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Go Global
Panama – Is it For You?
By Pat Tan
We often hear stories about attractively priced properties in Central America. Regular readers may remember my articles on Costa Rica, Belize and Mexico. Well now it’s the turn of Panama to come under the magnifying glass.
Panama lies between Colombia and Costa Rica in Central America, forming a natural isthmian bridge between the Caribbean Sea to the north and the Pacific Ocean to the south. Settled by the Spanish in 1500s, and separated from Spain in 1821, Panama became a department of Columbia. With the support of the United States, Panama proclaimed its independence in 1903 and granted the U.S. rights to a “zone” in which the U.S. would build a canal. The world famous Panama Canal was completed in 1914 and it was managed and administered by the U.S. until December 31 1999 when its control was given back to the Panamanian government.
Today, Panama is one of the most politically stable countries in the region. Its economy is based on the U.S. Dollar, and is primarily service-based. 75% of GDP comes from operation of the Panama Canal, banking, an extensive free trade zone in Colon, insurance, container ports, flagship registry, tourism and real estate development. The country has recently embarked upon a major project to widen the Panama Canal, and this has sparked investor interest as well as giving the local economy a further boost.
Panama is very accessible, with direct flights from Europe, Canada and the United States, and it has quickly established itself as a popular tourist and retirement destination. It is regularly featured in international retirement living magazines and indices as one of the most attractive retirement destinations, offering a modern infrastructure, relatively low cost of living, safety and stability, high standards of health care, varied climate (without hurricanes or earthquakes!), attractive real estate prices, many cultural and entertainment options, and all of this underpinned by a government developed and sponsored retiree benefit package. For example, foreign residents and retirees can have overseas-sourced money remitted tax-free to Panama. There are also tax incentives to encourage international investment in Panamanian real estate.
Real estate choices are many and varied.
Visitors, retires and investors can choose from cool mountainous areas or beautiful and fascinating nature in the rain forest. Beach lovers may prefer the calm turquoise waters of the Caribbean or the dramatic waves of the Pacific within just an hour’s drive of each other. Those wishing to completely get away from everything and everyone might consider purchasing a private island.
Panama City is a popular investment option for overseas investors with options to purchase residential, commercial or historical properties. Modern high rise developments are prevalent due to the high land value in the City itself.
Raw land and small development opportunities also exist, but investors should beware of properties that are far away from major towns and resorts, and lack nearby infrastructure.
In short, Panama offers potential for real estate investment, and is a mix of U.S. and Latin American cultures, where you can enjoy a fun, laid-back lifestyle with all the modern creature comforts you might associate with the U.S.A. and Europe.
Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s. Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty. Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com [2].
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