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The advantages of investing in the Panama real estate market in 2021🏗🏭🏖

Updated: Jan 31, 2022


The real estate market in Panama offers various kinds of properties.



Panama is an option sought by many investors, due to its geographical position, with a first-class financial center and the ability to receive returns in dollars. Panama offers tax subsidies and immigration benefits to those who choose Panama as an investment destination. One thing to keep in mind is that the annual taxes paid on a property are relatively low, when compared to other investment destinations in Latin America.



Establishing an ideal return on investment for a real estate investment is key when analyzing a new market where. On the one hand, real estate investments can be tedious and can cause quite a few concerns when it comes to trusting a new market that you do not yet know. In the case of Panama, a comparative advantage is political and financial stability and that the investment is protected by law.




Reasons why clients should invest in the Panama real estate market


The laws of Panama protect investments

Although almost all sectors of the economy have been affected by this pandemic and no country escapes this reality, according to World Bank projections and I quote "positive contributions to the growth of public spending are expected, but with the consequent increase in the fiscal deficit and public debt. A slight recovery is expected for 2021, driven by an improvement in trade flows, the recovery of transport, logistics and other sectors associated with the Canal, as well as a rebound in the mining and construction sectors, along with improvements in domestic consumption and investments. "

Another aspect that potential investors should keep in mind is that Panama regulates the professions that investors trust, such as lawyers, real estate agents, and investment advisors. All must have a license, have proven knowledge and have a civil liability bond or be registered and have a code of ethics as in the case of lawyers.



Safe and secure investment holdings


The real estate market in Panama is securely constituted to guarantee investment protection. For example, new clients who are interested in the offshore real estate market in Panama receive incentives to attract capital to Panama.


Additionally, the country of Panama has enacted laws to ensure a safe and memorial foreign investment environment in Panama. Law 54 of 1988 describes the "Foreign Investor Protection Law" that assesses the rights and settlements of foreign investors and how they can participate in offshore businesses in Panama. These investment protocols are designed to protect the investor and guarantee their investment.


New projects mean new investments

DESIGN AND CONSTRUCTION OF THE FOURTH BRIDGE OVER THE PANAMA CANAL


Place Panama, Panama


Completion date December 2028


Amount US$1,518.0 million


Name of the Project EXPANSION TO SIX (6) LANES - CORRIDOR OF THE BEACHES (SECTION: LA CHORRERA - SANTA CRUZ), PROVINCE OF WESTERN PANAMA


Place La Chorrera, West Panama


Completion date October 2023


Amount US$603.2 million


Name of the Project EXPANSION TO SIX (6) LANES - CORRIDOR OF THE BEACHES (SECTION 2: SANTA CRUZ - SAN CARLOS)


Place West Panama


Completion date October 2023


Amount US$388.1 million


Project Name DESIGN AND CONSTRUCTION OF THE REHABILITATION OF THE ATALAYA- MARIATO - QUEBRO - LAS FLORES ROAD AND IMPROVEMENT OF THE BRANCH TO VARADERO, PROVINCE OF VERAGUAS, PANAMA


Place Atalaya, Veraguas


Completion date October 2022


Amount US$78.5 million


Project Name DESIGN AND CONSTRUCTION OF VEHICULAR CROSSING AND ROAD INTERCHANGE JOSÈ AGUSTÌN ARANGO (CABUYA) -CPA-DECEMBER 24, PROVINCE OF PANAMA,


Place Panama, Panama


Completion date October 2020 (delayed due to pandemic)


Amount US$70.9 million


Name of the project DESIGN AND CONSTRUCTION FOR THE REHABILITATION Streets OF THE DISTRICT OF PENONOMÉ, PROVINCE OF COCLÉ


Place Penonome, Cocle


End date March 2021


Amount US$22.4 million


Project Name DESIGN AND CONSTRUCTION OF THE CHIVO CHIVO - CENTENARIO HIGHWAY, PROVINCE OF PANAMA


Place Panama, Panama


Completion date October 2021


Amount US$18.2 million


Name of the Project REHABILITATION OF STREET IN THE DISTRICTS OF LOS SANTOS AND MACARACAS, PROVINCE OF LOS SANTOS; LINE NO. 1


Place Macaracas, Los Santos


Completion date August 2021 (delayed due to pandemic)


Amount US$2.1 million


Extension of the project 36.87 km


Name of the Project REHABILITATION OF STREET IN THE DISTRICTS OF LOS SANTOS AND MACARACAS, PROVINCE OF LOS SANTOS; LINE NO. 2


Place Macaracas, Los Santos


Completion date September 2021 (delayed due to pandemic)


Amount US$2.2 million


Extension of the project 42285 km


Name of the Project STREET REHABILITATION PROJECT IN THE DISTRICT OF AGUADULCE-RENGLÓN No. 1


Place Aguadulce, Cocle


End date November 2021


Amount US$1.5 million


These are some of the projects that are expected to be completed in 2021 and inject capital flow into the economic cycle of all the auxiliary industries in which this type of project should be supported. It is definitely a positive aspect that every investor should take into account.



Local benefits and incentives


For clients trying to invest in an offshore real estate market, they expect substantial and significant returns and returns on their investment. Panama offers a favorable environment for investments abroad, with fiscal and immigration policies and special regimes to promote investment.


Here are some of the local benefits and incentives you can receive by investing in Panama real estate markets:


● Fiscal, migratory and geographic benefits.

● Regulated real estate market.

● Protection against worrying inflation, secure banking and legal certainty.

● Ability to manage your investments from anywhere in the world. Cooperative efforts with the government

Panama's governing body continues to expand its cooperative efforts to provide substantial value to clients considering investing in its real estate markets. The government has assumed its role by improving the infrastructure and access routes to new sources of investment, as is the case of the Caribbean coast of Veraguas, which is considered the new jewel in the Crown, there are currently developments with investments of over $200,000,000 in progress.


Another point in favor of the Panamanian government is Law No. 122 of December 31, 2019, which grants both natural and legal persons a tax credit of one hundred percent (100%) of the income tax for the amounts invested in the acquisition of bonds, shares. or other financial instruments issued by tourism companies registered in the National Tourism Registry of the Tourism Authority of Panama (ATP). The investment in these tourism companies can be for new projects, or expansions of existing tourism projects, in both cases being projects located outside the District of Panama.


Additional characteristics of offshore investment in the Panama real estate market

Numerous tax incentives and benefits


The Panama real estate market provides a substantial source of incentives to clients considering an investment proceeding. As new real estate openings began to proliferate, foreign investors will enjoy several investment benefits, such as an easier withdrawal procedure, low capital gains tax, stable profit earnings, and relevant tax incentives.


Strategic market for rental and sale of real estate


Panama has a coveted position towards a strategic market in terms of rental and sale of real estate properties. Unlike other Central American countries, the real estate sector in Panama does not overlook its tertiary services sector that adjusts to the needs of investors. For example, legal, financial and banking services. They are above the Central American standard.

Panama is a paradise where you can invest

Here are some general points to consider when investing in the Panama real estate market:


● Carefully read and complete the Reservation Agreement to provide a specific perspective and guarantee the chosen property in Panama.


● In addition, the Promised Purchase Agreement should also be read, as a down payment of 10-30% must be paid to the seller.


● The promise to pay must also be prepared and provided approximately 45 days after the signing of the promise purchase contract.


● Guidance and preparation of legal tax documents such as real estate taxes, condominium association tax, and water and property transfer taxes are also expected.


● Investors should also assign a qualified attorney to practice in Panama, preferably with real estate experience, when attempting to invest in the real estate market.


I hope this article is useful in understanding the comparative advantages that Panama offers and choosing it as your next investment or retirement destination. In Panama you can surely create an investment portfolio, which will generate passive income and achieve economic success. Would you like to have a courtesy advice and find out the options that Panama offers, to invest? Contact us!

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