Aug 21, 2019

Two in one: A luxury penthouse and residency in Panama

A duplex penthouse with a private swimming pool in Panama City will surprise you by its size and lavishness. When investing into some luxurious real estate in Panama, you simultaneously obtain the right of abode in the country. The property you buy can become a comfortable and secure home for you and your family.

The best real property in Panama City

Panama City is a dynamic modern megalopolis with a bright mixture of up-to-date infrastructure and historic buildings. A large number of nationalities live in this city in peace and concord.

The capital of Panama is often referred to as a ‘treasure spot’ in Central America. Today it has turned into a world-level city offering a wide choice of elite accommodations and the best environment for living abroad.

A penthouse in Punta Pacifica district of Panama City

The piece of property that we offer is fantastic indeed. First of all, it is located in the fancy Punta Pacifica district that boasts a large number of restaurants, shops, different entertainment facilities as well as banks and business centers.

The high-rise building hosting the penthouse is under security surveillance 24/7. A number of services and facilities are available there such as concierge service, a SPA salon, a lounge, and a gym.

  • The total area of the penthouse is 940 square meters (1124 sq. yards). It has
  • Two floors;
  • Four bedrooms;
  • Four and a half bathrooms, one with a Jacuzzi.

The price of the penthouse is US$ 3,500,000.

When you see the penthouse with your own eyes, we promise that you will be amazed by its architecture and extravagance.

Why is Panama badmouthed sometimes?

We would like to dispel some misconceptions about Panama that you might have. It is especially important to do so if you are considering changing your domicile and relocating abroad. As a matter of actual fact, Panama is a country of great possibilities and wide perspectives.

This small Hispanic Central American country with the population of a bit over four million people is located on a narrow strip of land that connects North and South Americas. Over the last two decades, Panama has made amazing economic progress by attracting investments from abroad and creating beneficial conditions for its resident business companies.

Panama economic achievements are often compared to those that Singapore made some thirty five to forty years ago. Today Singapore is an extremely prosperous country and the same level of prosperity is forecast for Panama in the near future.

It will probably take Panama a bit longer to reach the Singapore level of development, as its territory is a hundred times larger. However, there is no doubt at all that it will happen sooner of later. Take the capital of the country – Panama City, for example: it is already a full-fledged modern megalopolis.

At the same time, Panama economic success annoys some well-developed countries. They believe that Panama ‘pirates’ their finances ‘luring’ businesses to relocate there. As a consequence of this attitude, an offshore scandal appeared out of the blue in 2016 and it became known as “Panama Papers”.

The fact that the Panamanian company Mossack Fonseca that provided international legal services fell victim to a hacker’s attack cannot be denied, of course.

The theft of confidential corporate information should have been at least reproached if not punished. The opposite happened, however. With the support of some established mass media, a sweeping campaign was launched that was aimed at discrediting the legal firm and its host country – Panama.

The legal examination of the leaked out documents revealed no breaches of the international laws that govern business and financial activities in the world. All the accusations constituted ungrounded insinuations and random guesses.

As a result of this ‘anti-tax evasion’ campaign initiated by presumably ‘independent’ journalists, many honest wealthy businesspersons were blackened and equaled to criminals trying to evade taxes.  

It will be interesting to note that the Panama Papers scandal gave away some top state officials as well. A few of them were government officers of the First-World countries, which is indicative of the fact that corruption exists in those countries too. Otherwise, why would a state official want to keep his or her money in an offshore jurisdiction?

In reality, the Panama Papers campaign was organized by well-developed countries in order to stop or lessen the outflow of capital into offshore zones. They wanted to threaten the international business by sanctions and make it ‘obey the rules’. Even though offshore jurisdictions are absolutely legal international entities, in fact.

Large countries used Panama as an example that was meant to show all other offshore countries who wears the pants and who lays down the rules. After the scandal, the European Union and the OECD officials applied harder pressure to offshores toughening the regulations under the banners of ‘fight against tax frauds’ and ‘fight for tax equality’.

Panamanian authorities did their best to protect the country’s international image, which let Panama get over this hard period. The Panama Papers brought about no legal prosecutions but the change of psychological attitude of the international community to the country caused a slight decrease of the amount of foreign investments into Panama.

The aggressive rhetoric and the fact twisting on the part of the mass media dragged Panama through the mud but it proved unable to tread it into the ground. However, in order to protect its economic interests Panama had to adapt its legislation to comply with the EU and OECD requirements.

The Republic of Panama is NOT an offshore zone any longer. The recent inspection by European experts has confirmed that Panama has fulfilled all its obligations and now its legislation is in full conformity with the international norms. The country is not considered a ‘high risk zone’ nor a ‘tax haven’ nor a ‘country with an aggressive tax policy’ anymore.

Please do not trust the ill tongues that try to slander and libel Panama. Of course, not everything is perfect in the country. Like anywhere else in the world, there is state bureaucracy, unemployment, poverty, inflation, and other negative factors in Panama. But the authorities are making serious efforts to overcome these problems.

What is so attractive about Panama?

The main supplier of income to the Panama state budget is the service industry. The central service provider, of course, is the well-known engineering wonder – the Panama Canal. After the extension of the Canal was completed in 2016, its transit capacity doubled, which has put this facility in even greater demand.

Large profits also come from the banking sector of the country. It is a very strong sector of Panamanian economy that makes it the financial center of Central America and the Caribbean basin. Nearly a hundred international banks operate in Panama and many of them boast high levels of capitalization and liquidity.

Panama economy is based on the US dollar, which makes it lucrative for many international investors. At the same time, Panamanian banks will service deposits in any currency. The state puts no restrictions and levies no taxes on international bank transfers. Foreign capital can freely flow into the country and out of it regardless of the types of business operations.

Serious attention is paid in Panama to the protection of foreign investments and foreign assets. The country’s legislation makes very simple rules of conducting business in Panama and provides for a high level of private property protection.  

The two most popular legal entities to be established in Panama are the Corporation and the Private Foundation. The main reason why foreign nationals register business companies in Panama is the application of the territorial taxation principle in the country.

The income that Panamanian citizens and legal residents make internationally is untaxable in Panama. The Tax Code requires paying taxes only on the incomes derived from business operations on the territory of Panama.

Thus, anyone engaged in international business will be able to optimize his or her tax burden by registering a corporation in Panama.

Apart from the investment attractiveness and beneficial business conditions in Panama, the country also boasts warm tropical climate and unrivaled exotic nature. Panama offers the choice of sandy beaches along the Pacific and the Atlantic coasts that you will find in no other country of the world.

Panama is also the only country that allows swimming both in the Pacific and in the Atlantic on one and the same day. In addition, there are mountain areas in Panama where the climate is a bit cooler than in the lowlands. From certain points high in the mountains, you can see both Oceans at a time.

Many people from the United States, Canada, and Europe relocate to Panama with their families establishing new homes in this friendly country. Even more people buy or rent residential accommodations in Panama to stay there on their annual vacations.

Foreigners enjoy almost the same rights as natives in Panama when buying or renting real property. The restrictions concern obtaining ‘untitled’ property in the coastal areas and in the locations closer than ten miles (sixteen kilometers) to the Columbian and Costa Rican borders.

Most immigrants to Panama like to lodge in large cities such as Panama City, Colon, and David. The majority, however, prefers the capital of the country.

Relocating to Panama, well-to-do people do not only enjoy the warm climate and a laid-back lifestyle. They find that the cost of living in Panama is still significantly lower than in their home countries. As part of anti-Panama campaign, some mass media will want to refute the Panama low cost of living information. But the truth is that living in Panama is approximately two times less expensive than living in the USA or Western Europe. At least, so far.

We do not mean to say that a few hundred dollars a month will let you feel like a millionaire in Panama. The matter is that the quality of life in the country is as high as that in Europe and America. In Panama City in particular, you will find very much the same amenities and facilities that you have at home. Luxury apartments in high-rise condominiums, good roads, modern Metro (subway), fancy restaurants, loud nightclubs and other entertainment facilities. That is to say, there are things in Panama you will want to spend money on. However, it all costs less than it does at home. For example, a bus ride within the city limits will cost you 25 to 35 cents one-way. Getting from point A to point B in Panama City by taxi will cost between 3 and 5 dollars. Any newcomer to Panama feels the difference in pricing at the moment he or she disembarks at Tocumen international airport.

Yes, prices are expected to grow in the future as Panama progresses to the level of First-World countries prosperity. As a very general estimation for the current moment, US$ 2,000 per person per month or a bit more will be enough to live in the capital city, and US$ 1,000 will see you through the month if you reside in the rural areas.

Panama immigration programs

Panama immigration policies are aimed at attracting foreign capital and inviting foreign investors to the country. Immigrants to Panama will find that the knowledge of the Spanish language is not required, that there are no age limits for newcomers, and no discrimination by race or nationality.

Below please find brief description of the three most popular Panama immigration programs. Please keep in mind, however, that, unlike many other countries, Panama has several dozen such programs. If neither of those described below suits you, we can help you find an immigration program more appropriate to your desires.

Friendly Nations immigration program

This program is not accessible to citizens of every country. Only the lucky citizens of fifty states that have close political, social, economic, and cultural ties with Panama, that is, the fifty friendly nations, can acquire a Panamanian permanent residence permit over a short time and with little effort. The Friendly Nations list generally includes the well-developed countries.

A citizen of a friendly nation can obtain a temporary residence permit after fourteen days since the date of application. After three to four months, he or she can collect the permanent residence permit and a Panamanian ID card.

If you follow this link, you can learn what countries are on the list of Panama’s Friendly Nations and read more about this immigration program.

Economic Investor immigration program

Citizens of any country are entitled for the Economic Investor visa if they invest US$ 300,000 or more into the Panamanian economy. They can do it by purchasing real property in the country, by opening a fixed-term three-year bank account, or by combining these two investment methods. The main condition is that the program applicant’s total investment shall amount to at least US$ 300,000.

If you follow this link, you can learn more about the Economic Investor immigration program.

Pensionado immigration program

This immigration program does not require any initial investment at all. However, the applicant shall be able to demonstrate that he or she has a guaranteed lifetime subvention of at least US$ 1,000 per month. This program was designed back in the 1980s for the US pensioners first of all, as the Panamanian immigration authorities are very much aware of the fact that the normal US pension usually exceeds the amount indicated above. However, citizens of any country older than eighteen can apply for the Pensionado immigration program if they can prove having the required guaranteed monthly subvention.

This immigration program has two variations, however, that may be of interest to you. If you buy real estate that costs US$ 100,000 or more, you will have to prove that your guaranteed subvention comes up to US$ 750 a month and this will suffice for obtaining a permanent residence permit. If a married couple of pensioners is applying to the program, they will have to show that their combined income comes up to US$ 1,000 per month. Yes, it is possible to live on this money in Panama even though not in luxury.

If you follow this link, you can read more about the Pensionado immigration program.

We will be happy to answer your questions concerning these programs or suggest a different one. You can also apply for a free consultation with us on relocating to Panama by writing to [email protected]. Moving to Panama would be a very good idea as there are very few countries in this world that welcome immigrants simultaneously offering high standards of living.