10 Reasons to Invest in Real Estate in Panama

Panama has always been one of the favorite choices of expats for many years. Located in Central America, Panama is an isthmus that connects North and South, hence the name “Crossroads of the Americas”, it is full of diversity, both geographical and cultural, it has a stable government, an impressive economy and the Panama Canal.

The real estate industry in Panama has been a centric business for the recent years, and it has allowed to develop many attractive projects, both residential and commercial buildings, skyscrapers, and luxury houses as well. There are a lot of choices of real estate in Panama based location, price, size and many other features according to the buyer’s needs.

Here are 10 reasons why investing right now in Real Estate in Panama is the best choice for you:

1. Dollarized country

Panama’s national currency is the Balboa, which since its introduction in 1903 it has an exchange rate of 1:1 with the US Dollar, but in fact, most of the currency circulation is in US Dollars. Only few exceptions (coins below $1) are seen in balboas frequently.

 

2. Growing economy

Panama has been one of the fastest growing countries in Latin America in the last 10 years, even though in the recent years the growth rate has slowed down a little bit, it is still one of the highest growth rates in Latin America, with a 3.9% in 2018 according to the IMF and a projected 6.0% growth in 2019.

 

3. Connectivity

For many years, Panama has been a connecting hub for flights all around America, and it keeps growing. There are now a great number of direct flights even to Europe and Asia. The construction development of the new Tocumen Airport Terminal will allow 20 new boarding gates and 8 remote positions to offer for the region.

4. The beaches

Panama hold a huge variety of amazing beaches for you to choose, many of them are even no longer than a one or two hours from the city. This is one of the biggest assets of Panama, it is blessed with a geographical location that offers two long coasts in the Pacific and Caribbean, with a lot of choices of affordable and well-developed beaches.

5. Safety

Panama is relatively safe compared with other Latin American countries. In fact, it has been periodically chosen as one of the safest countries in Latin America. Being a touristic destination for many expats, the government and the police department are always very diligent in regards of safety matters. There are still a few places one should avoid when visiting Panama, however, overall is a safe country for visit and for living.

 

6. Tax incentives

Panama is a country with a lot of tax benefits for foreign investors. The offshore financial sector is exempt of several kinds of taxes including local, corporate, income, capital gains and others. Also, income earned abroad by residents are exempt from taxation too.

 

7. Cost of living

Even though Panama is a dollarized economy, the cost of living is lower compared to most of cities in North America. Medical bills, utilities and management fees are some of the expenses that can go way low when you compare them to USA or Canada, of course, this will depend of your lifestyle and your needs, however, you will still enjoy the benefits of a well-developed nation in an emerging economy.

 

8. Financial Strength

For many decades, Panama has become an important international finance center in Central America, offering excellent banking, insurance and other business services both locally and internationally. The financial sector brings sustainable growth to the overall economy of the country and provides excellent services to businesses, companies and investors.

 

9. Infrastructure

The country’s infrastructure is well developed overall, roads and highways are safe to drive, there are many choices to move around such as the Metrobus and Metro lines (only in Panama City). Power, water and other utilities services are efficient and effectively established, the communications are very well developed as well, with high speed broadband Internet offered at very affordable prices.

10. Panama real estate variety

Due to the economic boom of Panama over the past years, there are numerous choices in regards of real estate properties. If you are planning to live in the city or on the beach, there are so many choices of houses, apartments and condos with different floor designs, sizes and locations.