By Rose Ryan: Tropical Properties SA
www.panamaandcostarica.com

Panama! Warm, tropical, palm trees silhouetted against the golden sky of a setting sun. Yes, it is all those romantic things and so much more! Panama, that thin strip of land joining the northern and southern halves of the Americas, running east to west provides a 50-mile wide divide between the world’s two largest oceans. Its narrow shape has provided much of its history as the Spanish used it as a land bridge to transport Inca treasure en route to Spain which attracted the pirates whose exploits made them household names and the rest is history, as they say. The French tried to build a canal and went broke. The Americans, who proved the value of the isthmus during the Gold Rush, succeeded from where the French had left off. Today, the Panama Canal, now run by the Panamanians, produces much of the country’s wealth and more shipping is registered in Panama than anywhere else in the world.

Panama once had a reputation as part of the pipeline for Columbian drugs. It suffered under the savage dictatorship of Manuel Noriega, until he was captured and imprisoned by American troops in December, 1989. The country has had a peaceful democracy ever since. Like Costa Rica, it has no military. Money is spent on education instead, so the people have a high level of literacy. If you need medical attention here, your doctor is likely to have been trained in the U.S. or Europe.

Panama is silver sand on the Caribbean side and dramatic black volcanic sand in places on the Pacific side. It has the second largest volcanic crater in the world inside which nestles a popular tourist and retirement town. (The largest is the Ngorongoro Crater in Tanzania). It is desert and mountaintops. It can be humid all year or like spring for all 12 months, depending on where you are in this small country.

Panama has world-class hotels and resorts, the best roads in Central America, by far (many were built by Americans) and Brinks give the country a top rating for personal safety.

Panama is tales of pirates, of Spanish treasure and the forts that tried to protect. It is jungle and monkeys and parrots. It has more birds than all of North America with some 960 different species. There is a jungle preserve right inside the Panama City limits. Darien National Park on the Columbian border is a jungle of monstrous size and one of the world’s richest wildlife habitats.

Panama City has world-class restaurants, five-star hotels, international banks, hundreds of multinational businesses, a Manhattan-type skyline, every imaginable luxury … all at about half the price you would pay in North America. It is only a few minutes to a few hours to the beaches, mountains, country side of Panama itself. It has all the infrastructure one might want right at hand, combined with a romantic’s idea of paradise a short distance away.

On the esthetic side, few places in the world offer spring-like weather year-round, a low cost of living, safety, security, peace of mind and beautiful landscapes. It has mountainsides covered with flowers and planted with coffee and beautiful waterfalls … not to mention the best pensionado program (retirement program for foreigners) in the world. It’s a real benefit for the retired expat, making your buck stretch a long way. And we do mean bucks since the US dollar is the official currency of Panama.

In Panama you will never feel far from home. When you stay for extended periods in another country, it is important to have the familiar services and the comforts of home. Because of the long association between Panama and the Americans, no other country can offer you a distinctive and delightful Latin culture that abounds with convenient American influences.

The convenience of having a US dollar currency cannot be underestimated as it makes daily life so much easier for a foreigner. It is also the factor in stabilizing the economy and reducing inflation.

Here are some of the advantages the country of Panama has to offer:

Panama has a great variety of world-class attractions all in close proximity.
Exotic tropical rainforests, beautiful mountain refuges, Caribbean-style beaches, seven living Indian cultures, a Miami-style capital city, historical sites, golf, diving, rafting, sport fishing, all in a country just 50 miles wide and about the size of South Carolina. It is home to the 8th Wonder of the World and an engineering marvel … The Panama Canal.

Panama is safe.
Panama has the highest rating for tourist safety from the Pinkerton Intelligence Agency. In a Newsweek magazine article on tourism safety worldwide, Panama received the same tourism rating as the USA. Foreign residents in Panama will tell you how safe they feel living in Panama compared to any other country in Central America.

Panama has a First-Class World Infrastructure.
Panama has a first-rate world infrastructure starting with a safe cosmopolitan Miami-style capital city with high speed internet, first rate hotels, fine dining and beautiful shopping malls. The highway network, medical care, telecommunications and business services are excellent and comparable to the U.S. as noted in ARRP’s Modern Maturity magazine. Panama also has the largest Free Trade Zone in the world and a banking sector of 100 banks.

Panama is close to the American mainland.
As part of Central America, Panama is just a short plane ride away. Eight major US cities offer direct daily flights to Panama City: Los Angeles, New York, Newark, Miami, Houston, Dallas, Atlanta and Orlando.

Panama is tourist friendly.
English is spoken as a second language. The Panamanian people are amongst the friendliest in the world. They are known for their peaceful, easy-going and fun-loving nature. As a result of the 90 years of American presence in the Canal Zone, the Panamanians understand and appreciate Americans and thousands have worked with the Americans and studied in the U.S.

Panama uses the U.S. Dollar for currency.
Panama’s currency is the U.S. dollar which is a great convenience eliminating the need for currency exchange since your bank accounts and investments are all in U.S. dollars. No need to be a mathematical genius to figure out what a meal costs or how much to tip the bellboy.

Panama has world-class medical facilities and a healthy environment.
Many Panamanian doctors speak English fluently and are American trained. Several hospitals have medical services on par with the US hospitals. Sanitary conditions are excellent – there very few cases of what tourists call “Montezuma’s Revenge”. You can even drink the tap water which is a rarity in Latin America. An amazing abundance of fresh, inexpensive fruits and vegetables makes healthy living so easy.

Panama is the best place for naturalist, ecotourism and eco-adventure today.

Panama boasts of some of the most accessible exotic nature in the world.
It’s position as a narrow land bridge connecting two continents has endowed it with some of the world’s most pristine and bio-diverse rainforests in national parks covering 5 million acres. A key indicator of its bio-diversity is that it has 944 recorded bird species, more than the U.S. and Canada combined. Some of the best locations nature locations are less than hour from Panama City. There is a local saying that while in other countries you have 20 tourists looking at one bird, in Panama you have one tourist looking at 20 birds.

Panama has a variety of beaches, island venues and activities.
With two coastlines, 1,000 islands and Caribbean-style beaches, there is much to choose from for beach vacations from all inclusive resorts to exotic island retreats. Our property is a 30 minute drive by car to a fabulous beach. It is also 15 min. to a harbour town and another hour to the also popular Las Lajas.

Panama is the affordable, exotic destination.
Normally this kind of pristine natural beauty comes at a fancy price. Panama has just begun to promote itself as a tourist destination and so prices are still some of the best on the market.

Panama is world class for adventure.
International experts rave about the rivers in Panama where rafting, kayaking and motorized river boating are common activities. There are rivers in Panama where you can ride 20 sets of rapids in one afternoon. Canyon trekking, rappelling and surfing offer similar great experiences the both seasoned and soft adventure seekers.

Panama has world class fishing, diving, snorkeling and sailing.
One place in Panama, Pinas Bay, holds 170 world fishing records. There are five world class diving areas: Coiba National Marine Park, the Pearl Islands, Bocas del Toro archipelago, Portobello and for historical diving, the Panama Canal.

Panama City is a smart choice for conventions and incentive travel.
Panama City is sophisticated and safe with fascinating and fun things to do nearby. Day trips from Panama City include world-class sport fishing, rainforest adventures, golf, Indian village tours, scuba diving, fascinating historical sites and the Panama Canal.

Panama has no hurricanes or major destructive earthquakes.
Panama is blessed by nature-unlike the rest of her Central American neighbours, Panama has no hurricanes because it is in a special climate zone that is totally hurricane-proof. Also, it has not had any major earthquakes. Your Panama vacation will never be rescheduled due to natural events and your property investment will always be safe from acts of nature.

Panama is a survivor country.
How exotic and interesting is Panama? Fourteen countries to date have filmed their Survivor Programs on the Islands of Bocas del Toro and the Pearl Islands. CBS’s Survivor has filmed four series on Panama’s Pearl Islands – the latest now appearing as the Exile Island Series. No other country has hosted Survivor more than once.

REAL ESTATE IN PANAMA

Even if you don’t plan on retiring or living in Panama, it is also rated the very highest in real estate investment opportunities for those who would like to make their money from a distance.

If, like many expats, you plan to pay cash, your bank will provide the same service for a fee. Check fees with several banks, but HSBC is competitive. An expat buying real estate in Panama has exactly the same rights and protections as a native Panamanian. Rules are in place to protect both buyers and sellers but they are different than in the U.S. and Canada. You need to be aware of all the differences when buy real estate in Panama.

As in North America, you can sign a preliminary contract, known as an Offer to Purchase, to give yourself time to arrange financing. This type of contract can also be used when the seller has certain conditions to be met before you are willing to close the deal. List contingencies here under which you can back out of the purchase unless all your conditions are fully met. You should have legal advice in preparing a Promise to Purchase. Mistakes can be too costly. An Irrevocable Promise to Pay, issued by the bank doing the financing, is a common instrument here. Payment to the seller is contingent on receiving proper title to the property.

Title Insurance
Even though Panamanian laws are set up to protect foreign investors, you should always take precautionary measures to insure your investment. Title insurance I s recommended for all property transactions, and is readily available in Panama through major international title insurers, such as, Land America Lawyers Title, First American Title Insurance, and Stewart Title. Title policy costs are minimal and the peace of mind is definitely worth the cost.

Useful Tips On Buying Property In Panama
So you have just found that piece of paradise you’ve been looking so hard for and you are ready to close the deal? Before you hand over any money, make sure you consult with a professional and do a proper due diligence investigation over the property to ensure you aren’t buying a big problem! Buying property in Panama can be a great investment and is very safe, however it is important to understand the rules and process your property transaction correctly.

WHY USE A CORPORATION TO BUY PROPERTY IN PANAMA

A corporation to buy property in Panama? Why would anyone want to jump through those sorts of hoops? After all, anyone – foreigner or Panamanian can buy property in Panama (except for some restricted areas) and there is nothing to prevent you from buying in your own name.

However, depending on your particular situation, it may be wiser to use a Panamanian corporation. After careful research, you will find Panama to be the ideal jurisdiction for your offshore needs. The Panama Corporation Law was promulgated over 70 years ago and has since been copied by many of the other tax haven nations such as Bahamas, St. Vincent, Bermuda, Belize, Isle of Man, etc. Panama is one of the most popular places in the world to incorporate, with currently over 350,000 registered entities. Panama also offers the Panama Private Interest Foundation, which is one of the most useful asset protection and estate planning vehicles available today.

Panama offers the following benefits and advantages:
Panama is a 100% Tax Haven: Non-resident Panamanian International Business Corporations (IBC’s) and Private Interest Foundations do not pay tax on any of their income (as indicated below), nor do they have any reporting requirements to the Panamanian Government.

• No tax reporting requirements.
• No income tax.
• No capital gains tax.
• No interest income tax.
• No sales tax.
• No tax on issuance of corporate shares.
• No tax to shareholders.
• No stock sale or transfer tax.
• No capital stock tax.
• No property tax.
• No estate tax.
• No gift tax.
• No stamp tax.
• No succession tax.
• No inventory tax.

Panama offers the most favorable and most flexible incorporation laws available in the world. Private Interest Foundations are also available and are one of the most widely used estate planning structures in the world today. Panama is the registered domicile for over 400,000 corporations and foundations, making it the second most popular jurisdiction to incorporate in the world, next to Hong Kong. Panama does not impose any reporting requirements for non-resident Panamanian corporations and does not allow “piercing the corporate veil”. Panama corporation share certificates can be issued in Nominative or Bearer form (anonymous form of ownership), with or without par value.

Panama corporations do not require Paid-In Capital, nor is there a time limit in which authorized capital must be fully paid. Corporation directors, officers and shareholders may be of any nationality and resident of any country. Neither the directors nor the officers of Panama corporations need to be shareholders. Meetings of directors, officers, and shareholders may be held in any country and accounting books may be kept in any country. It is not necessary for the interested parties to be present in Panama for the purpose of establishing a corporation. Corporations conducting business outside of Panama do not require a commercial license for offshore business activities.

Panama’s circulating currency is the U.S. dollar and therefore, Panama has no currency exchange controls or currency restrictions so funds can flow in and out of the country freely. The use of the U.S. dollar as legal tender (currency) instills tremendous fiscal and monetary discipline while keeping inflation very low – under two percent (2%) for the last forty years. A dollar economy insulates Panama from global economic shocks as was seen during the Asian monetary crisis of 1998, when Panama became one of the healthiest economies in Latin America. There are no currency exchange controls, no restrictions on monetary remittances abroad, including dividends, interests, branch profits and royalties and no restrictions on funds flowing in or out of the country.

Panama continues to maintain what we consider to be the most solid banking and corporate book secrecy laws in the world which are engraved in its constitution. With Britain’s proposed regulation for removal of bank and corporate book secrecy in the UK offshore territories, it is clear that Panama remains the most secure offshore financial centre where privacy and confidentiality is not only respected but vigorously protected by constitutional law. Without question, Panama offers the best bank secrecy laws and the best corporate book secrecy laws in the world. There is no such thing as “piercing the corporate veil” and revealing banking information to third parties is a crime, punishable by prison.

Panama has no mutual legal assistance treaties (MLAT’s) for sharing of banking information with any other nation and does not recognize court rulings from other countries. (Under new laws they make exceptions in cases of drug money laundering or drug smuggling).

Panama Corporations offer “Bearer Shares”, allowing shareholders to maintain 100% anonymity and privacy. Panama Private Interest Foundations allow for Private Protectorate Documents and Private Letters of Wishes, enabling controllers (Protectors) and beneficiaries of Private Interest Foundations to remain 100% anonymous and private.




PANAMA GOVERNMENT AND ECONOMIC CLIMATE

Panama has what is considered by government analysts to be the most stable government in all of Central or South America. The country has had a democratic government since 1990 and it is headed up by the executive branch which is composed of a President and two Vice-Presidents, democratically elected for a five-year term by direct vote.

The Panamanian military was abolished by constitutional amendment in 1994, and the government still has a unique security arrangement with the U.S. due to the Neutrality Treaty of the Panama Canal. As a result, the risks of going back to the earlier military regime are virtually non-existent. (Source: Euromoney Report/Lehman Brothers, Feb. 26, 1999). The country has a stable government with excellent government infrastructure, pro-business government attitude and policy and a Roman law system. Moody’s has issued Panama a sovereign debt ceiling of Ba1 and Standard and Poors has assigned a default-risk rating of BB+.

Panama’s economy is one of the most stable, prosperous and most advanced in all of Central and South America. Panama is home to the second largest international distribution and trade center (free trade zone) in the world next to Hong Kong. Panama’s Colon Free Zone has over 1500 international import/export businesses operating within it, receives more than 250,000 visitors yearly, and generates exports and re-exports valued at more than U.S. $11 billion annually.

Check the differences:
When moving from one country to another, it is easy to assume that most of the rules from your home country are similar to those of the new country. This can be a costly mistake.

One assumption is that “rights of survivor ship” would apply in Panama. Not so! If you register the title of a property under more than one person’s name in Panama, it just means that each party owns a share of the total. When one co-owner dies, the property does not automatically pass to the surviving co-owner. In some instances, especially when the co-owners are not married, it will pass on to the deceased partner’s heirs. Even if your co-owner named you as the heir in their will made out in Panama, you would still need to go through probate here.

Probate Means High Legal Fees

If you or a partner dies, the property goes to probate. Probate in Panama is before a court. You will need an attorney to represent you and although there is no estate tax, attorney fees and costs will be high. This is the main reason a corporation to buy property in Panama makes sense. If the shares are properly structured, you will avoid probate altogether.

There is an added advantage to forming a corporation to buy property in Panama. If you form a sole purpose corporation to own the property, at the time of sale you could sell the shares of the corporation instead of selling the property directly. This would legally avoid transfer tax. Transfer tax is payable by the seller on every sale or transfer or real estate property. The rate is 2% of whichever is highest: the sale price or the updated value of the property. As a rule of law, the updated value is calculated at 5% per year of ownership. If the value of the property is more than $150,000.00 it makes economic sense to form a corporation to buy property in Panama. Even at lower prices, circumstances such as unmarried partners or a business partnership may make the setting up of a corporation to buy property in Panama the route to take.

Finally, some degree of confidentiality can be obtained by using a corporation to buy property in Panama, but bear in mind anonymity will require getting nominee directors for your company, and not getting a mortgage, since the banks will ask that you personally appear as a debtor in the documentation that will be of public record. In any event, the attorney assisting you in Panama should be asked to advise you and if you come from a world-wide income taxation jurisdiction, you ought to get advice from a specialist in your home country, so that you are conversant with any reporting requirements.




TROPICAL PLACES – 20 MINUTES TO DAVID, PANAMA

General Information About DAVID, PANAMA

David was founded in 1602 and is strategically located in the center of the western-most province of Panama – Chiriqui (pronounced chee-ree-Key). Chiriqui is one of the richest provinces and David reaps the benefits as a bustling commercial, distribution and government centre. The second largest city in Panama, it is the focus of Chiriqui’s strong regional identity and it retains a sedate provincial atmosphere.

The Chiriqui highlands are located in one of the most desirable areas of the world. Think about it! Perfect climate, pollution free, great retirement benefits, very low or no property taxes, few government regulations, etc. To get this cool climate one must go up to 3500 – 6000 feet and this is especially important with rising global warming. If you look at a map of Panama you will see that the highland area is very small. Although the Talamanca mountain range extends almost to the canal, most of it is not available for development and has no infrastructure or Indian reservations. This leaves just a small area around the Baru Volcano. One should remember that the Chiriqui highlands are not only on the inter-national retirement hit list but a popular playground for Panamanians as well.

David is located just 45 minutes east of the Panama/Costa Rican border and about a six hour drive west of Panama City or by air, or 55 minutes flight from Panama City to David. One way flight fare is $55. The city is about a half an hour from the beaches or from the mountains to the north and fifteen minutes from the Port of Pedrigal where you can moor your boat or embark on a fishing excursion.

David is situated on gently rolling plains about half way between the Pacific Ocean to the south and the Cordillera Talamanca Highlands to the North. On the ocean, a short drive away, you will find the city of Puerto Armuelles and the beaches of Lar Barqueta, Las Lajas and Playa Hermosa. Near David you will find the small mountain town of Boquete and a little further away (about 45 minutes away) toward the Costa Rican border and then right at the town of Concepcion is Volcan. Both of these towns are in the shadow of the extinct volcano called Volcan Baru and they are known for their fresh mountain air, beautiful vistas, mountain grown coffee and fresh vegetables. As a bustling agricultural centre, David is home to an annual international trade and agricultural fair hosted in March of every year.

David, close to sea level, is warm, but Volcan and Boquete enjoy spring like weather all year long. Even in the rainy season, typical mornings are bright with sunshine, then clouds roll over

One of the best features about David is that it is a very safe place to live. It is quiet, peaceful and close to nature and at the same time, a bustling agricultural centre known for its fresh fruit, vegetables, rice, sugar, dairy and livestock products. There is local, mountain grown coffee from Boguete and fresh fish from nearby Pedrigal. For the consumer, this translates into a veritable cornucopia of choices, at the local farmers markets scattered throughout the city. The city is also a major commercial and distribution hub generating the second most important economy in the country, after Panama City.

As a result, David has everything you need to live a comfortable life. There is a wide selection of consumer goods from clothing to electronics to automobiles and you find most products at below the cost of similar goods in the USA or other Central American countries.

Approximately 125,000 people live within the greater David area and the total provincial population of Chiriqui is about 350,000. The overall standard of living is relatively high yet the cost of living is low, even for Panama. There is a high level of employment and the city infrastructure is generally quite well-maintained. Like most of Panama, the streets and highways are in good repair, electricity and excellent potable water (claimed to be the world’s purest) are plentiful and there is an inexpensive, regularly scheduled bus service to any part of the city, along with twice weekly garbage collection throughout the city. David has excellent communication services also. There is one telephone network, two cellular providers, inexpensive long distance service and two cable companies, two high-speed internet providers and numerous radio stations and Direct TV service.

Shopping and living in David gives you access to every type of merchandise and service you might desire. There are several excellent hospitals, eight auto dealers, two department stores, several mini department stores, six major appliance and electronic stores, a shopping mall, good bakeries and pastry shops, a dozen large supermarkets, 2 theatres (with English movies), numerous dry cleaners, a Blockbusters and a dozen other video stores, a Price Smart (Costco), bowling lanes, soon to open ‘Do-It’ Center Hardware, numerous paint and building materials stores, quality tool houses and well stocked hardware, automotive and industrial supply stores, etc. You can find everything you are used to at home.

Something else you will appreciate are the friendly people. Panamanians are fun loving by nature and among the friendliest people on earth. They will go out of their way to help you and generally expect little in return. They are generally well educated (David has one major and six smaller universities) and they have a culture that cherishes family, is almost without racial prejudices and treats everyone as equals, including foreigners. You will meet a great number of people who speak and understand some English and they are very accommodating to visitors trying to speak Spanish.

If you are planning to build a residence in Panama you will be pleasantly surprised by the high quality and workmanship of the construction. Homes are tastefully designed, well built and moderately priced. While the rest of Latin America is dominated by Spanish colonial style, Panama offers a wide variety of architectural styles as well as traditional French, English and Spanish styles.




HEALTHCARE IN PANAMA

Medical care available in Panama is reputable and affordable. Many doctors practicing in panama have been trained in countries with high medical standards and the standards of the top hospitals compare favorably to U.S. standards. Modern hospitals and clinics are distributed throughout the country in the metropolitan areas but the more isolated your location, the farther you are from first-rate medical care.

In the city of David in the Chiriqui Province in the Western region of Panama, there is a great medical center with modern facilities. There are four private hospitals: Hospital Mae Lewis, Hospital Chiriqui, Hospital Cooperative and Hospital Catan. There are also two public hospitals: Jose Domingo de Obaldia and Regional Rafael Hernadez, plus numerous private and public medical clinics.

Many Panamanian doctors are U.S. trained and the standards at the top hospitals compare favorably with those in the United States. The doctors at the private hospitals generally speak English and many Specialists have been trained in the USA or Canada.

Private health insurance is available and much less expensive than insurance in the U.S. because Doctor’s fees and hospital visits are much cheaper. One reason why health insurance here is so affordable is that malpractice insurance is very low because the laws do not allow for frivolous suits and the median income is around $300 a month, so healthcare cannot be expensive or no one would use it. Most of the medical insurance plans available in Panama are sold by private insurance brokers and the coverage is provided through insurance companies who are affiliated with the large multi-national companies that operate in North America or globally, such as, the Mutual Group, etc.

Generally, if you deal through an insurance broker, they will be able to offer a wide range of insurer carriers and coverage. If you prefer, you can deal directly with the insurance companies or private hospitals offering their own plans. The process for buying medical insurance is quite similar to what it would be in North America and on average the premiums cost about $600.00 to $700.00 per year based on your age bracket, state of health, etc.

Prices for prescription drugs are low as well because manufacturers price them for the market. Plus, many drugs that require a prescription in the States are available over the counter in Panama.




RETIREMENT IN PANAMA

If you’ve followed any of the major survey agencies around the world that rate places for retirement, Panama has been on the top of the list of many, and for a few years running. So, if you’re looking for a place outside the U.S. borders to retire, Panama one should seriously consider Panama because it has so much going for it.

International Living ranks Panama as #1 in the world for retirement living, a ranking based on safety, beauty and variety of venues, cost of living, near perfect climate, political stability and infrastructure. Modern Maturity magazine ranked one region of Panama as the best place for retirement in the Western Hemisphere. Rated as one of the top retirement destinations, the Panamanian government offers the best retirement incentive program in the world.

Confronted with the spiraling cost of living in the U.S. and Canada, people from all walks of life and all ages – including baby boomers and seniors – are searching for an affordable place to live or retire without sacrificing their current lifestyles. Panama, one of Latin America’s best-kept secrets, just might be the country many of these people are seeking. Located only two and one-half hours by air from Florida, Panama has everything for potential retirees and residents.

Year-round spring-like weather in the mountains and tropical weather in the rest of the country; political stability with NO army; friendly people; the U.S. currency; a low cost of living with the most generous discounts in Latin America for foreign retirees; a first-world modern banking system; a first-rate capital city; inexpensive medical care; excellent transportation and communication systems; affordable housing opportunities; excellent U.S. style shopping and goods; the best incentive-filled retirement program in Latin America, plus a government that makes relocating as easy as possible for foreigners – all this combined makes Panama one of the world’s most desirable expatriate havens. The ARRP rated Boquete Panama the fourth best retirement place in the world.

The Pensionado Visa Program of the Panamanian government actually encourages retirees to relocate to Panama and to qualify for a retiree visa, you must apply through the Ministry of Immigration. In most cases this is a simple process and the major requirements are a pension or other proven monthly retirement income of $500 for a single person or $600, certificate of good health, a valid passport and a police report. You must apply while you are in Panama through a lawyer but once you have obtained the visa or ‘cedula’ it is permanent and never has to be renewed. For most people who have the pension income qualifications, the process takes less than three months from the time you apply.

You will need a proof of income statement (translated in to Spanish), a valid passport, a certificate of good health (HIV free) and a police report fro your current jurisdiction. You must have your income statement certified by the Panamanian Consulate in your home country, so it is important to complete the process before you come to Panama. You should also note that all your documentation must be current or not more than six months old. Translation of the income statement in to Spanish can be done in Panama and is very inexpensive (under $100).

The Retiree Benefits Program Consists Of:

• 50% OFF recreational including movies, concerts, theater, etc.
• 25% OFF restaurants (food purchases only)
• 15% OFF for franchises (food purchases only)
• 50% OFF hotel accommodations (Mon–Thurs.) (all inclusive resorts exempt)
• 30% OFF hotel accommodations (Fri-Sun) (all inclusive resorts exempt)
• 30% OFF bus and boat fares
• 25% OFF airline tickets originating in Panama
• 25% OFF utilities
• 50% OFF passports
• 50% OFF closing costs with financial institutions
• 10% OFF pharmacy prescription medicines
• 15% OFF clinical/hospitals
• 15% off medical services (surgery, treatments)
• 15% OFF dentists and optometrists
• 15% OFF insurance
• 15% OFF appliances
• 20% OFF plumbers, accountants, etc.
• 25% OFF utilities
• 1% OFF mortgages/home loans

INVESTMENT BENEFITS

The Panama government offers grants and incentives for many activities associated with Panama tourism, an important source of revenue for the country.

Invest $50,000.00 U.S. or more in a Panama tourism business outside the capital region (not counting the price of land) and the following benefits are available:

Exemption of import duties for 20 years associated with materials, furniture, equipment, and certain types of vehicles not produced in Panama or produced in insufficient quantity;

Exemption for 20 years from real estate taxes;

Exemption from taxes levied on the net worth of the company

Exemption from taxes for using airports, piers or heliports built by the company

Exemption from income tax for creditors investing in building tourist lodgings

Accelerated depreciation of real estate

Exemption of duties on vehicles used exclusively for tourism activities and for hotel, airport and port transportation

A three-year exemption from import duties on vehicles and boats to be used by tourists

Business in Panama City requires a minimum investment of $300,000 to qualify for these benefits. There are no restrictions against buying existing businesses, other than retail.

The government incentives are paying off. Billions in development dollars, and improvements to infrastructure already by the fare the finest in Central America have led to Panama tourism growth that is greater than the world average.

Pensionados, in business or otherwise, have the same rights and freedoms of any Panamanian citizen. The country is economically and politically stable.