The World's Crossroads
The premier modern-day trading route, Panama, with its strategic geographic position and its Canal, is an increasingly important point on the world map. You name it...it passes through Panama in some way at some time going somewhere. Largely as a result of its crossroads positioning...but also thanks to its reputation worldwide as a top retirement, offshore, and banking haven...Panama is one of the fastest-growing countries in the world...and the fastest-growing market in the region. The country's economy grew by 11.2% in 2007 and is projected to grow by a further 9% at least in 2008.
Panama City, especially, is showing signs of strain, thanks to the pressures accompanying all this rapid growth. But the Panamanians are working hard to improve their infrastructure to keep up.
Meantime, be you in the market for a new home or a good investment, Panama should be at the very top of your list. The secret is to understand that Panama is not one market, but many. Panama City, for example, is over-priced, over-hyped, and over-played. Now is not the time to shop for a pre-construction buy in one of this city's many high-rise aparmtent towers, for example.
Boquete, too, in the country's highlands, is too known and too pricey for our tastes.
Best buy in the country today? Pacific beachfront well beyond the capital city, in particular along both the east and (thinking earlier-in and offering the potential for a bigger pay-off longer term) the west coast of the country's Azuero Peninsula.
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Panama at a Glance
.| Population | 3.3 million (July 2007) |
| Gross Domestic Product (GDP) | $29.14 billion (2007) |
| GDP Per Capita | $9,000 (2007) |
| Inflation Rate | 5.1% (2007) |
| Currency | U.S. Dollar (and also the Balboa) |
| Exchange Rate Versus U.S. Dollar | 1 Balboa = 1 U.S. Dollar |
| Language | Spanish (official), English (14%) |
| Capital | Panama City |
| Population of Capital City | 1 million |
| Time Zone | GMT minus 5 |
| Seasons | Tropical; rainy season lasts from May to January |
| International Dialing Code | 507 |
| Electricity | 110V (Panama City 120V)/60 Hz; Plug Types: A, B (US style) |
| Constitutional Democracy | |
| Name and Party Affiliation of Current Leader |
President Ricardo Martinelli, Democratic Change Party |
| Income Tax Rate for Residents | 0% to 27% |
| Property Tax | 0% for first 20 years, 0% to 2.1% thereafter |
| Capital Gains Tax | 10% |
| Inheritance Tax | 0% |
| Rental Income Tax | 0% for first 15 years in designated areas, 15% thereafter for non-residents; taxed at income tax rate for residents |
| Transfer Tax | 2%, paid by seller |
| Sales Tax | 5% |
| Restrictions on Foreign Ownership of Property |
None |
| Local Chamber of Commerce | www.panacamara.com Edificio Cámara de Comercio, Industrias y Agricultura de Panamá Panama City Tel: (507) 227-1233 |
| American Chamber of Commerce | www.panamcham.com .O. Box 0843-00152 Panama City Tel: (507) 301- 3881 |
| Primary Exports | Bananas, shrimp, sugar, coffee, clothing |
| Residency and Visa Requirements | Tourist Visa: 90 days Residency: pensionado, person of means, investor, forestry investor, small business investor Citizenship: after 5 years of legal residence and full immigrant status |
| Special Benefits for Foreign Residents or Retirees | Pensionado Program: tax free import of home goods; tax free importation of a vehicle every two years; 50% reduction on home loan closing cost; 25% discount utilities; 50% off all entertainment; 25 to 50% off goods and services from airline tickets to health care |
| National Airline | Copa Airlines www.copaair.com |
| Preferred Contact | Rainelda Mata-Kelly P.O. Box 0818-00534 Panama City, Panama Tel: 507-380-0606 FAX: 507-263-4305 This e-mail address is being protected from spambots. You need JavaScript enabled to view it |
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