Why Panama?

There is a reason why numerous travel publications and reviews have rated Panama one of the top second home and retirement destinations in the world.  More than the famous and important canal, Panama is Latin America’s paradise.  Its excellent weather, diverse ecosystem, breathtaking beaches, high standard of living and truly affordable real estate make it an ideal place to invest in and establish a second home.  Considered by AARP as one of the top five world destinations for Americans to retire, Panama is truly an ideal place.  In addition, a great selection of master-planned beachfront, island and mountain communities present excellent lifestyle opportunities. 

The modern shopping malls, banking center and hospitals can easily compete with any in North America.  With a purified tap water system, high-speed Internet access, cable TV, international restaurants, clubs, casinos and much more, you’ll find that making the transition to Panama is easy when the comforts of back home are all easily available. 

For those individuals not yet ready to retire and simply looking for a second home, Panama is definitely a perfect option.  INTERNATIONAL LIVING MAGAZINE rated Panama the #1 country outside the United States for a second home based on safety, infrastructure, climate and beauty. The country has a dynamic and sophisticated business district, world class shopping and dining and most important, it’s a short 2 ½ hour flight to the U.S. 

Low Cost of Living: Even though Panama prides itself on a standard of living that is comparable to North America and Europe, the cost is actually significantly lower.  For example, a full-time live-in maid would run approximately $200 monthly; a taxi will charge $2 or less to practically any destination within city limits; a movie in a North American style cinema will cost under $4; an afternoon at a beauty salon is $8; a gardener will cost about $10 a day; and a luxurious restaurant meal (including appetizers, sides, drinks, and tips) will cost, on average, $50 per couple.  

Stable and Growing Economy: Panama’s economy is stable and growing at a very healthy pace – 4.5% in 2004, 6.4% in 2005, 7.9% for 2006 and continuing to rise.  According to Reuters, Panama is one of Latin America’s fastest-growing economies, spurred by increased canal traffic and now the multibillion dollar canal expansion project.  This project is aimed at doubling the capacity of the canal and attracting an incredible 40,000 jobs during the estimated timeline of seven to eight years. Of equal importance are the booming construction sector, the chief banking sector and the increased exports of tropical produce.  With the U.S. dollar circulating as legal tender since 1904, Panama’s economic stability provides very low inflation rates and virtually no currency fluctuations. 

Government Incentives: The Panamanian government encourages foreigners to live and invest in Panama by presenting various incentive programs such as property tax exonerations on new construction from 10 to 20 years.  Other notable incentives include: guaranteed equal rights; one of the lowest tariffs in the region; special tax, import, and operational incentives in the construction, infrastructure, tourism, reforestation, mining, insurance and petroleum free zone sectors; no tax or government reporting requirements on any foreign earned income, as well as incentive programs that offer immediate residency, visas and passports.