Panama Real Estate

U.S. State Dept. Confirms 90 Day Panama Visas

2008-01-31T09:40:00.000-08:00

For six months or more there has been a lot of justified confusion, even anger, over a drastic change in the length of time for visas allowed for foreigners visiting the Republic of Panama. And that confusion continues even now (see below) -- but at last there seems to be some official clarification, at least from the U.S. government

Until last summer a foreigner's visa allowed 90 days in Panama. Abruptly, for reasons never fully explained, the Panamanian government's Law 15 dropped it to only 30 days. That produced major criticism from Panamanian real estate and tourism promoters, as well as annoyance for visiting Americans and other nationalities, especially "snow birds" who spend the winter in Panama.

When International Living dropped Panama from first to fourth in its annual list of "Best Places to Live," a demotion that got a lot of media coverage, the visa change was cited as one of the reasons.

Now the Consular Section of the U.S. Embassy in Panama has issued an official "Consular Information Sheet" setting out the official requirements for visas to visit Panama. It confirms that the Panamanian government now issues visas for a full 90 days. In fact, for several weeks now Immigration Officials at Tocumen Airport near Panama City and at the Costa Rican border entry point on the InterAmerican Highway have been issuing 90 days visas for arriving American passport holders.

The U.S. Embassy statement says that as of November, 2007, tourists are being given visas to stay in Panama for a full 90 days. If persons want to stay longer, an extension for up to 60 days (for a total of 150 days in country) from the Panamanian Migration Office is required, at that office's discretion. Panamanian law requires that travelers must either purchase a tourist card (visa) from the airline serving Panama or purchase one upon arrival at Tocumen Airport or other ports of entry, and these are good for 90 days.

Law or No Law!

This, in spite of the fact that Article 6 of Panama's Law 15 states that the tourist visa is valid for only 30 days. Panama officials are openly admitting that, despite what Law 15 says, they are giving all U.S. tourists 90 days, (but Canadians still get just 30 days, though Immigration officials are unable to explain why). Some officials say they have been given "verbal orders" to allow 90 days. But that informality in applying laws, sadly, is all too typical of Panama.

Based on American laws, U.S. citizens traveling by air to and from Panama must present a valid U.S. passport when entering or re-entering the United States. (Before the 9-11 terror attacks, Americans needed only a valid U.S. state drivers license or other picture ID to visit Panama). Sea travelers also must have a valid U.S. passport (or other original proof of U.S. citizenship, such as a certified U.S. birth certificate with a government-issued photo ID) to enter or re-enter the U.S.

Embassy Out of the Loop

Usually I would recommend that a visa can be obtained from the Panamanian embassy or its consulates before traveling to Panama. But as of today (Jan. 28, 2008), employees of the Embassy of Panama in Washington, D.C. were still telling callers that 90 day visas are not issued -- that only 30 days visas are available. In my personal experience this is not be the first time that Panamanian government agencies did not know what each other are doing.

More worrying is the fact that Panama's National Assembly gave President Martin Torrijos extraordinary powers to decree new laws affecting banking, immigration, customs, and tourism. He must make these changes by March 1st and it was expected that Torrijos would modify Law 15.

But today we learned that President Torrijos has decided against issuing a decree of immigration law reform, instead passing it back to the National Assembly for consideration as a usual legislative proposal. The reason given in La Prensa was that the draft law changes were so extensive that it was deemed better to allow the full National Assembly to consider it. Until final official action is taken it is reasonable to conclude that a lot questions will remain unanswered.

Emerging Markets New Real Estate Hot Spot - Panama

2008-01-31T09:36:00.000-08:00

By Bob Bauman
January 29, 2008

The Sovereign Society's investment experts consistently have explained the greater profits available in offshore markets, especially so-called "emerging markets." While this expert advice usually concerns the best picks of stocks, bonds, or mutual funds, Finance Daily, published in the United Kingdom, suggests it's time to consider emerging market real estate.

Finance Daily notes: "Over the last decade house prices have boomed in almost every developed market with the exception of Germany and Japan. However, with developed economy markets at their current high, investors are increasingly turning their attention away from the traditional markets like Spain and to the emerging markets, such Eastern Europe and, new for 2008, even farther flung destinations such as Brazil, Egypt and canoeists favorite Panama!"

(That last reference is to a British couple, canoeing enthusiasts, now under arrest in the U.K. for alleged insurance fraud. The husband, supposedly deceased, hid out in Panama, where his wife joined him with his life insurance proceeds -- and both got caught).

The London publication list these as "fast facts on the next hot destination" in recommending Panama as a good investment bet:
1) Already popular with retirees
2) A good year-round climate and long coastline
3) 20-year exemption from Panamanian property tax for residential properties
4) Growing tourist industry
5) Major construction already underway
6) Cheap living costs

If you've been reading my blog or The A-Letter, you know the Republic of Panama is one of our favorites.

A stand out among current offshore financial centers, Panama combines maximum financial privacy, a history of judicial enforcement of asset protection friendly laws, strong anti-money laundering laws, and tax exemptions for foreigners. In many ways, Panama is ideally suited for the offshore investor who wants to enjoy the increasingly rare privileges of strong, legally guaranteed financial privacy and no taxes on offshore income, either corporate or personal.

Home and commercial construction in this country of 3.2 million people is still strong, but a bit cooler than last year. The capital's skyline continues to be a forest of dramatic skyscrapers and scores of construction cranes. Building permits jumped 91% last year, but new projects have slowed recently. There has been some talk about the so-called "real estate bubble" having begun to deflate. But Panama City is only half the population and in many more rural areas, such as mountainous Boquete in Chiriquí province, there are bargains still to be had.

I agree with Finance Daily: My advice on Panama real estate still is - come on down!

Why retirees are fleeing the U.S.

2007-12-06T11:28:00.000-08:00

A move to another country may make economic sense, especially for seniors who don't have enough savings to live in retirement without a dramatic cut in lifestyle.
By Scott Burns

Several years ago a Dallas couple approaching retirement disappeared. Well-known on the charitable-event circuit, the couple were in Dallas one day and gone the next. Phone disconnected. No forwarding address. No working cell-phone number.
Eventually, word spread that they were somewhere in Mexico. They had sold whatever they owned, packed their car and headed for the border. They were, conflicting reports said, living in small towns, the kind of places seldom featured in travel magazines.

We can only speculate on what happened. I think they were broke, had little or nothing in savings and knew they had to make a major change to survive on their Social Security income and minimal savings. Like millions of other Americans, their ship never came in. They got older. Work became harder to find. Suddenly, they realized their life was entirely unsustainable. They were heading toward a cliff.
They had to do something radical. Like live in an RV. Or leave the country.

The question is: Can a move to another country offer a cost of living so much lower than the cost of living here that moving is a positive solution?

I believe the answer is yes. I also believe that thousands of older Americans will be crossing the border in the years to come.
To test the economic idea, I decided to use ESPlanner, the powerful financial-planning software I've used in other columns. I wanted to compare, in steps, what a couple could do by moving to Mexico. I wanted to see how much lower the cost of living abroad must be for a desperate idea to become a workable strategy.

So imagine this: You're 57. You're married. You make a reasonable but not glorious income of $75,000 a year. It isn't rising very fast. It may not rise much at all in the future. Indeed, you're wondering if management won't find a way to eliminate your job well before you turn 66. Worse, your entire nest egg is about $100,000 from the sale of your home several years earlier. It earns a safe 5.5%. Your wife doesn't work. The kids are grown.

Talk back: Would you consider retiring outside the United States?

Day after day, you have a dreadful feeling you are running toward a cliff. In fact, you are -- an income cliff.
Today, you are spending your entire $60,000 a year of after-tax income. You aren't saving. But if you are forced to retire at 62, your income will plummet. It won't be much more than your Social Security benefits -- about $18,000 for you and about $8,400 for your wife, a total of $26,400. (All figures are in dollars of constant purchasing power.)
That's a 56% reduction in your standard of living -- more than you can bear or imagine.

A better standard of living
Can you reduce the shock if you spend less today and save as much as possible, shooting for a level standard of living?
ESPlanner tells us yes. But with only five years to go, it won't help much. By saving about $30,000 a year and creating a bigger nest egg, you can increase your lifetime consumption from $26,400 a year to about $33,700 a year.
That's a hefty increase, but it would still feel like a crash. So, it's time to think about Mexico, Belize, Costa Rica or Panama.

Retirement hot spots
Adventurous American seniors are settling in places such as Costa Rica and Nicaragua. But a life south of the border isn't for all retirees.
Suppose you can find a place where the cost of living is about 75% of the cost in the United States -- some beach town north of Puerto Vallarta or south of Manzanillo. What happens to your standard of living when you move to Mexico? It rises to the equivalent of about $42,400 in the U.S.

That's not bad. But then you notice a problem: You'll be living in Mexico, where you can't get Medicare services, but you'll still be paying for Medicare. If your premiums rise at the historical rate -- 4.6% a year faster than inflation -- the $3,200 a year you'll pay out at 65 will rise to a stunning $9,400 a year by the time you are 90. It would be a big hit on your standard of living.

Maybe it's time to blow off Medicare. What happens to your standard of living if you don't sign up for Medicare at 65? It goes up to the equivalent of $47,200 a year. Of course, you'll still have medical expenses, but perhaps you can make a better, less-expensive arrangement.

Could you do still better? Yes. Just continue searching for a low-cost area. If you can find a place where the cost of living is 60% of the U.S. cost, your lifetime standard of living, without Medicare expenses, will be the equivalent of $55,500 -- very close to the $60,000 you got to spend while working in America.

New York Times article

2007-10-12T13:48:00.000-07:00

http://www.nytimes.com/2007/10/12/travel/escapes/12your.html?ex=1349928000&en=66b31bcc30962853&ei=5124&partner=permalink&exprod=permalink

By AMY GUNDERSON
Published: October 12, 2007
VACATIONING in Panama last spring, Chris Stanley complemented fishing and beach lounging with seminars on the ins and outs of buying property overseas.

When Mr. Stanley, who lives in Scottsdale, Ariz., thought about buying a home in Latin America, he decided he needed a primer. So he booked a seven-day trip with Tropical Pathways, a Texas company that runs real estate tours to Panama.

Days spent with real estate agents, loan officers and lawyers were followed by tours of high-rise condos, golf course residences, mountain homes and grand beachfront houses that were for sale.

“My main goal was to get a sense of the real estate market,” he said. “I could have done it myself, but it would have taken longer to put together and probably would have been more expensive.”

A month later, he bought a home, now under construction, on a golf course just outside Panama City.

As the second-home market in Latin America has emerged, so has a cottage industry of tour operators eager to attract foreign buyers seeking vacation retreats and investment properties. Part vacation, part real estate boot camp, such trips walk potential home buyers through the legal and financial particulars of overseas ownership, as well as whisking them on tours of homes and developments on the market.

Tropical Pathways (www.tropicalpathways.com) runs tours to Panama, the north coast of the Dominican Republic, the Yucatán Peninsula in Mexico and Roatan, an island off the coast of Honduras. The seven-day Panama tour is $1,399 a person, double occupancy, and includes accommodations, daily breakfast and lunch, and transportation throughout the country.

There are also seven-day tours to Roatan and the Dominican Republic, at $1,249 and $1,299, and a four-day Mexico trip for $850. The Panama trip, for example, starts in Panama City before traveling to the mountain town of Boquete and on to Bocas del Toro on the Caribbean.

“It’s a moving workshop,” said Lyle Burke, Tropical Pathways’ founder. Properties shown on a given tour range from $150,000 Panama City condominiums to large beachfront houses at $2 million.

While Mr. Burke readily tells tourgoers that he earns a fee if they buy a property (it’s not unusual for a tour participant to spend $350,000 on a condo), he said “there is no sales pressure.”

International Living, an Irish firm that runs seminars that lay out the basics of overseas home-buying and living, spun off a tour company, Pathfinder, to lead tours, for example, in Panama, Costa Rica and Nicaragua (www.internationalliving.com; click on Events then Real Estate Tours). This fall and winter, Pathfinder plans trips to Panama City, Panama’s Pacific coast and Highlands, and Nicaragua.

Prices vary, but start at $125 a person for multiday trips that include accommodations, transportation in the country and meals.

Camilla Sands started her tour company, Simply San Miguel (www.simplysanmiguel.com), with some 15 different vacation options for visitors to San Miguel de Allende in the Sierra Madres of central Mexico, but she says it is her Real Estate Curious Tour that gets the most bookings.

Topics addressed on the six-night trip — which costs $1,285 (double occupancy) with hotels, local transportation and some meals — include health care and home insurance. Tourgoers also meet architects and designers who can advise on how to comply with the town’s strict architectural guidelines.

While real estate is the focus, Ms. Sands said: “We don’t overdo it every day. I consider it a tour as well as a vacation.”

By the middle of the trip, she said, most attendees have decided whether they want to concentrate more on the real estate hunt. If not, she said, there are plenty of other traditional and more leisurely alternatives to hoofing it through homes.

“They can go shopping,” she said, “or I can arrange for them to take a cooking class.”

Why is Panama Real Estate so Hot Right Now?

2007-08-02T12:16:00.000-07:00

Long considered a shipping hub and offshore banking center for the Americas, Panama is enjoying an economic boom on a scale unmatched since the construction of its famous canal 93 years ago.

The country is luring investors and expatriates worldwide, with interest further boosted by the recent approval of a $5.25 billion plan that will double the canal's capacity.

The real estate frenzy is fueled by a strong economy, government incentives for foreign investors, modern amenities, attractive cost of living, world class healthcare options, fantastic recreational activities and a saturated US housing market for retirees has attracted speculators and prospective residents from California to Dubai.

These investors are purchasing preconstruction bay front apartments, highland villas, and the latest luxury development from Donald Trump -- a $220 million 65-story residential, office, and hotel complex called Trump Ocean Club, with towers shaped like a yacht sail.

The Panama real estate market is directly linked to the overall economy, which continues to exude stability and growth. Panama will lead economic growth in all of Latin America and the Caribbean in 2007 at a rate of 8.5%, according to an economic study of the region. José Luis Machinea, the Executive Secretary of the Latin America Economic Commission (CEPAL), made the announcement in Chile.

A few things including the recently signed United States – Panama Trade Promotion Agreement, fuel the growth. The agreement is a comprehensive trade agreement that will eliminate tariffs and other barriers to trade thereby strengthening the century old geostrategic partnership between the US & Panama. The Canal expansion, another major boost to the economy, is expected to bring tens of thousands of new jobs along with long-term incremental revenue for the country.

The Panamanian government has made a point to offer numerous incentives to attract foreign investors. These including new construction property tax exemptions, a very lucrative Pensionado (retirement) program that includes discounts such as 50% off entertainment prices, 25% off airline tickets, 25% off restaurant meals, 20% off doctors consultations, etc. Panama is also one of the best, if not the best, residency deals in the world today. For the price, the benefits are incomparable. For instance, you can invest $40,000 in a government approved and potentially very lucrative reforestation project. This will yield a visa to the investor, spouse and dependant children.

Panama’s modern amenities are similar to that of North America, making life a bit easier day to day. The communications work, you can drink the water from the tap, there's no currency exchange issue, and it feels like home. Visitors and residents alike value the diverse choices Panama has to offer, having the opportunity to escape to a pristine beach but not sacrificing the modern conveniences such as a contemporary road system, high speed internet access and cable television.

Panama has one of the lowest costs of living in all Central and South America: A U.S.-style home can be built for about $40 per square foot; unskilled labor costs $6.40 per day; a full-time live-in maid costs $120 to $160 a month; a beer at a bar costs 35 cents; a cup of coffee, 30 cents; a haircut and shave can cost as little as $2; an afternoon at a beauty salon is $8; electricity is about 10 cents per kilowatt-hour; water bills are $18 per year; telephone service costs roughly $30 a month; Internet access is $14 a month; wireless is available for a bit more; cellular-telephone service costs about $30 a month plus a per-minute charge of around 22 cents; and cable TV will cost you about $30 a month.

You won’t fall short of recreational activities in Panama. With two coasts, there are world-class water sports available such as fishing, diving, sailing, etc. Given its geographic location, Panama is one of the worlds best bird watching spots. The jungles of the interior have fantastic rivers to run and fish. The options are endless…

The dream of owning a second home, retiring, or making an investment in a tropical paradise can become a reality in Panama. Whatever your preference, there is a something for everyone. Panama real estate is hot right now…don’t wait to stake your claim!

Bala Beach Resort - A Caribean Beach project

2007-06-29T07:46:00.000-07:00

For the past seven years Tropical Pathways has been assisting international investors realize excellent return on their investments. We do this by providing opportunities that position you in the strongest equity building position - at the front end of a development.

Buying property in Panama is safe and easy, if you follow a few simple steps. Foreigners enjoy the same property rights as Panamanians. So let's get to it...

Caribbean Coast Condo Resort
We would like to introduce you to a project on the Caribbean coast-Panama's new "Gold Coast".

This gated community is located 55 minutes from Panama City, between Colon and Portobelo, on the Caribbean Coast. The development is scheduled to start construction in August (dependant on finalization of permits) and has just recently begun selling units within two 10 story buildings. We recommend buying in Building #1.

Prices for building #1 start at:
$67,500 for Studios (45 sq. meter./484 sq. ft.)
$97,500 for 1 bedrooms (65 sq. meter./700 sq. ft.)
$128,500 for 2 bedrooms (85 sq. meter./915 sq. ft.)
$203,000 for 3 bedrooms (130 sq. meter./1,399 sq. ft.)
$243,000 for Penthouse with Roof Terrace (190 sq. meter./1937 sq. ft.)
There is currently a $1,000 bump for each story.

The project requires a total down payment of 40% which is tied to construction: 10% at signing, 10% upon commencement of construction, 10% 90 days after commencement, and 10% 180 days after commencement. The balance of 60% is due at completion.

We recommend purchasing property in Panama via a corporation. The promoter of this project has agreed to provide clients of Tropical Pathways with a new corporation, a $1,200 savings to you.

Property management will be available with the delivery of the first units. We expect the rental market for these units to be high due to growth in the general area (see below). We conservatively forecast 20%-30% appreciation between now and delivery.

Here are a few growth indicators that will positively affect the area around this Beach Resort:

New International Merchandise Mall in Colóns

Earlier this year, it was announced that the Atlantic town of Colón would be the site of Panama's first wholesale merchandise mall, dubbed Panama International Merchandise Mart (PIMM). Now, developers of the billion-dollar project say the money is rolling in and discussions with the World Bank may result in a $50 million loan.

Panamanians Support Canal Expansion
Voters in Panama have overwhelmingly approved an ambitious project to expand the country's famous shipping canal. The upgrade to the Panama Canal is expected to double its capacity.
In a nationwide referendum, people voted by a margin of four to one to back the $5.2bn plan, which involves building a new channel and new locks. Many modern container ships are too large for the 50-mile (80km) canal linking the Pacific and Atlantic. Work on the expansion plan is due to start in 2008 and be completed in 2014. Panamanian authorities say it will generate thousands of jobs centering on the Colon area.

Portobelo Will Become a Historical Tourism Area
The Panamanian government is currently developing a plan to enhance tourism in the greater Portobelo Bay area. This includes restoring the Fort and adjacent buildings, all aimed at preserving and showcasing this important historical area for future tourism growth.

The Beach Resort sits approximately 25 minutes from both Colon and Portobelo, the perfect position to benefit from growth in both areas.

These units are selling quickly! Please contact us to discuss this opportunity in further detail.
info@tropicalpathways.com
Lyle Burke & Tony Moreno
USA 830-980-5936

Panama Real Estate Investment Tour

2007-06-22T11:35:00.000-07:00

We would like to tell you about Tropical Pathways Investment Tours to Panama, a wonderfully diverse, vibrant country that welcomes visitors with open arms. In just little over three hours by air from Houston or Miami, you can be immersed in a wonderfully different vacation experience.

You will be greeted at the modern Tocumen International Airport by Tropical Pathways and taken to the Country Inn and Suites, located on the Panama Canal in Panama City. Monday night, Tropical Pathways will host a welcome party complete with wine and appetizers, where you will meet our guest speakers and local expates in a relaxed, informal setting.

Your week long tour also includes;

Investment Strategies Seminar--We will discuss retirement options, medical services, offshore corporations, banking laws, residency programs, real estate laws, and building costs. We will view real estate bargains in Panama City, Playa Blanca, Volcan, Boquete, Bocas del Toro, as well as discuss business opportunities in these areas.

From Panama City we will fly to the provincial city of David. We will travel from David, by motor coach, to Volcan. This area is quickly becoming very desirable in regards to Panama real estate investment or retirement opportunity seekers. We will visit the various properties, in this up and coming region. The first U.S. settlers that arrived in the early 1900’s in Volcan named it “La Nueva California” (The New California) because they found that the climate, and the mountainous prairies surrounded by green forest hills, were very similar to their beloved State of California. We will then travel by coach to the highlands to Boquete, a world famous coffee growing area, where you will meet the developer of Los Molinos, one of Panama's premier residential developments. -Boquete, Listed #4 in the top 5 places (2001) to retire abroad by the AARP, has it all. A wonderful climate, natural beauty, friendly locals, and low cost of living, are just a few reasons why Americans and Europeans are settling in this pristine valley. You will meet local realtors and have the opportunity to visit a variety of properties currently on the market. We will be staying at the Boquete Garden Inn, and spend two days exploring this region.

After visiting Boquete, we fly to Bocas del Toro for a Caribbean experience, and look at additional properties including a boat tour of the area. We will visit the new beachfront residential project, Sunset Beach Club. You will have an opportunity to meet with a local realtor and plan to visit properties of particular interest to you.

These are just the highlights; there is much, much more in this experience, which is not to be missed. For you travel bargain hunters get your calculators out. Our Investment Tours include accommodations, ground transport, breakfast and lunch daily, in-country air fare, and activities noted on our itinerary. We know that you could not experience all that we offer at a better price.

The group sizes are limited and bookings have already started---to insure your place, we recommend that you make your reservations right away.

We are offering our one-week Tour, ground only, for $1,399 per person based on double occupancy. Our ground only package has you book your own flights to and from Panama City. For single occupancy supplement, add $150.

This offer is good for our upcoming Tours on:
July 29-Aug. 5, 2007

For further information visit our web-site
http://www.tropicalpathways.com/
or call us at 1-830-980-5936

We look forward to meeting you,

Panama, a country of new possibilities with old world charm!

2007-06-20T15:52:00.000-07:00

Decisions, decisions, decisions ... what a delightful dilemma! Do I buy a seaside villa on a gleaming white sand beach in the rustic archipelago of Bocas del Toro? Or do I move into a Panamanian mountain chalet, my private pasture filled with horses for my usual sundown ride, in Boquete, one of the most desirable retirement areas in the world? Or do I renovate a mansion in Casco Viejo (old town), returning it to its original glory of pristine white, fringed with gaily colored shades, in Panama City ... which some say is the next Hong Kong of the Western world?

Perhaps you’d like to take a closer look?

You can easily do this. There is no need to limit your imagination ... Panama is ready to welcome you with its endless possibilities ... all without stretching your wallet.

With the warmth of the Panamanian people, fostered during the 100 years the U.S. operated the Canal, it is not surprising many Americans felt more than welcome to stay, even after the transfer of the Canal on December 31, 1999. And so they opened businesses, invested in land, renovated classically built mansions, and constructed new homes to fulfill their dreams.

Panama is still a bargain, but not for long.

It is not too late for you to have a part of this “Paradise” for yourself ... but only if you act quickly. As you enjoy our Panama vacations you will discover the best values for real estate in Panama.

Tropical Pathways Investment Tours, unlike any you’ve ever experienced, will help you uncover the possibilities.