Panama City, Panama is considered an up-and-coming city in Latin America. As USA Today points out, “Panama City is a thriving metropolis and the capital of Panama, rich with shopping centers, restaurants and nightlife.” Panama City is easily a city of convenience, as well — it’s right next to an international airport for easy travels. Not only are there tropical beaches in Panama City, but there are also ruins of the original 16th century city, and rainforests that surround the city.
It’s no surprise that many people are investing in Panama luxury real estate. In fact, quality hotels have been reporting more vacancies in the region lately because of how many people are choosing luxury options instead. Are you thinking of investing in this diverse region? Here are a few things you should keep in mind.
Why it’s a Good Idea to Buy Real Estate in Panama City
- If you’re involved in business, it’s near the blossoming Latin American market without having a troubled financial history — rougher economies have made it difficult for companies relocating to nearby countries such as Guatemala and Colombia.
- It’s a country with both financial privacy, and few taxes. According to International Living, Law No. 8 in Panama means that an investment as low as $50,000 in the region earns you serious tax breaks, including a 20 year exemption on real estate taxes.
- Forbes says that Panama is one of the “most five enticing countries to retire abroad in” and notes the Pensionado visa program for expats. This is a program that provides great discounts to American expats, including 50% off entertainment, 30% off travel, and even up to 20% off healthcare.
Property Investment Tips for Real Estate in Panama City
- Work with an experienced real estate agent so that you know the prices you are being offered are good for the market, and so that you know your investment will be worth more, not less, several years from now.
- Be open-minded about the property choices available to you. Some people come thinking they should take advantage of lower property taxes and get a large house, but many find that Panama luxury condos are actually perfect for their current lifestyles.
- Make sure the property itself is right for your needs. Is it in a good neighborhood? Popular neighborhoods for foreigners include Casco Viejo, El Cangrejo, and Punta Patilla. Do you need a parking space? Parking is often an issue with certain neighborhoods in Panama City.
- If you plan on renting out your property, read up on Pama’s rental laws. Tenants often have more rights in Panama law than they would in America.