“Life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement” — Adam Truslow, coiner of “The American Dream”
So what does Cuenca, Ecuador have to do with The American Dream?
Short Answer: everything really associated with quality of life is more abundantly available in the very best cities of Latin America — with Cuenca, Ecuador a crown jewel among them — than in metro and suburban USA.
Cuenca, Latin America & The “Joy of Life Ratio”
Basically, it comes down to the Joy of Life Ratio.
You figure out the ratio by determining how many minutes out of every waking-hour in a typical day are spent:
- Doing what you love (or at least deeply enjoy) — amid beautiful and pleasant surroundings — in frustration-free and friendly environments — enhanced by beautiful weather
Versus how many minutes are spent
- Doing stuff you hate (or don’t want to do) — amidst clangorous, urban ugliness and/or soul-sucking suburban blandness — in an over-busy and time-crunched and grouchy atmosphere — made worse by inclimate weather
Sure, the US has plenty of opportunity to pursue your passion, more than its share of beautiful cityscapes, and no small amount of lovely weather… But — and this is a giant BUT — the communities with the best mix of those things are now priced out of reach for for most Americans.
And even staying afloat in a simply “nice” city can start to take up all of your time and energy in order to pay the bills and have enough left over for a few evenings out, leaving many Americans to wonder if there isn’t a better option out there somewhere.
Many of them are now finding that better option in the best cities of Latin America, with Cuenca, Ecuador chief among them. That’s where they find much higher Joy of Life Ratios at prices the average American can thrive in.
Of course, which Latin American city and country offers YOU the best Joy of Life Ratio depends on:
- what your passions are (if your passions are sailing, surfing and scuba diving, Cuenca won’t be for you),
- what you, particularly, find the most beautiful and pleasant, and
- what your priorities are, in terms of amenities, city life vs. country life, and so on.
Cuenca Ecuador is the city of choice for those people who’d dream of living smack in the middle of Paris, Barcelona, or Sienna (or even Manhattan or San Francisco, for that matter) within walking distance of historical, beautiful architecture, culture, and food — at a price that’s affordable for someone needing more living space than a studio apartment.
In fact when Ecuadorians live overseas, whether in the US or Europe, they typically return to Cuenca, Ecaudor and purchase real estate. Regardless of where they grew up in Ecuador, when they come back, they tend to settle in the city of Cuenca. And this is for a mix of reasons, which I’ll call…
The Big Three Pros of Cuenca, Ecuador:
1. Cuenca’s Old World Character and Ideal Climate
When more and more American cities and suburbs look like they were designed at corporate, Cuenca looks like something out of Europe with its gorgeous architecture, historic buildings, scenic public squares and parks, and tons of authentic character.
Just look at these pictures!
And for nature lovers, Cuenca sits at the cross-roads, so to speak of four major rivers and is surrounded by mountains, as it lies on the Ande’s mountain range. Most state parks are less beautiful than the cities average walking trail.
And outdoor beauty is important because the weather will make you want to be outside — with year round temperatures averaging in the mid-70s Fahrenheit, getting just cool enough in the evenings for a light sweater or jacket.
And all this in a city of only 500,000 people — about 100,000 people smaller than Portland, Oregon.
See a nice drone video of Cuenca despite the hilarious music.
2. Cuenca As a Welcoming, American-Friendly, Metropolitan City
As mentioned earlier, many Ecuadorians who have spent some time working, studying or living in the US, settle back in Cuenca when they come back to Ecuador.
That means the people in Cuenca like and are welcoming of Americans and happy to help make them part of the community. Many are fluent in English and the city has plenty of English-language bookstores, store owners, and people willing to accommodate non-Spanish speaking travelers and expats.
Overall Cuenca has a very metropolitan feel, alive with talents, dollars, and taste for life that these well-traveled and well-educated Ecuadorians and expats bring to it. Think of Cuenca as a combination of:
- Hip arts community — free symphonies, a mecca for painters and sculptors, and artisans
- College town — no less than 8 universities, and
- Tom-Sawyer-esque hometown — very family oriented with excellent schools, community involvement, safe environment.
Now think of all that rolled into a place that’s very reasonable and affordable to live.
For around $150,000 to $200,000 USD you can get a home within an easy walk of the city’s historic district, or Centro and be able to enjoy the city in a way that’s simply impossible with a US City when you’re forced into a suburb some 30 to 60 minutes away from the hart of downtown. Think of it like living near downtown Austin, or the Garden District of New Orleans, or near the Santa Monica pier — except at a price you can effort and without most of the hassles that come with living in a major metropolitan area.
Simply put, life is simpler and more enjoyable when you can walk everywhere you need to go and the walk is as beautiful and pleasant as one enjoys when strolling through historic Cuenca.
Click to learn more about real estate, cost of living, healthcare, & residency in Cuenca
Along with the beauty and cultural offerings comes all the other amenities you’d expect to find in any first rate city: an active night life, first-rate restaurants, shopping malls (if you want them), luxury boutiques, readily available high-speed internet access, and ease of travel, with an airport offering easy travel.
3. Low Cost of Living Coupled w/ Excellent Schools, Food, and Health Care
We’ve already mentioned housing costs in Cuenca — they are affordably low, with luxury, furnished rentals running around $650 a month.
Factor in utilities, condo fees, cable, and everything else and you’re looking in the neighborhood of $900 a month — again for a furnished, luxury apartment in a desirable location. And the same goes for most anything else — eating out at a first-rate restaurant for two runs about $30. Buying groceries with plenty of grass-fed beaf, fresh seafood and veggies will run you about $250 a month — or about $60 a trip to the market.
And if you’d rather go to a supermarket than a farmers market — don’t ask me why you would but… as the Ecuador’s agricultural and tourism industries, Cuenca has plenty of supermarkets and malls.
Along with the lower cost of living comes the higher quality of life for families and retirees. Not only does Cuenca have an abundance of Universities, including University courses in spanish for expats, but the local schools are excellent and the community places a very high value on education in general.
Many people who move to Cuenca retire there, but if you’re moving your family there, you can rest assured that your kids will receive a first-class education without worry of payment for private schools.
And this low-cost for premium living extends right through to inexpensive, high quality health care, available at 18 hospitals and medical centers in the city, many of which are home to a large number of English-speaking doctors — something extremely important to both retirees and families!
Cuenca, Ecuador’s Short List of Negatives
So why might you decide NOT to move to Cuenca?
Well, the negatives are tightly related to many of the positives. In other words, many looking to move to Latin America like Cuenca because it’s both English language-friendly, already popular with and home to a growing community of expats, and has established industries around welcoming US expats into the community.
And all of that is great… unless you’d rather NOT join a crowd of expats, or would rather move to a city BEFORE it becomes “the next big thing,” or if you’ve already mastered Spanish and don’t care about English-language friendliness.
Also, if you’re idea of paradise includes beaches and water sports rather than mountain living, Cuenca, Ecuador isn’t your town. Ecuador has coastal towns, but Cuenca isn’t one of them.
Finally, if you’re primary consideration is how far your dollar will stretch, Cuenca may be less expensive than North America, but it’s certainly not the cheapest place to live in Latin America, and you can be sure that the steady stream of expats are only going to drive housing and rental prices up.
Comparing Cuenca, Ecuador to Your Other Latin American Options
If you ARE looking for a more tropical or Caribbean flavor to your retirement location, take a closer look at coastal Panama and Belize.
If you like Cuenca, but want something a bit pre-trend, consider looking into Medellin, Columbia and Mendoza, Argentina.
Panama is a smart choice for expats who want it all—in a country that really wants them. Located in the interior of Panama, Boquete is popular with the expat crowd, who enjoy a close proximity to pristine beaches and the growing city of David, along with expansive mountain views, and an affordable cost of living.
Here are five good reasons you will want to become an expat in Boquete.
1. Panama’s Friendly Retiree Residency Program
Most notably, Panama lures expats with one of the world’s best retiree residency programs. The Pensionado or Pensioners’ Program makes it easy for retirees to get residency here. The potential value for a pensioner on a budget is huge, as Panama offers a host of discounts to all its retirees. The long list of discounts includes reduced fares on movies, theaters, sporting events and other public events; discounts off transportation, hotels, even electric and other utilities, and much more.
Legal and application fees for the Pensionado visa are relatively inexpensive, particularly when compared to the money-saving benefits. Plus, the Pensionado program awards residency for life.
2. Panama is a Top-Rated Retirement Destination
Boquete is known for its expat community. Rated by the AARP as one of the world’s best retirement destinations, Boquete first began to attract an expat crowd in early 2001 and has continued to grow into a viable expat community. An hour’s flight from the nation’s capital of Panama City, Boquete is dotted with small cottages, one after another… Swiss-style cabins with magenta and coral bougainvillea spilling over their walls. No wonder Boquete is known as Panama’s flower capital.
3. Boquete Offers Stress-Free Living
Expats in Boquete will tell you their health has improved… not because they’ve done anything special, but because the place lends itself to healthy living. It’s easier to walk here than to drive. Everything is close and everyone is on foot.
There aren’t fast-food joints on every corner. But the market carries fresh ahi-grade tuna and sea bass and shrimp every day. And they’re a mere fraction of the price you’d pay back home. Baked with juicy tomatoes or slices of fat Boquete oranges, dinner for four will run you about $10.
You’ll meet painters and photographers and jewelry-makers here. The expat community has helped infuse Boquete with the arts. This quiet village now has a yearly jazz festival and an English-language theater troupe.
4. Take Up an Outdoor Activity
There’s much to do for lovers of the great outdoors, too. Boquete is the kind of place where you can go white-water rafting or hiking or birding…every day. You can have your own farm and livestock… grow rare orchids and bromeliads… pick limes and bananas from your very own trees. The land is rich and fertile, the climate is perfect. You can can even bird watch from the comfort of your home.
True, Boquete is known for its misty rain— called bajareque—as much as for its coffee and orchids. You can’t have one without the other. During the rainy season, from May through November, there will be afternoon showers… or downpours. But you see the sun most every morning.
Miniature humming birds of Boquete
5. The Cost of Living Is Low in Boquete
Panama ranked 8th on The Worldwide Cost of Living Survey, which is released twice a year by the EIU and compares hundreds of prices across 160 products and services, including items such as food, drink, rentals, utility bills, schooling costs, and household supplies. If you decide to buy a home in Panama, it is possible to live well, on less. Just be forewarned, if you bring along a lavish U.S. lifestyle to Boquete, your cost of living might be higher than you might expect. However, if you are willing to eat like a local, you can dine out for $4, get a glass of wine for $3, and enjoy an abundance of fresh fruits and vegetables for $10 a week.
Here, paradise comes at a price…but it’s a bit more economical.
Photo Credit: fetus karate via Flickr
Sandwiched between Nicaragua and Colombia, between the Caribbean Sea and the Pacific Ocean, Panama and Costa Rica certainly have a lot in common. Situated in the heart of Central America, these two small nations are both rich in culture and scenic beauty, making them wildly popular tourist destinations, attracting people from all over the world each year.
Then what is it that makes Panama City, according to America Economia, a prime business location over San Jose, Costa Rica? While both cities were ranked relatively high on the list of “Best Cities for Business in Latin America”, with Panama ranking seventh, and San Jose twelfth, what exactly was it that allowed Panama City to jump those five extra spots?
What makes Panama so prime?
The answer lies in Panama’s economy, an economy prime for foreign businesses. Along with the fact that Panama has been a dollarized country for over 100 years, instantly making foreign investors feel more comfortable, Panama also has specific laws put in place to protect foreign investments.
A businessman himself, current President Ricardo Martinelli is behind many of the laws promoting foreign business and trade that have made Panama, economically, the fastest growing country in the Western Hemisphere.
Conducting business in another country can be a daunting task simply because you are working in a place with a different economic climate than your own. Yet while many countries tend to put up barriers, Panama has been working to demolish them. In Panama, foreign entrepreneurs are not only welcomed, but encouraged to purchase or open new businesses, and due to dollarization, Panama’s stable banking sector and USA-Panama free trade, foreign business owners will be more inclined to do so.
Panama has many advantages that make foreign businesses run exceptionally smooth. The Panama Canal, a 48 mile ship canal that connects the Atlantic Ocean to the Pacific Ocean, plays a vital role in regards to trade and global influx by allowing goods to be imported and exported at a significantly faster rate.
Near the Panama Canal entrance is the Panama Pacifico, a 1,400 hectare business ‘park’ built on what was once the United States Howard Air Force Base. Any business built within the park will be free from income taxes, import duties, real estate taxes, remittance tax, international calling tax, and dividend tax, making it an ideal spot.
Like Panama, Costa Rica’s official language is Spanish and much of their national revenue is fueled from trade and tourism. Unlike Panama, the national currency in Costa Rica is the colone, which gives Panama an immediate edge when it comes to conducting foreign business. Ranked twelfth on the list, which is still very respectable, the main reason Costa Rica fell short to its neighbor is because of its inaccessibility to foreign business in comparison.
Why not Costa Rica?
While Panama welcomes foreign business with open arms, Costa Rica tends to keep them at arm’s length. According to the Small Business Administration in the United States, only half of all businesses will survive five years. Unfortunately in Costa Rica, the success rate is even lower. Why exactly is this?
- Acquiring permanent residency in Costa Rica is difficult. In Costa Rica, unless your planned business is going to require more than $200,000 in capital investment, you won’t be getting residency. You, like most foreigners living in Costa Rica, will have to remain a “tourist” and leave the country periodically every 30 to 90 days to renew your visa. Of course to many, it is a small price to pay to reside in such a beautiful country.
- Starting a business in Costa Rica will be expensive and a little tedious. Gathering all of the necessary paperwork and permits together will take 160 days and will cost more than the average annual income.
- Once the business is established, it will also be expensive to run. As a direct result of the nation’s small population, and with no Panama Canal, foreign business owners can be expected to pay premium on things like imported foods, construction supplies, and technology as they are transported through the mountains.
At number seven and twelve on a list of forty-six cities, both Panama and Costa Rica have exceptional business climates for those considering opening a business in a breathtaking tropical environment. With thousands of tourists flocking to these cities each year to enjoy the luscious landscapes, exciting wildlife and Latin American culture, either city, according to America Economia, would be considered a wise selection. Yet between the two, Panama comes out on top. A dollarized country with a business-savvy President and laws tailored to promote foreign business and trade, Panama City is awarded the title of city with the best business climate.
FATCA, or the Foreign Account Tax Compliance Act, was enacted in 2010 and has been in effect since January 2013. This Act was passed with good intentions: to target those who evade tax in the U.S. by not disclosing their offshore accounts to the IRS. That’s good, I thought, people must pay taxes or suffer the consequences.
And then I read on. The key provisions of FATCA force all global financial companies to report the details of U.S. account holders with more than $50,000 to the Internal Revenue Service (IRS), the U.S. tax authority. This is because the U.S. is one of the only countries to tax their citizens on their worldly income.
What does FATCA mean?
It means that Foreign Financial Institutes (FFIs) must act as pro bono tax collectors for the IRS, or suffer hefty penalties. It goes on to state that if a U.S. citizen refuses to give out these details then the FFI’s must impose a 30% tax on all payments/transfers associated with the account.
So already, if you’re an FFI, you can start to feel a little twitchy about dealing with FATCA. So what if all FFIs just ignore the whole thing? This Act seems to have thought of everything (but the prejudice it is creating!) and goes on to say that if an FFI doesn’t register with the IRS and comply with these provisions of reporting and taxing, that the FFI itself will be charged with 30% Withholding Tax.
World economics
It is (conservatively) estimated that FATCA will have an initial worldly cost of $10 billion, with the cost to a large global bank (like HSBC, for instance) staggering at $100 million. This looked at in the broader scheme of things where the IRS itself has estimated that FATCA will bring in less than a billion dollars in revenue.
It’s only natural that small FFIs are trying to exclude U.S. citizens from banking with them, while the larger banks are dealing with the logistical nightmare with deciding what constitutes a U.S./non-U.S. investor, and sharing that information about their investors to all international branches.
Legally speaking
Let’s talk about the legalities of it. FATCA itself, a U.S. piece of legislation, conflicts with the laws of other countries. In some countries the sharing of personal details (as required by FATCA) is illegal for a company to do. Companies who do not want to break the law may not be able to comply with FATCA, and will therefore be charged a Withholding Tax for being a legally abiding entity.
And this even if you are dealing with Non-U.S. transactions between Non-U.S. businesses not in the U.S., you must still conform to U.S. legislation. How is that logical? Simply, it’s not.
Another outcome from the Act could lead to U.S. taxes being imposed on international transactions. The International Swaps and Derivatives Association put it like this:
The pass-thru payment rules could potentially impose US withholding tax on an interest made by a British bank’s London office to a German bank’s Frankfurt office if the German bank is a non-participating FFI and the British bank is a participating FFI, providing the British bank holds any US assets in any of its global offices.
Such a transaction would require the British bank to withhold a 30% tax on the exchange.
There are lots of knitty-gritty, investor-jargon details on this, if you’d like to find out more: http://americansabroad.org/issues/fatca/fatca-is-bad-for-america-why-it-should-be-repealed/
This sort of legislation needs to be repealed. But that can only happen if we all stand up and say ‘what the FAC!’
Stay tuned.
Credit: Daniel Foster
It’s not surprising the Canadians fly south for a winter vacation, beating a path faster than the migrating geese. Canadian winters can reach some pretty teeth-chattering extremes, with dense snows in the mountainous regions and below-freezing winds rolling over the plains.
When Canadians fly south however, they want an adventure as rich in texture as they can receive in their own wildly beautiful and largely unpopulated country. They’ve found much of that delicious thrill by vacationing in Honduras. Charter flights since November of this year have increased 51% over the previous prime time season of November to April, last year.
The Attractiveness of Honduras
Honduras has some of the features Canadians enjoy: a few large population centers among vast stretches of wilderness areas, an indigenous culture, and a natural playground for outdoor enthusiasts. It also has some features the Canadian population doesn’t get to enjoy as part of their environment; ancient Mayan temples, incredible coral reefs, fresh tropical foods, and warm, shallow beaches. This gives them something to talk about when they go home.
It is a land that appeals to all social classes and lifestyles. It is possible to fly directly into many of the desirable locales, take a cruise ship, and spend your time in first class hotels. It is also very backpacker-friendly. In many areas of Honduras, all you have to do is back-pack in to a favorable, isolated spot, set up camp, and simply enjoy the beauty that surrounds you.
Honduras has something for everyone: the nature enthusiast, the anthropologist, beach lovers, scuba divers, kayakers, and those who simply like a good party.
Visa requirements are easy. You do not need a passport if you are a citizen of Canada, the United States, the United Kingdom, or Australia. The visa is good for up to ninety days, with the option of applying for an extension.
Currency Exchange
The most recommended way to travel in Honduras is to buy traveler’s checks and cash them at the banks. The exchange rate averages around five cents to a lempira. Always carry some of the Honduras currency in one hundred to two hundred lempira notes, for one or two days living expenses at a time. The lines at banks are often long, but it is the safest and most equitable exchange. ATM machines are often broken down or out of cash. Many stores and restaurants will accept dollars, but ask in advance.
Trujillo: The Humble Promise
Trujillo has a long history. In the Cuyamel caves, on the inland slopes of Mt. Capira and Mt. Calentura, evidence has been found of communities dating back to 1,200 to 6,000 B.C. It was the fourth and final stop Christopher Columbus made in his exploration of the Americas.
The modest beach town of 30,000 features an old Spanish fort on a bluff, with a row of cannons overlooking the spectacular bay.
You can live the high life in top-notch hotels that charge from $30 – $78 a night, or go local and secure a room for as cheaply as four dollars. Of course that will mean skipping the hot water. The various options include simply buying a straw mat and lounging out on the beach.
This banana coast town features a variety of things to do beyond basking in sun soaked sands and swimming in tranquil Caribbean water, or studying ancient history. The environment includes waterfalls, mountains, tropical forests and the Guaimoreto Lagoon Nature Reserve with a mangrove ecosystem and rare, tropical birds.
While the town of Trujillo is very poor, the government hopes to change this. It plans to turn Trujillo into a new, charter city, with a marina, shopping malls, and rail/ship and air transportation. It’s working energetically with foreign investors to give this quiet town by the sea a face lift, with the potential to employ hundreds of local, currently poverty-stricken workers.
Canadians Like Roatan
It’s difficult to hide a gem once it’s been discovered, and Roatan is no exception. The thirty-five mile long island nestles next to the largest barrier reef in the Caribbean and is the second largest reef system in the world. Canadians love taking their vacations in Roatan for several reasons.
There are resorts where you can stay at the west end of the island, but as you begin traveling east, development becomes more sparse, allowing you the option of privacy and mingling with the locals.
Scuba diving is the number one sport, but there is also snorkeling, kayaking, and deep sea fishing. Sandy Bay features mini-golf and there is a horseback riding ranch at the West End.
There is a road system, but many of the roads are unpaved. Traveling from one end of the island to the other can take more than an hour, but you can always take a boat or paddle your own canoe.
You can reach the island by boat or charter plane. Once there, you can even take a helicopter cruise to enjoy the highlights of the fantastic coral reefs and beautiful, largely untouched scenery Roatan has to offer.
A word of warning to beach campers. You can set your travel bag down anywhere on the beach and enjoy an exclusive, private setting. However, when the cruise ships come in, for a short while, you may find your isolated spot invaded with tourists jostling for a place in the sun, and the prices of food and drink suddenly doubling and tripling. Wait a couple of days and this will change, sending you back to that dream vacation of throwing away the clock and just listening to the sighs and murmurs of nature.
When You Can’t Get Enough of That Coral
The most avid seekers of that unique place to go, seek out the small island of Utila. In the middle of coral paradise, it’s also the thrill of a lifetime for the avid scuba diver. With over sixty scuba diving locations to choose from, you’re not only entering a landscape of fragile coral painting the underwater world with pastel cities, and brilliantly colored fish darting about their rainbow hued habitat, but dark, mysterious caves and the ghostly wrecks of sunken vessels.
Some divers have reported seeing the Whale Shark. Although a behemoth in size as the world’s largest fish, its gentle life is invested in zooplankton, snapper eggs and small, shrimp eating fish.
The population is small; only about 2,500 year round inhabitants; and tourism fairly light. As the closest island to the mainland port of La Caiba, it is easy to reach by boat, ferry or small plane. There are no national chain hotels or restaurants in Utila, but the hometown flavor of the locally owned businesses only add to the cultural charm.
The Fabulous Bay
Trujillo, Roatan and Utila are all within a short distance of each other, with Trujillo on the mainland, and Roatan and Utila within the Bay Islands. The white sand beaches and gentle blue waters make the area the perfect escape from crowded resorts and roaring traffic. You can even rent an entire small island to yourself for approximately $130 a night.
For the outdoor enthusiast, there is little it doesn’t have to offer except snow-boarding and ice sculptures, but give the innovative thinkers of Honduras a little time, and they’re sure to think of a solution for that, as well.
Canadians like to go where the adventure is as great as in their homeland. The Bay Islands never fail to satisfy that adventurous, pioneering spirit, while offering all the quiet, crystal beauty of the Caribbean Sea, as well.
National Assembly
Law No. 2
(January 7, 2006)
Which regulates the concessions for tourism investment and the sale of island property for tourism development ends and other provisions
THE NATIONAL ASSEMBLY
DECREES:
Chapter I
Concessions for Tourism Investment Article 1. The granting of administrative concessions for a term of up to forty years, prolonged for an additional term of up to thirty years, over the following areas located in the geographical territory which is destined for tourism development, according to the tourism policies approved by the Instituto Panameño de Turismo: island territories, coastal zones and lands which are property of the State, corresponds to the Ministerio de Economía y Finanzas, being the institution in charge of the administration, conservation and oversight of all assets which belong to the Republic of Panama.
In the areas destined for tourism development located in indigenous reserves, the due approval of the corresponding traditional reservation authorities shall be obtained.
Paragraph: The concessions which are granted on lands which are property of the State over continental or island property by virtue of this article, shall not affect pre-existing rights of possession which have been granted by the municipalities and the corresponding authorities, before this law came into effect.
Article 2. Irrespective of the provisions of the above article, concession contracts may be executed for a term of sixty years, prolonged for an additional thirty years, when it relates to projects whose investment amount, economic impact and potential for creation of employment, requires a contractual relationship of longer duration, in accordance with the parameters established by the Ministerio de Economía y Finanzas.
For the granting of the concessions provided for in this Law, a public hearing shall be required in accordance with the regulations established by the Executive Branch, via the Ministerio de Economía y Finanzas, which guarantees the principles of transparency, economy of process and responsibility.
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Article 3. The concessions granted according to the terms of this Law may only be revoked or cancelled in the following cases:
By the expiration of the period for which they were granted.
By the express request of the concession holder, requested formally in writing, which shall be addressed to the Ministerio de Economía y Finanzas.
By the express abandonment of the improvements and projects built by the concession holder.
By using the improvements and the concession for a different purpose for which they where built and granted.
By a serious breach of an obligation which was imposed on the concession holder or by the failure to pay the rates and charges required by Law.
By transferring the concession granted without the due registration required by law.
When the established investment is not undertaken according to the agreed terms and conditions.
By the assignment to third parties in the cases established by law.
By not substantially fulfilling with the generation of direct and indirect employment established by the contract.
By the bankruptcy or creditors meeting of the concession holder, or by being in a state of suspension or failure to make payments, without the corresponding declaration of bankruptcy.
By administrative rescue, insofar as there is public interest or national security.
Upon finalising the agreed upon term of the concession, if the concession holder is up to date with their contractual responsibilities, the concession holder will have the right to request an extension of the term as provided for in articles 1 and 2 of this Law and the State will have discretion to adjust the price. Upon termination of the period agreed in the concession or the revocation or cancellation of the concession, all improvements built thereon will become, as of right, property of the State at not cost thereto.
Article 4. The Ministerio de Economía y Finanzas shall establish the requirements for the granting of the concessions established in this Law, among which shall be: the presentation of the survey of the plot, an approved project plan, the budget for the project and the work program, as well as the timeline for implementation, the type of public services, proof of financial capacity and the proof of source of the applicant’s funds, the certification from the Instituto Panameño de Turismo that the areas requested is within the tourism development zone; an approved environmental impact study, the certification that the applicant is duly registered in the Register of Tourism Companies and the presentation of bond in favour of the National Treasury, for no less than ten percent (10%) of the value of the projected venture, which shall expire on the date on which the registration of the improvements built is completed.
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Article 5. The concession holder shall comply with the work program and the timeline for implementation agreed to until the project is finished, except in the case of Acts of God or force majeur which, in the latter case, are not caused by the concession holder. If the program is not kept to or the project is not completed according to the specifications agreed to, the Ministerio de Economía y Finanzas may declare the administrative revocation of the concession and order that the bond referred to in the above article, issued in favour of the State, and all rights of the concession be executed, without prejudice to the rights of subrogation which this Law concedes to financial entities which have granted funds for the undertaking of the project.
The Dirección de Catastro y Bienes Patrimoniales of the Ministerio de Economía y Finanzas and the Autoridad Nacional del Ambiente shall conduct a perpetual inspection of each of the stages of construction of the project, to ensure the fulfilment of the agreement. The same shall be done, as appropriate, by all institutions required by law to undertake the same.
In the case of breach of the resolution which authorises the environmental impact study, provisional suspension of the project shall be ordered.
Article 6. Once the Ministerio de Economía y Finanzas has provisionally approved the granting of a concession according to the terms of this Law, the interested party shall present, to the Contraloría General de la República, the bond which is to be provided. Likewise, it shall pay, in the Ministerio de Economía y Finanzas, the sum corresponding to two months of the concession, according to the amount which has been previously specified. After the deposit has been made, the Dirección de Catastro y Bienes Patrimoniales of the Ministerio de Economía y Finanzas shall publish, at the applicant’s expense, an edict in a newspaper of national circulation, for the period of five calendar days.
Upon expiration of this period, the applicant shall appear to be personally notified of the resolution which grants the provisional concession, and begin the construction of the proposed project, with prior approval of the construction blueprints and according to the plan and the timeline of the project, presented together with the application.
This procedure that not apply for the concessions which require the public hearing, contemplated in article 2 of this Law.
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Article 7. The expenses inherent to the determination of the site or parcel which interests the applicant within the area, as well as delimiting, in a clear and specific manner through surveys, the measurements, boundaries, surface area and other corresponding data for the parcel over which a concession is requested, shall be solely and exclusively at the expense of the applicant.
Likewise, all the expenses inherent to the physical access and roadways to the parcels over which the concession is granted, as well as those relative to the provision of drinking water, electricity, waste collection, water treatment plans and other basic services which are required in the area granted, shall be at the applicant’s expense. All infrastructure or basic services which may cause an environmental impact, must be submitted according to the legal rules in effect regarding the matter.
Article 8. The area which is granted in concession on islands shall depend on the total surface area of the island. For this, the Ministerio de Economía y Finanzas shall establish the maximum areas which may be adjudicated to applicants, and shall distinguish the uses to which they will be destined, whether residential, tourism projects or economic development.
Article 9. The areas on islands requested in concession should have a right of way area for the access to those areas of public use. The Ministerio de Economía y Finanzas, through the Dirección de Catastro y Bienes Patrimoniales, shall coordinate with the Ministerio de Vivienda the establishment of the dimensions of these easements and the distance between them. For new projects, the beach easement shall not be inferior to twenty two metres, counted from the high tide mark. In those cases in which the beach easement can not comply with the requirement of twenty two meters or in special cases, such as mangroves, port installations, river mouths and drainage, the Dirección de Catastro y Bienes Patrimoniales shall coordinate with the Ministerio de Vivienda and the Autoridad Nacional del Ambiente and the Autoridad Marítima de Panamá the establishment of the easements, according to the case.
Paragraph: Those natural or legal persons who have, for more than five years, occupied the beach easements referred to in this article, before the promulgation of this Law, shall be recognised a concession according to their situation.
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Article 10. The Ventanilla Única y Especial in the Dirección de Catastro y Bienes Patrimoniales of the Ministerio de Economía y Finanzas is hereby created. This Ventanilla Única y Especial shall have a centralised system for the processing and approval of the petitions and applications for administrative concessions, for the acquisition of the rights defined in this Law, and shall oversee the compliance with all the corresponding rules.
The Ventanilla Única y Especial shall receive the applications corresponding to the granting of concessions and, once the details are verified, the Ministerio de Economía y Finanzas may grant provisional concessions. The effects of this concession shall be of a provisional nature, until the construction projects proposed over the parcel or parcels given in concession are completed.
Upon the fulfilment of the requirements provided in this Law, the Ministerio de Economía y Finanzas shall approve the definitive concession and order the preparation of the corresponding contract.
The Ventanilla Única y Especial shall be made up by the institutions which have jurisdiction in this area, according to the regulations of this Law.
Article 11. The improvements and buildings erected according to the concession contracts which are granted under this Law, shall be filed in the corresponding section of the Registro Público, according to the procedure prescribed in the Judicial Code regarding Buildings on Foreign Property.
For the purposes of fixing the value of the improvements and the proof that these have been done at the expense of the concession holder, the court shall recognise the certification of the Dirección de Catastro y Bienes Patrimoniales in this respect.
Both in the registration of the lot of the State on which the concession is granted, as that which results from the registration of the improvements by the concession holder, the registrar shall make a marginal note establishing the limit of the ownership, as referred to in this Law.
Article 12. The contract in which the concession is formalised shall contain a description of the improvements and buildings which have been constructed by the concession holder according to the corresponding authorisations, specifying the location, the metes and bounds and surface area, as well as an indication of the bearing, the construction materials and the value of the improvements, among other things.
In the event that it has been agreed that the improvements shall be built in different stages, the concession holder shall request to the Ministerio de Economía y Finanzas, a certification regarding the termination of each of these stages, which must include the description of the improvements built thereon, for the purpose of registering these. This certification shall likewise be protocolised for the purpose of registration.
Article 13. In the event that the holder of a definitive concession breaches its obligations with third parties which have provided assets for the financing of the project, these may request, to the Ministerio de Economía y Finanzas, the subrogation with respect to the concession holder, for the purpose of recouping their balance due, as long as they agree to fulfil the agreement of the holder. The same procedure shall apply in the cases of provisional concessions.
Chapter I – Concessions for Tourism Investment | Chapter II – Vacation or Permanent Residential Units | Chapter III – Sale is Island Property for Tourism Development | Chapter IV – Final Provisions
Chapter II
Vacation or Permanent Residential Units Article 14. The buildings and residential units for the purpose of vacation, permanent or retirement lodging, built on property of the State which has been granted in concession to natural or legal persons, whether nationals or foreigners, of a permanent or provisional nature, at one or more times of the year in accordance with this Law, shall be considered to be of tourism interest and therefore destined to tourism activities.
Article 15. The residential units dealt with in this Chapter may only be built in the areas specified as tourism development zones, declared by the Consejo de Gabinete. The determination of these specified areas shall correspond to the Instituto Panameño de Turismo, in coordination with the Dirección de Catastro y Bienes Patrimoniales, the Ministerio de Vivienda and the Autoridad Nacional del Ambiente.
Article 16. The granting of concessions for the construction of residential units in the specified areas established in accordance with the above article, shall be limited to one parcel of land per applicant. The size of the parcel, the cost of the construction of the improvements built thereof, as well as the area which said improvements must cover of the total surface area of the land given in concession, shall be established by regulations.
Article 17. In the event that a natural or legal person is interested in undertaking a development which requires the promotion and commercialisation of tourism residential projects, the Ministerio de Economía y Finanzas shall study the application and, if it considers it viable, shall grant the corresponding concession, in accordance with the provisions of this Law.
Article 18. For the effects of this Chapter, tourism lodging projects with purposes of vacation or permanent lodging which are built within the zones declared for tourism development shall also be considered of tourism interest.
These tourism lodging projects shall be granted the tax incentives established in Law 8 of 1994 during the phase of construction and sale.
Chapter I – Concessions for Tourism Investment | Chapter II – Vacation or Permanent Residential Units | Chapter III – Sale is Island Property for Tourism Development | Chapter IV – Final Provisions
Chapter III
Sale of Island Property for Tourism Development Purposes Article 19. The Consejo de Gabinete, by recommendation of the Ministerio de Economía y Finanzas and the Instituto Panameño de Turismo, may declare as areas for special development for tourism improvement, the island areas which meet the special conditions for tourist attraction, according to the provisions of article 291 of the Constitution, insofar as the investment to be undertaken, in addition to the economic impact, will guarantee the creation of a significant number of jobs in the area. In their recommendations, the institutions should make emphasis on the ecotourism improvements.
For the purposes of this declaration, it shall be an essential requirement that the area in question is not built up.
Paragraph. The public infrastructure which the investor constructs shall pass, as of right, to be property of the State at no cost.
Article 20. The areas declared for special development for tourism improvement shall be subject to the following restrictions:
They shall not be less than ten kilometres from the border.
They shall not have been declared historical national domain or domains for humanity.
They shall not, by their characteristics, have been dedicated to the preservation of the environment or for forestry or scientific conservation ends.
They shall not form part of the indigenous reservations.
The sale of the areas declared to be special development according to this Law shall not exceed fifty percent (50%) of the total surface area of the territory of each island, nor shall it be transferred to the dominium of another State.
The tourism projects which are undertaken in areas declared for special development under this Law shall not exceed thirty percent (30%) of the total surface area of each island. In any case, the tourism projects must conserve thirty percent (30%) of the landscape view of the island beach front.
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Article 21. The contracts which the State executes for the sale of island property within an area of special development shall be undertaken through the Ministerio de Economía y Finanzas, after holding a public hearing, whose regulation shall be issued by the Executive Branch, guaranteeing the principles of economy, responsibility and transparency.
Natural and legal persons interested in the development of tourism projects referred to in the above paragraph may participate in the sessions of public hearings.
Transitory paragraph. The island properties in which there are rights of possession or where projects which have been started or which have the corresponding permits for their commencement, and which satisfy the applicable laws before the entrance into effect of this Law, may be subject to direct sale, without meeting the requirement for holding the public hearing established in this Law.
Article 22. The sale and purchase contracts for island property which are executed according to this Law shall contain:
The description of the land sold, including the surface areas, metes and bounds.
The value of the land subject to the sale and purchase, which price shall not, at any time, be less than the mean of the appraisals done by the Ministerio de Economía y Finanzas and the Contraloría General de la República.
The estimated amount and details of the investments, including the amount of investment in public basic infrastructure which the buyer will need to develop, himself or through subcontractors, which must include physical access and roadways to the parcels sold, as well as provision of drinking water and electricity, waste collection, water treatment plants and other basic services, which the area requires, as well as the corresponding environmental impact study and the plan of environmental management, in accordance with Law 41 of 1998, Environmental Law of the Republic of Panama.
The integral description of the project in its final phase, including the amounts of the investment and the term for completion of the development of the project.
The description of the beach rights of way, which shall never be less than twenty two metres, counted from the high tide mark, except for those special cases established in Article 9 of this Law.
A clear and precise description of the inalienable assets located within the island territory which is subject to the sale, as well as other restrictions to full title in accordance with the law.
The amount of the bond which the buyer must consign to guarantee the undertaking of the project which is to be developed, which shall not be less than ten percent (10%) of the value of the contract and which shall remain in place until the project is completed. This bond shall expire proportionally to the completion of the registration of the improvements built thereon.
Any special terms of the contract.
The reason (cause) for which the contract may be revoked.
These contracts shall not contain clauses which limit or exclude the right of the Municipality, of the area in which the project is undertaken, to charge the taxes, rates or excises which they have the right to receive according to the Constitution or law.
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Article 23. The projects which are presented for an area declared to be for special development, shall be prepared in accordance with the urbanisation plan which has been prepared, for this effect, by the Dirección General de Desarrollo Urbano of the Ministerio de Vivienda, in coordination with the Instituto Panameño de Turismo, the Autoridad Nacional del Ambiente, the Autoridad Marítima de Panamá, together with the Ministerio de Obras Públicas and the Dirección de Catastro y Bienes Patrimoniales of the Ministerio de Economía y Finanzas.
Transitory Paragraph. The absence of an urbanisation plan shall not obstruct the presentation of projects which present their own urbanisation plan, which may be approved by the corresponding authorities through the Ventanilla Única, established according to Article 10 of this Law, to provisionally adopt them as regulatory plans for the area.
Article 24. The State may administratively revoke the contract, where the stipulated investment is not undertaken according to the terms and conditions agreed upon. The following shall also be grounds for the administrative revocation of the contract:
Where the buyer is declared bankrupt by a court, or where they are financially or technically incapable, clearly and evidently, to complete the purpose of the contract, even where there is no judicial declaration of bankruptcy.
The dissolution of the buyer, when it is a legal person, or of any of the partners making up a joint venture or de facto association, unless the rest of the partners of the joint venture or association can complete the contract.
In the event of revocation of the contract, the title of the property given in sale shall revert to being property of the State. Nevertheless, the revocation of the contract to the buyer shall not affect title to property acquired by third parties in good faith, in accordance with this Law.
Chapter I – Concessions for Tourism Investment | Chapter II – Vacation or Permanent Residential Units | Chapter III – Sale is Island Property for Tourism Development | Chapter IV – Final Provisions
Chapter IV
Final Provisions Article 25. It corresponds to the Dirección de Catastro y Bienes Patrimoniales together with local government, to prepare the studies of the local tenure of the state properties which have been declared areas of national tourism interest and to delimit, specifically, the areas which may be subject to concession, respecting at all times the existing titles and rights of possession.
Article 26. Those natural persons domiciled in the area who have maintained a permanent and uninterrupted possession of the State lands on islands, for no less than a two year period before the entrance into effect of this Law, using said lands for a home or as the basis of their farming activity, shall be granted a concession over said lands for ninety years, without having to submit to a public hearing or having to consign a bond for the concessions, and being exempt from having to pay the corresponding charge.
Additionally, said persons shall fulfil the following requirements:
When it is a home for the applicant and his family, this shall have been built at least two years before the date on which the application is made, and must be the principal abode of the applicant’s family.
When it is parcels for farming, they must be in production, which shall be evidenced, for at least two years beforehand, counted backwards from the date on which this Law came into effect.
The domicile may be demonstrated by the registration of the applicant in the Electoral Roll of the area, which is certified by the Electoral Tribunal, and which is the interested party and their families were held to have voted in the last elections, as well as by the corresponding administrative authorities.
There may not be any opposition by third parties presented evidencing a better right for adjudication.
The permanent and uninterrupted possession referred to in this article shall be accredited by a ocular inspection undertaken by the Dirección de Catastro y Bienes Patrimoniales, in coordination with the corresponding corregidor. The results of this inspection may be complemented, at the applicant’s request, by the presentation of non-judicial testimony.
The concessions of this article shall be subject to the applicable rules of successions.
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Article 27. The legal persons who have maintained a permanent and uninterrupted possession of the State lands on islands, for no less than two years before the entrance into effect of this law, shall evidence said possession through an ocular inspection undertaken by the Dirección de Catastro y Bienes Patrimoniales, in coordination with the corresponding corregidor, an shall have the right to be granted a concession.
Those legal persons who have duly acquired the rights of possession from a natural person resident in the area, who can demonstrate that they are within the framework established in article 26 of this Law, shall be subrogated in the place of that person for the effects of the granting of the concession.
In both cases, the term of the concession granted shall be subject to the terms provided in article 1, as well as all those requirements established in Chapters I and II of this Law, as applicable.
Article 28. Any natural or legal person to whom a concession, which has been granted in accordance with article 26, has been transferred, maintaining the same use of personal residence or agricultural development as the original concession holder, shall be subject to the same conditions in terms of duration and payment of the corresponding charge. Where the concession is transferred and the same conditions are not maintained, the natural or legal person shall be subject, in terms of the duration of the concession, to the requirements established in Chapters I and II of this Law, as applicable.
When the transfer is only of rights of possession recognised under the provisions of this Law, the applicant shall be subject to the requirements established in in Chapters I and II of this Law, as applicable.
Article 29. The natural or legal persons who allege that they have rights of possession over beach front or island property, by virtue of documents issued after the date of entry into effect of this Law, shall be subject to that established in articles 26, 27 or 28 in order to be held as opposition, for the purposes of opposing the occupation or the possession of an area which has been granted in concession to another person in accordance with this Law.
The concession holder shall have the right, where the opposition is decided in his favour, to request the immediate vacating of the concessioned area and the Dirección de Catastro y Bienes Patrimoniales may order the demolition of any improvements built thereon.
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Article 30. The concession contracts celebrated in accordance with the terms of this Law shall not have any clauses which limit or exclude the rights of the city council, where the concession is located, to charge the taxes, rates or excises which, by mandate of the Constitution or the law, they have the right to receive from the concession holders.
Without prejudice to the foregoing, no municipal authority shall have the power to impede or delay the commencement of projects which have been authorised over lands granted in accordance with the terms of this Law, unless the interested party proposes to undertake construction or projects which are not described in the corresponding concession contract or which, having been so described, are being effected in a different way from that proposed. The concession holders shall always be obliged to pay the municipal taxes and rates, which the city councils regularly impose on buildings of a similar nature.
Article 31. The occupation and use of the areas declares of tourism interest without the express authorisation of the Ministerio de Economía y Finanzas, or without the formalisation of the corresponding contract, shall be penalised with a fine equivalent to the amount up to five times the value of the area occupied, and not less than Five Thousand Balboas (B/.5,000.00). In order to apply these fines, the appraisal undertaken in accordance with applicable rules shall be used, without prejudice to any criminal sanctions which may apply.
Additionally, the Ministerio de Economía y Finanzas, through the Dirección de Catastro y Bienes Patrimoniales, may order the demolition of any buildings constructed thereon, restoring the land to its original condition, and the occupation shall cover the cost of such demotion and restoration. Nevertheless, the Ministerio de Economía y Finanzas may adjudicate, rent or grant a concession to the occupants, in accordance with public interest.
Article 32. Construction over coral formations is prohibited, as well as any activity which leads to the death, bleaching or destruction of the ecosystem of which it forms a part. The protection of the coastal-marine resources shall be regulated by provisions adopted for this purpose by the Autoridad Marítima de Panamá in coordination with the Autoridad Nacional del Ambiente.
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Article 33. The cutting, use and sale of mangrove forests, the products, parts or derivatives thereof is prohibited; except projects of tourism development who have prior approval of an environmental impact study and are in compliance with the applicable legislation.
Article 34. All natural or legal persons, whether concession or title holders of island properties, shall be subject to fulfilling the rules established by the Panamanian State with respect to national security.
Article 35. The concession holders or investors, contractors and subcontractors, shall hire, preferably from the area where the project is being undertaken, all manual labourers for the term of the construction.
Likewise, the concession holder or the project operator shall hire, preferably for the operation of the project, specialised personnel, if available, and non specialised personnel, from the area where the project is located.
The State shall train these residents in the different vocations required for these investments.
Article 36. The concession or sale contracts celebrated with the State in accordance with this Law, shall be countersigned by the Contraloría General de la República, without which they shall not be held to be valid.
Article 37. The Island Property Section of the Public Registry of Panama is hereby created, in which there shall be registered all titles relative to the sale of island property, the declaration, conveyance or transfer of the improvements build thereon which are given in concession, as well as other rights in rem which are arranged on these titles.
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Article 38. Article 121 of the Tax Code shall read as follows:
Article 121. No foreign natural or legal person and no national legal person of foreign capital, whether partial or total, may acquire land from the State or private persons, which are situated less than ten kilometres (10KM) from the borders. However, the rights acquired upon the entry into effect of the Constitution shall be respected, but the corresponding assets may be expropriated at any time, with the payment of an adequate indemnification.
Article 39. Subsection 8 of Article 27 of the Agrarian Code shall read as follows:
Article 27. The following lands are exempt from the provisions of the previous article:
…
8. Marine islands. The sale of the portions of land occupied and possessed in marine islands, shall be subject to the provisions of the Constitution and the law.
Article 40. This Law modified article 121 of the Tax Code, subsection 8 of article 27 of the Agrarian Code and repeals articles 34, 35, 36, 37, 38 and 39 of Law 8 of the 14th of June 1994, as well as Executive Decree 3 of the 19th of January of 1972 and any other provisions which may be contrary hereto.
May it be Published and Done.
Approved in its third debate in the Justo Arosemena Palace, Panama City, on the 13th of December 2005.
LEGISLATIVE ASSEMBLY LAW 24 (November 23, 1992).
By which, incentives for reforestation are established and reforestation activities are regulated in the Republic of Panama”
THE LEGISLATIVE ASSEMBLY DECREES THAT:
Article 1. The present Law regulates everything concerning reforestation. The following definitions apply to the present law:
1. Reforestation: The action of planting FOREST SPECIES on land lacking trees, whether for purposes of commercial, scenic, environmental, tourism, agricultural, forestry, creation of forested pastureland, energetic pursuits, or for any other purposes.
2. Forest Investment: The disbursed monies used for the purchase, rental or lease of land, equipment, machinery, motorized equipment, farming and forest vehicles and tools, nurseries, existing forest plantations, research, industrialization, insurance, contracting and subcontracting for the completion of the forest development plan, sawmills, roads, bridges, and other construction projects necessary for the development of reforestation, and to cover all other common and administrative expenses for the operation and maintenance of reforestation.
3. Indirect Forest Investment: Monies disbursed for the purchase of bonds, shares, and assets of companies dedicated to reforestation and all derived and related activities.
Article 2. The Executive Branch, conscious of its responsibility to all associates and taking into consideration the current growing rate of deforestation and its grave consequences for the country, declares the following as necessary:
1. To increase all forms of reforestation in the Republic of Panamá.
2. To regulate the incentives this Law refers to, through the National Institute of Natural Resources (INRENARE) and the Treasury Ministry, in consultation with related organizations.
These aforementioned regulations must be in forced within six (6) months from the enactment of this Law, in order to stimulate and encourage reforestation in all forms.
3. To establish a thirty (30) year period during which private reforestation is given priority and full support.
4. To promote the companies, associations, community groups and cooperatives involved in reforestation activities.
5. To promote the establishment, development, and improvement of the forest industry so that reforestation products are used as raw materials.
6. To study, investigate and promulgate all forms of reforestation and the means to accomplish same.
Article 3. Forest plantations are considered to be forest crops, and as such have the freedom to be utilized and commercialized as forestry products, nationally and internationally.
Nevertheless, owners of forest plantations should contact INRENARE for market guidelines and the corresponding transportation tables, which are provided at no charge, the data of which is used for statistical records. Forest plantations are the property of a person or company that has the corresponding property rights, except for the restrictions established by the Constitution regarding private property.
Article 4. The benefit to persons or companies derived from the commercialization of products obtained from forest plantations, until the final cut of the forest plantation, and whose establishment is carried out within twenty-five (25) years from the enactment of this Law, will be exempt from income tax, as long as the owners of these plantations are registered in the Forest Register of the National Institute of Natural Resources (INRENARE).
Article 5. Forest investment or indirect forest investments made by a person or company will be one hundred percent (100%) deductible from income tax, as long as the invested money is destined for the reforestation activity.
For indirect forest investments, the benefits established in this article may be used just once; the persons or companies who receive the benefits described in this article for their indirect forest investments, will be obligated to maintain their investments for a minimum of five (5) years.
Forest investments and indirect forest investments made in organizations, private institutions or educational institutions, dedicated to the investigation and research of forestry, the forest industry or the promotion of the forest sector, will be considered as expenses which are one-hundred percent (100%) deductible from income tax, as long as the invested money comes from a source other than the reforestation activity.
The company that illegally sells bonds, shares and assets which benefit from this Law and does not fulfill the objectives of this Law is committing fiscal fraud.
Article 6. The following items are exempt from import duty and other duties when introduced to the country: agricultural, forest, industrial and motorized machinery and equipment, materials, tools, agricultural chemicals, forest research equipment, seeds, cuttings and other forest plants, and any other elements necessary for the exclusive us of reforestation activities, handling and/or use of forest plantations. The Treasury Ministry will dictate the respective regulations.
Article 7. The farms that use more than fifty percent (50%) of their land for reforestation or that have a minimum of two hundred (200) hectares reforested are exempt from real estate tax and real estate transfer tax.
Article 8. The profits generated by bonds, shares and assets of associations dedicated to reforestation and its derived and related activities, and the gains obtained from the sale of these bonds, shares, and assets, will be exempt from income tax.
The owners of these bonds, shares and assets, may use these instruments as a guarantee for banking transactions.
Article 9. The Executive Branch will promote the creation of credit lines with preferential interest rates and “Preferential Forest Loans” for reforestation, through official credit institutions and private banks, savings and loan associations, finance companies or any other company previously registered in the Treasury Ministry, whose commercial activity is to give loans. The Executive Branch will offer full support to hasten, develop and strengthen this activity.
The “Preferential Forest Loans” will have a “Preferential Bond” of four (4) percentage points lower than the local market interest rate. The persons or companies who make these loans will receive a fiscal credit every year for the first ten (10) years of the loan; this fiscal credit will be applicable to the payment of national taxes, for an amount equivalent to the difference between the revenues the Bank would have obtained if it had charged the local market interest rate, and the revenues received from the interests of each of the “Preferential Forest Loans.” The Treasury Ministry will dictate the respective regulations.
The interest earned by those referred to in the first paragraph of this article will be exempt from income tax on loans granted to finance forest investments or indirect forest investments.
The interest paid for financing reforestation and its derived and related activities are one hundred (100) percent deductible from income tax.
Article 10. To encourage investments in reforestation, the Executive Branch will support alternatives to convert forest plantations, either through mortgage guarantee, bank and commercial guarantees, Tax Payment Certificates (Certificados de Abono Tributarios-CAT), bonds, exchanges, transfer of existing plantations, participation in stock exchange, trust funds and others.
Article 11. Every foreign investor that makes a forest investment or an indirect forest investment of forty thousand balboas (B/. 40,000) or more, within the Republic of Panamá, will be eligible for an immigrant visa as an investor, through the purchase of shares, bonds, assets or investments of his own.
The investor must maintain the forest investment until the final cut of the forest plantation, and the case of indirect forest investment, must maintain the investment for a minimum of ten (10) years.
Article 12. The Executive Branch will create all legal mechanisms in the shortest time possible, to conduct and make possible the exchange of external public debt for reforestation, in order to find funds, nationally and internationally, to finance private reforestation through a five (5) year cycle.
Article 13. The Ministry of Agricultural Development, through the Agrarian Reform Directorate, will provide the proper protection against squatting in every forest plantation and every area destined by its owners for reforestation. It is a felony to invade reforested land, so that there exists security for the investment and incentives for reforestation.
Article 14. Following a technical study between the insurance superintendent, insurance companies and INRENARE, a system of Forest Insurance will be developed to indemnify forest plantations against fires, plagues, diseases and other damages.
Article 15. The Executive Branch, for the purposes of this Law, will improve and facilitate, as quickly as possible, the transfer of relevant technologies between national and international organizations, which contribute to the development and optimum use of forest resources.
Article 16. All the norms and guidelines of the present Law will also apply to forest plantations created, or to be created, in the deforested areas of the Panamá Canal Water Basin and the protected wild area, as long as the category and norms for handling and development established by INRENARE permit. For these purposes, INRENARE will establish the minimum requirements, which the forest management plan should fulfill for such areas, in order to protect these areas and at the same time, ensure the best possible commercial use of plantations under these conditions.
Article 17. All norms and guidelines of the present Law will also apply to the following deforested areas:
1. Areas surrounding water sources that spring within a radius of one hundred (100) meters in hilly areas, and fifty (50) meters if they spring in flat land.
2. In rivers and streams, the width of the riverbed will be taken into consideration; the riverbed width will be left the same of both sides, and be a strip of no less that ten (10) meters.
3. Areas of water accumulation within a radius of fifty (50) meters from the water spring where the water is used for local consumption.
4. Natural or artificial reservoirs up to ten (10) meters from the maximum level of water.
In these areas, the necessary procedures for the cutting of mature trees may be carried out, that is, cutting tress that have reached the plantation rotation cycle, and have been previously marked by INRENARE. The owner or investor will be obligated to reforest the latter by the next rainy season.
Article 18. Forest plantations existing at the time of the enactment of this Law, as well as all others that will be established while this Law is in force, shall benefit from these incentives. For these purposes, the owners of forest plantations should inscribe in the Forest Register of INRENARE. In the case of forest plantations established before the enactment of this Law, the deadline to register is five (5) years from the time this Law comes into force.
Article 19. The owners of plantations who refuse to comply or who repeatedly fail to comply with the guidelines of this Law and its regulations, will be removed from the Forest Register of INRENARE for up to five (5) years and will have the rights to incentives and benefits granted by this Law suspended for the same length of time.
Article 20. This Law will come into force at the time of its enactment.
22 July 1998 Whereby provisions for the Legal Stability of Investments are adopted.
THE LEGISLATIVE ASSEMBLY DECREES
CHAPTER 1 INVESTMENT PROTECTION
Article 1. The State promotes and protects investments within the country, in all areas of economic activity established in the Law, and in any enterprise or contractual form in accordance with national legislation. For the purpose of this Law, an investment is the disposition of capital, in cash or credit facilities, capital goods or transfers of assets designated to the effective production of goods and services, in accordance with activities establishes in article 5 of this Law.
Article 2. Foreign investors and the enterprises in which they participate, have the same rights and duties as national investors and enterprises, with no other limitation than those established in the Political Constitution and the law, including those that refer to the freedom of trade and industry, and export and import. Furthermore, the freedom to dispose of the profits obtained in their investments, the freedom to repatriate their capital, dividends, interest and profits produced by their investments and the freedom to commercialize their production is guaranteed hereby to said investors.
Article 3. Property rights for investors have no limitations other than those established by the Political Constitution and the law.
Article 4. Copyrights and trademark rights of foreign investors are subject to the same regulations as established for national investors.
CHAPTER II APPLICATION SCOPE
Article 5. The present legal stability regulation is granted to individuals or private entities, foreign of domestic, who carry out investments within the national territory to develop the following activities. Tourism, industrial, agricultural, exports, agroforestry, mining, export processing zones, commercial and petroleum free zones, telecommunications, constructions, port and railroad development, and any all activities approved by the President’s Cabinet, previously recommended by the Ministry of Commerce and Industries.
Article 6. The Ministry of commerce and Industries is the authority in charge of enforcing this Law and the regulations that develop it.
Article 7. Except for information protected by law, government entities and public offices have to provide the information and assistance required by the Ministry of Commerce and Industries to enforce this Law.
Article 8. To receive the benefits of this Law, the investor must develop the investment in accordance with the investment plan presented for such purposes, must be duly registered in the entity in charge of promoting and supervising such investments, if it is the case, and must comply the other duties established in article 16 of this Law. Said entity, on sight of the petition of party in interest, shall certify the existence of the investment and shall send copy of it to the Ministry of Commerce and Industries, entity that shall decide to file or deny the file of the investment in the Registry, through a motivated opinion, within a term of six months.
Foreign and domestic investors who, previous to the promulgation of this Law, have been engaged in investments in accordance with the requirements as prescribed by article 16 and who are interested to receive the benefits of this Law, shall have a term of six months to do so, after the promulgation of this Law.
The legal and tax stability provisions in effect at the moment of their inscription in the registry provided for in this article shall be guaranteed to these investors, in the event that they were duly registered in the entity responsible for promoting and supervising the respective type of investment.
For the purposes of the previous paragraph, the entity responsible for promoting or supervising the activity, duly required by the interested party, must send to the National Board of Enterprise Development of the Ministry of Commerce and Industry, identified with the acronym “DINADE”, copy of the inscription, in order that the Board may file or deny the file of said investment in the Registry.
In the case of activities which investment does not require to be registered in an entity in charge of promoting and supervising it, the investor request from DINADE the authorization for the corresponding inscription, which may be denied or accepted by the Board, in order to obtain the benefits of this Law.
All inscription requests must follow the guidelines established in this article.
Article 9. The following are not allowed to obtain the benefits of this Law. Individuals or juridical entities who have been or might be convicted by domestic or foreign authority or court for tax or customs crime, those with outstanding, clear and due fiscal debts, or when a final judicial or administrative decision has been passed declaring the firm’s failure to comply with customs, tax or social security statues. Individuals who have been convicted or might be convicted by a foreign or domestic court for any of the crimes established in articles 255,257,258,260,262,263a,263b,263c,263ch,263e and 263g of the Criminal Code, which refer to crimes related to drugs, money laundering or legitimization, entities in which said individuals act as directors, officers or representatives. Those who have been convicted for crimes described in articles 190,197,265 and 267 of the Criminal Code, respectively, which are related to fraud, misappropriation, and forgery of public and private document.
To validate this numeral, a final judicial or administrative conviction declaring said person criminally responsible must exist. In the event that, after being registered in the DINADE Registry, an investor protected by this legislation incurs in any of the crimes outlined in numeral 1 and 2 of this article, the registration will be cancelled after the corresponding verification process has been accomplished and a motivated resolution has been issued. The same treatment will be dispensed to investors which have incurred in the situations established in numeral 1 and 2 of this article, when these circumstances are made know to the corresponding authorities after the registration, even if the crimes were incurred before the inscription. The cancellation of the registration will produce the extinction of all benefits the present Law offers the investor and the latter will be punishable law.
CHAPTER III GUARANTEES
Article 10. The individual or entity who develops investments in the activities prescribed in article 5 and who comply with the obligations set forth in article 16 of this Law, since its promulgation, shall receive the following benefits for the term of ten years.
Legal stability in such a manner, that even though new regulations that might vary its acquired rights herein be enacted, said new regulation shall not affect its constituted regimen, unless public utility or social interest causes shall exist. Tax stability within the national territory, subject only to existing tax laws at the time of its registration at the Ministry of Commerce and Industries, Indirect taxes are excluded from the tax stability contemplated herein. Municipal tax stability, to the extent that possible changes to the regulation on how to determine and pay municipal taxes could only affect investments protected under this Law every five years.
Stability in customs statutes derived form special laws, when these are enacted for special tax refund situations, exoneration’s, temporary admissions and similar. The President’s Cabinet faculty to modify all customs legislation shall nor constitute a violation of this guarantee.
Stability in labor statutes in relation to the laws in force at the time of the contract, pursuant to the Panamanian law and to the international pacts and agreements on the matter, ratified by the Republic of Panama.
Article 11. To assure the effects of the previous article, the DINADE shall send to the pertinent municipal and government authorities, a copy of the filed registry, which act as a proof in favor of the investor.
Article 12. If, during the enforcement of the law for the legal stability of investments, any exoneration or modification of the national taxes, which constitute part of the guaranteed tax statute, should expire, the investor shall pay taxes in accordance with the tax statute in effect at the time of its registration in the DINADE, unless the modification answers to public or social interests. If the abolishment of any of the taxes that form part of the guaranteed tax statute result from its substitution with a new tax, that investor shall pay the new tax up to an amount which does nor exceed the amount that he would have has to pay annually under the abolished law. Exoneration and their enforcement period will be regulated by the legal norms that enacted them.
Article 13. At any moment, investor registered in the DINADE shall elect, only once, to benefit from the tax statute applied to the investors nor protected by this Law. In that case, said statute will constitute, for the investor, the new parameter the same shall remain in force without modification, unless public or social interest mediate, for the rest of the ten year period provided by article 10 of the present Law.
The investor who elect to change the tax statute, in accordance with the aforementioned, shall notify such change to the DINADE, who shall issue the respective resolution, which shall be notifies to the Ministry of Finance and Treasury.
Likewise, investors who have elected to receive the benefits guaranteed by this Law, shall, at any time, after duly having notified DINADE, waive such guarantees and thus become bound to normal conditions that, in legal and tax matters, are in force to other investors not protected by this Law.
CHAPTER IV COUNCIL BOARD
Article 14. The Counsel Board for Investment Legal Stability herein named as the Counsel is created under the jurisdiction the Ministry of Commerce and Industries, and shall be integrated as follows:
The President of the Panamanian Association of Corporation Executives (APEDE), or a designated representative of that association.
The President of the Panamanian Chamber of Commerce, Industries and Agriculture, or a designated representative of that association.
The President of the National council of Private Enterprises (CONEP), or a designated representative of that association.
The President of the Panamanian Syndicate of Industrialists (SIP), or a designated representative of that association.
The President of the National Union of Agricultural Producers (UNPAP),or a designated representative of that association.
The President of the Panamanian Food Merchants Association (ACOVIPA), or a designated representative of that association.
The President of the Panamanian Association of Exporters (APEX), or a designated representative of that association.
A representative of any other association or body determined by the counsel. The members of the Counsel shall nor receive remuneration for the service renders.
Article 15. The duties of the Counsel Board shall be as follows: To advise the Ministry of Commerce and Industries on investment matters related to the interest of the investors protected.
To support, through recommendations, opinions and analysis of the respective groups, all efforts conducted by DIANADE.
To recommend to the Ministry of Commerce and Industries the inclusion of new activities in the present stability regulation, pursuant to article 5 of this Law.
CHAPTER V INVESTORS OBLIGATIONS
Article 16. All investors interested in receiving the benefits of this Law shall comply the following procedure:
To present to the competent authority in charge of regulation and supervising the investment, whichever the case may be, an investment plan which includes the obligation to invest two million dollars ($2,000.000.00), which shall be developed in the period established by the law that regulates the respective activity, or, in other cases.
The amount of the planned investment.
Number of employment planned to be created.
Any additional information that DINADE might require, based on the nature of the pertinent activity, as long as it is necessary to evaluate the viability of the petition.
Execute, maintain and develop the pertinent investment, during the agreed term and according to the investment plan.
To faithfully fulfill the group of norms, strategies and actions, established by or to be established by the Government, to orient, condition and determine the conservation, use, administration and utilization of the environment and natural resources, taking the necessary provisions, as ordered by the pertinent authorities, in order to avoid any negative effect on the environment.
To strictly comply the laws and regulations, regarding of the activity linked to the type of activity in reference to pay on time the taxes, fees and contributions and other social and labor charges to which the business may be founded.
To waive to any diplomatic claim, whenever the enterprises are totally or partially held by foreign capital or wherever foreigners are the owners or control the stock or participation in them, with the exception of cases of denial of justice.
To fulfill all tax and labor laws and regulations obligations assumed puremant the precision of this Law.
Article 17. The investor’s default of whichever of the obligations outlined in the previous article, shall produce the loss of the protection system a term that shall not exceed a two years term, computed from the time of the registration, except that the nature of the investment demands a term extension, that DINADE shall determine it.
Once the term for the investment have elapsed, the investor must accredit the amount invested and the activity developed, which shall be done through an affidavit, the certification of a certified public accountant and the corresponding evidence annexes. The affidavit certification shall be presented to the authority in charge of supervising the investment, or to the DINADE in the case of activities that does not require to be registered with an authority in charge of promoting and supervising their investment.
For the purpose of this Law, with the exception of those activities where the authority in charge of supervising the investment has disposed the content of the respective investment plan, the plan should contain at least the following information.
If the investor is an individual, the name and personal description of the investor, including the number of the personal identity card or passport number.
If the investor is a juridical entity, foreign or domestic, or must include a copy of the Articles of Incorporation and a certification signed by the Public Registry certifying the names of the directors, officers, legal representative,resident agent, authorized capital stock and any other information of the corporation.
This certification is valid for two months.
A detailed and precise description of the activity, including the feasibility studies, blueprints and any technical studies the project might require or need guaranteed by this Law, unless force major can be proven.
This decision shall only be adopted after the investor’s default has been proven, through summary proceeding and it shall be decreed through a motivated resolution issued DINADE, who will notify the investor, who might appeal in the manner provided in article 20.
Article 18. The Government shall indemnify the investor in the event that, for social or public interest, an investment protected by this Law be expropriated, as long as that decision causes damages which can be proven. The indemnity shall he determining in the manner provided in article 22 of this Law.
The investor will not receive said indemnity if the investment have been insured against country risk by a foreign government, by the World Bank Multilateral Guarantee Agency (MIGA) or any other local insurance company. The government will encourage local insurance companies to offer investment insurance for the activities described in this Law.
Article 19. When, in accordance with this Law, a foreign government, an international organization or a foreign or domestic insurance company, has issued the investor any insurance or financial guarantee against country risk, the Government shall recognize the investor’s subrogation rights, when that insurance or financial guarantee has been paid out.
CHAPTER VI General Rules
Article 20. Any controversies, claims and differences that arise between the government and investors with regard to the application, execution or interpretation of this Law, will be settled in a direct and friendly manner through conciliation, in accordance with the conciliation Rules of the Panamanian Center of the Conciliation and Arbitration. Supervisory actions from national and municipal tax administrations and administrative acts of interpretation and tax collection and other public order rules are excluded from the conciliatory and arbitration process referred to herein. If no solution is reached within the thirty days the conciliatory process has been promoted and after the corresponding claim has been presented the investor might elect to refer.
Through a decision of the competent governmental or judicial authority. Through judgement, in accordance with the Arbitration Rules of the Panamanian center of conciliation and arbitration. Arbitration judgement shall be definite and obligatory for the litigating parties and shall be definite and obligatory for the litigating parties and shall be executed in accordance with national legislation.
These cases in which exist the causes of causation based on form or annulment based on prevarication exists, as provided in articles form or annulment based on prevarication exists, as provided in articles 1151 and 1441 of the Judicial Code, respectively, are excluded from the above paragraph.
Article 21. The Government shall nor take direct or indirect measures of modification or derogation of laws which carry the same effect, against investments developed under the protection of this law, unless such measures the adopted under the following criteria. That paid measures be adopted based on public utility or social interest and in accordance with the Political Constitution. That said measure not is discriminatory. That paid measure implies the payment of adequate indemnity.
Article 22. The indemnity referred to in the previous article shall be based on the market value, according to fiscal laws, of the investments affected on the date immediately previous to that in which the adopted measure is communicated to the affected party.
When there is a difficulty to determine said value, the indemnity may be fixed according to the principles of evaluation generally applied, taking into account the amount of capital invested, its depreciation, the amount of repatriated capital up to date, replacement value and other relevant factors.
In any of the cases deserved in the previous article, the procedure for payment of the indemnity shall adjust to that established in Part II, Title XVI, Book II of the Judicial Code.
Article 23. This Law shall nor affect the rights, conditions or benefits granted to investments by virtue of treaties for the promotion and protection of investments undersigns by the Republic of Panama.
Article 24. The Executive Branch will regulate the precision contained in this Law.
Article 25. This Law shall be effective as of its promulgation and it revokes law regulation, which contravenes it.
PROMULGATE IT AND COMPLY WITH.
Approved on third debate at the Justo Arosemena Palace, Panama City, on the 18th day of July, nineteen hundred and ninety eight.
Cuenca, Ecuador Named Top Expat Destination for 2013
The world’s top retirement spot? In truth, it depends on you. There are many appealing options for a new life in retirement as an expat, as many people are now looking for ways to stretch their dollars. It makes sense, living expenses can be cheaper, cultural experiences richer and the lifestyle more satisfying as an expat.
The top retirement spots for 2013 have a variety of cultural offerings, climates, and lifestyles. Each destination is desirable in its own way, but they all offer something increasingly hard to come by at home: A good quality of life for a reasonable price.
Here is a guide to the best places to retire overseas in 2013:
1. Ecuador
Living on $1,600 a month including rent isn’t unreasonable in a place like Cuenca, Ecuador. Buying a house or condo near the water could cost you less than a quarter of popular U.S. destinations of similar climate. When you make the move, Ecuador allows you to import your household goods duty-free, and with its new, simplified visa process, it’s no wonder Ecuador tops the list as a best-value retirement paradise.
But for many, the true draw is the perfect climate. The nation lies on the equator. The beaches are tropical, but up in the Andes, the weather is mild and spring-like year-round. Best bonus yet, it’s one of the best countries for an expat business start-up.
2. Panama
In Panama’s capital city you can have all the U.S. comforts of a big city, including outstanding healthcare, restaurants, and daily activities. On a monthly budget of $1,700 to $2,500 a month you could eat out regularly, have a housekeeper come in a few times a week, and enjoy movie dates a few times a month.
View of Panama City skyline, a top expat destination for 2013
Panama’s major draw is its Pensionado (pensioner) visa, where qualified retirees achieve residence status fairly quickly. The program entitles visa holders to discounts on medical treatment, dining, movies, and more. Most expats in Panama regret they didn’t come sooner, as many say they chose Panama for the friendly people…its rainforest…plentiful beaches and the choice of secluded or city living lifestyles.
In Panama it’s possible to put a toe in the Pacific after breakfast and in the Atlantic before dinner…on the same day. There are cloud forests for bird watching, such as the resplendent quetzal, and even orchid gazing, all in the same weekend.
3. Malaysia
Malaysia is Asia’s Panama. That is to say, this country is a regional and a global hub, for trade, for business, and for culture. Malaysia is a multi-ethnic and multi-cultural country which attracts many tourists annually.
Penang, Malaysia offers expats an affordable living under $2,000 a month in what is considered “luxury housing” in the states. Here, an expat can eat out often and enjoy all the things the city has to offer along with top notch medical care at an affordable price.
Malaysian expats feel the country has everything. Its weather is a tropical 82 F all year round and its beaches, islands, and jungles are pristine. It has some of the region’s best street food, great restaurants, bars, shopping malls, and movie theaters—and it’s all affordable.
4. Mexico
Mexico’s colorful and vibrant culture does rank high with expats who live here…look deeper and Mexico has much to offer. Mexico is an easy, convenient choice for many expats who are seeking a first-world country at bargain prices. No wonder a million or more expats make Mexico their home.
Today’s Mexico offers modern highways and airports, cable and satellite TV, Internet, and many other items expats enjoy at home. Want your “big” U.S. lifestyle abroad, you’ll get it in Mexico with an overall cost of living at about half of what you’d pay in the U.S. or Canada.
And one of Mexico’s biggest pluses is its sheer size and variety. If you want beach, Mexico has thousands of miles of it—chic resorts, sleepy beach towns, and everything in between. Prefer cool, mountain scenery? Mexico has that, too. More likely than not, whatever you’re looking for in a retirement destination you will find it in Mexico.
5. Costa Rica
Costa Rica is where you go to live the lush life. It is lush with nature—misty rain forests, extraordinary wildlife, active volcanoes, and fabulous beaches—as well as such comforting amenities as malls, supermarkets, restaurants, museums, and social clubs.
U.S. retirees have flocked here for years, drawn by its mild climate, prosperity, literacy rate, health care, and, significantly, stable government. Another plus: Costa Rica’s commitment to a thriving natural park system that is second to none in Latin America. This is as biodiverse a country as you’ll find anywhere. The country offers micro-climates, meaning you can fine-tune your weather by moving up and down the hills.
Though not the bargain it was a decade ago, Costa Rica continues to draw moderate-income retirees, who meet the country’s requirement of income of $1,000 per month from Social Security or a pension. Best part, residence is easy enough that just about anybody can do it. Residents are eligible to join the universal health-care system, known as Caja. The cost, based on income, can be as low as $49 a month. After that, care is free.
6. Nicaragua
Want a budget-friendly retirement destination? Think Nicaragua. Geographically, the nation is blessed with two long coastlines and two big lakes, plus volcanoes, highlands, rain forest, and rivers. In this manner, it has everything Costa Rica and Panama have, but it’s less discovered and developed and available to adventurers and eco-travelers at bargain rates.
Property values have fallen significantly in this country over the past several years, thanks to Ortega’s re-election and then the global recession. As a result, you can buy one of Granada’s classic Spanish-colonial haciendas for $50,000 or less. A couple could live comfortably in this city on a budget of $1,200 per month.
Best of all, its lower cost of living does not mean you have to sacrifice the quality of life, in fact, it’s possible to live in Nicaragua with even more luxuries than you were accustomed to, simply because the prices are so low.
Retired Expat Communities
All these destinations have large expat communities, so doing your research can put you among other people like you; with similar interests. Learning a foreign language will probably be a requirement; but again if you have a sense of adventure, and don’t want the typical cookie cutter retirement this could be something new and stimulating.
The Ecuador 3 Count, where we bring you 3 Ecuador stories that you shouldn’t miss.
Up and close with giant tortoises – Santa Rosa – Santa Cruz Island, Galapagos Islands Ecuador
1: Here’s Why More Expats Are Exploring Ecuador
It’s all happening in Ecuador: as President Correa is re-elected, the nation opens a new international airport in Quito, where foodies are converging, the Galapagos Islands still lure visitors as a top Eco-destination and a stunning new rain forest eco-lodge opens in the clouds.
The only true way to see the cluster of islands known as the Galapagos is by boat. You can spend a few days or several weeks island hopping. They’re not pretty as such but enormously diverse in plant and animal life. One minute you’re walking over black molten rock and on the next island it is all lush green rolling hills with tortoises.
A visit to Quito’s Old Town food district is a blend of colonial and indigenous cultures through the melting pot of food, from ceviche to colaciones (roasted peanut). Ecuadorean cuisine really has to be experienced first-hand.
Three hours west of Quito sits a new eco-lodge nestled 3,000 ft up in the cloud forests. Mashpi Lodge. This name does not do it justice. Designed by Ecuadorean architect Alfredo Ribadeneira, with 22 rooms and suites decked out with Philippe Starck-designed bath tubs, it is a five-star glass enclosed space dome that looks like it’s come from the future and landed in the middle of a nature reserve. Here, Eco-friendly credentials and a team of experts are helping to chart the thousands of different species that inhabit the forest. The views are breathtaking.
2: How Being an Expat in Ecuador Will Change Your Life
Reinvent yourself in Ecuador.
Up second, surviving the first few days, months or years as an expat in Ecuador. The adrenaline has worn off a bit, you have unraveled a few of the mysteries of being a new expat. At first, expats find they’ve succeeded in establishing a routine that looks a lot like their old one… perhaps with better weather, nicer scenery, and lower cost of living. And that is okay for some, but watch out you don’t bring your homeland expectations to your new expat life.
But if you do have a real desire to change, reinvent yourself and grow, moving abroad can help make it possible. The thing to remember about moving abroad… the move itself will not immediately change you, yourself. You can’t simply move to another country one day and expect to wake up the next a different person. It takes time and adaptation.
Once you’ve taken a closer look at your expat life, you might just find it’s the right time to reinvent. Being an expat can help reveal things that may have been stuck in the corner of your brain for years… a novelist, a painter, a travel writer, an entrepreneur. You usually find them about the time you’ve taken care of the necessities, gotten used to your new expat life. And then it will be time to ask, “What do we do now?” and become someone or do something you never thought possible.
3. Foodies are Discovering Quito on Foot
Executive Chef Andrés Dávila leads guests through outdoor markets and food shops along the colorful streets of the Ecuadorean capital.
Finally: Quito’s Great Food Walk. The city doesn’t yet have the foodie allure of Lima, but this South American capital is getting increasing attention for its cuisine. As more gastronomy-focused tours of Ecuador pop up each year, visitors are being offered excellent cups of locally grown coffee and addictive, Ecuadorean chocolates.
The newest and grandest hotel in the city center, Casa Gangotena offers guests a walking gastronomy tour. The morning tour with the hotel’s chefs skips the tourist district and heads directly to local shops and markets where traditional sweets, grains, and spices are featured. With a climate that goes from equatorial tropical seaside to high in the Andes, there’s little that won’t grow here in the rich volcanic soil.
Photo Credit: Acnur Las Americas
When it comes to exploring Central America, Panama’s Darien province marks the end of the road for most travelers. Located on Panama’s eastern border, it contains the area known as El Tapon (meaning “The Plug”). This 99 mile stretch through the swamplands and rainforests along the Panama-Colombia border accounts for the only unfinished stretch of the Pan-American highway, which stretches all the way from Alaska to Argentina.
Often heralded as Central America’s own Bermuda Triangle, the Darien is regarded by many as Panama’s last true frontier. As the country’s least populated and least tame province, it’s easy to see why it has begun to attract a few of the area’s more adventurous travelers. While not easy to reach, its ecological and cultural attractions are easily worth the extra effort and associated risks.
Location and Terrain
Due to its topography, and the fact that the road literally ends in Yaviza, much of the Darien province is accessible only by plane or boat. A 45-minute flight from the nation’s capital will land you in La Palma, the capital of the province. Flights are also available via AirPanama to Garachine or Sambu. A few villages, such as La Chunga and Villa-Grecia are accessible by way of the Rio Sambu. However, the majority of the area is often most easily navigated on foot or by hollowed-out canoe. And, while a few hotels exist, lodging in clean but rustic huts or even in tents is much more common.
Comprising much of the Darien province is Darien National Park, Panama’s largest. The park contains habitats from sandy beaches to rocky coasts to mangroves to rain forests. And not the kind of rain forests that have clearly marked trails and snowcone stands. The forests of the Darien still remain largely untouched by civilization and were named a natural World Heritage Site by UNESCO in 1981. The area is home to four species of macaw, the rare Harpy eagle, tapirs, several endangered species of monkeys, and a host of other remarkable animals.
Culture and Inhabitants
Also among the undisturbed features of the Darien province are the people themselves. The Embera-Wounaan live along the riverbanks in villages containing no more than 5 to 20 houses, which are elevated structures with no walls. Unless they are in town men generally wear no more than a loin cloth, and women only a skirt. Children wear no clothes until puberty, and everyone is barefoot. Their bodies are painted with a black dye made from berries that is thought to repel insects. On special occasions, this dye is also used to paint geometric patterns on their bodies.
Photo Credit: Rita Willart
The Darien’s other inhabitants consist mainly of outlaws. What was once a subculture of pirates and run-away slaves is now a network of Revolutionary Armed Forces of Columbia (FARC) guerillas, who use the area for buying and stowing firearms, and the United Self-Defense Forces (known as paramilitaries) who oppose them. These groups, combined with poachers and drug traffickers, make much of the area unsafe for travel. The good news is that many tourist sights are only accessible by plane and, consequently, unreachable by those who might wish harm.
Nature and Activities
Many opportunities are available for adventurers who wish to spend their vacation just a little further off the grid. The Punta Patino Nature Reserve offers options for exploring, hiking, boating, and bird watching. No bucket list is complete without a stay at Pinas Bay’s Tropic Star Lodge, which is considered by some to be the best fishing resort in the world. With an abundance of marlin, sailfish, tuna, grouper, and many more, the resort has served as the backdrop for over 300 world records. Nearby Biroquera offers visitors the opportunity to intermingle with local tribespeople and experience their crafts, native dances, and more. Guided hiking tours abound throughout the area.
Photo Credit: Rita Willart
Dangers and Threats
Although much of the Darien is regarded as safe, exploring its depths is not for the faint of heart. Many deadly species, including crocodiles, boa constrictors, jaguars, and wild boar, lurk in its midst. As do poachers, of both plants and animals, who would kill to protect their livelihood. These same predators that pose a threat to tourists also threaten the sustainability of the ecosystem itself. This is due largely in part to the guerillas and paramilitaries that make the area too dangerous to patrol. The government and conservation organizations simply lack the resources and protection they need to do their jobs.
Also a concern for the area is the frequent mention of bridging the Pan-American Highway gap, which would undermine the subsistence of native cultures and habitats. As the Darien is threatened, so is Panama’s border and, ultimately, the rest of the Americas. Since the region has always served as a natural barrier between Panama and its South American neighbors, the country and the rest of Central and North America have remained safe from dangers such as foot and mouth disease which is currently isolated to South America alone. While conservation and law enforcement efforts are continuously improving, the fact remains that Panama’s last frontier may be slowly slipping away.
Don’t miss out on all it has to offer.
The Costa Rica 3 Count, where we bring you 3 stories that you shouldn’t miss.
How to open a bank account in Costa Rica as an expat.
1: How to Open a Bank Account in Costa Rica, (Without Losing your Cool)
First up: The rumors are true, setting up your first bank account in Costa Rica can be nightmare, but luckily, once that’s done, banking is pretty straightforward.
It’s best to check with the bank and know the requirements to set up an account, but most now require that an applicant have Costa Rican residency to open an account.
But generally ask for:
- Passport
- Residency documents
- Utility
- Letter of recommendation from a financial institution in your country
- Letter from your employer with the official stamp of the company (if employed)
- Reference letters from current account holders at the bank you are applying
2. What Type of Overseas Property Buyer Are You?
Next Up: Great news for those thinking about buying property in Costa Rica, the current combination of world property market, foreign currency rates, and economic factors are presenting unique opportunities.
If you have been looking at property for some time, or you have an overseas destination that you love and keep going back to, or even if you have considered retiring there one day, you will be happy to know, the timing is perfect.
3. 10 Things to Consider When Deciding to Rent or Buy as an Expat
Finally. Buying real estate in Costa Rica, or anyplace overseas, is fundamentally about diversification. When soon-to-be expats decide to make the move abroad, the first big question he or she often considers is where – but in reality this question should be: Is it best for me to buy my retirement residence overseas or rent?
San Jose, Costa Rica and Panama City are good examples, both offer expats lifestyle options, and neighborhoods just a mile or two away from each other can make for dramatically different living experiences. Buying before giving yourself a chance to understand this can mean the difference between loving your new life overseas and regretting it.