Baby boomers from the United States are not safe from fraud artists. Many have fallen victim to schemers who offer lands they don’t own for sale through the internet, mainly in Bocas del Toro. The situation has the National Council of Private Companies (CONEP) is asking authorities to take action “as soon as possible” due to the fear and distrust these cases could generate among retirees. CONEP President José Javier Rivera said swindlers sell ROP land that has already been sold to several people. Henry Acevedo, the National Director of Domestic Trade of the Ministry of Commerce said that last year the Prosecutor’s office in Bocas del Toro handled six cases involving fraudulent land sales to foreigners. Other real estate sources said more cases exist although all of them have not been formally denounced. This is verified by Acevedo who added that they received complaints about people conducting land sales who are not properly accredited real estate agents almost daily. The President of the Technical Board of Real Estate Agents said that those types of complaints have to be handled by the competent authorities because the board can only impose fines on licensed real estate agents.
A government employee in Bocas del Toro said that so far they have not been able to verify the complaints because the payments have been in cash and “there is no proof or witnesses.”
The ex-President of the Panamanian Association of Real Estate Agents (ACOBIR), Natasha Sucre, said that the situation is serious, to the point that people without licenses conducting transactions with no guarantee.
She affirmed that in Bocas del Toro there have been complaints about both Panamanians and foreigners who have been fraudulently selling ROP land.
Representatives of the investment consulting firm SAAM Investments said that during one recent tour of Boquete, one of the areas preferred by baby boomers, they perceived a certain level of distrust of real estate agents.
Panama has become an attractive retirement location for foreigners. In just the United States 13,000 people are retiring every day, or one every seven seconds, and they all read http://www.panama-guide.com (OK, I added that part…)
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)
Panama is now positioning itself as the “New Costa Rica”. It has put together the most appealing program of special benefits for foreign residents and retirees you’ll find anywhere in the world today. We can refer you to a law firm in Panama that has an attorney who does nothing but Immigration Law in Panama. Below are some of the Visas available.
Panama Visa Qualifications All visa applications must be made through a Panamanian lawyer. There is no age limit required for applying for any of these visas, save for the minimum legal age of 18 years. Youngsters under 18 will qualify for a visa as dependents of their parents. All overseas documents to be presented to the authorities in Panama must be authenticated by a Notary and by the Panamanian consulate nearest you, or by a notary and the Apostille. The Apostille (The Hague Convention of 1961) is a faster way of authenticating documents and is normally obtained through the Secretary of State in your home state (in the United States) or through the Foreign Office (in Britain). For Canada, please check with the Panamanian Embassy or consulate nearest to your home city. All documents must be fresh (within two months of visa application) and passports must have at least one year to run. Dependents: Bring a marriage certificate. However, original marriage certificates are not acceptable if over two months old, so you’ll need to request fresh ones. If your children under 18 are to be covered by your visa, you’ll need to bring fresh birth certificates (not originals). None of these visas grant work permits. All visa applications require that you obtain a health certificate and HIV test in Panama. Types of Visas in Panama The Tourist Pensioner Visa (Turista Pensionado) This visa is designed for persons whose pension from a government entity or private corporation is $500 or more ($600 or more for a couple per month). You will have to prove this under scrutiny. Usually a pension statement from the government or private pension will suffice but backup bank deposit records could not hurt. The Pensionado Visa is granted indefinitely but it is necessary to prove to the Immigration Departmenton on an annual basis that the income is still flowing from your pension. The benefits include one-time exemption of duties for the importation of household goods (up to $10,000) and an exemption every two years of duties for the importation of a car. There is also a basket of other benefits and discounts available to those holding this Visa. However, please note that under this visa you cannot qualify to acquire Panamanian nationality.
Private Income Retiree Visa (Rentista Retirado) This visa is for persons who don’t have a monthly pension, are no longer working, and have received a retirement lump sum. As a visa requirement, that money is to be deposited on a five-year certificate of deposit with the National Bank of Panama, to yield at least $750 a month (at current rates the face value of the CD would need to be approximately $260,000). The visa is renewable every five years, as long as the CD is renewed. The Private Income Retiree Visa includes such benefits as a travelling Panamanian passport (that however does NOT grant nationality), a one-time exemption of duties for the importation of household goods (up to $10,000), and an exemption every two years of duties for the importation of a car.
Person of Means Visa (Solvencia Económica Propia) Designed for those who wish to live in Panama off their own means, without the need or desire to work or start a business. The person must have a one-year certificate of deposit in any local bank of at least $200,000. $80,000 of the $200,000 can be in the form of a home purchase. Upon applying for the first, provisional renewal of this visa, the certificate of deposit must also be renewed for one more year. After renewal, the visa is granted permanently with the right to a cedula (local identity card). Five years after obtaining the permanent visa, holders will be eligible to apply for Panamanian nationality.
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. 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.
Immediate Panama Passport This program allows foreigners to obtain immediate Panamanian Passport under the condition that they make a 5 year certificate of deposit (CD), at the Banco Nacional de Panama, which earns a minimum of US $750 per month in interest income.
Panamaexpertos.com Call us — 561-210-5832
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)
While in a foreign country, you are subject to that country’s laws and regulations, which sometimes differ significantly from those in your home country and may not afford the protections available to the individual under your home jurisdiction. Penalties for breaking the law can be more severe for similar offenses. Persons violating Panamanian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Panama are strict, and convicted offenders can expect jail sentences and heavy fines. If you are not a money launderer, drug seller or terrorist you will find Panama to have a relatively laid back attitude towards crime compared to North America, Australia and the EU.
In general while in Panama the average Expat is unlikely to run afoul of the law. In Panama business has not been criminalized as it has in the USA, UK, Australia and many other countries. The vast majority of the law enforcement people in Panama devote their time and energies to real crime, drug traffic enforcement and crime prevention. There is not a whole lot of victimless crime prosecution in Panama. Prostitution is legal and the prostitutes are medically inspected weekly for STD. I have yet to see street walking prostitutes (except in really poor neighborhoods) so I assume most if not all of them are working in the many gentlemans clubs or are working as paid escorts or as outcall massage girls. So it is there but not all that obvious, unlike numerous American cities where it is in your face with drug addicted street walkers male and female.
Many people say be careful while wearing jewelry since a child can get a running start and grab a bracelet or necklace and keep running. Did we ever see it happen, No. Did we ever meet anyone it happened to, No. Lot’s of people say they know it happens but seems you never meet any of these victims. Could it happen? I guess it could. Do we think it is likely to happen? No. I suppose if one was out late and had been drinking and was walking around looking like he was partying someone may interpret this as a crime of opportunity and take a shot at it. I would suggest when going shopping on foot to not wear a lot of flashy jewelry. Remember Panama as a nation has much less violent crime in a year (a mere fraction) than what New York City has in one day. Panama is far safer than North America. Violent crime in Panama is relatively unheard of. The assaults that happen here are overwhelmingly going to be amongst people well known to each other like husband and wife, criminal gang members, etc. Armed robberies are vely unheard of. Rapes are again not a likely occurrence but I would not advise any young woman to go running around without other people at night. This advice would apply in USA except having a friend or two along in the USA might just mean you all become victims. Panama is way way more safe than even the safe cities in the USA.
Panama as a nation has much less violent crime in a year (a mere fraction) than what New York City has in one day. Panama is far safer than North America. Violent crime in Panama is relatively unheard of. Bars on windows are common in Panama. Again children can become thieves of opportunity. There are a lot of really poor people in this country and an open window could tempt a child to become a thief and enter to take a tv, cash, radio etc. Some dwellings also have an extra door, like a storm door; made of ornate iron. When the USA was here anyone who was in military or was an American working for them was required to put these iron doors on in front of the regular door so this is why you see a lot of these doors. Most apartment buildings have security guards 24/7 who are sharp and vigilant. Some are armed, some are not. They usually station one guard in the lobby to buzz up visitors after you clear them, to sign for packages and deliveries and there is usually at least one other guard watching the garage area. Some have guards roving the grounds. Rest assured the apartment buildings most Expats are likely to gravitate towards are going to have security far beyond what you would need to feel really safe and the type of security you’d get if you lived in a high rise building in say Central park South in Manhattan paying upwards of $10,000 a month rent (minus the elevator operators). Rest assured no one is going to be lurking for you in the lobby or the garage, you are not going to enter the elevator on the lobby floor and wind up going down to the basement for a nightmare, no one is going to come to your apartment door unannounced, no strangers are roaming around the halls, etc. Just accept the private security as a way of life down here and not as an indicator or high crime.
For the more security conscious monitored alarm systems are available and yes the police will come when the alarm company calls them but I think this is overkill. You can get a safe for valuables and bolt it into floor/walls inside of a closet with a solid core wood door with a dead bolt installed. A safe may be a nice touch if a lot of strangers are in your house and you have a lot of valuables you do not want to keep in a bank safe deposit box. Multilink (trade name) doors are very interesting, first saw something like them in Israel over 10 years ago. You have a steel door maybe with decorative wood over it. In the door is a high security lock nicely mounted so it can’t be easily pulled out. The door frame is reinforced with an all steel liner. When you a turn a key deadbolts come out and into the frame on all four sides of the door making a real secure closure. It would take a lot of battering with a battering ram and to get in, probably easier to go through the wall. You can put up a fence with razor ribbon. You could get some big dogs. Best of all hire your own live in bodyguard/driver/errand guy. Cost would be at about $5.00 per day if you let him live in, feed him etc. He’ll have a gun license and carry a pistol. You can use him as a driver too. Let him live in the maids room and hire a day maid instead. Remember this paragraph is for the ultra security minded folks (not paranoids), not for most people. In law enforcement they say if you ever used it you needed it, so if you carried a gun 24/7 for 45 years and one day actually used it well then you needed it all that time. A decent line of logic considering the stakes involved.
Panamaexpertos.com Call us — 561-210-5832
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)
There are about 150 banks in Panama and they come in several flavors. One is the offshore bank that can only do business with entities not in Panama. There are banks that can only do business with entities in Panama and then there are banks that can do business with those offshore as well as those entities within Panama. In addition there are Savings and Loans (like a Building Society in UK) which operate like banks except they must invest 70% of their long term deposits in Panama real estate with appropriate controls.
If you are not living here and just walk in to your local bank on the corner I doubt you will get an account opened no matter what country you are from. If you own or rent a home here then things are different. You should have a cell phone number, a regular house phone number, a mailing address (mail does not get delivered to your house in Panama, you need a mail box), a good reason as to what you are doing in Panama like retired, a bank reference from your home country (states how long you have had an account, average balance and that you are in good standing), reference letter from local people who know you, and a reference letter from lawyer or accountant back home. Then add in your passport and drivers license and you should be good to go with a letter explaining your source of funds such as commissions, savings, proceeds from house sale, etc. It would be a real bad idea to try to open an account with a cash deposit instead use a wire transfer from your home town bank. Do not make any substantial cash deposits as this would be a warning flag. Checks from USA will take 3-4 weeks to clear. You are not allowed to write Panama checks outside of the country. They will give you a Visa or MasterCard Debit Card readily with your account. Most banks have Internet Banking.
If you get a residency first before opening the account it will be easier and all these references may not be needed. More on Visas, Residency and Citizenship can be found here.
Privacy and Banking in Panama Panama has serious bank secrecy laws. Your money here is safe from lawyers and others who wish to abusively take it away from you. Collecting a civil debt from another country in Panama is close to impossible, don’t plan on it happening. A government trying to get at your money has numerous difficulties. First it must be a national government. Next it has to involve a criminal case on file in their court system. The equivalent of their Justice Department contacts the State department and through their consulate in Panama papers are filed according to the MLAT (Mutual legal Assistance Treaty) by their consulate in Panama with the Panama Government. The papers are reviewed and questions in return are filed along with requests for more information. Thus the dance begins and can last years. If the request is lawful the information will eventually be supplied. Sometimes the country which the bank is located in may themselves get interested thinking a crime may have been committed in their country let us say, and they may seize the records and keep them for a long time while they do their investigation.
Your money here is safe from lawyers and others who wish to abusively take it away from you. The MLAT is a process that the USA would like to play more of but other countries are generally sick and tired of it and do not like it at all. If you are a criminal and they are after you they will eventually have the bank records and even get the money seized. A fun trick the USA plays is once they find out how much money their target has and can justify to their courts confiscating it, they then confiscate this amount from the offshore banks correspondent bank in the USA telling the bank to take the money back from so and so depositor who was their target. If in the interim from the time the USA has the bank records and made the seizure against the correspondents bank account the depositor took all or part of his money out of the bank and the USA took the full amount away, the bank would be in the position of trying to get the USA to return the money which probably would never happen or if so years later after a court battle that would cost a fortune. So now many people have taken to keeping their funds in Euros or non dollar denominated accounts so the USA can’t possibly say the money on deposit in America is theirs in whole or part. With few exceptions Panama Banks only have dollar accounts.
In Summary There are banks and then there are banks in Panama. Some are better than others. There is no FDIC or FSLIC in Panama. Make sure you get recommended to a bank before you open a bank account in Panama, don’t just pick one. So if you are privacy conscious I would avoid the Canadian and British Banks.
Panamaexpertos.com Call us — 561-210-5832
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)
Offshore financial centers are often used to run tax shelters. They have little or no taxes, and little or no financial regulations. For example, in the British Virgin Islands, corporations can be formed without the public disclosure of the names of the directors or officers of the corporation. Favorite offshore tax havens include colonial relics such as the Cayman Islands (British), the Dutch Antilles and Curacao (Netherlands). Other places are feudal relics like Monaco, Liechentenstein and Andorra in Europe, or other nominally independent small nations from the old British, Dutch and French Empires. Other places historically in the U.S. zone of influence are Panama and the U.S. Virgin Islands.
The leading offshore center is the Cayman Islands, which is now the fifth largest banking center in the world, after New York, London, Tokyo and Hong Kong.
This is the backdrop on looking over legal papers from a court opinion on July 20th 2006. The judge in Texas District court ruled that certain technicalities of the case against the BLIPS tax shelter were wrong. This will have some effects in the case against 8 KPMG Accounting Firm former executives. KPMG itself has already pled guilty and paid a $456 million fine. One gets a feeling how these illegal tax shelter were carried out from these papers. BLIPS stands for Bond Linked Issue Premium Structure. It created a financial structure to make the capital gains tax deductions, through a capital loss. However, this loss had been paid at the beginning of the deal as the premium, hence the BLIPS.
The mechanism was as follows: Two companies in the Isle of Man (UK), St. Croix and another investment firm Rogue each borrowed $41.7 million from National Westminster Bank. The loans were for 7 years at fixed interest rates. The loans paid Interest Only, until a balloon payment at the end of the 7 years. St. Croix and Rogue agreed to pay high interest rates of 17.97%, in exchange for a $25 million payment to them from Nat West at the time the loans originated. So St. Croix and Rogue, received at the beginning of the loans a total of $66.7 million. Then the $66.7 million plus $1.5 million from each was put in an interest bearing loan at Nat West.
In addition, St. Croix and Rogue agreed to pay $25 million to NatWest, if they paid off the loan early, which is exactly what they did a couple of weeks later, May 25th, 2000. To make it a little juicier, the two onshore companies behind the offshore companies had an interest swap deal with NatWest, where they received a floating interest rate, in exchange for the high fixed interest rate. Those under indictment argued that the $25 million that they received upfront was a liability or not. It was money they received, but it was not actually ?loaned? to them. Plaintiffs argued that it was not a liability under IRS section 762, because this money was never lent to them. The tax shelters aim to create an illusion of capital losses, and also interest payments, both of which are tax deductible.Howard Giske is a legal consultant for legal information for small businesses and Incorporation services for http://www.incparadise.comArticle Source: http://EzineArticles.com/?expert=Howard_Giske
Email us at The Panama Club
+507-836-6542 / 43 (Panama) | 1-(305)-503-9957 (USA)
In today’s fast-paced and highly competitive globalized economy, corporations need to be highly mobile. This means that they must have quick access to their cash assets at a moments notice. More often, home countries have strict laws on the withdrawal of large amounts of cash, especially if they are in dollars.
Corporations then seek sanctuary in countries with less strict guidelines and create what is termed as offshore bank accounts. This is a practice around the globe for big companies. The favorite destinations for offshore banking are Antigua and Barbuda, Bahamas, Belize, British Virgin Islands, Delaware, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Mauritius, Nevis, Panama, and Turks & Calicos Islands.
Offshore banking allows corporations to be more flexible with their cash assets, enabling them to pursue opportunities at a faster pace. These offshore banks also shield them from the prying eyes of institutions that are after their financial assets.
This practice is a widely accepted fact among financial and business circles. Even governments have no laws preventing offshore backing. There are, however, international laws that regulate these offshore banking systems to monitor and catch money-laundering activities and other illegal transactions. One such regulation is the IBC, or the International Banking Corporation, that mandates all accountholders to have an incorporated entity in the host country.
Most offshore banks provide their clients with a debit-and-credit automated teller card to allow them to withdrawal and deposit cash to their accounts wherever they are and whenever they choose. This is an important feature for most corporations, as they do not have to constantly fly in to their offshore bank to transact their business. Through online banking, they can also transfer their funds to anywhere in the world. Another advantage of an offshore account is that it is not subjected to taxes. So depositors and accountholders can enjoy the full benefits of the interest rates.
Offshore Banking provides detailed information on Offshore Banking, Antigua Offshore Banking, Offshore Banking Accounts, Bahamas Offshore Banking and more. Offshore Banking is affiliated with Online Banking Services.Article Source: http://EzineArticles.com/?expert=Eric_Morris
SOURCE: panama-travel-bureau.com
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)
