Buying Real Estate

As we alluded to in Chapter 1, there is a variety real estate for everyone’s taste. You will have the choice of many different housing options in Panama City; mountain areas like El Valle and Boquete; numerous beaches and island areas like Bocas del Toro and Contadora. Once you decide on the area you want you will be pleased to know that as a foreigner you are afforded the same protection as a Panamanian land owner.

Now is a good time to invest in Panamanian real estate for a variety of reasons. Panama has had a stable democratic government for over ten years. The country has excellent infrastructure and communications systems and boasts one of the wonders of the world, the Panama Canal which is an economic mainstay and constant source of revenue. The Canal and its importance to world trade make Panama one of the most solid economies in the world. The country also boasts a thriving Free Trade Zone, a bustling modern city of over 1.5 million people, the dollar as the official currency and a first world banking system. In addition, non-citizens may purchase property and have the same rights as Panamanians. The country has a variety of real estate for the retiree, investor and entrepreneur. Easy residency requirements and attractive tax advantages for investors and businessmen add to the country’s appeal.

It's easier to get a mortgage in Panama than anywhere else in Latin America. Other than Puerto Rico, Panama is the only Latin American country where private lenders are willing to make 30-year, fixed-rate mortgages. Why? Because the economy is stable, there is little chance of default, and the banks know they will get their money back even if someone cannot pay back a loan. This is not the case anywhere else in this part of the world.