more visitors to the country.
Systems that supply electricity, water, internet, and other utilities add even more value to a property. These features also help to make previously lesser-known areas more attractive to visitors. Plus, the government’s investment in infrastructure is prompting a secondary wave of private investment, as business owners try to capitalize on the emerging opportunities for increased commerce and tourism.
Of course, the hefty budget is not without its criticisms. Many who oppose the current administration label it as just a well-timed political stunt to gain favor before the 2014 elections. Others fear the debt created by the expensive projects will be more than the country can manage.
But Panama’s current leaders are confident the country’s continued growth will be more than ample to offset the cost of the planned improvements. A growing economy, they argue, warrants a bigger budget.
So, other than the Canal, a Metro line, and some better roads and airports, just where is all of this money going? Here’s a little bit more information about the projects, some of which are already underway.
Public Transportation
Approximately $1.5 billion will go to the construction of Panama’s first subway system, the Metro line. Also in the works is a Metro Bus system, which will run around $270 million.
Roads
Plans are underway to construct five highways, establishing a value added logistics industry that will reduce transit times by as much as half. These include the completion of the final stretch of the Panama-Colon Highway, connections to bridge gaps within Panama City, and improved access to Tocumen International Airport.
Additional improvements and road rearrangements will bring thousands of jobs to the interior of the country.
Airports
The budget calls for $100 million in improvements to Tocumen International Airport, in response to international travel and cargo demands. In an effort to improve connectivity with other areas of the country, additional improvements are planned to all of the other four national airports.
Cold Chain
The logistical benefits of an 8-market Cold Chain will enhance competition among Panamanian farmers and, consequently, promote development in less-populated areas of the country.
Governmental City
This $360 million hub will house a whole host of governmental agencies in one location, reducing leasing costs and improving communication between the various entities.
Financial Tower
This 70-story Financial Tower will accommodate 10,000 users. Home to the National Bank of Panama and the country’s Securities and Trade Commission, it will become an icon that symbolizes the nation’s role as a key player in the financial industry.
Electric Interconnection
Approximately $415 million is earmarked for the construction of an Electricity Transmission Line that will connect the Central American market to the Andean market by way of a substation in northeastern Colombia, reducing costs for end users.
Panama Canal
The addition of new locks is already underway and, once the $5.2 billion renovations are completed in 2014, the Canal is projected to more than double its revenue.
Bay Sanitation
This $538 million project is geared towards improving the sanitary and environmental conditions of the area in and around Panama Bay.
Hospitals
Five new hospitals are slated to open in 2013 in the provinces of Chiriqui, Colon, Veraguas, Los Santos, and Darien.
Curundu Urban Renovation
Also scheduled to open in 2013 is the Curundu Urban Renovation, which will provide 1,000 housing opportunities for up to 5,000 individuals. Various training and enrichment programs will be offered.
Howard Air Force Base Conversion
$750 million has been set aside for the conversion of Howard Air Force Base into a duty-free zone that will house logistics operations, call centers, and technology hubs.
Bridge of the Americas Reconstruction
Another $80 million will go towards the rehabilitation of the iconic Bridge of the Americas.
Air-sea Stations
These seven sites are being constructed for enhanced security and will cost roughly $37 million.
Correction Facilities
Four jails are being constructed to house 5,500 inmates. This $155.6 million project is being implemented to improve the rehabilitation of those imprisoned.
Mining Projects
Mining projects to extract copper and gold have the potential to bring in as much as $665 million in income to Panama’s economy in the form of royalties and taxes.
Las Tablas, Panama is a tiny town in Central America that’s being touted by some as one of Panama’s up-and-coming areas. While it may be true that there is some opportunity to find a Central American getaway at an affordable price, there are a lot of important factors for you to consider.
As with any decision, the choice to relocate to or buy a property in a particular area of Latin America depends 100% on you and the things you value most. It’s important to weigh out all the pros and cons and find the area that best lines up with your lifestyle.
But it’s hard to do that when you’re thousands of miles away, trying to research dozens of options on a 17″ monitor.
There’s no substitute for checking out a city or a property firsthand, but here are some important attributes about Panama Real Estate in Las Tablas, and some of their possible implications for you. Hopefully this information will help you make an educated decision about whether it could be a viable option for your retirement.
1. Location, Location, Location
If you’ve ever bought a house, talked to a real estate agent, or even watched more than 5 minutes of one of those house-hunting television shows, then you probably know the 3 most important factors in real estate: location, location, location.
Where is Las Tablas?
Las Tablas, Panama, lies near the eastern Pacific coast of Panama’s Azuero Peninsula. Note, we said the city is “near” the coast. Not on the coast. That’s important to understand because many marketers are promoting the area as being a beachfront area.
It’s not.
It’s actually nestled into a rural area and surrounded by farms and ranches. In fact, the city serves as the hub where locals from the surrounding agricultural areas go into town to do business. It’s also the capital city of the Los Santos province.
What’s it like?
Since Las Tablas is close to the Pacific Ocean, it has a hot, tropical climate. However, because it’s surrounded by farmland instead of rainforests, it’s somewhat less humid than many of its coastal neighbors.
What’s it near?
Although Las Tablas, isn’t directly on the coast, there are some decent beaches nearby. Uverito is about 10 minutes away, and Pedasi, with its relatively untouched expanses of beach, is a 45-minute drive.
It is also strategically located near a few cooler mountainous areas. For instance Cerro Canajagua, which offers some really nice views of the Pacific Ocean and the entire peninsula, is about 35 minutes away.
One thing Las Tablas is not near, is a major city. Panama City is almost 4 hours away by car, although nearby Chitre does offer a flight to the capital city. After a 15 minute drive, the flight to Panama City is about 35 minutes.
In summary
While Las Tablas, Panama, does offer some great attractions (i.e. mountains and beaches) relatively nearby, the town itself doesn’t have a whole lot to offer in terms of scenery. This can be good or bad, depending on what you’re looking for.
Because Las Tablas is missing that immediate proximity to a must-see geographic feature, property prices are relatively low. You can get a bargain if you’re willing to drive a ways to get to the beach or mountains or some decent shopping.
If you’re looking for a short walk to the beach or the convenience of driving into the city for the afternoon, you might want to keep looking.
2. Uncharted Territory
Most would-be expats understand the need to settle some important questions before they start their property search overseas (e.g. urban vs. rural, mountain vs. beach, etc.). Another important aspect to consider is the level of development of a particular area, which often translates into how saturated it is with other expats.
Who lives in Las Tablas, Panama?
Las Tablas, Panama, has roughly 25,000 residents. But few of them are expats. What this means is that the local businesses aren’t in the habit of bending over backwards for foreigners.
That doesn’t mean they aren’t friendly. Quite the contrary! The natives, called tablenos, are very courteous working-class people who take a lot of pride in their city. However, not a lot of them speak English, and you can expect all signs and menus to be in Spanish only.
How developed is it?
Las Tablas, Panama, is still off the radar of most foreigners. As a result, it isn’t overrun with new developments like many of the more popular destinations. For this reason, the city’s Spanish culture is all still completely intact. There’s a quaint town square, and all the buildings are Spanish-colonial style with red tile roofs and ornate ironwork.
The infrastructure is good, but not the best you’ll find. The town has a supermarket and a hardware store. There are Internet cafes and an adequate offering of banks, shops, and clinics. It’ll have what you need, but not all the same conveniences you might find in a place with a more established expat community.
And again, expect the doctors and other professionals to speak Spanish and be accustomed to dealing with Panamanians. You’ll also come up empty-handed when searching the supermarket for even the most common U.S. products.
What’s there to do?
Las Tablas, Panama, has restaurants and bars, and even a tiny casino (read: a few slot machines and a bar). But that’s about it. The real attraction in this Central American city is the authentic culture.
Most notable of all the native festivals the city celebrates is Carnival. Once a year the town comes alive with excitement as Calle Arriba (Uptown) and Calle Abajo (Downtown) compete to host the biggest and best celebration, complete with food, music, fireworks, games, and even a Carnival Queen.
In summary
Las Tablas, Panama, is the perfect destination for someone who wants to be close to tourist attractions, but not too close. Someone who wants a few modern conveniences, but not a McDonald’s on every corner.
If you’re fine with speaking predominantly Spanish and living like a local, then you should definitely look into relocating to Las Tablas, Panama. If you feel more comfortable living in a place where a lot of the people look and talk like you, then keep looking.
3. You Can’t Beat Panama
If there’s one really great thing that can be said about Las Tablas, it’s the fact that it’s located in Panama. From its pleasant climate to its stable, growing economy and favorable business and tax laws, this Central American nation consistently dominates every study done on the best places to retire.
The cost of living, the price of housing, the benefits to foreigners…it’s all good. Panama has a lot of really great destinations that offer a variety of different perks. This is just one of them.
What’s so great about Panama?
This Central American nation has made it very clear that they want expats to move there. Their list of visa and residency options is ever-expanding. Choices also include the Pensionado Visa, which offers discounts on everything from restaurants to airfare to medical procedures.
Speaking of health care, Panama’s is top notch. Many doctors, especially those in Panama City, are English-speaking and trained in the U.S. And health care costs are only a fraction of what you would pay in the States for the same services.
In fact, Panama is becoming a hub for medical tourism, as people are traveling from all over the world to have expensive, or even elective, procedures performed for far less money. This is made easy due to the fact that Panama is so easily accessible. Its location makes it convenient for travel throughout the Americas (although Las Tablas itself is a little further off the beaten path).
In addition to the quality of its health care, Panama boasts some excellent infrastructure. Its airports, roads, and utilities–while already good–are also in the process of receiving a $15 billion facelift over the next several years.
Panama also uses the U.S. dollar as its official form of currency, eliminating any exchange risk for foreigners. Its favorable tax laws enable expats to have the possibility of paying no taxes, in some situations.
Is this true throughout Panama?
So, Panama sounds great. But can you enjoy these same conditions throughout the country? In some cases, yes. In others, not so much. Obviously, things like visas and tax laws don’t vary from one city to the next. You’ll still get quality health care. But you might have longer waits and less options, especially if you’re at a public clinic. You’ll also have to travel to see most specialists.
Infrastructure is another place where you might see a difference in more remote areas. Roads and public transportation will be less prevalent and reliable. As will utilities and other conveniences.
What about the cost of living?
The cost of living in Panama is already good. The cost of living in Las Tablas, Panama, is really no better. You can enjoy a full lifestyle, including several nice dinners each week, for between $1400 and $1600 per month.
Rental rates, for a modest 3-bedroom/2-bath house (furnished), is between $300 and $500. For those wanting to buy a home, you can get the same size home for under $70,000. However, that will get you a typical Panamanian home with small, closed-off rooms. If you want a larger, more open-concept American-style home, expect to pay in excess of $100,000.
In summary
There’s a lot to love about Panama. And there’s a lot to love about Las Tablas, Panama. Just don’t assume they’re interchangeable. A lot of sources cite the benefits of living in Panama when they’re describing why you should move to Las Tablas. However, there are a lot of other options that have the same perks, but may offer more bang for your buck in terms of location, activities, infrastructure, etc.
The cost of living in Las Tablas is low. But it isn’t the lowest in Central America, or even in Panama. Property listings are cheap. But they’re not rock-bottom. If you’re going to sacrifice comfort and convenience, make sure you’re really getting a bargain.
Las Tablas, Panama, has a lot of things going for it, and it’s a great opportunity for the right would-be expat or investor. There are those who would love to call this quaint, undiscovered village home. If you think you might be one of them, explore your options to find the choice that’s best for you.
Zach Welty
As more and more visitors flock to Panama each year, the nation’s government has been increasingly intentional about encouraging Panama tourism investment. Panama is a country that welcomes foreigners, whether for the short or the long term. Its hassle-free visa options have made it a haven for expats. Its business-friendly tax laws have made it a great opportunity for investors.
Now with its recent piece of legislation, Law 481, Panama is creating a win-win for everyone. Law 481 is a bill that is designed to create incentives for those who wish to invest in tourism operations in specific areas, namely those outside of Panama City. As tourism developments crop up in remote areas, there are many groups who stand to benefit.
Obviously, the news is great for tourists who will have many more lodging and recreation options. It’s also a huge benefit for property owners who will likely see substantial property value increases from the presence of nearby amenities. The same is true for expats, who will enjoy many more conveniences and services brought about by the increase in tourist activity.
But the real benefit is for the savvy investor who can take advantage of the unprecedented incentives offered by Law 481. We’ll get into the details of the benefits the law offers to investors. But first a little bit about what prompted Panama’s government to offer such advantages.
The Situation
Panama has been targeting tourists for quite a few years now. In addition to incentives like these, they have also launched ad campaigns, and invested heavily in infrastructure. Improvements such as airport expansions, better roads, new utilities, and other enhancements have continued to make the country a more attractive destination for tourists.
And the government’s efforts have worked! Panama saw over 2 million international visitors in 2011, up 16.1% from 2010 and contributing $1.9 billion in foreign revenue. The number of tourists in 2012 is estimated to be around 2.2 million. The tourism industry received investments of $405 million in 2011 and an estimated $842 million in 2012. Panama City and its bustling tourist attractions have been compared to destinations such as Miami, Singapore, and Dubai.
Historically, Panama City is the country’s main hub for tourism. It draws tourists of all kinds and markets itself as an ideal location for conferences and business meetings. However in recent years the number of travelers who come to Panama seeking beach getaways and adventure tourism in the interior is on the rise. As is the number of business travelers who are deciding to extend their stay and venture outside Panama City.
The Solution
Law 481 is essentially the government’s answer to ensuring that the country can keep up with the demands of its tourists. This initiative offers incentives for the construction and operation of tourist lodging facilities outside of Panama City with a minimum $250,000 investment. Hotels under construction in Panama City, with a minimum $8 million investment, can also qualify for benefits.
The Incentives for Panama Toursim Investment
Here are the specific incentives offered to those who invest in tourist accommodations that meet the criteria:
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20 year tax exoneration for materials, equipment, and vehicles used in construction
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no import tax of vehicles used for ecotourism
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20 year tax exemption for real property used for tourism*
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no taxes or assessments on the operation’s capital
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no fees for use of piers, airports, and heliports owned by the operation
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no income tax on interest earned by investors
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10% depreciation allowable on real property, excluding the land
*For operations in designated areas near historic landmarks, this period is 10 years. However, any improvements on the land are tax free for 30 years.
Projects near historic landmarks can also enjoy income tax exoneration on their profits for a period of 5 years. After that, they can deduct any losses they experienced as expenses and can claim them for 3 years after they were sustained.
Additional perks apply for projects in designated Special Tourism Zones. While most other incentives apply only to lodging, eligible operations in these zones can include convention centers, theme parks, zoos, marinas, and research and cultural centers. These types of businesses are eligible for income tax exemption for a period of 15 years. Investors can also enjoy no taxes for 20 years on interest earned on their investments.
The Opportunities
So, exactly what types of projects qualify for the incentives? Well, other than the previously mentioned operations in Special Tourism Zones, the law focuses on lodging facilities. This could mean anything from a world-class hotel on the beach with all the amenities, to a campsite in the jungle with nothing but rough plumbing. It includes cabins, family-run hostels (sort of like a bed & breakfast), individual units in larger buildings used as tourist accommodations, and even time-shares.
Just about any type of housing qualifies, as long as it is used for tourism. And these operations may also include the tourist activities carried on by the project. Think beach-side bungalows at a resort that offers some of the world’s best sport fishing. Or a rustic lodge designed to serve as a stop on a week-long jungle exploration. The possibilities are endless.
If you’re thinking of taking advantage of the government’s offer to invest in tourism, you’ll want to consult an attorney to help you iron out the details. A Panamanian lawyer can guide you through the ins and outs of buying property, starting a corporation, navigating immigration laws, etc.
Panama Guide
The Designated Areas
Here is a little more information on the Special Tourism Sites and the activities and adventure they offer.
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La Amistad – Located in Chiriqui and Bocas del Toro provinces, this area is home to two national parks and is a prime spot for ecotourism. It also includes the mountain haven of Boquete, which is home to many expats.
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Bastimentos – This area, located in Bocas del Toro province, boasts one of the country’s largest marine parks. It is home to beautiful beaches and is an ideal spot for diving or ecotourism.
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Arco Seco – This region contains the coastal areas of Herrera and Los Santos, which are rich in Panamanian cultural events and traditions.
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Farallon – Situated in the Panama and Cocle provinces, this area contains beaches and the Anton Valley.
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Metropolitan – This section includes Panama City and the natural parks surrounding it. It is a hub for business activities, as well as historical and cultural attractions.
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Portobelo – Located in Colon, Portobelo has beaches and reefs. It also contains a national park, as well as some historic ruins.
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San Blas – This area is home to a series of islands and contains gorgeous beaches and reefs for diving.
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Archipelago de Las Perlas – These islands are also home to beautiful beaches and reefs. In addition it is home to world-class sport fishing.
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Darien – This remote region includes a national park and many more opportunities for ecotourism. It is also home to several indigenous people groups and ripe with culture.
If one of these areas speaks to you, we’d encourage you to dig a little deeper. Find out if an investment in Panama tourism is right for you.
Rita Willeart
That First Taste of Free Air
You feel it the moment you step out of the airport, and are busy cruising down the highway to your destination. It’s not just in the traffic that crosses double yellow lines or ignores stop lights if the road is clear. It’s in the vehicles themselves; sometimes crowded to the maximum, with luggage tied to the top, sometimes appearing to be tied up just to keep the vehicle together.
Maybe you’ll notice a truck filled with workers or one that has a hammock swinging lazily in back, with the occupant blissfully taking in the sunlight. The buses lumber by, so packed, passengers cling to the door frames. If you brave one of these second-class, local buses, you might feel you’re in a barnyard. Chickens squawk from crates packed under the seat, and there might even be a goat or a lamb that somebody’s transporting to the market.
It’s a reminder of how America was before seat belt laws and strict traffic regulations, before traffic citations became profitable. If you have someplace to go, nobody cares about the means you use of getting there.
Slowing Down
Outside the city hubs, vehicles are relatively sparse. The most common mode of transportation is by bus. Pedestrians, farmers pushing along a few cows, wash women with piles of clothing on their heads are not an uncommon sight along rural roads.
This daily life, so unencumbered by appointments and punching a clock, begins to seep into you. You find yourself hurrying less and relaxing more, spending time doing those things you’ve always dreamed of doing, but never found the time or the opportunity. You begin to think about your new found freedom, that began with a freedom from worry.
The Economic Race
It seems odd that so many of the citizens who are immigrating from the United States into Central America are doing so out of a longing for freedom, but sadly enough, as a country founded on the liberties of all people, it has become a system of rules and regulations designed to give advantages and privileges to some, while penalizing and suppressing the many.
That hectic pace felt so distinctly in urbanized America is the desperate measure of a people determined to keep their heads above water. The American dream for many married couples, of a fine little home and a two-car garage, can’t possibly be realized unless both are working and they take out a twenty year loan. Those over sixty who had been planning to enjoy the benefits of their golden years, find their retirement or social security checks just aren’t enough, and take on part-time jobs for which they are over-qualified, but too financially distressed to refuse.
Then there are the young singles, working hard and studying for a degree that may not be very helpful for finding work. Jobs that had once taken an associate’s degree, now take a master’s, and debt-strapped students wallow in student loans.
When Life Becomes Stifling
The opportunities once offered in America don’t seem so plentiful anymore. Innovation, imaginative ideas, are either swallowed in a maelstrom of bureaucratic paperwork, or take a long time to mature, making the process uncomfortable for non-entrepreneurial types. For every proposal, no matter how universally beneficial, there is opposition. The red tape ticks away at finances, valuable time, and eventually, motivation.
America can barely breathe. You cannot even build a porch for your house, on your own property, without permits and inspectors. In some communities, there are agreed-upon house colors, and regulations concerning what you may have in your yard. You may discover you don’t even have a right to grow a garden instead of a water wasting lawn. The attempts to create a uniform standard of living within specified zones has swept away the concept that one’s home is one’s castle. The spirit of these rules makes sense, they are for the benefit of environment, home prices, and people’s safety, but in today’s world the rules are wielded like weapons against creativity and individuality.
You’re as Free as Your Neighbor
The migration into Central America is made up of people who have grown weary with asking for permission. The safety net hovering over American social affairs feels more like an entrapment net, encumbering freedom of travel with security checks and invasive techniques, such as airport scans and cell phone tracking.
Homes and small businesses are regulated with so many expensive codes and mandatory health care. The U.S. constituents are strapped with so many liability laws, they become nervous about allowing the neighbor kids to come over and play on a trampoline.
Coping with Drawbacks
The expats have had to make some adjustments. In an area where there is little to no regulation, cities can turn ugly fast, while everybody builds whatever they want and a smorgasbord of buildings go up. If your neighbor wants to begin his day at six in the morning, banging away at his new addition, and you want to sleep until seven, it’s best to just roll over with your pillow.
While the cities offer the modern conveniences, the farther away you are from them, the fewer commodities, such as super consistent electricity, paved roads, libraries, and U.S. foods you’ll find. You may find a lower quality in many of the common household tools, such as for gardening or carpentry.
There is a role reversal once you are an expat. You are suddenly a minority in a foreign country. You’ll feel subjected to the same type of scrutiny as given any minority. You may get pulled over just because you look like a gringo. If you are aspiring to become a global citizen, this actually aids in perspective. Outside the dynamics of the western world, you are a minority.
You Still Feel Freer than You Did in the United States
There is an enormous amount of satisfaction in living and breathing freely, without the rigid controls over an over-regulated government. It’s a learning experience in getting along with others of different cultural backgrounds and lifestyles. It allows you ample opportunities for evaluating your own beliefs. It teaches you resourcefulness with the tools and materials on hand.
For the health-oriented, it becomes advantageous to acquire a taste for the native foods. This isn’t too hard, considering the volume of fresh tropical fruits and delicious sea fare that abound in Central America’s market. Not only do you benefit from the organics, but buying local is cheaper than the shipped-in U.S. market.
The Growing Family of Expats
Families make up a vital force in the expat community. Sometimes, they come down for a year to absorb the cultural setting or as a reprieve from restrictive American life. Sometimes, they arrive with more permanent intentions in mind.
The challenge for these families, if they remain within a residential area removed from the major cities, is finding good schools. But like pioneers, they draw upon their own resourcefulness, enjoying the opportunity to educate their children in the manner they feel is best, maybe even starting their own school.
As We Look Forward
It is, in every sense, a type of pioneering. The expats that settle in Central America don’t hate their country. They hate the limits placed on their abilities to make conscious choices. They no longer wish to be treated like a kid, they trust their own ability to decide what is best.
They know this freedom comes with a price. They are moving into a different culture with different customs. They must depend on their own abilities to cope with change, to problem solve, to develop good relationships with others, but it’s all part of the excitement, the adventure. These are the stimuli for growth and development, the fundamentals of increased awareness, and the reward is an evolving society, ready to explore the new boundaries of individual rights and harmonious communities.