panama property investment information

Panama Tourism & Rental Information

Panama passed Law No. 8 in 1994, a modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean. In so-called Special Tourism Zones, Law 8 offers incentives such as 100% exemption from income tax, real estate tax, import duties for construction materials and equipment, and other taxes.

In 2003 for the first time tourism topped the Panama Canal and the Free Trade Zone as the country’s top revenue earner and this has continued. The volume of cruise ships to this area has been increasing in recent years. Reports estimate that almost 200 cruises with more than 280,000 tourists will visit in the season of 2007-2008. The growth in tourism leads to increasing investor interest in this sector and there are incredible opportunities for tourist-related services and accommodations, encouraged by government incentives in a number of designated areas, called Special Tourism Zones.

Panama real estate also received a boost on the investment front from the property tax exemption laws for new buildings. The law for new construction expired last August, however this has been renewed which means that all projects commencing construction before July 2009 will be exempt from paying property taxes for 20 years.

Panama is a centre for offshore finance, manufacturing and a shipping registry, which generate jobs and tax revenues. Panama’s services-based economy also benefits from the Colon free trade zone, home to some 2,000 companies and the second largest in the world. Panama is booming and The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) seems to agree, as this recent comments seems to prove: “ECLAC predicts Panama’s GDP should grow by 8.5 percent this year and another 7.5 percent next year. Panama is outperforming all other countries in Latin America.”

Another demand for Panama apartments comes from the retirement holiday and long term retirement market. It is regarded as one of the safest countries in Central America with near perfect weather, and one of the world’s best pension retirement programmes for retirees. Panama is extremely attractive for retirees with family and friends in the United States. There is a frequent non-stop service to Panama City’s International Airport from major US cities. Flights are relatively inexpensive and can be as short as two hours when flying from Miami.

Location

Panama lies at the crossroads of the North and South American continents and the Atlantic and Pacific oceans, Panama is of immense strategic importance. The Panama Canal bisects the country and connects the Atlantic & Pacific Oceans.

Panama City, Panama is a cosmopolitan modern metropolis located on the Pacific Ocean band only an hour drive from the Caribbean coast.. The skyline surprises with high rise buildings overlooking the Bay of Panama. A wide variety of Panama apartments and condominiums are available for purchase to suit all budgets, most with ocean views with the potential for good rental or capital appreciation.

Languages spoken in Panama

The major language in Panama is Spanish.

Panama Climate

Most of Panama is situated just a few degrees (8) above the equator, so temperatures vary little from month to month. Each region of Panama does vary with regards to the rainfall and humidity as well as the average temperature. Panama has destinations that enjoy a variety of climates.

Panama City is at sea level, so the climate is quite warm and humid (depends on the month), similar to Miami. Air conditioning is everywhere: taxis, hotels, stores, restaurants…and the locals are quite used to it. Light city clothing is recommended for Panama City. Walking the city at noon can be uncomfortable, but the early mornings and evenings are fantastic.