Own In Panama, Living In Panama, A How To, What To Do Guide To Life In Panama
Comfortably Own, Thrive and Benefit In PanamaWe have put together a “One Stop” place for information
on buying, moving, living and benefiting from a life in Panama
Can A Foreigner Own In Panama?
Yes, it is legal for foreigners to own titled property in Panama in their personal names, although we normally recommend that clients hold all property in the name of a Panamanian corporation for asset protection and income tax reasons.
Panama is not like Mexico and many other countries where you just get a 100 year lease if you are a foreigner, in Panama, you can fully own property and have all the same rights as a citizen.
Where Is Panama Located?
Panama is In Central America, between Costa Rica and Colombia. Our main beachfront property is right next to to the Costa Rican border. Panama has had a great deal on influence from the US via the Panama Canal and a heavy US Military presence over the years. Panama is a short 3 hour flight from Miami and only about a 4 hour flight from Washington DC.
Panama Property Taxes
Panama had a very popular tax benefit from that was offered from 1990 to 2009 for new home construction and condo’s and can be passed along with the sale of the home. They offered ZERO property taxes for 20 years, so if you bought a home that was built in 2009, you will not have to pay any property taxes until 2029.
The tax rates for regular property taxes are still very low, especially compared to many places in NJ (which os 2.21 % of the home value) or NH (which is 2.03% of the home value) and many there states
Panama’s property taxes are low and as follows:
For primary residences valued at more than $120,000, the scale for property tax rates has also adjusted to favor homeowners. Article 766 of the Fiscal Code outlines the rates as follows.
A Simple Chart:
Properties valued between $0 and $120,000 are exempt from taxes.
Properties valued between $120,001 and $700,000 will have a 0.5% tax rate.
Properties valued above $700,000 will have a 0.7% tax rate.
This means that if your home has a value of $400,000, you would pay 0.5% on $400,000 minus $120,000. That comes out to $1,400 in property taxes in a year.
For Secondary Residences:
Properties valued between $0 and $30,000 are exempt from taxes
Properties valued between $30,001 and $250,000 will have a 0.6% tax rate
Properties valued between $250,001 and $500,000 will have a 0.8% tax rate
Properties valued above $500,000 will have a 1.0% tax rate
The homes are more often than not assessed way below true market value.
How to Start a Business in Panama
Small businesses really thrive in Panama, especially if you fully understand customer service.
You can start a simple Corporation (Often called an SA in Panama)
The cost for a corporation in Panama is $1500 to $2500.
Once you have your SA, we can assist you on how to open a bank account and more.
You can open a restaurant, a print shop, a retail store, a salon, just about anything. We have found employees to be very honest and dependable in Panama, more reliable than most employees we encountered in the US.
Why Buy Beachfront In Panama?
This goes without saying. Beachfront is always desirable. We love it because the prices stay stable or increase and they are ideal for top rental income. We hand pick beach properties for their vibe, safety and other amenities that beach goers love like fishing and great scenery.
Best Locations In Panama
This all depends on your desire for climate, traffic and amenities.
– [ ] If you like a busy, NY style life, Panama City hands down is for you. They do have a ton of night life, casinos, restaurants , the Panama Canal and a major airport, but the traffic is often pretty difficult
– [ ] If you prefer a country setting, the Veraguas Province near Santiago has an amazing climate. The Providence of Chiriqui is a great choice. Chiriqui is fairly big and houses the second largest city in Panama called David. David has a slower pace than Panama City but plenty to do, with large Malls, Several decent restaurants and beaches nearby. There is also a very welcomed climate about 45 minutes from David in Boquete. Boquete is where many “Gringos and European relocate to.
– [ ] If you are looking for beaches, Panama has many. Just to name a few, there is Coronado (About an hour from Panama City) there is a tropical beach on the Caribbean called Boca’s Del Toro, and there is Boca Chica, Las Lajas and Limones Beach. We have chose to highlight Limones due to its lack of crowdedness and great fishing. Limones is great for whale watching, fishing and is beautiful.
Medical Insurance in Panama
You can get full coverage medical insurance at most private hospitals for about $200 to $400 per month per couple at age 50. That is very low compared to US prices.
Medical Care in Panama
Panama is rather advanced in the medical arena.
Panama City boast a Johns Hopkins Hospital and the medical equipment in general is up to par with the US.
You can give birth to a child at the public hospital for under $100 and even have a child at the private hospital for around $2000. Child birth in the US barring any complications is $15K to $20K
That is just a simple example of the price difference compared to the US.
You can pretty much get most prescriptions by just walking into a pharmacy. If you need a simple doctors visit, its only $3 to $5 per visit in David Panama. Medical care is very reliable and cost effective.
Many people travel to Panama for procedures just to save money.
Dental Care in Panama
The dental care in Panama is second to none. You will actually notice, that many poor Panamanians have virtually perfect teeth.
Braces are a few hundred dollars, and the dental equipment is on par with any of the equipment in the US. You can get lovely porcelain veneers for a third of the cost in the US.
Auto Insurance In Panama
Panama is like anywhere else, you must have auto insurance but its different in Panama. You insure the car, not the driver. In other words, if you buy a car with up to date insurance, it goes with the car. It is very inexpensive to get car insurance, You can fully insure a fairly new car for about $350 per year. We can direct you to many options
How to Move Your Children To Panama
We have experienced this and its a great move.
You can go two routes with School aged children. You can choose to throw them into all all Spanish School (They pick it up very quickly) or there are many choices for English Speaking schools.
There are many English speaking schools in Panama City and we enrolled our daughter into The Oxford School in David. She loves it and is doing great.
You will need all of their school records from day one, all the way back to first grade. If you decide to make a major move, we will lock arms with you and walk you through the full process.
Daily Cost of Living in Panama
Honestly, Panama has some things that are cheaper than the US and some cost more.
For example imported food items from the US cost more, but daily items like Fresh Fruit are way less expensive in Panama.
Entertainment like movies and popcorn are far less expensive in Panama.
You can catch a move for about $3 and a large popcorn and two drinks will only cost you about $5. The lifestyle for the money is superior in Panama. When you consider the low property taxes and the fact you can have a full-time maid or nanny for about $150 per week, you can’t go wrong.
How to Become Comfortable in Panama
You need to find a good community, good church, a way to protect your assets and make sure you have a reliable vehicle to get around in.
Taxis are in-expensive in Chiriqui but sometime a pain, so we recommend you have your own vehicle. You can get a decent, reliable vehicle for about $10,000. We also recommend a home in either a gated community or at least with bars on the windows. Panama has a fairly low crime rate but since you are likely a visitor, it is safer to be protected. We can lock arms and hold your hand in walking you through most of the process.
How To Get Your Visa or Permanent Residency In Panama
There are many routes to permanent residency in Panama
1. Panama Friendly Nations Visa: If you are from any of these countries, you can fast track your residency or Visa. Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Marino, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Serbia, Singapore, Slovakia, Spain, South Africa, South Korea, Sweden, Switzerland, Taiwan, United States of America, Uruguay, United Kingdom (Great Britain & Northern Ireland).
- Panama Self Economic Solvency Visa: a) Make an investment of at least $300,000 USD in Panama real property equity (not counting loans or mortgages amounts). For every dependent to be included with the visa, an additional $2,000 USD must be invested. The title can either be in a person’s name or in a Panama Private Interest Foundation (the primary applicant must either be a beneficiary or the creator). The property cannot be in the name of a Trust or a corporation. The primary applicant must also show the ability to support the family while living in Panama.
b) Make an investment of at least $300,000 USD in a 3 year Panama bank time deposit (“Certificate of Deposit”). For each dependant, an additional $2,000 USD needs to be invested. The Panama bank CD can only be in the name of the primary applicant and not in a trust, corporation, or foundation.
c) Combine the first two options by making an investment in both Panama real property and a Panama bank CD where the equity and cash amount total at least $300,000 USD (or foreign currency equivalent). An additional $2,000 USD must be invested for each dependent.
3. Panama Business Investors Visa: Foreigners can obtain a Panama Business Investors Visa by investing in a Panama business with at least $160,000 USD in capital stock. The investor can apply for the visa as an officer or shareholder of the Panama corporation. An additional $2,000 must be invested per dependent.
- Panama Reforestation Investors Visa: Permanent residency leading to full citizenship can be achieved with just a minimum $80,000 USD investment to purchase at least 5 hectares of titled land in a government-certified reforestation project. An additional $2,000 will be needed for each dependent. Panama reforestation investments have averaged annual returns of 23% over the past 20 years.
5. Panama Retired or Pensioned Program: Retirees or people with lifetime annuities or pensions can qualify for the Panama Pensioner Visa, also known as the Panama Retirement Visa. This permanent residency visa is for anyone over 18 years of age who obtains monthly pensions or annuities of at least $1,000 USD for the rest of their lives. An additional $250 per month must be received for each dependent. Married couples can combine their annuities or pensions to meet the minimum requirement. An exception exists where the primary applicant purchases Panama real estate valued at at least $100,000 lowering the monthly minimum to $750. The annuity or pension can come from a government, its military, a corporation, a bank, an insurance company, a Trust, or a private company. There are many discounts available to card-carrying pensioners in Panama including pharmacies, restaurants, hotels, movie theaters, concerts, and domestic airfare.
6. Marry a Panama Citizen: A legal, valid marriage (not a sham) to a Panama citizen can lead to permanent residency.
7. Qualified Investor Program: The Qualified Investor program offers international investors an “expedited” (30-day process) opportunity to obtain legal permanent residency status in Panama, leading to citizenship in Panama (and a Panama passport). Applicants must choose one of the three available options: 1) Invest $300,000 in real estate; 2) Invest $500,000 in the purchase of securities on the Panama Stock Market; 3) Invest $750,000 in a time deposit at a bank in Panama (the bank must have a general banking license), for a term of five (5) years.
How To Benefit From Retirement Income In Panama
We offer beachfront, fully managed and fully turnkey homes in Panama.The cleaning rates are low, the country is stable and your income comes from major companies like Hotels.com, Expedia, and Airbnb. You would be amazed at the potential returns. Many buy one unit for income and one to live in or for their own use.
How To Stay In Touch With Friends And Family While Abroad In Panama
We have this one down to a T. There are many cost effective ways to stay in touch with loved ones. Here are just a few, for regular, cheap phone calls, we use a simple magic-jack for a land line. It is $40 per years and allows unlimited calls to the US and Canada. You can use Whatsapp from your cell phone or computer and do free voice or video calls to anywhere in the world, you can also do Skype and FaceTime calls or chats. These are just a few of the options we use daily. T-Mobile a US company offers plans for visits abroad that allow unlimited 2G data, unlimited texting and calls to the US for .25 cents per minute.
How To Move Your Pets To Panama
All shots must be up to date including rabies and rabies shot me be atleast 30 days old, need ecto and endo de-worming, need a good health certificate signed by the USDA, then all documents have to be apostile by a Panamanian Consulars Office. This USDA certificate can include more than one pet per certificate and cost $25 total. You have to notify the airline they are traveling with you and once you arrive to Panama, you have to show all the documents and pay a fee for home quarantine or leave them on the premises for 10 days. Then enjoy your pet, the process takes 2 to 3 weeks
How To Move Your Belongings To Panama
You can get up to a 40 foot container and move pretty much anything to Panama. Panama has strict gun laws and you can get or obtain a gun but it takes allot of work. As far as your household belongings, it is a fairly simple process. You make a detailed inventory list and if you are coming to Panama on a Pensionado Visa, you dot pay taxes, if you are coming normally, you pay between 6% and 15% taxes, but you basically claim the value for the items you bring. We can steer you in the right direction for a reliable import broker in Panama.
What Currency Is Used In Panama?
Panama uses the Panamanian Balboa and the US dollar, they trade dollar for dollar. It is easy to transact and there is not allot of haggling over prices like in most 3rd world counties. A fun fact, Panama’s former president, Martinelli introduced a one dollar coin and they love to give you those as change. We often joke and they get a kick out of “Gringo’s” saying “Oh, a Martinelli”
How To Find Romance In Panama?
They have popular dating sites but the best way is to go about your normal life and if you are kind and clean, you will find someone eventually. The ladies are lovely and the men seem to really like foreign ladies. Just as a simple rule of thumb, you can meet them in the grocery store, little casinos, malls and bus stops. They obviously prefer a partner with a car though.
Best Things To Do In Panama For Fun
World class fishing, In-expensive movies, Dancing, Lots of Casinos, Bird Watching, Go to the beach, Island Hopping, Tour Historical Sites, Climb a volcano, Zip lining, white water rafting, go to a rain forest, tour a coffee farm, huge shopping malls. Great restaurants and many US chains like McDonalds, KFC, Wendys, Burger King, Pizza Hut, Little Caesars, Papa Johns, Fridays, Bennigans, Hard Rock, Fudruckers, Subway and many great authentic restaurants serving chicken, beef, rice, beans and more.
Best and Fastest Ways To Learn Spanish
There are good programs out there and of coarse saturating yourself into the culture really speeds the process.
For programs, one of our favorites is Pimsleur, many like to use Rosetta Stone, there are many options.They offer many classes throughout Panama for group or one on one classes as well and many find those to be useful. If you are single, engaging a single female or male that only speaks Spanish is another fast option to learn Spanish.
What Is The Weather Like In Panama?
Panama has a dry season and a rainy season
The dry season typically runs from Mid December through Mid April and the rainy season last from Mid April to Mid December. The humidity is highest during the rainy season and can reach 100%. The temperatures in Panama largely depend on where you are. In the lowlands, temperatures range from about 32˚C (90˚F) during the day to around 21˚C (70˚F) at night. It’s much cooler in the highlands, where the average daily temperature is around 20˚C (68˚F), although it can reach as low as 10˚C (50˚F) at higher elevations.
Get the Complete Inside Scoop On Owning In Panama, From Experienced Expats