Susan wrote up a very comprehensive article about purchasing land in Panama. This one is a MUST READ if you’re going to buy here.
I wrote this article for the benefit of the many people on this list who seem to be new to Panama and looking for property. I am also making a copy of it in PDF format and posting it to the FILES section. It is a bit L O N G.
BUYING PROPERTY IN PANAMA 101 FOR NEWBIES
This article was written by me, Susan Guberman-Garcia. I am not a
Panamanian lawyer, a real estate developer, or a real estate agent. I
have no property currently for sale and do not plan on having any for
sale in the future. I write from my perspective as an expat who lives
here, and who has bought and sold property here. My husband and I own both ROP and titled property, in the Bocas archipelago and live on
Isla Cristobal. This article is simply a summary of what we have
learned from our experiences and those of others we have talked to,
including our own lawyers. It is just one person’s opinion, so take
it with the proverbial grain of salt and rely on your lawyer for
advice in real estate transactions.
____________________________________________
Don’t be in a hurry.
It’s a buyers’ market, and you will not find “bidding wars” like you
may in the USA. Look at lots of properties before you buy. If you
are looking at rural or island properties, make sure you see it during
the rainy season. If its not elevated, it might be a swamp. Don’t
fall prey to “buy now” syndrome. Never give in to the temptation to
give a seller or agent a deposit check on the spot even if you think
you’ve found your dream property. (See below). Most people advise
expats to rent for awhile before buying anything. I think that’s real
good advice (even though we didn’t do it!)
Know what you want
Make a checklist of what is important to you. Some of the things you
might include are:
1. Do you want to be near the ocean? Or do you prefer the mountains.
2. Heat vs. coolness. Do you want a tropical climate or a temperate one?
3. Urban vs. rural: Do you want to be in a city, or within a short
commute of one? Or do you want a more rural environment? How
important is it to be close to shopping, movie theaters, etc.
4. Do you have medical issues that require you to live near high
quality healthcare facilities?
5. Do you have specific hobbies that you want to be able to enjoy near home? Like surfing, scuba diving, mountain hiking, birdwatching?
6. Do you have a sailboat? Do you need protected water access?
7. How far do you want to be from neighbors? Do you want nearby
neighbors or quiet seclusion?
8. Do you want a ready made house, condo, etc.? Or do you want to buy raw land and build to suit yourself?
9. Do you want a “planned community” where there are rules and
restrictions (see below) or do you want to be free to build and live
as you like?
10. What is your budget? Include maintenance and transportation costs in your budget. For example: If you live on an island you will need to buy a boat. Is that in your budget?
…and lots of other things to consider also. The above are just a few,
so you get the idea. If you don’t know what you want, you will need a
lot of time to find out what it is. Visit the different parts of the country and spend at least a couple of weeks in each. Talk to as many people as possible about what they like and don’t like.
Understand the differences between TITLED property and RIGHT OF
POSSESSION (“ROP”) property
Titled property means you own the property. Right of possession
means that you own only the right to occupy the property. You can
sell that right just like you can sell titled property, but you are only conveying what you own, no more, no less. Understand that
because you don’t actually own ROP land, you cannot use it for
collateral on a mortgage and you cannot use it as a qualifying
investment for a residency visa. And if you fail to take action
after you buy to demonstrate your “occupancy” of your land (fencing,
signage, erecting some kind of structure), you may find yourself
dealing with squatters’ claims later. ROP ownership, like titled
ownership, is (or at least, should be) documented and recorded but
with a different government agency. This does not mean you should
never buy ROP land, it just means that you have to be careful and know
what you are buying and why you are buying it before you buy. One
more thing: you must pay property taxes yearly on titled land, but
not on ROP land.
Protect yourself against squatter claims
Like most countries, Panama law recognizes “squatters rights” to land under certain circumstsances. If you are buying rural land, make sure you walk every inch of it before you sign, to look for signs of human habitation. If you see anything that indicates that anybody except the owner (the person who is selling the land) is living on it, or farming it, don’t buy it. If the owner tells you “that’s my cousin Jose, he’ll move before we close,” that’s a red flag. Unless your lawyer obtains Jose’s signature on a document that says he has no claim to the land and doesn’t own it, you have a problem. This is especially important if you are buying ROP land, but is also necessary to prevent subsequent squatter claims to titled land.
Dealing with real estate agents
There are all kinds of real estate agents in Panama. Some are very nice, honest people, and some are aren’t so nice and honest. But even
the honest ones are operating from a very different rule book than
agents in the USA, and things that would get your real estate license
yanked in the USA are legal here. Be aware of the following:
1. There is no multiple listing service (MLS) in Panama. If anybody
tells you otherwise, they are lying and probably a crook.
2. Real estate agents are usually unlicensed and even if they are
licensed, the business is virtually unregulated by the government.
3. Real estate agents in Panama, with few exceptions, do not consider themselves “fiduciaries” and don’t think they have a duty towards you, the potential buyer at all. In fact, they often don’t think they have a duty to their own client, the seller, either! Beware of a practice that is banned in the US but frequently used in Panama: “Net
pricing.” Net pricing means the agent will ask the seller what he
wants to get out of the property and then list the property at a
number far above that, pocketing the difference. If you like a
particular piece of property, ask the agent if he is using net
pricing. He may lie, but if he squirms and looks away or won’t
answer, insist on an offer conference with the owner if you want to
make an offer.
4. Real estate agents do not “cooperate” with each other (remember,
there’s no MLS) and will not show each other’s properties. (In Bocas,
they don’t even speak to each other.) So do not rely on a single real
estate agent for your property search. Look at their listings online
and visit each agent who has a listing that looks interesting to you.
They will absolutely not show you FSBO property, don’t even ask.
5. Never EVER give a real estate agent money. Earnest money deposits should be handled through your lawyer (see below) and agent
commissions should be paid by the seller out of escrow. If any real
estate agent ever asks you for money, run do not walk in the other
direction.
6. If you want recommendations for real estate agents or feedback on a particular agent, go to the various yahoo groups (many are already
identified below in this article). Be sure to include regional groups
(such as http://groups.yahoo.com/group/panbocas/ or
http://groups.y
ahoo.com/group/retireinchiriqui/ Remember that you
can join any Yahoo group as a web-only member if you want to do so.
This means that you can visit the groups whenever you choose and read the threads and FILES that interest you, and not have to worry about being deluged with emails. You can change your yahoo group
preferences at any time to switch between email and non-email
membership.
Where to find FSBO properties:
a. If you are looking for a house or condo in Panama City, use the
classified ads in La Prensa, there are lots of them. And get yourself
a copy of “ESPACIOS” Magazine. It is a giveway, available at most
newsstands, and probably at your hotel. Ask the hotel clerk to get
you a copy. It has hundreds of listings, mostly condos, but also houses.
b. Escape Artist classified ads. Don’t pay attention to the
“articles” touting big developments, the owner gets a lot of money to
rave about them and the information is not reliable. But do visit the
classified ads, there are lots of FSBO as well as real estate agent
listings. Go to:
http://realestate.escapeartist.com/Properties/Panama/. Remember that
these ads are just like any other classified ad source: Caveat emptor.
c. This group: http://groups.yahoo.com/group/Panama_Real_Estate is
all about property and has lots of FSBO listings
d. Regional portals and sites – most will have FSBO as well as
agent-listed property for sale ads – www.bocas.com,
www.come-to-boquete.com are a couple of them.
Planned communities – Things to watch out for
1. Do not under any circumstances make an offer to buy into a “planned community” until you have read and approved all CCR’s
(covenants, conditions and restrictions). As in the USA, the CCR’s
will be incorporated into the sales contract and are binding on you.
Unlike the USA, developers in Panama often take a very casual attitude
towards disclosing them. If any developer tells you “the CCR’s aren’t
written yet, don’t worry, they will be simple, just sign here,” walk
away. One prominent island planned community in Bocas is involved in
a multiplicity of lawsuits filed by disgruntled buyers who signed off
on CCR’s that had not even been written yet. When they were written,
they were draconian and unreasonable (according to the unhappy
buyers). Don’t get yourself into a situation like this. Read first
(very carefully) and discuss the CCR’s with your lawyer before you
sign. Don’t believe verbal promises (“yes, I know it says you can
only have one pet, but don’t worry, we won’t enforce this…”) as they
are not binding and are worthless.
2. Be especially careful about buying into large, fancy planned
communities in the Bocas del Toro archipelago (or any remote island
area). The historical pattern of such developments on tropical
islands is that most of the promised amenities (restaurants, shops,
marinas, etc.) often never get built. If those amenities are your
primary reason for buying into a planned community, make sure you
investigate the developer’s finances very carefully, to make sure they
can afford to build everything they are promising.
The transaction
1. Don’t do ANYTHING until you have retained a Panamanian lawyer to represent you in the real estate transaction. ANYTHING includes
giving a deposit, signing a promise contract, or opening an escrow
account.
2. Hire a lawyer who comes with recommendations from other expats who have used the lawyer for similar transactions. A good place to get lawyer recommendations is on yahoo groups.
Do post messages asking for feedback. There are two very large yahoo groups that are good sources for asking for lawyer recommendations and feedback: http://groups.yahoo.com/group/viviendo_en_panama/ and
http://groups.yahoo.com/group/AmericansinPanama/. And
http://groups.yahoo.com/group/Panama_laws_for_expats/ has a FILE
folder with attorney recommendations and also one for attorney ads
and resumes.
3. Do not hire a lawyer who has any affiliation with the seller.
Conflict of interest rules for lawyers in Panama are not what they are
in the USA (not sure if there are any…).
4. Get a quote for handling the transaction, including the “due
diligence” that your lawyer must do to protect you against title
defect and prior possessory rights or squatter claims. If you need
or want a Panamanian corporation to own your property, the quote
should include the initial costs and yearly fees for this.
5. If you anticipate using your property as all or part of a
financial investment to qualify for a residency visa, be sure you
discuss your visa alternatives with your lawyer BEFORE you buy.
Remember that ROP land does not qualify. There are articles about the
various ways to qualify for visas in the VISAS folder of
http://groups.yahoo.com/group/Panama_laws_for_expats/ but remember that the law is constantly changing, and such articles are only to be used as general research and preparation for meeting with your attorney.
6. The first legal document that will be created and signed by the
parties to a real estate transaction is called a “promise contract”
(also sometimes referred to as “preliminary promise contract” or
“promise to buy.” Either your attorney or the seller’s attorney will
draw this up. Remember that ALL LEGAL DOCUMENTS IN PANAMA MUST BE IN SPANISH. If you are not fluent in Spanish, you must have it
translated. Your attorney should be able to provide a translation
(for an additional fee). Even if you and the seller are English
speakers, the promise contract still must be signed in Spanish (your
attorney may also have you sign the English version.)
This preliminary contract sets forth the basic terms of the deal and
all contingencies. For example, it should state that the sale is
contingent upon approval of the CCR’s (if a planned community is
involved), the approval of a survey done by a licensed surveyor, good
title, no prior possessory or squatter claims, etc. etc. etc. The
promise contract will state the price, the time limit for closing and
a legal description of the property, and anything else you and your
attorney think is important. It will also call for an earnest money
deposit. Typically, it provides that the earnest money deposit (which
is usually around 3% of the purchase price) is non refundable except
for failure to meet a contingency. The promise contract is a binding
contract and enforceable in court. Do not sign it unless you are
absolutely sure you want to go ahead with the transaction, subject to
any contingencies.
7. Deposits and escrow: Your attorney and the seller’s attorney
should agree on how the earnest money deposit and balance of the
purchase price are to be handled. All funds should be kept in some
kind of escrow. The most reliable form of escrow is a local bank.
The bank holds onto the money until the conditions set by the parties
are met. (In the case of the earnest money deposit, it would be
signing of the promise contract by all partiers and approval by their
attorneys) and then release the funds to the seller. The balance
would be paid upon recording of the deed in the Public Registry if the
property is titled. (Using a bank escrow can be tricky if you are
buying ROP land; in that case it might be better to use a private
escrow service.) There are private escrow companies who offer escrow services; your attorney will know about them. NEVER give the seller a check directly, all money should go through some kind of escrow. This protects the buyer against being ripped off and protects the seller against loss of deposits due to buyers’ remorse.
8. All la
nd should be surveyed (with survey markers) and the survey
signed by a licensed surveyor. And you should personally walk the
entire property to ensure that the survey marks show that the property
is where you think it is supposed to be. It is not uncommon for
properties, especially ROP land, to be surveyed for the first time
when it is sold, and the survey may show that the property is smaller
or larger than the parties originally thought it was. The seller may
be honestly confused about how much land he owns, or he could be
deliberately misleading you. In some cases, the parties will agree to
split the cost of the survey, or the seller may pay for all of it (if
the property has not been previously surveyed.) NEVER even think of
buying land that has not been surveyed.
Other miscellaneous issues
1. Oceanfront land is subject to setbacks for public access. There
is currently confusion in the law about how far back the setbacks go,
and the setback is different for islands than for mainland property.
The current popular consensus is that there is a 20 meter setback from
the high water line, for public access. In Panama, as in most
countries, all water and beaches are public and cannot be bought or
sold. Under the law, you need a “concession” to build within this
setback zone. In the Bocas del Toro area, concessions have typically
taken years to obtain, and building permits are routinely given out
while the concession is pending. (Note that most locals do not even
apply for them, but you definitely should.) If you are planning to
buy island property that requires a dock, or you are planning to build
a house on stilts over the water, you will need to talk to your
attorney about this issue. If a concession has already been granted,
that makes the property more valuable. Beware of buying any property
that has structures on it that require a concession but the seller has
not applied for one and the contract says it is the responsibility of
the buyer to do so. Anything more specific is beyond the scope of
this article. If you want to research this issue, go to the LAND LAWS
folder in http://groups.yahoo.com/group/panama_laws_for_expats and see the article on evolution of coastal land management in Panama.
2. Property tax exemptions: There are laws that provide for
property tax exemptions for new construction, but not (in most areas)
for renovating an existing home. If you are buying titled land and
planning to build (ROP land does not require payment of property
taxes), talk to your attorney about this. If you are buying property
for a tourism business, you may be eligible to apply for a “Law 8″
exemption from all taxes. Talk to your attorney about this also, and
you can, in preparation, read Law 8 in its entirety, in the file
folder on business laws at:
http://groups.yahoo.com/group/panama_laws_for_expats
3. The “shares in a corporation” trap: Some developers will try to
talk you into buying property in a transaction where you will not get
a title or even possessory rights, but rather, “shares in a
corporation.” This is a very high risk deal and you should walk away
from it. You do not want to be a junior partner in a business with
people you have not known for years and trusted. You have no control
over the corporation, and have no way of knowing what debts and
liabilities it may have. A business partnership is like a marriage:
Buying into this kind of deal is like marrying the guy (or gal) you
met in the bar last night.
4. Seller financing and “land contracts” – This refers to a sale
where you pay a certain percentage of the price down, make installment payments and title passes to you only upon completion of payments. These types of deals are very high risk in Panama, since the law does not protect you (unlike the USA where you have certain rights that are protected by law). You could lose everything if you miss a payment, or if the seller loses his land in a lawsuit or bankruptcy. Don’t do it unless you can afford to walk away from every penny you put into it right up until the time of payoff.
5. Mortages and construction loans: With the exception of certain
condo and residential developments in or near Panama City (and maybe
one or two other places), where the developers have made deals with a bank to guarantee loans to anybody, you are not going to be able to
walk in and get a mortgage on property, no matter how good your credit
is in the USA. Your application will not even be considered until you
have been here awhile, have obtained legal residency, and have
established a Panamanian credit rating. And remember: You cannot ever get a loan against ROP land. SOURCE: Don Winner @ Panama-guide.com
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
I’m waiting to see where the courts are going to come down on this case. If they side with the Surgeons, then they are putting all the land Omar redistributed back in play.
I’m waiting to see where the courts are going to come down on this case. If they side with the Surgeons, then they are putting all the land Omar redistributed back in play.
On the other hand there’s not much doubt Omar Torrijos was a military dictator. It could be easily argued the rich people who lost land didn’t complain or sue because they knew it would not do any good, and it might get them killed.
And taking it from the point of view of the poor farmer, they’ve been working that land for years and generations, so they can claim at least some valid rights to ownership, especially considering they were living on that land in accordance with recognized national law. One the other hand, they were willing to quickly sell those ROP rights when the gringo money wave hit.
And what about the people who bought land under the rules as they were at the time? They were acting according to established law and precedent and in good faith. But, they fully intended to “flip” the investment, resell the land rights and make a profit on the sale.
But what about those who bought the land with intent to spend money here, invest in Panama, generate jobs and stimulate the economy? Should the Panamanian legal system strip them of their investments and hand the land back to the “old” title holders? What would that do for Foreign Direct Investment?
If the courts decide in favor of the Surgeons, then every single “old” title can be claimed as valid. And, all of the land reform done under Omar Torrijos can be tossed out. People would be tearing apart Grandma’s house, looking for that old paperwork…
The result would be chaos. So how do you find equity for the injured party? Where does the money come from? There isn’t any money (that can be accessed) so they will probably just give the land back to the Surgeons, if they decide to honor the old titles. Everyone else gets hosed.
Whatever happens, these issues will not be settled on an email discussion board. It seems that everyone who has been posting has a stake in the outcome, either as a current or former owner, or politically as in defending the rights of the ROP holders (over the “old” title holders.) The rest of us are just flapping our gums and watching the crossfire.
I’ll make my prediction right now. There’s only one constant with regards to the Panamanian legal system — It’s slow. They can take a case and then spend twenty years looking at it. By the time this gets worked out, we’ll probably all be dead. I think it’s a pretty safe bet to say that we’re all going to die sometime, and it’s quite possible that many of us will be pushing up daisies before this case gets settled. And, this one could be just the first case of what could form the basis and precident for many more cases.
I would look at the underlying political currents to find the truth. What better irony than to force the current Torrijos regime to untangle the mess created by the land reform policies of the father?
Personally, I would not invest ten cents in anything involving the letters “ROP,” but that’s just me. I know there are hundreds or thousands of people out there who have invested millions buying up ROP land in Panama. As far as I’m concerned, those were individual investment decisions made by intelligent adults, and I hope it works out for all of you. But, there’s a cloud hanging over those decisions in the shape of the Surgeon lawsuit.
The bottom line is, as always, Caveat Emptor. I just hope that does not turn into Latin for “I told you so…” Good luck all around, and I’m sure we will be talking about this for a long time.
Now, what’s for lunch?
SOURCE: Don Winner @ Panama-guide.com
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
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By the year 2030 there will be 2.5 million inhabitants in Panama City. And, there are more than 155 buildings either under construction or on the planning board (see: http://www.panama-guide.com/article.php/20060104191907477) So, with all of this growth and construction, can the infrastructure of Panama City support this number of residents? The potable water supply and the demand on the electricity defy the urban planning – IDAAN already services more than 700,000 residents in Panama and San Miguelito, and growth and expansion will put more of a strain on the water system and electrical grid as well as streets and traffic.
The city of Panama is growing, just look around. In most areas of the city you can easily find a construction site for a new highrise, office building, or commercial center. If there is any serious urban planning going on behind all of this construction, it’s relatively invisible.
The metropolitan area of Panama City currently has a population of more than 1.6 million people. According to population projections issued by the Comptroller, the city will grow by at least at an annual compounded rate of 1.7% and by 2030 the city’s population will be more than 2.5 million people. Of course all growth is not concencrated in Panama City, but all parts of Panama are growing, especially in bedroom communities like San Miguelito, Las Cumbres, La Chorrera, Arrijan, and Sabanitas.
The city infrastructure is already feeling the pressure. Rapid urban growth will strain the potable water supply, saturate sewage systems, increase the demand on the power grid, and clog streets and roads. Government officials and city planners face some short and medium term challenges.
IDAAN is already installing a “Parallel Line” that will increase the capability of the Chilibre plant to supply water to the city, but the increased capability will quickly be absorbed by currently projected growth. In short, planners are taking care of the immediate problems, and now have to start looking farther into the future to anticipate and solve infrastructure problems before they happen.
—–
SERVICIOS .Para el 2030, habrá 2.5 millones de habitantes.
Las presiones sobre la ciudad
El abastecimiento de agua potable y la demanda sobre la electricidad desafían la planificación urbana.
LA PRENSA/Archivo
AGOTADO. El IDAAN atiende a unos 700 mil usuarios en Panamá y San Miguelito, pero el crecimiento de la población seguirá exigiendo más y más del sistema pluvial, especialmente en áreas remotas. 629829
Víctor D. Torres
http://thepanamanetwork.com
La ciudad de Panamá está creciendo. Mire a su alrededor. La urbe es un sitio de construcción permanente, con la planificación de rascacielos, barriadas y proyectos por dondequiera, y con pocas excepciones, sin planificación visible.
En 2005, el área metropolitana de Panamá ostentaba una población de 1.6 millón de habitantes, según proyecciones de la Contraloría General de la República. Esa cifra crecerá a una tasa compuesta anual de 1.7% hasta 2030, cuando la población de la ciudad alcanzará los 2.5 millones de habitantes. Claro, no todo el crecimiento está concentrado en la ciudad, sino que se ha dispersado hacia otros polos de crecimiento urbano -las ciudades dormitorio como San Miguelito, La Chorrera, Las Cumbres y Sabanitas-.
Cruzada urbanista
Pero la presión sobre la infraestructura de la ciudad es palpable. La falta de abastecimiento de agua potable, la saturación de los alcantarillados y la creciente demanda sobre un sistema de generación de energía que amenaza con sobrecargarse, son algunos de los desafíos que enfrentan las autoridades a corto y mediano plazo. Arquitectos como Álvaro González Clare, Álvaro Uribe y Rodrigo Mejía-Andrión han mantenido una cruzada constante en contra de lo que consideran un crecimiento urbano absurdo que terminará produciendo el “colapso” de las infraestructuras instaladas, el deterioro ambiental y la depresión económica de muchos sectores de la ciudad, como consecuencia de las presiones del mercado.
Los problemas empiezan desde lo básico. El deficiente suministro de agua a San Miguelito y Panamá, donde el Instituto de Acueductos y Alcantarillados Nacionales (IDAAN) atiende a unos 700 mil abonados, pretende resolverse con los trabajos de la Línea Paralela que concluirán en abril. Después de la ampliación de la planta de Chilibre, la nueva línea permitirá el doble del suministro actual de agua a la ciudad, de 125 millones de galones diarios a 250 millones, el equivalente de cuatro esclusajes por el Canal de Panamá.
Barriadas recargadas
Los sectores del centro de la ciudad como Miraflores en Bethania, San Francisco, Bella Vista y la Cresta esperan ansiosamente un servicio de mayor fluidez potable, cónsono con las construcciones millonarias y ultramodernas que prometen lujo y exclusividad, pero a veces carecen de lo más elemental como el agua.
Meylín Hernández compró un apartamentito de 60 mil dólares en el edificio de Terrazas de Miraflores hace dos años. Con problemas de baja presión, muchas veces no tiene agua ni para lavar los platos. “Si hubiera sabido que en el lugar no llegaba el agua, hubiese pensando dos veces en mudarme al sector”, dice Hernández.
La falta del vital líquido no solo es en edificios o en barriadas altas, sino que también afecta a familias en nuevas áreas residenciales. Hasta en Costa Bella en Costa del Este, quizá la urbanización mejor planificada de la ciudad, unos residentes se quejan de haber comprado finas casas, pero aún así no dejan atrás los problemas de baja presión de agua. Para arreglar el problema, una joven pareja tuvo que invertir en la instalación de una bomba de agua eléctrica y adecuar las tuberías de la vivienda.
“Después de pagar 250 mil dólares, no es justo que tenga que vivir como gorgojo”, dijo el dueño.
SOURCE: Don Winner @ Panama-guide.com
Email us at The Panama Club
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This thoughtful article was written almost a year ago. The real estate boom leveled off and has not resumed its torrid pace. However, high rises are still rising across Ciudad Panama as of January of 2011. It would seem that the best route for future Panama investment, especially in real estate, will be to obtain expert advice before diving in. Read and then give us a call.
BY JIM LANDERS – The Dallas Morning News PANAMA CITY, Panama — Cement prices have doubled, and it’s hard to get a truck to come to your building site. The situation is similar for steel, glass, bricks and all the guts of a high-rise condominium. The real-estate business is having a party in Panama. As of July, 380 tower projects were under way or announced, representing more than 40,000 condos and apartments. A year ago, it was 11,000 units. The builders say Americans looking for the urban high life in retirement will snap up these buildings in a new Miami that’s half the price of the real Miami. ”The baby boomers, simply put,” wrote Roger Khafif, builder of the Trump Ocean Club in the Punta Pacifica shoreline neighborhood, in an e-mail about his target buyers. “Without them, Panama’s real-estate boom would bust.” (more)
Retirement properties have been considerably cheaper in Panama than in Florida, and the climate is as good or better. The local currency is the U.S. dollar. And although Medicare doesn’t reach Americans abroad, healthcare is much less expensive there than in the United States.
But speculators are the ones who have put down deposits on 70 percent to 90 percent of these units, said Paul McBride, chief executive of Prima Panama developers. There’s no beach on the bay, which is where the 1 million residents of this city pour their sewage. A seven-year, $300 million cleanup is underway.
And falling prices in Miami and elsewhere in the United States may make those Panama condos seem less cheap.
It’s hard to find evidence that white-haired North Americans are mounting an invasion of retirees, and you can almost hear the air escaping from the bubble.
The Ice Tower, a 104-story dream of blue and silver, has melted. Two other towers of 96 and 54 floors are not going to get off the ground, either. There are mutterings about whether some developers were simply looking for interest-free loans from the people putting down condo deposits. A Panamanian legislator is proposing to a law requiring developers to pay 6 percent interest on refunded deposits.
Khafif’s Trump Ocean Club, a venture with New York developer Donald Trump, is starting to rise. The skyscraper shaped like a sail, he hopes, will be completed in October 2010 with 500 condos and 500 hotel suites with a market value of $404 million.
”Of course we can build a 90- or 104-floor building in Panama,” Khafif wrote. “Almost anything can be done if the price is right!! And that was precisely the problem. Plain and simple, the developers sold toooooo cheap.”
A builder needs to sell condos during the construction phase at prices high enough to cover inflation in materials and other construction costs, Khafif argued. ”We . . . launched our modest 66-floor building at three times the market value,” he wrote, and thus he expects no problems.
There are real-estate booms like this in a dozen Chinese cities and in the Persian Gulf emirate of Dubai.
Whenever the discussion turns to where all of the money comes from, people look over Panama’s shoulder and see Colombia, where cocaine has built fortunes looking to be laundered.
Such whisperings have not stopped other investors from coming. Condos priced at a total of $5.7 billion are on the market in a nation with a $16.5 billion economy. The expansion of the Panama Canal, hopes for big energy investments and happy days in the banking industry all point to rapid economic growth.
In the first five months of this year, Panamanian banks reported profits of $444.1 million, up 19.4 percent from the same period in 2006. The banks say credit is expanding 15 percent a month.
McBride of Prima Panama said the average Panama City condo is selling for more than the average single-family home in the United States. This doesn’t hurt the luxury market so much, but it may make a difference for North Americans hoping to stretch their nest eggs by retiring abroad.
”Two or three years ago, the price of a luxury condo was $120 a square foot. Now it’s $250 to $300 a square foot,” McBride said.
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
$40,000 Investment – Permanent Residency leading to Panama Passport
Summary – This is a unique program where one invests $40,000 in an approved Panama reforestation program. This allows the investor to obtain a Visa for themselves and their spouse as well as dependent children; no additional investment is required for dependents. This is the least expensive legitimate residency program we are aware of. The Visas are renewable annually and after either one or five years they become permanent residency Visas allowing the investor and their dependents to reside in Panama permanently and also to work in Panama. After five years one can apply for citizenship. This is an extremely inexpensive way to obtain a Panama residency and eventually a citizenship with Panama passport which is good fro visa free travel in most of the western EU and throughout most of Latin and South America. The reforestation program is a statutory program written down as law. It is not a pay off some lawyer in the dark situation which will blow up when the government investigates some corrupt official selling citizenships. Never get involved in any residency/citizenship/passport program that is not written openly in the public laws for you to read. Never get involved in any residency/citizenship/passport program where you do not have to go to the official immigration building in the country for processing and to pick up your documents. Never get involved in any situation where you are paying a lawyer large fees because he “knows” the immigration officials and can make it happen cutting the red tape for you. People are constantly getting arrested trying to use passports and identity cards obtained in this manner. All of our programs are statutory and written in the public laws. If you actually make the investment of either $40,000 or $80,000 in the reforestation visa program it is a documented lawful program written in the law books and will be honored by the government, subsequent elected officials of Panama etc. What I am saying is if you make the investment, you will have your permanent residency which after five years makes you eligible to apply to be a citizen of Panama with a Panamanian Passport.
The Investment – You are investing in forestry projects generally dealing with teak wood but other types of trees are available. Some projects give you title to the actual land, usually about 2 hectares. The reforestation project must be an approved one. These projects are supposed to generate a fantastic return after 25 years, many times your investment. If you were to liquidate the land say after 10 years your return would generate substantial losses. This is because it takes years for the trees to grow. If you wait 15 years the loss would be less or perhaps you’d reach break even. Now if the value of land in Panama keeps appreciating like it has been doing recently this may prove to be untrue and the investment may be worth more in a few short years? We do think it is a tremendous way to obtain residency and eventually citizenship for a small investment. If the investment is held long enough it is possible to realize a high return on the investment as well. Any gain made on this investment is not taxable in Panama. We are not investment advisors and you need to evaluate the investment potential yourself. The land can be held in the name of a corporation.
Residency – There are two levels of investment for the Reforestation Visa – $40,000 and $80,000. Both have residency and lead to the ability to apply for citizenship after five years. The larger investment leads to a permanent residency after one year, the smaller investment leads to a permanent residency after five years requiring the visa to be renewed each year until the fifth year.
Documents Required – Passports valid for at least 6 months, police clearance report from last place of residence, marriage certificate, birth certificate for children dependents, medical clearance from Panama (we can refer), application forms, pictures, proof of investment contract etc. You have to come to Panama to apply in person but you do not need to live here for this visa.
Time Frame – From the time of receipt of all documents and fees 30-45 days as an approximate time frame. Much depends on the workload of the immigration department at the time of your application.
Fees – The visa immigration processing legal fees are $1250.00 for first person and then $250.00 for each dependent for the initial application. The fees in the following years ($40,000 visa) are $795.00 for the first person and $250.00 for each additional person. Our fee to review and negotiate your investment contract with the reforestation company is $300 (optional). Please note our fees are fair and honest just like our programs being offered unlike the lawyers in other countries that are charging $25,000 and up to get you a visa or citizenship based on the “immigration connections” they have.
For more information please visit: www.panamalaw.org — Email us at: http://thepanamanetwork.com — or — Call us at: (507) 6-480-1279
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
Panama offers a multitude of programs enabling one to fairly easily obtain a Passport, Visa, Residency and Citizenship. Panama is an excellent place for a second passport (2nd passport). The plans are outlined below. Do feel free to ask questions. We do not advise attempting to deal with the immigration authorities without adequate legal representation by a competent attorney.
Warning: All of our passport programs require you to be physically present at the immigration department for fingerprinting and photographing. These are NOT the “Pay someone off in the dark” programs you see on the internet which do not require you to go to the country physically and come with a passport, identity card and driver’s license. There are numerous stories on the internet if you look for them of people getting arrested all over the world when they attempt to travel on these passports. What is often done is passport blanks that come back from the manufacturer slightly defective (bad printing, stitching etc.) are marked as not usable by the government and are then sold by unscrupulous immigration officials through third parties. The problem is when the country that issued those does an audit of their immigration department they pick these things up and then the passports are flagged as fraudulent or stolen and this is sitting in some unfortunate person’s wallet waiting to be used and can cause a police detention with likely arrest to follow. There was just a raid recently in Guyana and the corrupt immigration officials there were issuing hundreds of passports daily. Now along comes some guy who bought one of these “officially issued” passports and he goes through immigration in say the EU. Well he doesn’t appear to be a Guyana type so they query around a bit and he gets arrested. Months after the scandal we still see Guyana Passports being sold on the internet which makes one wonder.
We even see Diplomatic passports being sold on the internet for $50,000 and up. This is ridiculous. What the buyers are not aware of is in almost all countries travel using a Diplomatic passport requires a visa so the country you intend to visit will require you to physically submit the diplomatic passport to their embassy for a visa which will involve scrutiny. So when they contact the diplomatic passport issuing government to verify the purpose of your visit, duration, whether or not you will be attached to the embassy, etc. what do you think is going to happen? Do you think the issuing government is going to provide official documentation for all of your journeys? Do you think they will even know who you are? They will most likely remain non responsive and your passport will probably never be returned as a best case scenario but this would most likely be followed by a knock at the door shake you up or arrest you visit by some authorities depending on where you live, admittedly some countries will not care what you did but others that are terrorist sensitive will get really interested in you and your whole life and you should expect to be added into the watch/stop list making airport travel a nightmare for the next ten or twenty years. The government that issued this diplomatic passport may also contact you after they get contacted for a $10,000 bribe or they will make trouble for you and on it goes. Remember why do you see Nigerian Scam Emails – because they work. There are a lot of stupid people out there so don’t be one of them.
How can you tell if a second passport or residency/citizenship program is real? Be careful when buying a second passport (2nd passport). First thing to look for is the statues in the law that contain the laws spelling out the program you are considering. If there are no statues run the other way. If you are told about a special program not for everyone, run.
Next make sure when buying a second passport (2nd passport) you will be going physically to the immigration department in the country for processing, photographs and fingerprints. This will greatly cut down the odds of a scam. Normally the country will want to know who you are, and like to see and copy a valid passport as a minimum. If the deal is you give them pictures and they send you the documents run away, this is probably a scam involving a counterfeit passport blank or a stolen one. I have even heard of them applying for passports in the name of a dead person using your picture. What if he was a dead criminal with warrants outstanding?
When buying a second passport (2nd passport) never agree to get a name change and a second passport all in one shot unless it involves court appearances for the name change. If not this probably involves a corrupt government official and will surely be trouble. If you do a name change in court in some jurisdiction make sure it is not public record or it is greatly diminished in value. Never carry two different passports with your picture in both that have different names unless you enjoy being detained at airports, border crossings etc. A lot of scams involve a story that goes like this; Ok Mr. Gringo you want the passport to be able to travel and open bank accounts and not as a citizen of the USA, EU, Canada etc. Ok well it is best to do so using a name that sounds like someone’s name in our country, here let me suggest this name: Enrique Haeverra. Hey that sounds great you say. Now what you don’t know is they got Enrique’s name off of a tombstone and they are going to identity theft the dead guy for you. This will probably blow up when a cross reference is made or something causes a record check like you trying to enter the country some day and then you are in for it. Remember you don’t talk, look, act or have a story like someone from their country should. Some jerk criminal buys such a passport and then gets caught doing something no regular person would do like money laundering 25 million dollars and then they pull his papers, scrutinize them, see the fraud and the pull all the fraud papers of the corrupt official who signed the bad guys papers and then start canceling all the passports this corrupt official processed illegally for fraud, theft, corruption or just to shake you down for money for playing games with their country and of course you better believe they are going to think you are a millionaire.
Another scam is selling second passports (2nd passport) from non-existent or non-recognized countries. This is done a lot usually for $1000-$2000. There are very few countries who will ever accept these passports and then usually only at border crossings. Usage is hit or miss, mostly misses. People buy these to open bank accounts with offshore. This sometimes works but usually in small countries with small banks. The problem comes when the bank examiner looks over their files and sees one of the fantasia passports as an identity document. He hits the roof and says I want to see real passports for all these people in here in 30 days or lock down these accounts. Now what do you do?
For more information please visit: www.panamalaw.org — Email us at: http://thepanamanetwork.com — or — Call us at: (507) 6-480-1279
SOURCE: panama-travel-bureau.com
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
This is a new concept but one that is gaining in popularity. This is for the nautically inclined only with boating skills that are developed. Basically you live your present country and become a citizen of the world traveling perpetually on your yacht. While all this sounds great you still need to have papers and documents of registration and passports to avoid constant hassles with authorities wherever you go. So what can be done is as follows:
You form an anonymous Panama SA company (bearer shares). This company then buys a yacht for at least $150,000. Now you need to hire three Panamanians for at least $253.00 a month each. So you have deckhands, crew, cook etc. This would let you get residency in Panama quickly and after three years you could apply for citizenship and get a Panama passport. You could also do a version of this using the small investor visa to do it with a $40,000 investment and three employees on your fishing or touring boat. You can get a Panama cell phone, mail box, bank account, visa debit card, atm card and you can travel the world. For most this isn’t feasible but it is fun to dream anyway.
Investor Visa (Inversionista) Designed for those who wish to establish a business in Panama (note, though, that some retail businesses and some professions are reserved to Panamanians). There must be a minimum investment of $150,000 and minimum of three, permanent Panamanian employees hired. It is granted provisionally for one year and after renewal is granted permanently with the right to be issued a cedula identity card. Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality.
Small Business Investor Visa (Inversionista de Pequeña Empresa) Designed for those who wish to establish a small business in Panama (note that retail businesses and some professions are reserved to Panamanians). There must be a minimum investment of $40,000 and minimum of three permanent Panamanian employees hired. It is granted provisionally for one year, and needs to be renewed three more times before it is granted permanently with the right to a cedula. Five years after obtaining the permanent visa, holders will be eligible to obtain Panamanian nationality.
If you’d like to know more about this go to. www.panamalaw.org
Article Source: http://EzineArticles.com/?expert=Ronald_Edwards
SOURCE: panama-travel-bureau.com
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
Panama: A Paradise for Retirement Life by Caitlina Fuller
When you know that it’s time for your life-after-work to begin, it’s easy to become stagnant and run out of ideas for what you are going to do now that money isn’t a problem and a job is ancient history. Retirement can be a scary time for a lot of people, but not if you have a beautiful place to live. Whether you are still waiting for that day when you don’t have to keep a nine to five or you’re fresh out of the office, Panama is a great place for retirement life. Others could go on a vacation on Panama beach, but you could settle in there for good.
With the tropical climate and the calming atmosphere, Panama is the perfect place to spend the rest of your days. Specifically, Bocas Del Toro is especially suited for the newly retired. The secluded beaches and the lush rain forests will make your stay a relaxing paradise that rivals heaven. It’s a small peaceful city with great weather and the living expenses are much cheaper than they are here in America. On top of that, it’s a beautiful Caribbean archipelago so your family will always want to visit whenever they can. This town also has multiple marinas. Fitting into the lifestyle will be as easy as buying a boat and learning to sail the open waters of the Caribbean Ocean. You know you have always wanted a life of luxury and relaxation, and you’ve worked all your life for it. This is the place that can give you that.
If you are thinking about moving to Panama, you will definitely need to figure out the best place to live. The unique thing about most Panama real estate is the fact that you don’t just buy the house, but a piece of land along with it. For example, most houses for sale in Bocas Del Toro are around one third of an acre to well over an acre of land. Some of these homes include small fruit orchards, their own private docks right on the ocean, and some even have their own beach areas. After retirement, this is the perfect place to unwind and think about the grandkids.
Whether you are just thinking about vacationing in Panama or planning on living there for a few years, the choice is simple. Prime real estate will sweeten the deal and great weather all around will top it all off. What are you waiting for?About the Author
Caitlina Fuller writes about home and family.
SOURCE: panama-travel-bureau.com
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
Real Estate Opportunities in Panama by Smythe Bradley
Panama is fast becoming the prime target for international real estate investment. The natural beauty of the serene beaches and towering mountains provide the ideal background for great architectural ambitions. Construction projects of massive dimensions are already in progress, and according to experts, there will be a tremendous boom in panama real estate within the next few years.
The reason why Panama is attracting so many real estate investors is because of the vision of one man. Donald Trump discovered the potential for real estate in Panama about three years ago when he visited the country to witness the Miss Universe pageant held there. He was at once captivated by the beautiful surroundings and purposed himself to develop the land into a major tourist destination with the most up-to-date facilities. A 65-story hotel cum condominium complex is being planned for construction in a trendy neighborhood in Panama City. When this complex is completed in the year 2009, it will also include a world-class casino and marina.
The far-sightedness of Donald Trump also convinced other real estate investors that Panama is indeed a place of true potential. As a result, many new developments are taking place, including a 100 plus-story Ice Tower which will stand as South America?s tallest building and the ninth tallest in the world by the date of its completion. In the next few years, when all the major projects are completed, Panama City will be a world-class city of breathtaking architecture and most advanced facilities. It will surely be a far cry from its humble days as a remote town of little renown.
In fact, Panama is a place with all the right conditions for economical development. The low crime rate and political stability make the country a safe place for vacationing or living. There is also no threat from natural disasters which is quite uncommon for a South American country. However, the major attraction of Panama is truly the low cost of living. Everything from food to housing to medical services is very inexpensive. The prices of products are low because Panama is a free trade zone and the center of distribution in South America.
Panama is destined to be a major tourist or retirement destination for Americans. Its proximity to the United States makes it a most convenient location for travel, with frequent airlines to the major cities. Panama City is also the point of transition for airlines traveling to and from countries in South America. The locals there are also able to speak English considerably well. At present, much is being done in the United States to promote Panama as an ideal travel location for the Americans and retirees are also encouraged to make it their second home.
Ever since it became evident that Panama will be a real estate interest of great potential, investors and brokers are rushing to get their share of the big pie. Investing in real estate in Panama is no longer considered a risk worth taking; it is only the smart thing to do.About the Author
Smythe Bradley is an expat living in The Republic of Panama. He has published many articles on offshore asset protection in panama, panama visas and residency, as well as many other expat issues.
SOURCE: panama-travel-bureau.com
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
Panama, a Central American retirement and financial treasure that brings the best of both worlds, an ecological sanctuary with thousands of virgin properties and a great number of reasons to invest.
The Republic of Panama has become one of the Hot Spots to retire and invest in the world. Here in Panama you can find the perfect balance between tranquility and a metropolitan area!
Unlike many places of the world, Panama has an incredible overall stability and geographical position. Economic climates in other countries like the United States are currently worrisome. News have exposed that the US debt limit has increased four times in the actual government and has gone up to $8.9 trillion. In the other hand, the trade deficit is at a record of $68.5 billion.
People in the US are getting affected by events like these.The danger for US citizens is that their savings may lose buying power in their country. People who retired in the 80?s and 90?s did not expect a $3.00 gallon for gas. Now, are you saving too much for retirement?
Forget about the idea that you need millions to retire comfortably, as some would have you believe?What if you could bail out of your job years earlier than you thought? Or spend thousands of dollars more in retirement than you’d planned? What if you’re actually saving too much for retirement in your country, instead of not enough? Here in Panama, the opportunity to diversify your assets and investing for a low cost in a Panamanian property or Panamanian development is currently available!
Panama Advantages:- Full time domestic services- Panama has Low crime rate- Panama has a great variety of attractions all in close proximity.- Panama is safe.-Low cost of property and development-Panama is safe from natural disasters.-Easy access to Panamanian Visa (More Information on Visas Click Here)-A politically stable country, safe from terrorist threats.-US Dollar is Panama?s legal currency.-Tropical climate in Panama is a great location for adventure.-Panama has a wide selection of beaches and island venues and activities.-Incredibly low overall cost of living.-English is a language of common usage.-Strong bank secrecy laws.-Renowned banking center with over 70 private banks.-Live in a tax friendly country where foreign earned income, capital gains, and interest Income is non-taxable.-Live in a country where business can be operated without heavy restrictions, regulations, or taxes that hinder its growth.-Live in a country which provides a 1st class assets protection structure.-Affordable homes in the city, mountain or beach.-Live in a tax friendly country.
BENEFITS FOR RETIRED AND PESIONED IN PANAMAThe Republic of Panama offers a variety of benefits within its laws for retired and pensioned citizens of the Third and Fourth Ages and by which is created and regulates the stamp tax named Peace and Social Security. It states that Panamanian or foreign residing in Panamanian territory fifty-seven (57) years old or older, if they are female; or sixty-two (62) years old or older, if they are male; and all retired and pensioned by any gender, will receive benefits such as:
- 50% discount over recreational fees and entertainment fees such as: movie theaters, theater, events, sports events and any public event.- 25% discount on airfare tickets- 25% discount on the value of any individual meal at any restaurant- 15% discount on fase food stablishments (Nacional or Internacional)- Discount on regular hotels, motels and pensions.- 15% discount on medical services- 10% discount on prescrited medications.- 20% discount on medical appointments- 25% discount on electric consumption- 25% discount on telephone consumption.- 20% discount on prosthesis as well as al assistance equipment and accessories.- Personal loans y commercial loans will be fee of taxes stipulated be the Especial Interest Compensation Fund (FECI, in Spanish)- Discount on percent points over interest rates on mortgage loans for primary residencies.- Freezing of property taxes, as long as the residence is under the elder name and is its primary residence. – The exemption in the payment of the appraisal rate of the property, as long as it is the only one and constitutes the primary residence.- Discount on Airport taxes.- Among others.For more information on property listings and investments in the Republic of Panama please contact info@panamahotproperties.comFidel PonceA native panamanian real estate broker / tour operator who currently experiences the Central American Dream..
SOURCE: panama-travel-bureau.com
If you are interested in doing business in Panama or doing business with Panama you will want to make the right contacts, hire a competent, English speaking lawyer, and have someone on your side who knows local customs and politics. VIP Panama takes pride in connecting its clients to the right luxury living accommodations, the right business arrangements, and the most discrete entertainment, when required.
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
