Property for sale in Panama

• In 2003, tourism was Panama’s top revenue earner for the first time
• Taking a wide range of factors into account, a recent survey of 192 most liveable cities worldwide ranked Panama City in the top 10
• A similar survey ranks Panama as the 4th best retirement destination in the world
• Between 1996 and 2001, foreign investment in Panama totalled around $3.5 billion

So, when chances are good that you have not once considered a visit to this relatively anonymous nation, why is this? What is it about Panama that marks it so highly as a wonderful place to visit, to live in or, indeed, to retire to? And, most pertinently, why is Panama becoming irresistible to foreign property investors?

There are many answers to each of these questions, but let us start with the most obvious, being the exquisite beauty of this (currently) curiously overlooked destination. A land offering an intoxicating combination of lush rainforests, dramatic mountains, picturesque rivers, breathtaking waterfalls, emerald-green hills, hundreds of miles of white sand beaches, over 1,500 hideaway islands, vivid tropical flowers; dazzling coral reefs in clear, turquoise seas; unique and fascinating wildlife and a buzzing, cosmopolitan capital city of skyscrapers and colonial grandeur, Panama has a great deal going for it – even before you get under the skin. Add to these pleasing aesthetic qualities a wonderful climate and an exceptionally low cost of living, and things look more appealing still.

Many American retirees unable to afford to continue living is the US have relocated to Panama in recent years. Attracted by the cost of living, glorious weather, easy pace of life and one of the world’s best retiree discount programmes, it is an increasingly popular move that is beginning to get noticed elsewhere around the world. The retiree discount programme is the Panama Pensionado, offering a huge range of discounts and tax benefits. These include substantial discounts on medical services and prescribed medication (10%); public transportation, airfares (25%), restaurants, hotels (up to 50%), most recreational facilities and events (up to 50%); professional services (lawyers, nurses, physical therapists etc.) and, most importantly, utility bills (25% on electricity, water, telephone etc.).
On this evidence alone, it should read pretty clearly that, certainly, though not exclusively for retirees, investment in Panama property is a very wise move, especially as it is inevitable that the floodgates will soon open on this exciting market for property investment. In Panama, those who do invest in property are not subject to tax on rental income or capital gains for the first 20 years. For this reason, we highly recommend Panama as an ideal destination to purchase property to place in a SIPP – Self Invested Personal Pension – when rules change on 6th April 2006 to permit overseas property to be included.
As of this date – known as ‘’A’ Day’ – SIPPS will offer much greater flexibility over where pension funds are invested than at present. At the moment, with just a few exceptions, a SIPP can only invest in commercial property. When the new rules come into being, it will be possible to invest pension funds in residential property both in the UK and overseas with the benefit of certain tax relief; naturally, SIPPS are expected to become extremely popular. A domestic ‘buy-to-let’ and overseas property ‘gold rush’ is expected: Recent research has indicated that around 75% of investors plan to buy overseas property when these new rules apply, with a third of that figure looking at investing in ‘emerging markets’. As Panama is considered as such in that its land and property market are currently undervalued, investment in Panama property is expected to skyrocket. As investors are presently discovering the benefits of purchasing in emerging markets like Dubai, Bulgaria, Mexico, Turkey and Cyprus, so prices are rising, and this is the expected trend when Panama is ‘discovered’ in the same way. As you may be beginning to appreciate, now is the time to be thinking about investing in property overseas, but most obviously in the rare territories where not subject to tax on rental income or capital gains – like Panama. It is, in fact, possible for SIPPS to buy off-plan overseas residential properties now, provided the property is not completed until after 6th April 2006. Residential property is not classed as such until a habitation certificate is issued, and this is when you take delivery of that property.

SIPPS can be set up directly with insurance companies, but if you are considering investment in overseas properties with a SIPP, you may wish to consult a financial advisor or SIPPS specialist as to exactly how it can work best for you as regards returns on investment. We at escapes2.com can also advise you as to how this scheme can work if you wish to purchase property in Panama, or indeed, elsewhere. One thing is for certain, and that is that it is confidently predicted that there will be an astronomical rise in investment in property abroad once these changes occur on ‘A Day’.
Taking advantage of such beneficial changes marks Panama in particular as a solid territory in which to invest in property. A country that does not require foreign investors to have any special authorizations or permits, with 20-year exemptions on income tax and real estate taxes, and the 1998 Investment Stability Law protecting foreign investors from any changes in tax, customs and labour rules for 10 years after an investment is registered, Panama is ripe as an emerging market for anyone now considering overseas property investment.

Our new development in Panama is sited in the peaceful rural district of Capira, an area 118 metres above sea level, populated by around 33,000. Under 30 miles from the spectacular capital Panama City, and under 10 miles from the gorgeous Pacific coastline offering easy access to the beautiful Pearl Islands, Capira is a developing resort similar in setting, environ and cool climate to the very popular town of Boquete in the west of Panama. Boquete is becoming very popular, particularly with retirees, but Capira benefits further from much closer proximity to the excitement of all Panama City has to offer.

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