Now Is the Time To Invest In Panama City Real Estate and Retire Let me tell you why.
As the one of the world’s least expensive first world city Panama City boasts a welcoming community, safe environment, low crime statistics, and excellent incentives for retirees. It is also one of the most modern and prosperous cities in Latin America with incredible shopping and a beautiful skyline.
Here are some of the top reasons to invest in real estate in Panama City
Panama uses the US Dollar:
The US Dollar is a global benchmark currency and exchange rates are favorable.
Cheaper Cost Of Living
The cost of living is significantly lower than that of many Western Nations including parts of Europe
Trends towards an open economy and trade pacts with nations are conducive to investment in Panama. The government also tends not to interfere in real estate investments.
In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.
Capital Gains tax:
Legislation has been passed offering tax benefits to real estate developers. As a result of these benefits purchasers of real estate, land and property have also benefited.
Why retire in Panama?
Panama is regarded as having the best foreign retiree (pensioner) incentive program in the world.
Incredibly, anyone over the age of 18 may apply and can qualify for a pension in Panama.
To make things even more inviting retirement benefits include:
- 50% off closing costs for home loans.
- Importation of all your personal and household goods up to US $10,000 free of taxes.
- The right to import a car every two years free of taxes.
Panamanian Real Estate Budgetary Guide:
When you consider buying real estate in Panama City it is wise to create a budget for yourself. As an owner of several Properties, Jimmy Wellborn can tell you why.
Prices in Panama vary depending the location of the real estate, for instance city, mountain or beach.
Prices can start around $1000 per square meter for a new condo whereas in the mountains, the price may drop down to $20 a square meter. It is a wise idea to check access as many areas in the mountains have no access roadways and local transportation might not exit
For beach real estate n the beach the zone dictates the price. For instance an hour away from the capital, you can find prices starting at 600$ per square meter.
Real Estate Service Fees:
You can expect to pay from $200 to 300 to the Public Notary and Registry for the sale of real estate in Panama.
Closing costs for real estate sales depend on the transaction. We can use the following example to illustrate one example –
There is a property held in a sellers personal name and the buyer is transferring the property title to a Panamanian corporation. The closing costs for this particular transaction would include
- The legal property transaction fee of US $1200 (includes; title search, buy/sell contract, closing, & property title transfer service)
- Public registry title transfer fees of approx. US$200 to US$300
- Escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction)
- Incorporation fee of US $1000 to setup the Panama Corporation.
However, if in the above example 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.
This means there is no title transfer tax, and no public registry title transfer fees.
The closing costs for this variation would include;
- The legal property transaction fee (includes; title search, purchase of shares contract, and closing for US $800)
- Change of directors / resident agent of the corporation (approx. $350)
- Escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).
In Panama, title transfer taxes are normally paid by the seller and escrow fees -if an escrow company is used – are normally paid by the buyer.
Mortgages in Panama are calculated by looking at the greater of two factors – purchase price or appraised market value. This comes out to be between 60%-70% of the higher value.
Interest rates generally fall between 5.5% o 6.5% plus FECI of 1% per year.
Where To Get Help Investing In Panamanian Real Estate
It is always advisable to get expert help when investing in real estate in a foreign country. Seeking the advice of a lawyer that specializes in real estate purchase is a smart choice.
Also seeking out a knowledgeable Panamanian real estate expert like Eric Jimenez is also a smart move.
Buy Real Estate in Panama Now
As you can see investing in real estate in Panama is a savvy retirement move.
Panama boasts many benefits for the retiree from modern cosmopolitan living to lush landscapes. The government is friendly to foreign investors and expats and the opportunities are many.
Seek out an expert like Eric Jimenez and you will be well on to making your Panamanian dreams a reality.