Street Level Asset Management

Property Investing in Panama

2011-02-06T13:33:00.000-08:00

View a database of carefully selected investment property in Panama

SUMMARY : Panama City is one of the world's least expensive first-world cities. It is also among the most modern and prosperous cities in Latin America with over 3 million people. The city's array of tall skyscrapers is reminiscent of Miami. It boasts incredible shopping where almost any product from the U.S. may be easily found. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement.

Currency: (USD) Dollar

US Dollar: A global benchmark currency. Little or no exchange rate parity fluctuation against Middle East currencies. The cost of living is significantly lower than that of Western Europe.

Economic climate: The trend towards an open economy and possible trade pacts with such nations as the U.S. and Mexico are conducive to investment in Panama. There are also no government expropriation or interference as in many Latin American countries. A business-oriented government encourages foreign investment. A government that realizes the value of private business to a developing country backs all investment. In 1946 Panama's business-oriented mentality led to the creation of the Colon Duty Free Zone, considered to be the second largest free trade center in the world, after Hong Kong. In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.

Capital Gains tax: Since the enactment of Law 8 of 1956, successive legislation has been passed offering tax benefits to developers. It has been widely accepted that, as a result of these incentives purchasers of real property have also benefitted. This tax is applicable if there is a capital gain. This tax is also regulated by Article 701 and applied at a flat 10% rate, whether a corporation or an individual is acting as a seller, on the gain resulting from the price of the sale minus the price of the acquisition by seller, as well as registration, notary and real estate agent expenses. If there is no capital gain on the transfer of a property, the 2% transfer tax, is also paid in advance for the sale, levied on the difference between the price of the sale or an appraised value increased at a 5% yearly rate (whichever is higher) and the price of acquisition by the seller.

Popular investment areas: Panama City has become a cosmopolitan modern metropolis - there are many raise buildings overlooking the ocean and the Bay of Panama. Exclusive residential areas like Marbella, Paitilla, Coco del Mar, Punta Pacifica and San Francisco offer a good range of apartments and condominiums for sale. Suburban residential areas in the former Canal Zone like Amador Heights, Balboa, Albrook and Clayton offer large and attractive single-family homes and condominiums. Casco Viejo -- the oldest city on the Pacific Coast of the Americas -- has become a desirable place for real estate investment, encouraged by the Panamanian government Casco Viejo investment incentives for the restoration of the historic Casco Viejo district. Outside Panama City, there are beautiful real estate properties located in popular destinations including, Chiriqui, El Valle, and Altos de Maria. Known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, real estate in the highlands of Panama are ideal for those interested in retiring abroad. Bocas del Toro is another popular destination for Panama real estate. Most known for its crystal clear waters, rich Antillean culture, unique over-the-water architecture and laidback tropical atmosphere. In recent times, Bocas del Toro has become a booming center for European and American Expats, as well as an impressive number of tourists. Several of these destinations are also considered Tourism Development Zones, where additional tax benefits are granted to investors in hotel projects. Real Estate Values in Panama and primarily in these Pacific Coast Beach areas has been appreciating very steadily, and as interest and growth increases so to do the real estate values.

Price ranges: The Panamanian government incentives for the restoration of the historic Casco Viejo district encourage investment here, this area reminiscent of New Orleans or SoHo years ago abounds with shells of graceful buildings that are crying out for renovation. Outside of Panama City excellent real estate properties are available for developers and individuals. The more remote the location the more reasonable the cost but be aware that you may be far from utilities or roads. The real estate in Bocas del Toro offers beautiful Caribbean beach property. Here palm-fringed golden sands surround the islands and turquoise waters where the rain forest meets the ocean. Here families shop by boat, enjoy water sports and the natural beauty of this wonderful location - better yet it is still affordable.

Budgetary guide: Prices per square meter in Panama vary according to the location (city, mountain, beach). In the city, you may find prices starting 1000$ per square meter in a new condominium. In the mountain, the price may drop down to 20$...yes this is not typo however in those cases you might want to research the access possibilities to this property. Many areas in the mountains have no road of access and local transportation might not be available. In the beach, prices depend on the zone. An hour away from the capital prices start at 600$ per square meter depending on the quality of the beach and neighborhood.

Service Fees: Fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in Panama.The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include; (1) the legal property transaction fee of US$1200 (includes; title search, buy/sell contract, closing, & property title transfer service), (2) public registry title transfer fees of approx. US$2.50 per every US$1,000 of the sales price and if applicable - the mortgage amount, (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction), and (4) incorporation fee of US$1000 to setup the Panama corporation. However, if the property is held by a Panama corporation already, and the buyer is purchasing the shares of the corporation, then the transaction is relatively simple because there is no registration of title transfer, meaning that there is no title transfer tax, and no public registry title transfer fees. In this case, the closing costs would include; (1) the legal property transaction fee (includes; title search, review of tax liabilities, purchase of shares contract, and closing for US$800), (2) change of directors / resident agent of the corporation (approx. $350), and (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).The notary and public registry costs total up to approximately $200 to $300 depending on the particular transaction. Title transfer taxes are by law paid by the seller. Escrow fees (if an escrow company is used), are normally paid by the buyer, and range from one half of one percent (0.5%) up to one percent (1%) of the transaction.

Mortgages: Between 60% - 70% of the purchase price or appraised market value, whichever is the lesser. Interest Rate from 5.5% to 6.5%, plus FECI tax of 1% per year.

For more information go to:
www.slampanama.com
www.pensionadovisa.com
www.strategicpointconsulting.com

Nov 17, 2010 'Panama Week' planned in Washington, D.C.

2010-11-07T19:22:00.000-08:00

'Panama Week' planned in Washington, D.C.

The new version of "Panama Week" will take place starting Nov. 17 in Washington, D.C.

Félix Carles, president of the U.S.-Panama Business Council, said the motto of this year's event is "Panama, changing world trade."

One of the objectives of the event is to promote the ratification of the free trade agreement between the two countries that is still waiting to be discussed by the U.S. Senate.

It will also emphasize the role of the country as a maritime center, the progress of the Panama Canal expansion and the modernization of Tocumen International Airport.

The Panama Tourism Authority will also discuss its master plan at the event, which is aimed at increasing the number of visitors to the country.
http://mensual.prensa.com/mensual/contenido/2010/09/30/hoy/english/news_4891.asp

PANAMA WEEK 2010
Panama: Changing Global Commerce
Venue: Washington Hilton Hotel, 1919 Connecticut Ave., NW, Washington, D.C

For registrations and sponsorship opportunities contact UNITED STATES-PANAMA BUSINESS COUNCIL (USPA)
5353 Memorial Drive #2041, Houston, Texas 77007
Tel. (713) 426-0554 / Fax. (713) 426-0375 / E-mail: Panamerica @msn.con http://uspanama.webs.com/pwsponsorlevels.htm

November 1, 2010

Dear Friends of Panama and the United States

The U.S.-Panama Business Council (USPA) was created in 1994 with the mission of strengthening relations between the United States and Panama, and promoting business opportunities between the two countries. During its sixteen years of existence the Council has organized hundreds of programs and events which have greatly contributed to enhancing relations between the two countries.

Every year the Council organizes a comprehensive program in Washington D.C. entitled Panama Week. This year Panama Week will be held on November 18-19 in the Nation's Capital, coordinated by both the U.S. and Panama USPA associations. We anticipate a strong attendance this year, and several high profiled speakers that will address the numerous business opportunities offered by Panama.

Panama's excellent economic climate has produced positive news over the past five years with annual growth close to double digits. Even in 2009, when the world was impacted by a financial crisis, Panama still registered economic growth. The Panama Canal is undertaking an ambitious expansion, unemployment has decreased dramatically, the country attained investment grade and recently a $13 Billion investment plan was announced for the next five years.

An updated program is enclosed and periodic updates will be published in USPA USA website http://uspanama.webs.com/pwprogram.htm Several Ministers from Panama will be attending the program including Minister of Commerce and Industry H.E. Roberto Henriquez, Minister of Tourism H.E. Salomón Shamah, Minister of Energy H.E. Juan Urriola and Deputy Administrator of the Panama Canal Authority Jose Barrios Ng. The traditional black tie Gala Friendship Awards Dinner will be held on the evening of Thursday, November 18th and H.E. Jaime Alemán, Ambassador of Panama to the United States, will be the Keynote Speaker.

We avail of the opportunity to thank sponsors for their generous support. Please review the website for additional information. Should you have any questions you may contact Amb. Juan B. Sosa at (713) 426-0554. We look forward to see you in Panama Week 2010.

Best regards,

Amb. Juan B. Sosa President, USPA (USA)
Amb. Roberto Alfaro President, USPA (Panama)

House in Albrook residential area for sale

2010-10-22T10:38:00.001-07:00

An area where the "good life" awaits you is Albrook. Formally an air force base for the US military, this part of Panama City is now a tranquil, well landscaped sector with gorgeous homes about everywhere you look. There is plenty to do for fun & relaxation here and is truly considered to be one of the best places to live in Panama, especially if you want to live in or around Panama City.

So with all that being said, this duplex listing in the gated community of "Villas Firenze" is certainly high on our list. You'll have the comfort of 24 hour manned security to go along with all the benefits of living in this little haven of Panama City. And its good to note here that even though you feel quite isolated from the hustle bustle of the metro area you're actually only 10 - 15 minutes away from just about anything you would need to do in the city.

The duplex has a spacious living-dining room area, comfortable size kitchen, study, laundry, and storage room.

Two-level house in Albrook with:
* Two complete bathroom (first floor)
* One Visitor Bathroom in the ground floor.
* Main Bedroom with walk in closet
* Two Covered Parking spaces.
* Three air conditioner units, appliances, five fans, and all light fixtures.

Gated community, 24 hours security, social area with swimming pool, and play area for children.

Benefits: Near a School, Near Traffic, Maids Quarters, 24 hour Security, Air Conditioner, Social Area

Price $275,000.00 negotiable
Bedrooms 3
Bathrooms 2
Square Meters 161.38 (1730 sq feet)
Lot Size 219.48 (2362 sq feet)
Balcony or Terrace Yes
Swimming pool Yes
Parking 2

Key Investment Points:
- Minutes from downtown Panama City
- High resale value and demand due to low density of single-home units
- Investor-friendly landholding corporation regime and 15-year property tax regime
- 10 minute drive from commuter airport and Panama's largest shopping mall
- Recent construction
- Bank financing up to 70% possible for qualifying purchasers

Consult with your real estate agent or attorney-at-law. Prices, expected rental income and layout as provided by seller and subject to changes.

What foreign investors should know when buying property in the US

2010-07-18T21:32:00.000-07:00

Property managers with foreign investor clients (what you should know).
By Mullin, Kevin J.
Publication: Journal of Property Management
Date: Wednesday, July 1 1998

Unless a tax treaty exists between the U.S. and a specific country, foreign owners, including estates, corporations, nonresident aliens, and partnerships, pay a flat 30 percent withholding tax on the rents produced by their U.S. real estate investments. This tax applies unless foreigners' investments are connected with a U.S. trade or business or the foreign owner has made an election with the Internal Revenue Service to be taxed on a net basis. (Having rental income taxed on a net basis after deductions for costs or operations, maintenance, and carrying charges usually results in a lower overall tax for the foreign owner.) On the other hand, U.S. citizens and residents, both individuals and corporations, are not subject to this withholding tax.

This 30-percent withholding tax is calculated on the gross amount of the rents generated by the property without allowable deductions for interest, depreciation, repairs, management and association fees, insurance, real estate taxes, or other expenses of owning and operating the property.

Managers as Agents

Since the IRS has no jurisdiction to collect this tax against a person residing in a foreign jurisdiction, the law generally designates the U.S. person who has the last contact with the money before it leaves the U.S. as a "withholding agent." The withholding agent is charged with the responsibility for paying over the 30-percent withholding directly to the IRS. Failure to do so can result in the withholding agent being personally liable for payment of the tax, plus interest and penalties.

For rental real estate, the withholding agent is typically the property management company that collects the rent from the tenants, pays the expenses of owning and operating the property, and remits the balance to the owner. Unfortunately, the property management company is often blissfully ignorant of the implications and potential for liability that the designation of withholding agent brings under law.

Avoiding the Withholding Tax: Foreign Owners

Because of this potential tax liability, the property manager needs to know with certainty whether its foreign client is subject to the withholding tax or whether the client is exempt from withholding. For the foreign investor, there are two ways to qualify for an exemption from the withholding tax and, instead, pay its fair share of income tax on a net basis after deductions.

Trade or Business. The first way a foreign person can achieve exemption from the withholding tax and be taxed on a net basis is to qualify its real estate operations as being "engaged in a U.S. trade or business." Unfortunately, there is no hard and fast rule for determining when a foreign investor's real estate operations rise to the level of a U.S. trade or business. Instead, the legal test is based on the nature and extent of the foreign investor's activities in the U.S., which leaves the foreign investor looking to various court cases for guidance.

Resolution of one's status as not being engaged in a U.S. trade or business (and thus, subject to withholding taxes) under these cases can be fairly determined if the foreign person's activities are very limited, such as owning one rental property leased on a triple-net basis. Moreover, it is fairly dear from the court cases that a foreign investor will be considered to be engaged in a U.S. trade or business if the foreign investor's activities are considerable, regular, and continuous with regard to his or her properties. For example, owning several properties and being involved directly (or through an agent) in lease negotiations, maintenance and repairs, collection of rents, payment of operating expenses, and performing record keeping, would almost certainly qualify a foreign owner for this classification. However, should a foreign investor's activities fall within these two extremes, it may be difficult to gauge the character of the investment, which leaves the foreign owner and the property manager to guess.

Net Election. Having to guess how a court will decide on the question of being engaged in a U.S. trade or business can be a hazardous way to operate real estate for both the foreign owner and the property manager. By way of relief, the Internal Revenue Code does allow a foreign corporation or nonresident alien individual to make an affirmative election to be taxed as being engaged in a U.S. trade or business, which takes the uncertainty out of the process. To qualify for the election, the foreign corporation or nonresident alien individual must derive revenue from the U.S. investment. Because the foreign person will not otherwise be able to qualify for the election, investments in nonproductive properties, such as raw land, should be leased to generate some revenue, even if the use is merely interim or temporary. In the case of a nonresident alien individual, the real estate investment must be held for the production of income.

To make the election, the foreign owner merely files a statement with his or her federal tax return that identifies that an election is being made along with a schedule of all the taxpayer's U.S. real properties, their locations, and a description of the improvements on the properties. This election is effective for all qualifying U.S. properties for all subsequent years and can only be revoked with the consent of the IRS.

The foreign investor who makes such an election also needs to file a Form 4224 annually with its property manager, which notifies the property manager
that the foreign owner is exempt from withholding tax for that tax year.

Avoiding Withholding Tax: Property Managers

That the foreign investor can elect to be taxed on a net basis is fine, but how is the property management company to know whether its principal is a foreign owner and whether the foreign client has made such an election to be taxed on a net basis, thus relieving the property manager of the withholding tax obligation? Guessing incorrectly whether one is a withholding agent or whether someone is a foreign owner or relying on a false verbal representation will not relieve a withholding agent from its obligations under the law. The best ways to avoid potential liability are:

* Assume that the property manager is a withholding agent in all cases until the IRS certification forms described below are received proving differently; and,

* Use the IRS certification forms with every client as part of the application process to systematize the approach to this issue. Completion of these forms will provide a "safe harbor" for the property manager even if it should later be determined that the owner falsified the forms and that withholding taxes should have been paid.

Property managers should become familiar with the following IRS certification forms, which need to be received from the client prior to any rental income from the property being realized. The best time to obtain such forms is at the time of management contract signing and thereafter as required.

Statement and Form 1078 (U.S. citizens and residents). U.S. citizens and residents should provide a statement in duplicate to the property manager that they are not foreign persons but citizens or residents of the U.S. No particular form is necessary for this statement, but it needs to be in writing and should be signed by the person making the statement. If the client is a person who is a resident alien of the U.S., the client can complete such a statement or can use Form 1078. No withholding is necessary from clients who complete either the statement or Form 1078, but the property manager is required to transmit the duplicate copy of the statement or Form 1078 to the IRS upon receipt.

W-8 and Form 4224 (foreign persons). Nonresident aliens and other foreign persons should complete and deliver to the property manager Form W-8, which certifies that the person is a foreign person. Completion of Form W-8 will trigger a withholding obligation on the property manager unless the foreign person also delivers a completed Form 4224. Form 4224 certifies that the income received by the property manager is exempt from withholding because it will be taxed on a net basis. Form 4224 must be filed with the withholding agent for each taxable year by the owner of the income and before payment of the income to which it applies. Failure to obtain a Form 4224 from a foreign person who claims exemption from withholding may result in denial of the exemption.

New Certification. Effective January 1, 1999, a new, simpler regime for certification will be implemented. These regulations will combine several existing forms used in connection with withholding including Form 4224 into a single, expanded Form W-8. While the new regulations should make it easier for property managers and their clients to comply, the basic system of withholding on income from real property is not being changed and must still be followed.

Other Issues for Foreigners

When acquiring U.S. real estate, there are good reasons why a foreign person should not take title to U.S. property in his or her own name, but rather should consider using an offshore-U.S. corporate structure. For example, a nonresident alien who takes title to the U.S. real estate in his or her individual name is exposed to the imposition of U.S. estate taxes, which can run as high as 55 percent on the fair market value of the property (determined as of the date of death) with very limited deductions. By comparison, U.S. estate taxes can dwarf the income tax consideration.

For foreign corporations that acquire income-producing U.S. real estate directly, a surtax, the 30-percent branch-profits tax, is imposed on top of the regular U.S. corporate income taxes. Accordingly, foreign corporations and nonresident alien individuals who currently own property in their own names should carefully consider restructuring their real estate investments into an offshore-U.S. corporate structure with the U.S. subsidiary owning the real estate directly. In this way, owners can avoid not only withholding taxes, but also U.S. estate and branch-profits taxes.

In spite of these issues, foreign persons often do take title to U.S. real estate in their own names. Thus, property managers should take precautions and seek competent professional advice so that their foreign clients' problems do not become their own.

This article is for general informational purposes only and no action should be taken or withheld based on the information supplied herein. This material is presented with the understanding that the author and the publisher do not render any legal, accounting, or other professional service. In no event will they be liable for any direct, indirect or consequential damages resulting from the use of this material.

Kevin J. Mullin, J.D., C.P.A., has been practicing law for over 15 years with a focus on advising foreign investors on their U.S. real estate investments and international business and tax planning. Mr. Mullin has offices in Denver, Colo., and Washington, D.C. www.intl-taxlaw.com . He also maintains representative offices in Latin America and the Middle East to support his professional and client relationships globally.

http://www.allbusiness.com/personal-finance/individual-taxes/690576-1.html

Condo for sale in banking area

2010-06-08T16:42:00.000-07:00

Apartment for sale in Marbella/Campo Alegre, 2 blocks from Paitilla Hospital, World Trade Center and Balboa Avenue.

3 bedrooms, 3 bathrooms, maid's quarters, 9th floor, enclosed balcony with Solar-gray windows, terrace with French-style doors, backup electricity generator, water reserve tank, 2-car indoor parking. 173m2 1862 sq ft at $245,500 . Call at +507 270-0864, +507 6617-3321.

Apartamento para Venta a $245,500 en Marbella/Campo Alegre, 173m2 / 1862 pies cuadrados, 3 rec, 2 baños, cuarto y baño de empleada, 9no piso, terraza con vidrios Solar-gray y puertas francesas, planta eléctrica, reserva de agua, 2 estacionamientos bajo techo. Llamar al +507 270-0864, +507 6617-3321

Professionals make relocation easier on your pet

2010-04-25T08:50:00.000-07:00

Pet Relocation: Moving to a new country is complicated enough without having to worry about how to bring your pet. SLAM Panama offers superior pet relocation service, whether your pet will be moving to or leaving Panama. We work with Panama's top veterinarians to ensure that your pet receives the quality of care you entrust SLAM Panama to provide. Your pet will be met at the airport by a member of the SLAM Panama team and escorted through the airport to a private car, which will deliver the pet either to the owner or to a five-star pet hotel to await its owner. Depending on the age of the pet, SLAM Panama, in consultation with our veterinarians, may recommend additional preventative care upon arrival in Panama.

For older pets and those with serious conditions, it is recommended that the pet be rehydrated. It is also recommended that owners bring at least one week's supply of food in the event that the usual brand is not available in Panama. Pet food brands readily available in Panama include Science Diet, Eukanuba, Iams and Purina.

Bringing Pets to Panama:
You will need to provide the following:
1. Health certificate authenticated by a Panamanian Consulate within 10 days of travel
2. Rabies and current vaccinations certificate authenticated by a Panamanian Consulate within 10 days of travel

Shipping Pets Out of Panama:

The following requirements must be met before the pet will be allowed to leave:
1. Current vaccinations and deworming
2. Health certificate signed by an authorized Panamanian veterinarian

Government regulations are subject to changes. Regulations by airline carriers and countries of departure are subject to changes and must be verified before deciding to relocate with a pet.

More information is available in

http://www.slampanama.com/Pet_Relocation.html
Ministry of Health http://www.minsa.gob.pa/
Requirements for pet importation http://mypanamalawyer.blogspot.com/search/label/pet

Anthony Bourdain's Guide to Panama

2010-01-18T20:59:00.000-08:00

Tony travels to Panama, which is rumored to have originated from an Amerindian word meaning "an abundance of fish." One of Tony's stops includes the Mercado de Mariscos, a swank new fish market to sample the national go-to dish: ceviche.

More behind-the-scene clips at
http://www.travelchannel.com/TV_Shows/Anthony_Bourdain/Episode_Panama_ Panama

Google Map meant to point to the eateries featured in the show (each point is off like 1 mile Northeast)

http://www.travelchannel.com/TV_Shows/Anthony_Bourdain/Episodes_Travel_Guides/ci.Episode_Panama.map

Youtube videos

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Retirement: Why Panama Is the New Florida

2009-07-16T18:07:00.000-07:00

Murdock and Johnson on the beach near their home in San Carlos Jeffrey Salter/Redux

Michelle Conlin

Prospective retirees: Panama wants you. The pitch? A plane ride just 21/2 hours from Miami enables the newly poor to swap a wretched retirement in the U.S. for one befitting a royal in the balmy Central American nation. Cash out! Emigrate! Feel rich! Panama—the new Florida.
Spin aside, Panama is increasingly popular among retirement-age types looking to hedge against—or skip out on—the recession. The Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, says the chief factors prodding professional-class Americans to flock to Panama include its First World health care available at Third World prices and the country's pensioner program, which offers some of the deepest retiree discounts in Latin America. Seniors get up to half off on nearly everything, including movies, motels, doctors' visits, plane tickets, professional services, and electric bills. Expats also pay no tax in Panama on foreign income. Nor are they required to pay property tax for the first 20 years.
The fact that a luxe beachfront manse can be had for the same price as a dump in Daytona doesn't hurt, either. "We would have been looking at $3 million in Miami," says Jon Nickel of his 3,000-square-foot oceanfront penthouse in Panama City. Nickel and his wife, Gretchen, bought the place in late 2007 for $250,000, right after Nickel retired from his corporate law job in Portland, Ore., and sold the family's mortgage-free home for $800,000.
The skinny isthmus—nearly all coastline, with a mountain range slicing through the middle—boasts some of the best weather and lowest crime rates in Latin America. Other draws include guilt-free conspicuous consumption, with laughably low prices—by gringo standards—on splurges such as a day of beauty ($10) and a maid ($15 a day).

...

That's not to say life there suits everyone. Things in Panama movereallyslowly. A repairman who says he will be right over might show up days later. Water and electricity service can be spotty. In Panama City, drivers treat stop signs as a mild suggestion. "It takes a little bit of balls to retire here," says Matt Landau, a New Jersey native who is the founder of Panama City-based online portal The Panama Report. "This is not for type As. It's not your turnkey Florida retirement."
Still, boomers who have recently relocated to Panama say they feel as if they have figured out a successful geographic arbitrage. When Stephen Johnson and Linda Murdock were living in Aromas, Calif., they used to moan half-jokingly about how they'd have to retire to Barstow—the armpit of the Mojave Desert, with summers in excess of 100 degrees and winters that can dip below freezing.
Stephen, 63, retired as an executive of the Salinas Valley Solid Waste Authority in June 2008. His wife, Linda, 57, owned a dog-food business.

The pair had watched several friends retire on depleted cash cushions. Many weren't fully eligible for Medicare and wound up spending 50% of their income on health care. The couple's retirement agita was worsened by the fact that they got a late start building equity. "We bought our first house when I was 40 and Steve was 46," says Linda. "We knew we would never have our house paid for by retirement."
Over late-night pinot noir on their patio, they started talking about moving to a developing nation to stretch their money further. They had discovered Panama on a trip there in 2004 and saw it as a bargain-basement paradise. The low cost of living appealed to Steve, whose pension amounted to 40% of his pre-retirement income of $150,000. The surf-perfect weather lured Linda, who took up the sport on her 50th birthday.
CRACKS IN PARADISE
Johnson and Murdock are now known as the gringos who live in the house with the red door. They bought their newly remodeled 1890 hacienda near the beach in San Carlos for $100,000 cash. They moved in last year and rented out their California ranch house. The rent covers the carrying costs on that house.
But Panama isn't only about the beach. The Boquete region in the mountains—Panama's answer to Boulder, Colo.—boasts loads of U.S.-style gated retirement compounds. The big draws of the area are tennis and golf. For those who are more interested in urban amenities, Panama City, which is by the sea, is sprouting yoga studios, bohemian boutiques, health-food stores, and artsy coffee houses.
Still, there are tradeoffs in this seemingly easy life. "Paradise is just a place you visit," says Johnson. "If you live here, you begin to see the cracks." Those include the three months it took them to get their driver's licenses—a process that involved blood tests, a hearing exam, and lines that make a U.S. Motor Vehicles Dept. seem like a fast-food joint.
But Johnson and Murdock have no major complaints, and Panama is certainly better than the Mojave. Murdock surfs—every single day—and says Johnson looks 20 years younger since retiring. They both love the way their dog can run on the beach without a leash and the fact that their doctors, many of them schooled in the U.S., happily give out their cell-phone numbers and actually answer when called. And their social life is far more active than it was in Aromas. They go out with new friends, a blend of expats and natives, almost daily, often for evenings of fish tacos and endless margaritas—for $20. "We have more time," says Johnson. "And apparently we have more money."

Conlin is the editor of the Working Life Dept. at BusinessWeek.
Full text at businessweek.com ...

Advantages to Investing in Real Estate in Panama

2009-04-28T18:34:00.000-07:00

Foreigners will find that Panama has special regulations which favor investments in real estate. Unlike other tourist destinations, foreigners and nationals can:

Buy almost all kinds of property (except for the rainforest 5km way from the border)
Own property through shares in corporations, private foundations and trusts
Open bank accounts in US dollars free from exchange conversion loss, as well as in euros and other hard currencies
Live without having to file Panama tax returns as long as they are not making an income from their Panama property or their activities inside Panama
5 to 20 year property tax holidays, depending on the date of construction of improvements.Foreigners have the added advantage of bilateral investment treaties with the U.S., France, United Kingdom and most European countries which further ensure protection of their investments in Panama.

Just as with any investment, proper due diligence is necessary before paying for any property - even before that first downpayment. A savvy buyer must verify that the seller is the true owner of the property for sale and that no restrictions or liens forbid its sale. The first payment must be accompanied by a written agreement describing the property and executed by a seller property authorized to do so under local law. Appropriate counsel can assist in avoiding unnecessary delays in the transfer of title.

European, Canadian, US and citizens of several Asian countries can stay in Panama with tourist visas for up to 90 days. Full residency is granted to foreigners:

Investing US$160,000 in a Panama non-retail business and effectively employing 5 Panamanians,
Holding a US$300,000 CD time deposit (plazo fijo) account in a Panama bank for at least 3 years or in the National Bank yielding US$2000.00 monthly for 5 years,
Buying a house in Panama mortgage-free for US$300,000 and/or a mixture of the house paid for and time deposit for at least 3 years totalling US$300,000,
Investing at least US$60,000 to buy at least 10 hectares of rainforest for reforestation
Earning a pension from a social security or any foreign government pension authority above US$1,000.00 monthly as Pensioner ("Pensionado").

Other residence categories exist that are applicable to foreigners sponsored by local employers or educational institutions as part of a foreign worker quota of no more than 10% per company or who marry a Panamanian spouse. Residents for 5 years can apply for naturalization as Panama citizens and have a Panama passport.

Information is valid as of 9/2/2008 and is subject to changes. More information is available from Alvaro Aguilar aaguilar@ nysbar.com Tel. +507 340-6444 / 6638-8707

LOMBARDI AGUILAR & GARCIA - Aquilino de la Guardia St. Ocean Business Plaza, 12th Floor, Panama City, Panama
Tel: +507 340-6444 - Fax: +507 340-6446 - P.O.Box 0831-1110 - http://www.laglex.com

Lombardi Aguilar & Garcia is a civil law partnership registered in Panama with registered number SC-25029 and its members are regulated by the Panama Bar Association

This information is not meant to provide any legal advice. Foreigners are always subject to the laws of their countries of citizenship or residency and should seek appropiate additional counsel in their countries. This information is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under tax regulations or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

Article Source: http://EzineArticles.com/?expert=Alvaro_Aguilar_Alfu
http://www.hg.org/article.asp?id=6259

Ocean views at unbeatable prices

2009-01-17T07:28:00.000-08:00

Key Investment Points:

- Minutes from downtown Panama City
- High resale value and demand due to low density of single-home units
- Investor-friendly landholding corporation regime and 15-year property tax regime
- 15 minute drive from commuter airport and Panama's largest shopping mall
- New construction
- Financing up to 70% possible

Two Bedrooms 61m² to 67m² €50,966 to €60,000
Three Bedrooms 87m² to 87m² €70,000 to €80,000
EXPECTED RENTAL INCOME UP TO: 9.00%
Consult with your real estate agent.

Between the Rainforest and the City

2009-01-11T07:18:00.000-08:00

Single home from € 963,000. Camino de Cruces, Friendship Road, close to El Dorado and new US Embassy. 2 levels, 3 bedrooms, 3 bathrooms, maid r/b, large backyard with pool, surrounded by vegetation. In gated community with 24hr guard. Sold only with furniture.

Land: 1,022.44 sq m / 11005.452 ft². Santa Monica model home 397.27 sq m / 4276 ft. Built in 2005.

Call +507 270-0864 or +507 6617-3321.

Features: Roofed Parking, Maids Quarters, 24 hour Security, Laundry, Storage, Garden or Park, Kids Park, Air Conditioner, Patio, Central Air Conditioner, Corner Property, Roofed Garage, Living room & Dinning room
Appliances: Refrigerator, Microwave, Stove, Dishwasher, Instant Hot Water Dispenser, Washer, Dryer
More pictures downloadable here
Google Earth coordinates 9.011289648163606,-79.54334242864977

Plans Lower Level

Backyard and pool

Living room and furniture

Panama Economy Stays Strong - Bucking World Trends

2008-10-19T18:50:00.000-07:00

Panama Economy Stays Strong - Bucking World Trends

Date: 2008-09-18

Panama's economy will continue to grow, say analysts, resisting the global downturn led by US economic woes.

"The strong economic performance of the last few years continues, despite the deteriorating global environment," said International Monetary Fund (IMF) officials last week in a public statement.

"Panama was one of the fastest growing economies in the world in 2007 with real growth rising to 11.2 percent, following an average growth rate of nearly 8 percent in 2004-06 ... Growth in 2008-09 is projected to slow somewhat, to about 8 percent, with the Canal expansion and related investment activities partially offsetting the effects of higher oil prices and the slowdown in the U.S. and the global economy."

The IMF has also upped predictions for Panama's economic growth to 8.3 per cent for this year, up from a more modest estimate of 7.7 per cent in April's World Economic Outlook report.

"Despite a deteriorating external environment, economic prospects are favorable," concluded IMF board directors, "thanks to the Canal expansion project and associated investment, as well as improvements in competitiveness reflected in expanding export services such as tourism, communications, and transportation."

IMF directors commented that Panama's financial sector has not been negatively affected by the global financial turmoil, noting the 'remarkable turnaround' in the non-financial public sector as well; these factors, combined with the strong economic growth, contributed to Panama's improved credit rating from Standard and Poors earlier this year, earning the country a BB+ (stable).

Analysts at Deloitte Touche Tohmatsu, a global auditor, also estimate an increase of 8.5 to 9 per cent growth for Panama in 2008, in their Economic Perspectives 2008 report, "marking the sixth consecutive year of strong growth".

According to the latest report by Indesa, a Panamanian advisory and financial services firm, the economy is expected to grow 8.4 per cent in 2008 and nearly 10 per cent in 2009, putting Panama at the forefront of economic growth in Latin America , along with Uruguay and Peru, which posted first quarter growth results of 11 and 9.2 per cent respectively.

Panama's 2007 gross domestic product (GDP) topped $19.7 billion in 2007, and is projected to surpass $24 billion this year.

The driving sectors in Panama are construction, mining, financial services, transport and telecomnunications, and hospitality. Last year, both construction and mining grew by 19.6 per cent apiece according to Indesa, offsetting smaller gains in the manufacturing and agricultural sectors.

In fact, it is Panama's service-based economy that has allowed it to weather rising oil prices, as well as its proximity to the US, where economic uncertainty has travelers opting for nearby leisure destinations. Panama is emerging as a significant business and tourism destination in the region for travelers from both North and South America, with the Tocumen airport acting as a regional hub between the continent's major cities.

In a report issued by the Panamanian government, authorities estimate the tertiary or service sector accounted for nearly three-quarters of the country's GDP in 2006.

"In the past three years (2004, 2005, and 2006), the tertiary sector has developed significantly, with growth rates of 6.8 per cent, 9.4 per cent, and 9.3 per cent," indicated the Panama Trade Policy Review to the World Trade Organization. "Mention should be made of the Colon Free Zone and of the hotel and restaurant subsector, which grew by more than 10 per cent. Other components of the sector also trended upwards significantly, such as financial intermediation, wholesale and retail commerce, and real estate.

"The high percentage of GDP that this sector represents and has represented in the past, shows that Panama is a service-oriented economy. In 2006 the sector accounted for 74 per cent of GDP."

The external sector has also been a strong economic driver, with the export of goods averaging five per cent annual growth between 1997 and 2006, reaching more than $1 billion USD. By 2006, the net export of goods and services represented one third of Panama GDP.

Despite the fact this year's numbers are down from 2007, which saw record growth levels of about 11 per cent, the overall positive trend is in stark contrast to regional predictions. The Economist estimates the mid-term trend for Latin America to average out at 3.9 per cent in 2012, while the IMF predicts a much better performance for Panama.

"The medium-term outlook is promising, supported by the canal expansion and other large construction projects," noted the IMF's board of directors last year in a public statement. "For 2007-10, staff projects average annual real GDP growth of about 6.5 per cent, [and] inflation of 2.25 -2.75 per cent."

IMF officials commended Panamanian authorities on governmental spending 'restraint' and improved tax collection in reducing public debt and creating a sound basis for economic growth. Declining unemployment, plummeting from 13.6 per cent in 2003 to 7.3 in 2007, was also cited, as was the positive impact of the Panama Canal expansion, expected to be completed in 2013 at a cost of some $5.5 billion.

"The project is expected to boost GDP growth and job creation, both directly and by stimulating related industries," noted IMF officials.

The Latin Business Chronicle has also placed Panama at the top of its Latin Business Index, thanks to $1.8 billion in direct foreign investment (DFI) in 2007. Panama beat out Chile, which saw more than $14 billion in DFI in 2007, taking the top spot for the higher proportion of investment to its GDP.

Inflation, which has typically been very low for Panama thanks to a currency pegged to the US dollar, has risen in step with the recent devaluation of the US dollar. While 2007 saw an increase over the previous year, going from 2.5 per cent to 4.2 cent, Panama's inflation remained well below all other Latin American countries, which averaged 7.75 per cent. However, inflation reached nearly nine per cent in May of 2008, which the IMF largely attributes to rising food and fuel costs

Pamela Oakes from SLAM to speak about “Managing Your Second Home in Panama” at AIREEC

2008-08-20T05:28:00.000-07:00

Street Level Asset Management (SLAM) Panama Managing Director, Pamela Oakes, will speak at the American International Real Estate Expo & Conference (AIREEC) - "The Business of Global Second Homes and Resorts" - in Los Angeles

LOS ANGELES--Street Level Asset Management (SLAM) Panama Managing Director, Pamela Oakes, will speak at the American International Real Estate Expo & Conference (AIREEC) on Sunday, Sept. 7, 2008, at 10:30 a.m. PDT. The conference will be held Sept. 5-7, 2008 at the Los Angeles Convention Center in Los Angeles, CA.

Ms Oakes will speak about “Managing Your Second Home in Panama”. She will explain the different options available to investors seeking to purchase and finance a second home in Panama and will provide recommendations for families who will move to Panama part of the year. Slides of the presentation may be downloaded from the company blog propertymanagementinpanama.blogspot.com Additional information on Panama will be available from Sept. 5 for participants at booth E09 of the Central America section of the AIREEC exhibition.

AIREEC http://www.aireec.com/ is a continuation of its ground-breaking maiden event in Manila, Philippines in December 2007. This year's theme is "The Business of Global Second Homes and Resorts" which responds to the tsunami of aging baby boomers entering their retirement years and the emerging "new rich" market from developing countries. Over 60 world renowned speakers, experts and leaders will talk about trends, updates, solutions, choices and options on the emerging "fad" of global 2nd homeownership and 10,000 attendees are expected from over 30 countries around the world.

About Pamela Oakes
Pamela Oakes has more than a decade of property management and relocation experience in Panama. Prior to living in Panama, Pamela lived in the United States, Sweden, Argentina and Chile and has traveled extensively throughout the United States, Latin America and Europe. Pamela has a Bachelor's degree in Political Science and Spanish from Drew University of Madison, New Jersey and studied for a Master's degree in International Politics at American University in Washington, D.C. Pamela has delivered presentations at numerous international conferences on real estate investment, relocation and property management issues in Panama.

Pamela has been an active board member of several non-governmental organizations in Panama including the Friends of the Children's Hospital and the American Society of Panama. In 2005, she received the "Distinguished American Citizen Award" from the United States Ambassador in Panama, the Honorable Linda E. Watt.

About SLAM Panama
Street Level Asset Management (SLAM) Panama http://www.slampanama.com/ is a full-service property management and relocation company based in Panama, dedicated to management of properties for foreigners investing in Panama real estate. SLAM services complement the after-purchase needs of clients by ensuring the preservation of their real estate investments. Additionally, SLAM works along with the law firm of Lombardi Aguilar & Garcia http://www.laglex.com/ to assist in securing relocation and private client services for property owners moving to Panama.

.
.If you cannot see the presentation, click the link below to watch "AIREEC Panama":http://web.splashcast.net/full_screen/?channel_code=UQSV8080KC&show_code=KYEI4741MN.

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The Great Panama City Land Rush

2008-08-14T08:47:00.000-07:00

Panama City land increases by more than 100%

Now you see it...

Now you don't ... Demolitions continue in the San Francisco neighborhood

during the Panama City real estate boom to give way to new condo buildings

Business weekly Capital Financiero of July 28 quotes the magazine Espacios which says that areas such as Bella Vista, Balboa Avenue, and San Francisco have seen their footage prices increase by more than 100% in only 3 years.
For example, for 2005 the square meter in Balboa Avenue was under $1,000 ($92/sq ft) but sales have been registered now for $5,000 ($464/sq ft).
While in the sector of Bella Vista the cost of square meter varied between $350 and $400, but currently have been sold at almost $1,000.
The magazine states that $300/square meter were paid for San Francisco several years ago but now they reach $700 to $800 ($74/sq ft), with some estimates running into $1000. In suburban Las Cumbres, where 50 years ago land could be bought for $7 / square meter, its price has risen to $40-$50 / square meter.
According to a report by real estate company CBRE, the square meter of condos in Marbella, Bella Vista and San Francisco South) rises to $1,847 ($171.65/sq ft), the oceanfront (Balboa Avenue, Paitilla and Punta Pacifica) is at $2,335 ($217/sq ft) and the central area (El Cangrejo, San Francisco North) is at $1,463 ($136/sq ft).
Single-family homes in the San Francisco and Bella Vista areas are being purchased by local speculators who later resell at a higher price to developers who rezone several plots of land for multiple-story condos. Demolition crews are sharing the streets with soil landscapers rushing to end their construction before the deadlines set by property tax holidays.

Panama savings bank sells off properties

2008-08-07T14:33:00.000-07:00

The Caja de Ahorros is a government savings and loan bank. This August 11, 2008, the bank will be holding an auction of properties mostly located in Panama City. Unlike another government-owned bank, most have potential for eventual rental to the local market or for developing tourism projects.

Among the properties being auctioned are:

135 m2 / 1454 ft2 Condo in Pelican Bay, 2nd floor, San Francisco section of Panama City, offered at US$112.262

49.1 m2 / 528 ft2 Condo in Plaza Madrid, 7th floor, San Francisco section of Panama City, offered at US$31,247

230.14 m2 / 2476 ft2 Single-family home in 72nd Street, San Francisco section of Panama City, offered at US$216,558 (!!)

Each property is sold "as is" to both foreign and local bidders alike. The last day to receive offers is August 11, 2008 at 9 AM.

For more information on how to bid for these properties, email properties @slampanama.com

Between Mountains and Beach

2008-08-03T08:37:00.000-07:00

Situated in the foothill of Campana Mountain, this community offers the best of both worlds with easy access to the beaches and mountains. This exclusive project offers breathtaking mountain views from its retreat holiday villas surrounded by mature mountain trees. This spectacularly located resort is a mere 1 hour from Panama City ensuring that it will be a preferred destination for locals and foreign investors alike, for years to come.

These fabulous villas offer all the luxury features in demand from investors at a substantially more affordable price than similar beach and gated communities in the surrounding area. Offering 3 beautifully designed villas, the Andes, Alpes and Everest, with spacious floor plans and meticulously maintained grounds, residents will enjoy VIP treatment at the fitness centre, swimming pools, ecological path, and Club House in the exclusive social area.

This resort area offers many local services including a supermarket, hospital clinics, veterinarians, and excellent restaurants. With Panama's best golf courses just minutes away, you will also find excellent sports facilities including water skiing, horseback riding, and numerous children's attractions. All of this within a relaxed beach and mountain environment just a short drive to the city.

Key Investment Points:
- Surrounded by high-end beach and mountain communities
- Near favourite ecotourism destinations and urban Panama City
- High resale value due to low density of single-home units
- Investor-friendly landholding corporation regime and 15-year property tax regime
- Just 1 hour from Panama City
- New construction

Two Bedrooms 192m² to 192m² €115,000 to €130,000
Three Bedrooms 211m² to 211m² €129,000 to €144,000
Four Bedrooms or More 278m² to 278m² €179,000 to €194,000
EXPECTED CAPITAL GROWTH UP TO: 10.00%

Consult with your real estate agent.

Ocean views at unbeatable prices

2008-07-05T17:23:00.000-07:00

Situated in the up and coming area of Parque Lefevre, this project offers investors excellent value in a great location. Parque Lefevre is located between San Francisco and Panama Viejo, site of the 16th century historic ruins of the old Panama City. Property values are rising in this neighbourhood but will most definitely continue to go up. Supermarkets, pharmacies, dry cleaners, even a top notch shopping mall are all just a quick 10 minute drive away.

The Prisma condominium will be 14 stories high and offers 3 apartment models ranging from 61 to 87 sqm. The building will have restricted access with 24/7 security. All apartments have balconies and enjoy a view over the Pacific Ocean or the City of Panama. The 61 sqm apartment model offers 2 bedrooms and 1 bathroom and the 67 sqm apartment model offers 2 bedrooms and 2 bathrooms. The 87 sqm apartment will offer 3 bedrooms and 2 bathrooms. All models have a living room, dining room, kitchen and laundry area. The social area boasts a swimming pool, events room, gym, children's playground and barbeque. All apartments come with one parking spot.

Key Investment Points:

- Minutes from downtown Panama City
- High resale value and demand due to low density of single-home units
- Investor-friendly landholding corporation regime and 15-year property tax regime
- 15 minute drive from commuter airport and Panama's largest shopping mall
- New construction
- Financing up to 70% possible

Two Bedrooms 61m² to 67m² 50,966 to 60,000
Three Bedrooms 87m² to 87m² 70,000 to 80,000

EXPECTED RENTAL INCOME UP TO: 9.00%

Consult with your real estate agent. Prices, expected rental income and layout are subject to changes.

Villa in Panama City - next to the rainforest

2008-07-04T10:40:00.000-07:00

Single home from € 963,000. Camino de Cruces, Friendship Road, close to El Dorado and new US Embassy. 2 levels, 406 sq.mt., 3 bedrooms, 3 bathrooms, maid r/b, large backyard with pool, surrounded by vegetation. In gated community with 24hr guard. Sold only with furniture.
Call +507 270-0864 or +507 6617-3321.

Features: Roofed Parking, Maids Quarters, 24 hour Security, Laundry, Storage, Garden or Park, Kids Park, Air Conditioner, Patio, Central Air Conditioner, Corner Property, Roofed Garage, Living room & Dinning room
Appliances: Refrigerator, Microwave, Stove, Dishwasher, Instant Hot Water Dispenser, Washer, Dryer
More pictures downloadable here
Google Earth coordinates 9.011289648163606,-79.54334242864977

Plans Lower Level

Backyard and pool

Living room and furniture

The ten most common pitfalls when buying abroad

2008-05-09T10:44:00.000-07:00

From The Sunday Times

December 11, 2005

The ten most common pitfalls when buying abroad

... and how to avoid them

Mark Keenan

With estimates that the Irish are spending between €2 billion and €4 billion on foreign property each year (between residential and commercial investments), it’s not surprising that so much can go badly wrong. From the investment companies and group schemes that buy multi-million investments, to the retired pensioner acquiring an old farmhouse in France, anyone can be stung abroad if they don’t know what they’re doing.

While many have lost money through fraud, more often it’s quite simply the buyer’s own fault.

Enda Faughnan, partner in tax and legal services with Price Waterhouse Coopers, was the keynote speaker at Ireland’s first developers’ conference last month. We asked Faughnan, an overseas property specialist, to name the 10 biggest mistakes Irish people make when buying a place abroad. This is his “watch out” list:

1 Picking the wrong location

“You would be surprised how many people pick the wrong place. Even in fairly reputable western European cities, there can be a huge difference between neighbouring streets,” Faughnan says. “You’ve got to do your research. You’ve got to consider current prospects, rent potential and future prospects. We recommend buyers choose a politically stable country with potential for good capital appreciation and good rent returns.”

2 Choosing the wrong sector

“Don’t go into the office market if that sector is flat. Don’t go into city apartment if prices are in freefall, or buy in the luxury end if nobody can afford to locally.”

3 Failure to consider Ireland’s tax claims

“Some people don’t seem to realise that when you sell an overseas property you’re also liable to pay capital gains tax in Ireland at a rate of 20%,” says Faughnan. “Furthermore, if you don’t structure your investment properly, you could end up paying income tax at an even higher rate on your day-to-day earnings.”

4 Failure to secure adequate title

“Title is defined differently in various countries. In some former communist countries, foreigners are not permitted to own land and must acquire property through purchasing companies. But companies can also come with unforeseen liabilities. In Bulgaria, the land registry system is in a mess. In other countries, it’s not unknown for properties to be deliberately sold to different people without each buyer knowing.”

5 Local succession rights

“Foreign inheritance taxes can be far higher than in Ireland — particularly in Spain, France and America,” says Faughnan. “On top of this, far more people than you might think can be entitled to take a chunk of your property after you die. In France, the system can allow many more extended family members to seek a portion of the inheritance.”

6 Failure to take exchange rates into account

“Outside the EU, exchange rates can play havoc with your ability to benefit from your overseas property. Buyers can have their profits wiped out by currency fluctuations.”

7 Failure to research local taxation systems

“In Ireland there is no residential property tax, but other countries sometimes have three or four different methods of taxing property. Local rates, services fees and other charges can take their toll.”

8 Failure to research an exit strategy

“There’s no point in benefiting from property value increases if you can’t then get your profit out after you sell. Some countries, such as China, will, through exchange-control restrictions, limit the amount of money you can take out at any one time. Others insist on a large amount being reinvested in that country.

“If you’re buying in Ukraine, it imposes heavy VAT on property purchases which you are supposedly entitled to get back. But in reality it actually takes between four and five years to do so.”

9 Failure to research interstate tax agreements

“Ireland has tax treaties with a number of countries ensuring that you don’t get taxed twice on the sale of a property. However, if you buy in a country that does not have such a treaty with Ireland, such as Turkey, you stand the chance of being double-taxed when you sell.”

10 Failure to recruit local help

“A local clown is better than no clown at all. There have been cases of buyers purchasing apartments from companies targeting Ireland only to find out that they could have bought them far cheaper over there.

“Sellers of foreign property recognise the Irish as cash cows and prices tend to go up once parties of Irish buyers arrive in a location. Take the trouble to go to your local market and always get local representation

Panama bank holds property May sale

2008-05-08T09:31:00.000-07:00

The National Bank of Panama is the equivalent of a central bank that does not issue currency. It also lends money to property buyers on a regular basis and has a portfolio of repossessed properties.

This April 15, 2008, the bank will be holding an auction of properties located in Panama City, Santiago, Changuinola, Herrera and Chiriquí province. While most of the properties are not the usual "choice" homes offered to foreign buyers, some have potential for eventual rental to the local market or for developing tourism
projects. Among the properties being auctioned are:

394.11 m² = 4242.164 ft² Home in San Antonio, suburban Panama City, offered at US$53,000

3.703 hectares = 9.15031 acres Land in Villa Rosario, close to Capira, Panama province, offered at US$19,500

49.1697 hectares = 121.500 acres Land in Cerro El Viejo, Las Minas, Herrera province, offered at US$35,000

15.0512 hectares = 37.1923 acre Land in Cerro Azul, Panama province, offered at US$65,000

20.0159 hectares = 49.4603 acre Land in Cerro Azul, Panama province, offered at US$84,500

Bidders must provide a refundable check for 5% of the price they are willing to pay. The offeror of the highest bid must pay in cash or have secured financing in order to be awarded the property. Each property is sold "as is" to qualifying bidders. The last day to receive offers is May 15, 2008 at 2PM hand-delivered at the offices of the Bank.

For more information on how to bid for these properties, email properties @slampanama.com

Panama: Monaco with Bananas

2008-04-28T11:04:00.000-07:00

Richard C. Morais 05.05.08, 12:00 AM ET

Who needs Liechtenstein or the isle of Jersey? We've got a lovely tax haven right in this hemisphere

In 2005 Alexandre and Aude de Beaulieu, Parisians in commodities trading and public relations, picked up stakes and flew to the Republic of Panama. For $60,000 they bought, renovated and equipped a shop in Casco Viejo, a decrepit Panama City neighborhood that was filled with squatters but so architecturally unique it is a Unesco World Heritage site. Their business: gourmet ice cream, with flavors like cinnamon and basil.

"Everyone told us we were crazy," says Alexandre. By which they meant that the entrepreneurs should set up shop closer to home. But France's thicket of taxes, regulations and restrictions on hiring and firing workers scared them away. "Panama is like California 20 years ago. Everyone I know is building something--a newspaper, a development. It's very uplifting."

The De Beaulieus' ice cream parlor, called Granclément, furnished with family heirlooms and antique scoopers, has got glowing writeups in the Financial Times and numerous local papers. When FORBES visited the shop in February, a European film crew was shooting Granclément for a travelogue to be aired on KLM flights. Down the cobblestone lane construction workers were restoring a crumbling palace as a five-star hotel, while the latest James Bond flick was being filmed in a nearby square.

Granclément is busy enough to generate maybe $150,000 a year in revenue, a good take in a country where shop clerks earn $4,000 in salary and benefits. So these 36-year-old self-starters and their four young children are on their way to becoming wealthy. This year the De Beaulieus will add supermarket distribution and a shop among the Miami-style high-rises and malls getting built in the modern banking quarter across the bay.
...

America's recent exit was in some ways the real birth of Panama. This lively backwater--famous mostly for flying maritime flags of convenience and hosting dodgy finance--seems to have found its voice. Democratically elected governments have clamped down (somewhat) on corruption, signed several free trade agreements (the U.S. Congress has yet to ratify a 2007 deal with Panama) and instituted tax and social reforms.
Meantime, even as the U.S. pulled up its drawbridge to many foreigners after the Sept. 11 attacks, its dollar was the standard for Panama, which (until lately, at least) has found the currency bulwark an additional attraction for some of those same itinerants.
Result: Panama's GDP has been compounding at 7% these last five years. "Something's happened," says Joseph Harari, director of Panama's Credicorp (nyse: BAP - news - people ) Bank and an executive board member at the Wharton School in Philadelphia. "We've always had very liberal tax laws. But we also use the U.S. dollar to run our economy. It all helped."

Panama's corporate tax rate is 30% and is levied on local income only. The U.S.' 35% federal corporate tax burden is, in contrast, the second highest in the world and is applied to global income. Caterpillar (nyse: CAT - news - people ), Procter & Gamble (nyse: PG - news - people ) and Hewlett-Packard (nyse: HPQ - news - people ) have all recently announced significant investments in Panama. The personal income tax, capped at 27%, is also limited; the De Beaulieus, for example, don't pay Panamanian taxes on their French investments, which face high levies at home.

Between the glass towers of HSBC and BNP Paribas, South Beach-quality apartment complexes emerge from every weed-choked lot, turning Panama City's skyline into a porcupine of cranes. New developments are granted tax holidays for 10 to 20 years. On the seaside Avenue Balboa, famed interior designer Philippe Starck is filling a 56-floor tower; Panamanian and Colombian partners have teamed up with Donald Trump to build the 68-story Trump Ocean Club International Hotel & Tower, financed by a $220 million bond offering.
According to one report 35 towers of over 20 floors are in construction. Besides the danger of overbuilding, there are stress signs of too-rapid growth: brownouts from an overtaxed electricity grid, a Third World sewage system under the First World high-rises. Filth is still pumped into the bay. The government says it is working on sewerage improvements.
Of course, the newly arriving affluent also want high culture and good health care. Frank O. Gehry is designing Panama's museum of biodiversity; Hospital Punta Pacifica is the recently opened affiliate of Johns Hopkins Medicine International.
The old Howard U.S. Air Force Base is a 20-minute drive from downtown Panama City. Dotted with ugly barracks, this 3,500-acre property is still oddly elegant, with rolling lawns and hills, reminiscent of an African savanna, interspersed with flowering rain forest. Europe's London & Regional Properties, with partners, recently won the contract for Howard.
The plan, says Dan R. Marcus, an American developer who just arrived to run the project, is to build 12 million square feet of commercial space alongside 20,000 housing units, all woven together in a "holistic way." Houses will be integrated into the lush forest; on hand, everything from fire stations to chic restaurants. A free trade zone grants Howard-based firms generous VAT to income tax breaks.
Backstopping all this glamour and hype are the canal and related ports. Some 14,000 ships a year make their way through the 50-mile link, paying a fee of up to $313,000. In 2006 Panamanians voted to build an additional set of locks, for $5.3 billion, that in 2014 will double capacity and finally allow modern and much larger container ships to pass through.
...

Full text in :http://www.forbes.com/forbes/2008/0505/096.html

International
America's Loss, Panama's Gain
Richard C. Morais 05.05.08, 12:00 AM ET

Abraham Suchar is a 38-year-old Venezuelan who migrated to the U.S. and made good money in the Los Angeles construction boom of the late 1990s before hitting up against the real estate bust in Florida these last couple of years. Meanwhile, his childhood friend Roberto Molko, who married into a prominent Panamanian family, was down in Central America making a killing flipping apartments.

"Florida is now famous among Latin Americans for little fortunes. You come with a big fortune, and you leave with a little one," says Suchar.

So Suchar has joined his old friend in Panama, building office space. "With all the issues happening in the U.S., I have more of a chance to make a living here," he says. "And the quality of life is much better.

"Two maids and a driver in Panama cost you $1,000 a month," he added. His Danish wife and their daughters have yet to be convinced.

But January was Suchar's first month in Panama full time, and in that month the partners presold $17 million worth of real estate to Venezuelans fleeing Hugo Chávez socialism. Panama has low crime, says Molko; its clients are escaping the "kidnapping, robberies and assaults" routine back home.

The U.S. is losing out, too. Sandra Snyder, an American who has written the hot-selling starter's guide Living in Panama (TanToes SA, 2007), says Sept. 11 has been the excuse for the U.S. government to soak foreigners for $130 to consider a visa application. "Imagine what that means to a middle-class family, with four kids, wanting to take a shopping trip to the U.S. or visit Disney," she says.

So Latin America's arrivistes are bypassing the U.S. and heading instead to balmy Panama, where $5 and a 30-second visa form gets you waved into a country in which nearly all the top boutique brands are waiting for you in the marble-filled MultiPlaza Pacific Mall.

Full text in : http://www.forbes.com/2008/04/20/panama-taxes-monaco-biz-cz_rm_0505panama.html

Developers press ahead in Panama City

2008-04-20T10:42:00.000-07:00

Oruga, Susana Gonzalez/Bloomberg News

The Trump Ocean Club, above, has been credited with boosting residential prices in Panama City.

Developers press ahead in Panama City

By Kevin Brass

Published: January 31, 2008

PANAMA CITY, Panama: Showing a guest around his renovated apartment in Casco Viejo, this city's old district, the film director Luis Palomo shook his head over the sea of residential towers being built across Panama Bay.

"Are there really that many people who want to live here?" he asked.

It is a common question in Panama City these days. More than 35 towers, each of 20 stories or more, are under construction. Another 350 are in the planning stages, representing more than 40,000 units, according to local government estimates.

Fears that the market may be overheating were stoked last year by the abrupt cancellation of three of the largest announced projects, including the 104-story Ice Tower, which was to be the tallest development in the city.

"Right now, I believe the majority of the market is speculation," said Sam Taliaferro, a developer and consultant who writes the widely read Panama Investor Blog.

To José Manuel Bern of Empresas Bern, a local developer, the cancellations were a necessary "sobering up" for the market.

"We weren't ready for that," Bern said. "There is a ceiling for everybody. We're not Miami."

But some promoters are already calling Panama City the "Miami of Central America." Developers see Panama as a stable country, with an economy growing at a steady rate of 8 to 10 percent a year. Most Panamanians speak at least a little English and the U.S. dollar is the accepted currency.

"Panama is one of the safest countries in the world," said Julio Fernando Noval García, president of Spanish developer Grupo Mall, which is building Los Faros de Panama, a three-tower, mixed-use residential complex in the heart of the city.

Grupo Mall is not alone. Foreign investment in Panama grew almost 20 percent in the first six months of 2007, compared with the same period in 2006, according to government statistics. Construction activity increased by 17 percent, the data shows.

Developers are hoping a $5.25 billion plan moving forward to expand the Panama Canal will generate new buyers for the city's residential market. In addition, corporations like the computer maker Hewlett Packard and the construction equipment giant Caterpillar are moving their regional headquarters to the city.

Panama City also is increasingly popular with second-home buyers and retirees, like Frank and Maria Harrison of Chicago. Two years ago they abandoned plans to retire in Florida and bought a 4,500-square-foot, or 420-square-meter, condominium on the 11th floor of a waterfront tower.

"We really like city life," Frank Harrison said, adding that Panama's hurricane-free weather was another key factor in their decision.

But North Americans are only part of the equation. Venezuelans make up 60 percent of Empresas Bern's customers for residential towers in Costa del Este, a master-planned development being built on 300 hectares, or 740 acres, a few minutes outside the city center, Bern says.

Despite the much discussed concerns about overbuilding, the Panama-based developer Grupo Corcione is moving ahead with five tower projects in the city, including Ocean Sky, a 45-story tower with 106 units priced at $268,000 and $750,000.

Construction began in January 2007 and is expected to be completed by March 2009.

"We don't see a slowdown," said Ben Robinson, a consultant to Grupo Corcione. "There will always be speculators, but the long term prospects are very good."

In November, Newland International Properties sold $220 million in bonds to finance construction of the Trump Ocean Club, one of the most closely watched projects in the city. Scheduled for completion in 2010, the 69-story project, which is licensing the Trump name, will include more than 600 luxury residential condominiums priced from $500,000 to $12 million.

The Trump project is widely credited with boosting prices around the city. In the last two years, the average price for tower apartments has jumped from about $1,500 a square meter to $3,000 a square meter, or about $140 a square foot to $280 a square foot, in some projects, local experts say.

"It was as if the Donald Trump project lit dynamite under prices," said Paul McBride, chief executive of Prima Panama, Taliaferro's company.

Along with prices, complaints against developers have soared. More than 150 charges have been filed with the local consumer protection agency, according to Bill Schroff, a local consultant who runs a company called Panama Referral.

Two years ago, Schroff bought a tower apartment in the preconstruction phase, putting a 20 percent deposit on a unit priced at $157,000. Now that prices have soared, the developers are trying to get out of the contract.

"That happens a lot," Schroff said. The developer offered him $220,000 but he declined; similar units are now selling for $280,000.

Full text in http://www.iht.com/articles/2008/01/30/properties/repan.php

SLAM Panama will be an exhibitor at "Escapes! Second Home Expo" Houston Apr. 19 and 20

2008-04-17T16:47:00.000-07:00

SLAM Panama will be an exhibitor during the "Escapes! Second Home Expo" set for Houston Apr. 19 and 20.

Organizers say Texas is the "new hot spot for retirement, according to a recent study using U.S. Census data." Texas has now "leapt past Arizona and California to become the No. 2 retirement spot in the US. "Florida is still No. 1, but Texas is gaining." Spokesman Tony Wood suggests buyers from the greater Houston area, where the energy-driven economy is thriving, are in a better position than most to invest in a vacation home these days. The market for SECOND HOMES has never been HOTTER!

10 million baby boomers will have second homes by 2010.
57% of homeowners age 55-64 will purchase a second home within 5 years.
27% of wealthy Americans own a second home, 17% intend to purchase.

The 200 exhibitors who will take part in the show at The Woodlands Waterway Marriott Hotel and Convention Center represent not just Texas destinations but Mexico, Costa Rica and Panama, all reachable by nonstop flights from Houston. More info at : http://www.escapesexpo.com/whygototheexpo.asp or email properties @slampanama.com

THE DETAILS

Venue: The Woodlands Waterway Marriott Hotel and Convention Center, 1601 Lake Robbins Drive

Dates: Saturday and Sunday, April 19-20

Hours: Saturday, 9 a.m. - 6 p.m.; Sunday 10 a.m. - 6 p.m.

Pre-purchased tickets are $10 online at EscapesExpo.com; $12 at the door. Ticket admits one adult for one day of the Expo. Two-day passes available. For detailed information on seminar times, a list of exhibitors, hotel accommodations and area attractions, visit EscapesExpo.com.

Panama bank holds property fire sale

2008-04-03T17:42:00.000-07:00

The National Bank of Panama is the equivalent of
a central bank that does not issue currency. It
also lends money to property buyers on a regular
basis and has a portfolio of repossessed properties.

This April 15, 2008, the bank will be holding an
auction of properties located in Panama City,
Santiago, Changuinola, Coclé and Chiriquí
province. While most of the properties are not
the usual "choice" homes offered to foreign
buyers, some have potential for eventual rental
to the local market or for developing tourism
projects. Among the properties being auctioned are:

60 m2 / 645 ft2 Condo in Las Orquideas building,
2nd floor, Parque Lefevre section of Panama City, offered at US$41,500

289.25 m2 / 3113 ft2 Home in Altos de Cerro
Viento, suburban Panama City, offered at US$99,700

15 hectares / 37 acres Land in La Loma del
Roble, Aguadulce, Cocle, offered at US$36,500

3673.18 m2 / 39538.1 ft2 Cabins and Land in
Renacimiento, Western Chiriqui, offered at US$106,000

Bidders must provide a refundable check for 5%
of the price they are willing to pay. The
offeror of the highest bid must pay in cash or
have secured financing in order to be awarded the
property. Each property is sold "as is" to both
foreign and local bidders alike. The last day
to receive offers is April 15, 2008 at 2PM.

For more information on how to bid for these
properties, email properties @slampanama.com

Excellent investment in up and coming area

2008-03-02T14:32:00.000-08:00

Already experiencing incredible growth, residential developments in Condado del Ray are an excellent investment: this unique project is nestled into 56 hectares of land with stunning views of the former Canal Zone, Panama City, the bridge of the Americas, ports of the Canal and the Metropolitan Park. An up and coming area, it is situated near Ricardo Alfaro Avenue and replicate (on a smaller scale) the well known Punta Pacifica development. The twin tower closed residential complex is designed to provide maximum protection for its residents, with a peripheral wall, controlled gated access with 24 hour security to both residences and parking, 4 high-speed elevators, a reserve water tank and an electrical plant for emergencies.

The investor may choose from five 2 or 3 bedroom floor plans ranging from 80 to 130 sqm, with welcoming foyers, comfortable living rooms, separate dining rooms, separate quarters for household help, laundry areas, kitchen with breakfast area and terraces with gorgeous views. Each master bedroom suite offers a private bathroom and walk-in closet. In addition to the amenities of each tower, the project will include a spectacular Clubhouse with reception hall, bar, gazebos with barbecues, children's game areas, a jogging track, swimming pool, Jacuzzi, fully-equipped gymnasium, sauna, and basketball and football field.

A commercial complex will be built just in front of the main road access offering a grocery and video store within walking distance from your home. The condominiums will be built just behind the commercial complex, separated from it by guest parking and one hectare of green areas. Just 15 minutes away you'll find Metropolitan Park and Gatun Lake. Take a stroll through the park, catch some fish at the lake and return to your city home all within a few short hours.

Key selling points and investment justifications

Halfway between Panama Canal rainforest preserve and downtown Panama City
High resale value in an up and coming neighborhood
Investor-friendly landholding corporation regime and 15-year property tax regime
5 minute drive from commuter airport and Panama's largest shopping mall
New constuction
15-year property tax exemption
Financing up to 70% possible

Price and Size Range: EUR 60,900 - 114,195 Size Range: 80 - 130 m²

Consult with your real estate agent.