WHY PANAMA?

"Panama is now where Costa Rica was ten years ago."

REASON TO PURCHASE PROPERTY IN PANAMA (www.Live-PR.com)

May 5, 2008 - Many people will have heard of Panama and heard of the boom in Panama, but how many people really understand why we are having a property and immigration boom down here in Panama, Read On

Since 2006 the average price in Panama City was $1780 to 2008 the average price is $2890 per m2 giving a 25% increase in price per year.

Rental demand continue to increase. Hotels have an 80% occupancy levels and room fees have nearly doubled in the past few years.

Shortage of private rental accommodation for, the majority of new home owners are happy to rent there units out on a monthly basis, the need for apartments to be rented on a short term basis is very high. Short term rentals rental yields are between 10% - 15%

Ideal place for buyers in Europe with a weak dollar against the British Pound and the Euro. The Panamanian Balboa is tied at $1 to 1 Balboa so the European buyer can take advantage of the weak dollar in Panama.

The Expansion of the canal. The new canal expansion program is underway. This will allow more ships to travel through the locks brining more money into the country in the form of toll fees.

More cruise ships coming to Panama.One of the reasons for this is due to the tough immigration rules in the US that deter Latin American Travelers to board cruise ships that operate out of the USA. By expanding the ports in Panama even more people can enjoy the Cruise season and more money will come to Panama.

Free Trade Zone is the second largest in the world and more and more traders are setting up shop in the free trade Zone. This in turn brings more tourists from Latin America. Tourists visiting Panama in 2007 spent more than $1.1 billion dollars in the country, representing a 23% increase over the level of tourist activity for 2006

Security, Panama is very aware how negative press can effect tourism, so there are plenty of Police on the streets not just driving round in cars there is also the tourist Police in Panama City.

Latin America views Panama as Europe used to view Spain, a nice climate, good shops and a stable economy.

Stable Government that sees the growth its country can achieve and is dedicated in seeing this continue.

Great for retirees.

Panama is one of the best places in the world for retirees today, combining a low cost of living, near-perfect weather and one of the world's best discount programs for retirees, with up to 50% off everything from public transport to movies, mortgage rates, doctor's visits, electricity, restaurants and airfares.

When you compare Panama with its neighbors, you'll see that it has more amenities than traditional retirement spots such as Mexico and Costa Rica, with lower costs and crime rates. In Panama, you'll encounter less red tape and less interference from local authorities.

And there are other incentives for foreigners to spend time here, invest here … or retire here. For example:

Newcomers who buy or build a new house won't owe any property taxes for 20 years.

Residents pay no taxes on foreign-earned income.

Tourism investments have 20-year exemptions from import duties, fees for construction materials and equipment, and income, real estate and other taxes.

The U.S. dollar is legal tender in Panama, which insulates its economy from global shocks. During the Asian monetary crisis of 1998, Panama became one of the healthiest economies in Latin America.

Panama's pensionado program.

Once you become a resident "pensioner" of Panama under the Tourist Pensionado Visa, you are eligible for the most appealing program of benefits for retirees available anywhere in the world right now.

Now, you may be thinking: "Pensioner? Retiree? That leaves me out."

Not necessarily. The rules for becoming a "pensioner" and qualifying for this visa program in Panama are probably not what you'd expect.

In fact, anyone over the age of 18 may apply and can qualify as a pensionado in Panama. All you need is a guaranteed pension income of $1,000 per month ($1,250 for a couple) or own $100,000 in property and a guaranteed pension income of $750 ($1,000 for a couple). It must be a pension from a government agency (e.g. Social Security, disability, armed forces, etc.) or a defined-benefit pension from a private company. Or, if you do not have a guaranteed pension in those amounts, you can qualify by depositing enough money in Banco Nacional to yield $2,000 a month in interest.

As a qualified pensioner in Panama, you would be entitled to:

* 50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events, etc.)

* 30% off bus, boat, and train fares

* 25% off airline tickets

* 50% off hotel stays Mon - Thurs, 30% off Fri - Sun

* 25% off restaurant meals

* 15% off at fast-food restaurants

* 15% off hospital bills (if no insurance applies)

* 10% off prescription medicines

* 20% off doctors' consultations

* 15% off dental and eye exams

* 20% off professional and technical services

* 50% off closing costs for home loans and more

Why wouldn't you buy in Panama?

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SIX MOST AFFORDABLE RETIREMENT HAVENS

ASIA Property Report - April 21, 2008

The cost of quality retirement living options in the United States has risen well beyond the budget of the average would-be retiree. The current meltdown in U.S. housing costs doesn’t change this fact. Most Americans are worried they’ll never be able to afford to chase their retirement dreams. The answer is to think outside the box--the box being the United States. This isn’t a new idea, but it’s truer and truer, as ever-increasing numbers of Americans consider leaving the States in search of a quality retirement lifestyle they can afford.

The Six Best Overseas Retirement Havens For 2008-- Where To Retire Well On Less Than $1,500 A Month.

The cost of quality retirement living options in the United States has risen well beyond the budget of the average would-be retiree. The current meltdown in U.S. housing costs doesn’t change this fact. Most Americans are worried they’ll never be able to afford to chase their retirement dreams.

The answer is to think outside the box--the box being the United States. This isn’t a new idea, but it’s truer and truer, as ever-increasing numbers of Americans consider leaving the States in search of a quality retirement lifestyle they can afford.

Once you expand your retirement options to include those outside this country, you realize you can enjoy a rich and satisfying life even on a modest budget.

Specifically, the editors of Live and Invest Overseas have identified six overseas havens where you could retire and live well on $1,500 a month or less:

Panama--Still the World’s Number-one Overseas Retirement Option

Panama caters for foreign retirees like no other country in the world. Day-to-day living is affordable, taxes are low, property prices remain reasonable (even qualifying as cheap outside the capital city), and, best of all, Panama offers one of the world’s most generous retirement incentive programs, including retiree discounts of up to 50% on everything from restaurants, hotels, and in-country airfares to prescription medicines and closing costs on a home loan.

Panama is the best choice if you seeking a place where you’ll enjoy the same comforts you’re accustomed to in the U.S.--plus additional luxuries you’d never be able to afford back home.

As "the gateway to the Americas," Panama’s geographic position makes it an important hub for international business and travel. While other Latin American countries depend heavily on the U.S. economy, this is not the case with Panama, which is showing no signs of slowdown despite the emerging recession in the States.

Panama stands on its own legs, with the fastest-growing economy in the region (expanded by 10% in 2007 and expected to grow by nearly the same rate in 2008) and a thriving international banking industry. The infrastructure in and around Panama City is the best in the region, without question, and being expanded and improved to try to keep pace with current growth. The Panama Canal Expansion Project, which will double the Canal’s capacity, alone could generate enough wealth to transform Panama into a First World country.

http://www.property-report.com/aprarchives.php?id=1403&date=210408

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BEATING THE CROWDS TO PANAMA

By Tim Leffel Travel columnist www.TRIPSO.com

updated 12:52 p.m. CT, Thurs., Feb. 28, 2008

Panama is one of the key crossroads in the world, the land bridge between North America and South America and the waterway between the Atlantic and the Pacific, yet it seems to be perpetually a decade or two behind always-trendy Costa Rica in drawing crowds of tourists. This is true even though Panama has all the elements to qualify as a Central American hotspot: teeming wildlife, sandy beaches, scuba diving, world-class fishing, widespread English proficiency, reliable transportation and a cosmopolitan capital city. The country even uses the U.S. dollar as its currency, so American visitors don’t have to worry when the dollar takes a dive abroad.

So what’s the hang-up?

As in many Latin American countries, past unrest is partly to blame for the low visitor numbers. Democracy has been in place only since 1989, when Manuel Noriega was ousted, and Panama has controlled the Panama Canal only since 1999. Leaders have made up for lost time, however, and today the economy is booming, the canal is in expansion mode, and the high-rise skyline of Panama City is dotted with construction cranes. In general, Panama is a safe and stable place to travel or retire.

I just spent a week and a half in Panama, traveling from the Pacific, through the canal, and into the Caribbean on the Discovery, a small, specially-built catamaran operated by Panama Marine Adventures. There were just 24 people on the ship, and we saw very few tourists, but we saw plenty of other creatures — from toucans to crocodiles to sloths.

Following a river into the Darien Gap, the birdwatchers had a heyday, spotting dozens of magnificent frigate birds, bare-throated tiger herons, ospreys, blue-footed boobies and wintering woodpeckers. Panama is a narrow land bridge, the midpoint of many avian migration routes, and more than 900 species of birds have been recorded here. It is also home to some 220 species of mammals and 354 species of reptiles and amphibians. Whether on the Pearl Islands in the Pacific or on Lake Gatun in the middle of the canal, everywhere our binoculars focused there seemed to be something moving around. Fortunately, the crocodiles kept their distance.

The Smithsonian Institution has set up several research stations in Panama to study tropical plants and animals. Once off-limits to visitors, the Barro Colorado Island nature reserve, in the middle of Lake Gatun, is now open to a few local adventure companies like Ancon Expeditions, which organizes walking tours with a Smithsonian guide. Don’t worry, the 70 species of bats on the island come out only at night.

Transiting the Panama Canal is an experience like no other, of course. Where else can you go from one ocean to another in the space of one day? Engineering types go gaga over the 700-ton steel doors and locks built big enough to have held the Titanic. Others laze on a balcony, cocktail in hand, as their ship moves up and down across the Continental Divide.

Panamanian architecture doesn’t draw visitors the same way as the canal and wildlife, but there are some interesting buildings and monuments dating to the Spanish colonial period. Parts of the original 15th-century Pacific settlement can still be seen in the Old City precinct of the capital, and several colonial forts on the Caribbean coast are open to visitors. The old “Camino Real” town of Portobelo, on the historic gold route, is flanked by three fortresses and is a UNESCO World Heritage Site. The 17th-century Casco Viejo section of Panama City is being revived after a long period of neglect. Investors are busy restoring crumbling old buildings and the historic facade of the original Hotel Colon will soon welcome visitors to a five-star reproduction inside: Hotel Casco Antiguo.

Panama is often pitched as “Costa Rica without the crowds,” but there is one area where it clearly tops its better-known neighbor: local handicrafts. The Kuna women of the San Blas islands produce colorful molas, pieces of reverse-appliqué embroidery that can be used as decoration or incorporated into clothing and bags. The Embera Indians of the Darien jungle make reed baskets that are admired around the world, as well as sculptures carved from the tagua palm nut, nicknamed “vegetable ivory.”

All of Panama’s attractions come in a package that is easy on visitors. The roads are good, you can drink the water, a phone call home will cost 5 or 10 cents, and high-speed Internet access is 75 cents an hour from an Internet café. As our boat trip ended in Portobelo, we stopped off at a local cantina for drinks and dancing. I picked up the tab for 23 Balboa beers as we departed. No, I’m not a big spender: at 75 cents a beer, I paid with a $20 and said, “No cambio, gracias.”

Tim Leffel is author of the books "Make Your Travel Dollars Worth a Fortune" and "The World's Cheapest Destinations".

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Here's Why Panama is Still The One! Sovereign Society - March 2007

Several years ago, a Canadian Sovereign Society member came to one of our Total Wealth Symposiums down in Panama. This member planned on staying for just a few days. But instead, he came, he saw and he fell in love with Panama.

This Canadian picked up his home and his entire business and moved to Panama. Now, he's been there over five years to qualify for Panamanian citizenship.

Why would a Canadian want to move his business to Panama? One major reason: the nature of his business allowed him to restructure it in Panama with local employees, and because most of his business is done outside Panama, it pays no corporate taxes in Panama. The best part is that it no longer has to pay the high corporate taxes that Canada imposes - 21%.

Why We Still Love Panama

So why Panama? I'm sure you know by now that Panama is The Sovereign Society's top tax haven. You've also probably read about the soon-to-be new and improved Panama Canal (on the schedule to be completed by 2014 - exactly 100 years after the original canal opened in 1914).

You probably heard all the hype surrounding the booming real estate market in Panama. In fact, just last month both the Wall Street Journal and the Washington Post commented on the real estate market bursting at the seams down in Panama. You may have even read that celebrities like Donald Trump have snatched up real estate down there.

But in addition to hot real estate market, we still love Panama for an entirely different reason. It's because Panama is still what we call a "foreign source income tax haven." That means if you move to Panama, the local government only taxes you on income you earn inside Panama. So if your business is based in say St. Louis, and you live in Panama, you can live virtually tax-free at the local level. And like our Canadian friend, even if your foreign business is technically located in Panama, you can avoid most corporate taxes. (Although Americans still must pay U.S. taxes no matter where they live.)

And of course, Panama has a long tradition as a tax haven for many other reasons. For starters, Panama has statutory guarantees of financial privacy and confidentiality. Violators can suffer civil and criminal penalties for unauthorized disclosure.

Panama also has no double taxation agreements and no tax information exchange agreements with other countries. Washington tried to get Panamanian authorities to sign a TIEA with the United States, but Panama has politely ignored their demands. So basically, Panamanian authorities have what it takes to stand up to anyone (even the U.S.) who would threaten their tax haven status. ERIKA NOLAN, Executive Director

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Beautiful, Temperate and No Hurricanes

Storm watchers will be glad to know that Panama lies below the hurricane track, though occasionally a weak tropical depression will skirt the Caribbean coast. The high season is mid December-mid April, when it rains the least. Nonetheless, Panama, except for the highlands, is nearly always hot and humid (days in the 80s-90s F/28-37 C and nights not much cooler). With the aid of air-conditioning and sea breezes, Panama can be enjoyed all year, though it can rain as much as an inch a day during the May-November rainy season.

But as far is beauty is concerned, you will not find a more beautiful land. The variety is astounding. This is indeed paradise.

Tax Advantages

For some, tax relief is, in and of itself, paradise.

As a U.S. citizen and a resident of Panama you are entitled to earn as much as $80,000.00 annually without paying taxes to the American government. (A check with your accountant will be in order to verify this and determine how this law affects you.)

Also, any property in Panama with a registered value of $30,000 is not subject to property tax. Owners of property of a higher value are liable for property taxes as follows: $30,000 to $50,000, 1.75%; 50,000 to 75,000, 1.95%; more than 75,000, 2.1%. Not bad. But even better than all this is that when you buy in a designated "tourist development area" there is no property tax on improvements for as long as 15 years.

Retirement Programs

Without a doubt, Panama's "law for pensioned or retired persons" is the best deal going for retirees the world over. Retire in paradise.

Qualifying for the Pensionado visa is relatively simple. You must:

1. Be in good health and free of AIDS (blood test at a local lab costs $25 and doctor's exam is $20)

2. Have an up-to-date passport from your country of residence

3. Have a verifiable minimum monthly retirement income or pension of $1,000 from a government or private company fund. For dependents (such as a spouse or children), you must show an additional $250 of income per month for each. UPDATE: Or you can own $100,000 in property and a guaranteed pension income of $750 ($1,000 for a couple).

4. If you do not meet the monthly pension requirement, you can instead deposit enough money in the National Bank of Panama to yield a minimum of $2,000 monthly in interest. The interest from this account is proof to the government that you will be guaranteed a steady monthly income. You will have no problem withdrawing these funds should you decide to leave the country permanently.

5. Have a clear police record for the past five years.

Once you qualify, you get significant discounts on just about everything in Panama, from doctor's visits to transportation, restaurant tabs to utility bills.

Some benefits of being a retiree in Panama:

50% off entertainment anywhere in the country (movies, theatres, concerts, sporting events, etc.)
30% off bus, boat, and train fares
25% off airline tickets
50% off hotel accommodations (M through Th)
30% off hotels from Friday through Saturday
25% off restaurants
15% off fast food restaurants
15% off hospital bills (if no insurance applies)
10% off prescription medications
20% off doctor's consultations
15% off dental and eye exams
20% off professional and technical services
50% off closing costs for home loans

History of Panama

As you'll see from this history, Panama has experienced much, but all to its benefit. Note that all this history has built Panama into a paradise on a myriad of levels.

Panama begins in the mists of pre-Columbian times among the Kuna Indians of San Blas. Here, on a shining archipelago where there are more islands than there are days in a year, the Kunas still make their colorful Molas. The first signs of human settlement in Panama are thought to be about 10,000 years old. Six different Native American cultures can be identified today: The three largest are the Embera Indians of the Darien jungle area, the Kuna of the San Blas Islands, and the Guaymis Indians of the western provinces of Chiriqui and Bocas del Toro.

Spaniard Rodrigo de Bastidas sailed along the Caribbean coast of Panama in 1501, and Columbus arrived in 1502. Despite dropping anchor in what is now the mouth of the Panama Canal on the Caribbean side, he never realized how close he was to the Pacific Ocean. In 1513, Juan de Balboa landed in the area, hiked across the Darien jungle and became the first European to see the Pacific.

The Spanish used Panama as the trans-shipment point for treasure and goods being sent between the West Coast of South America and Spain. As a result, buccaneers desiring Spanish loot set their sights on the area. By the 1700s, pirate attacks made it too dangerous to continue using the route, and ships started sailing around Cape Horn. Panama went into a decline.

In 1821, Panama declared its independence from Spain and joined with Venezuela, Ecuador and Colombia to form Gran Colombia. When that union split up, Panama remained a part of neighboring Colombia. The California gold rush of the mid 1800s brought unprecedented traffic across the Panamanian isthmus. Once on the Pacific side, prospectors would take boats up the coast to the goldfields (a far easier journey than crossing the U.S. by land).

In the 1880s, a French company began constructing a canal across the isthmus, but after losing 22,000 workers to disease and seeing investors go bankrupt, it sold the rights to the U.S. The Colombian government refused the U.S. permission to build, however, which set the stage for Panama's split from Colombia. In 1903, revolutionaries on the isthmus - backed by the U.S. - declared Panama an independent country and defeated Colombia's attempts to retake the territory. These actions cleared the way for the U.S. construction of the canal, which was completed in 1914.

The U.S. presence in Panama continued after the completion of the canal. In addition to stationing troops in the country to protect the waterway, the U.S. frequently intervened to control political events there. On 31 December 1999, the U.S. relinquished control of the canal to Panama.

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