Those who want to relocate to a warm tropical county will be well advised to give an eye to Panama. Purchase of some real estate in the country will not only provide you with a place of abode but will also serve as a legal basis for obtaining a Panama permanent residence permit.
Why Panama real estate is so attractive
Immigrants often call Panama ‘a tropical paradise’ or ‘Central American Miami’. This country is a rapidly growing financial center of Latin America and besides, it boasts wide sandy beaches, amazing hills covered with tropical vegetation, and numerous islands of different sizes near both the Atlantic and the Pacific coasts of Panama.
The Panama real property market has been steadily growing since 2006. Even the 2008 world financial crisis proved unable to significantly halter this growth. The appearance of the middle class in Panama has also boosted sales of real estate in the country.
Panama real property and the market tendencies
The year of 2013 saw an unprecedented number of construction permit issuances and bank loans made to building companies. This ‘construction boom’ brought about a sharp increase of land prices in Panama.
Most of the new houses are erected in Panama City. By the end of 2017, a number of construction projects were completed. As a result, the choice of residential accommodations increased drastically, which created a surplus of real estate for sale in the capital city.
Even though 2018 still saw a large number of purchase deals, the rent price of residential and commercial property started to go down.
Due to the tough competition in the Panamanian real estate market, the developers try to attract customers by offering considerable discounts to those who will buy property before its construction has been completed. Others come up with some different offers and discounts trying to sell existing empty apartments and detached houses.
At the beginning of 2019 the decline of sales of Panama real estate continued. Many investors from North and South Americas adopted a ‘wait-and-see’ attitude with the view of the coming elections in Panama.
However, the elections of May 5, 2019 proved once again that Panama was preserving its international and economic policies. The new President of Panama Laurentino Cortizo confirmed that the country’s policies would be still directed towards attracting foreign investments to Panama. This means that all the favorable investment conditions remain in place.
The President also ascertained his determination to continue developing the tourist industry in Panama. According to him, this will let attract larger numbers of foreign investors to this country, which will stabilize the real estate prices in the near future.
After only a few days of holding the office, the President expressed support of the Panama City municipal authorities intention to clean the city beaches on the shore of the Panama Bay.
This project will require investment of US$ 120 to US$ 160 million. After all the cleaning works are completed, the mayor’s office plans to review the asking prices for the real estate located in the downtown area close to the beaches.
Today the real estate market in Panama is a “buyer’s market”
When the beach cleaning project is completed (by 2022, as is expected), the real property located near the beaches will become considerably more attractive to tourists and investors. Consequently, the prices will inevitably and notably grow.
Thus, there is a good chance now to make an investment into Panama City real estate. Toady you can buy a piece of property in a prestigious and comfortable district of the city and rest assured that it will cost considerably more after only a few years.
The multi-million city development project also allows establishing different kinds of business enterprises in the beach area. A foreign business investor will be entitled to apply to the mayor’s office for a long-term land concession.
Thus, while a few years ago Panama real property market was a “seller’s market”, it has turned into a “buyer’s market” now where the excessive supply makes the developers put competitive price tags on their property.
The quality and luxury levels of real estate in Panama are quite comparable to those of the real estate in well-developed countries. The only difference, in fact, is that the buyer can obtain a residential accommodation in Panama of the same quality but at a much lower price. Let us consider this issue in a bit more detail:
- On purchase of any real property in Panama, the foreigner becomes eligible for a permanent residence permit in the country. Whatever sum you invest into real estate, it will count towards the investment required by the immigration program you will have chosen (see below).
- After five years of permanent residency in Panama, the foreign national obtains the right to become a ‘naturalized’ Panamanian, which means acquiring full citizenship of Panama.
- In accordance with the new property tax law, the first US$ 120,000 of the property cost are tax exempt. (The property must be used as the primary family residential accommodation.)
- Many high-rise buildings in Panama are condominiums and they are maintained by management companies. The owners of apartments in such buildings do not have to pay the property tax during twenty years from the day the construction of the building was fully completed. If the condominium was put in place in 2012, for example, the apartment owners will be property tax exempt until 2032. All they will have to pay is the land tax that constitutes from US$ 150 to US$ 250 per year.
- The rights, the property, and any other assets belonging to a foreign resident of Panama are legally protected as effectively as those of Panama natives are. No foreign country can arrest or expropriate Panama legal resident’s property as Panamanian courts of law disregard any court decisions made in foreign jurisdictions.
In addition to that, the following circumstance must be mentioned:
- In case a Panama resident has a foreign business company (one located outside Panama) that brings him or her profit, this profit is not taxed in Panama. The Panamanian territorial taxation system keeps all foreign incomes untaxable.
Representatives of our company stationed in Panama will always offer our clients only the best pieces of real estate of deluxe class.
If you are considering buying a residential accommodation or any other real estate in Panama, we invite you to go on a familiarization tour to the country. This tour will allow you to see different pieces of property with your own eyes. To request this tour please write to us to: firstname.lastname@example.org.
You can take your family with you to Panama where we will organize a number of excursions for you. On this trip, you will be able to purchase a residential accommodation right away and also start the process of obtaining permanent residency in Panama. Below please find an exclusive offer of a luxurious piece of property.
A stylish apartment in a comfortable district of Panama City
The apartment is located in the most popular district of Panama City called Punta Pacifica. This a duplex (two-level) apartment with one bedroom and two bathrooms.
The management company that services the condominium provides for 24-hour concierge support and security surveillance. The residents of this high-rise building can use the gym, the swimming pool, and other recreational and social facilities available there.
It is most comfortable to live in Punta Pacifica as this district offers all sorts of municipal conveniences located within a walking distance.
The total area of the apartment is 171 square meters (204.5 sq. yards).
The asking price is US$ 299 000.
Panama City is the main city in Panama not only because it is the capital of the country but also because over two million people live there, which is more than half of the republic population.
If you take an abstract look at Panama City, you will see that it is a noisy cosmopolitan center with a wild nightlife and many outlets of world-famous fashion brands. At the same time, in the historical part of the city built by Spanish conquistadors you can also find quite peaceful and slow-paced lifestyle.
The city leaves an impression that is hard to describe. Panama City shows a fantastic amalgamation of old and new, clean and dirty, ultra-modern and extremely shabby, relaxed and chaotic… What is really striking is that it all works together very well and somehow the city lives in harmony.
In Panama, you can easily find your market niche that will correspond with your budget and your preferences and desires.
You can obtain permanent residence permit in Panama via one of the numerous immigration programs. If you need some advice on relocating to Panama, please request a free consultation with us by writing to email@example.com. We will be pleased to help you.
State programs allowing acquisition of permanent residence in Panama
There are plenty of immigration programs that you can use to relocate to Panama. Below please find descriptions of three most popular such programs.
Economic Investor visa
You can make the ‘economic investment’ into Panama in three different ways:
- One of the options with this visa program is investing at least US$ 300,000 into real estate in Panama. This will make you eligible for a two-year temporary residence permit and if you keep the property after two years, you can apply for permanent residence in the country.
- Another option is putting the sum indicated above (or more) into the bank. This will have to be a fixed-term three-year deposit, so you cannot withdraw the money from the account if you want to keep the residence permit. At the same time, you are free to use the interest on the deposit and after three years, you can close this account and preserve the permanent residence permit simultaneously.
- A third option is combining property purchase with a bank deposit. The essential requirement is that your investment must total at least US$ 300,000. Thus, you can buy an inexpensive piece of property and put whatever is short of three hundred thousand in the bank.
Please note that the apartment we have offered above has just the right price for the Economic Investor immigration program. You can read more about this program if you click here.
Friendly Nations visa
This immigration program provides for a fast-tracked procedure of acquiring Panamanian residence. This is a sort of a special program as only the citizens of fifty nations especially friendly to Panama can use it. These are the nations that share Panama values, have mutual interests with this country and long-standing economic, political, and social ties with it. The list of Friendly Nations mostly includes the best-developed countries of the world.
The investment required on the Friendly Nations visa program is as small as it can be. You have to put US$ 5,000 into a bank account plus another US$ 2,000 for every dependent if you are moving to Panama with your family.
In addition to that, you have to engage yourself in some type of economic activity in the country. To put in simple words, you have to find a job or open a business. Alternatively, you can invest minimum US$ 100,000 into real estate and this will make you eligible for permanent residency in Panama with a Friendly Nations visa.
If you follow this link, you can find out what countries are considered Panama’s friendly nations and learn more about this immigration program.
Even though the name of this immigration program suggests that it is meant for pensioners, actually, any person over 18 from any country of the world is entitled to apply for a Pensionado visa. The essential condition is that the program applicant has to be able to conclusively prove to the Panamanian immigration authorities that he or she has a guaranteed lifetime subvention of at least US$ 1,000 per month. USA and Western European retirees can easily supply this sort of proof, so they are the primary target group of this immigration program.
Please follow this link to read more about the Pensionado visa.
If you want to diversify your assets and put some money into real estate abroad, Panama is certainly one of the best destinations in the world. This country offers the most inviting investment, immigration, and business conditions to its foreign residents.
Panama is still on the list of developing countries and it needs foreign investments to enhance its economic development. However, it is surely not an underdeveloped country any longer. Panama’s healthcare system is very much advanced. Its social security is constantly improving. The crime rates are low. The infrastructure in Panama City meets (almost) all modern standards. It will be safe to claim that Panama is the best-developed tropical country at least in Latin America and maybe in the whole world. At the same time, the cost of living in Panama is much lower than that in Western Europe of North America.
What can be better than living in a well-developed yet inexpensive tropical country? If we have set you thinking about moving to Panama and living a life of ease there, please contact us via email firstname.lastname@example.org, and we will put you through to our Panama resident lawyers and real estate agents who will answer all you questions about relocating to the country and help you choose the best real property in Panama to buy. The right time to move to Panama is now!