Investors raise their hats to panama
Panama is set to become one of the top places to retire in 2008...
Already well established in the USA as one of the most popular retirement destinations, its benefits are now being highlighted to the UK retirement market both in terms of its investment potential and lifestyle.
Panama’s position as a world trade Centre is well established but now, according to experts from the Homebuyer Show (7-9 March 2008, ExCeL London), it is its property investment opportunities that are attracting interest with enquiries increasing by 17% over the past month. With demand in the country set to increase, exhibitors at the show believe prices are set to rise by 20% over the next few years.
Investment in Panama whether for retirement or as part of a property portfolio is growing in demand, as a result of a stable economy, and increasing property prices, which are expected to grow by over 12% next year. Panama’s attraction to UK investors is easy to see; not only is English widely spoken but European mortgages are also available. Foreigners benefit from all the same rights and securities offered to nationals. In addition, Panama offers a low cost of living and is one of the safest countries for tourists and residents.
Beneficial tax situation
Peter Akinrinlola, Sales Director of Eden Overseas, which specialises in property investment in Central and Southern America and will be exhibiting at The Homebuyer Show, commented: “Panama has a lot to offer investors and has been on the radar of American property investors for sometime. Now UK investors are becoming aware of what it has to offer and in the past few weeks we have seen a sharp increase in enquiries, largely as a result of its beneficial tax situation.â€
One of the main reasons Panama attracts so many retirees is due to its Pensionado - a fiscal incentive plan and pensioners programmes. Retired citizens and pensioners benefit from a wide range of discounts on services including hospitals, medicines, public transport, flights and electricity.
Foreigners can also apply for permanent residency only one year after obtaining a resident’s visa, and may apply for Panamanian nationality five years later, provided they have acquired a property in their name valued at a minimum of two hundred thousand US dollars and can prove economic solvency. Residents can also benefit from excellent tax breaks and incentives and do not have to pay tax on income earned in a foreign country. All new property built in Panama also benefits from being exempt from real estate tax charges on a sliding time scale and according to value.
Latin America’s best
Panama’s economy is estimated to have seen a growth rate of 8.1% in 2007 and is set to be the best performing Latin American country next year. Panama’s economic growth is a result of a stable democratic Government, its position as the world’s second largest free trade zone and its growing tourism. It also has the lowest inflation rate in the hemisphere for the past 50 years and uses the American Dollar as its currency.
Alistair Powell, CEO of Seven Continent Investment, commented: “With land and real estate prices rising, and good rental property in high demand as a result of an increase in tourism and more people permanently residing in Panama, there is now a shortage of accommodation, making new units highly sought after.
These combined factors have helped to make the real estate market more solid and put Panama right at the top of the emerging property markets in 2008. However, property in Panama is like anywhere in the world, it must be researched properly, as not every investment is a good one.â€
Panama: Key facts
- Property prices to rise by 15-20%
- Panama has a growing economy and a stable government
- Panama’s retiree incentive programme the Pensionado is the best in the world with many benefits and is not necessarily age related you can retire at 25
- Panama has a stable economy that has been based on the US dollar since 1904. The legal tender is the US Dollar
- Foreigners can buy and own property in Panama with the same rights and protections as Panamanian citizens
- Residents do not pay tax on income earned in a foreign country
- Property tax exemptions apply to all new constructions on a sliding scale according to value
- English is widely spoken
- Direct flights to the UK
- Average temperature of 30oC all year round
- One of the safest countries for tourists and residents
