Panama Means Abundance

Last year, we took a trip to witness the wonders of Panama, the isthmus connecting the Americas. Panama is truly amazing and that's why so many Americans and Canadians have chosen to visit, live, and invest there. The country is geographically ideal because it lies below the hurricane belt and has few recorded natural disasters. There are hundreds of miles of undeveloped shoreline on either the Pacific or Caribbean side. A mountain range also runs through the country and provides a cool relief from the tropical climate on the coast. The landscape gets an abundance of rain and has an abundance of food and wildlife.

This isthmus boasts the best business climate in the world. In fact more companies incorporate in Panama than anywhere else with over 400,000 incorporated in total. That's because forming a Panamanian corporation is seamless and inexpensive. Its flexible corporate law leaves no restrictions on foreign-owned companies or mergers and acquisitions. Moreover, there are tax exemptions for real estate, tourism, and development investments in Panama. So, if you're thinking of establishing a corporate entity in a great offshore location then we recommend the following service since because they've been in the game for a long time and will take good care of you: OffshoreXplorer (corporate and banking services).

Panama's key industry has become banking as strict privacy laws make the country an increasingly popular tax haven. International and national banks in the centro bancario (50th Street area financial district skyscrapers) are also abundant and are fueling the local economy. HSBC, one of the world's largest banking institutions has made Panama its Latin American regional hub and other banks are following suit. If you'd rather not hold US dollars in an offshore account, there are some banks that have euro accounts that are again, tax-free and subject to the world's most strict privacy laws. Read the following BBC article on how Panama has built itself as the "Switzerland of Latin America."

Although some would be happy to know that the USD is used in Panama, you'd be happier that the country's rate of inflation is far lower than that of the US. That's because without a central bank, you see a true market economy at work. Click here for further information.

I know what you're thinking, Panama is right next to that violent and drug-ridden country Colombia. Well, the border between the two countries is a thick mountainous rain forest with no roads or rail between them at all. In fact, Panamanian police have been at the forefront of stopping illegal drug transits. Just a few weeks ago, they seized 6 tons of drugs in transit as explained in the AP article. Panama is also one of the safest countries in Latin America and violent crime rates here are less than in the US. Once again, police are ever present and banks and businesses ALWAYS have armed security (something that I rarely see in the US).

In addition, water is safer to drink here than in the US. Its water treatment system is more modern and was built by the US military. You'll find an abundance of fresh running water at any business and Panamanians know that they're blessed. So, clearly, Panama will give you care-free living.

Without a doubt, Panama is the most attractive place in the world for retirees seeking to live better for less money. If you receive retirement income, you're eligible for discounts on electricity, health care, movies, restaurants, and transportation. Coupled with beautiful weather and a low cost of living, there's really no better place for retirees. Best of all, you won't have to worry about speaking Spanish because an increasing number of Panamanians speak English. Don't just take our word for it, just read the following article on why Panama is Paradise for Retirees - MSN Money

The country's claim to fame is undoubtedly the Panama Canal which is one of the world's greatest engineering feats and a vital point for international shipments. This is why foreign investment in in the country must continue exponentially. Presently, the economic growth rate is at a healthy 6% and expected to remain steady or increase in the next decade. In fact, commerce in the canal is growing so much that the country has begun its widening project, the implications of which are beneficial to Panama's long term economic prosperity. See article here.

Panama City's Up & Coming Neighborhoods

1. Casco Viejo (Panama City's Colonial District)

Visiting Casco Viejo was a profound visual experience as contrasts existed harmoniously. For one, the neighborhood is home to the national President and the poorest people in town. Secondly, it's where you'll see both French architecture in dilapidated residential areas and Spanish architecture in churches, the cathedral, the theater, and government buildings. Thirdly, it offers wonderful views of either the city's modern skyline on one side and the Bridge of the Americas over the Panama Canal on the other. It's also where most Panamanians avoid because of its reputation as a dilapidated and crime-ridden area.

We decided to stay at a small hotel close to the government buildings but still a short walk from the impoverished community. Many foreigners had begun developing old French style homes and buildings. There were also lots of foreign tourist groups that ventured to see this old colonial city in partial ruins. Little did I know then, that by Panamanian Decree Law #9, that you could get great incentives for investing in property in Casco Viejo. As previously mentioned, there's been a huge surge in interest in the neighborhood because it's really the only place in the city where you'll find such splendid architecture and history.The neighborhood had lots of police presence and was safe by our standards. As development continues, your investment in this community will certainly pay off for the following reasons: it's in a prime tourist location; it's located between the canal and the heart of the city; and it's a growing tourist attraction. Just look at some of the photos below:

2. Fuerte Amador

The tourism industry here is small but steadily increasing. There are very few beach resorts and it still attracts less western vacationers than neighboring Costa Rica. But, we know first hand that there has been a surge in interest in Panama Canal Cruises which is expected to increase by 100% in the next decade. All those tourists will stop at Fuerte Amador, a strip of land next to the canal with stunning views of Panama City's skyline and cheap, modern store fronts. Your potential business in Amador is accompanied by other restaurants, clubs, bars, and shops that service not only tourists, but the increasingly wealthy Panamanian club goers. There's also a large convention center located here and a Smithsonian marine wildlife research center.

David, Panama

Located six hours west of Panama City near the Costa Rican border, David is the country's second largest city. Many travellers make a stop in David on their voyage between Panama City and San Jose. There are presently only a handful of hotels, hostels and casinos in the city and investors will clearly see the need for more. After the national government develops a highway linking David to the capital city (there's currently just a 2 lane road with some portions unpaved), then more people will drive, more buses will make the transit and David will grow faster than ever.

When we were there David was in the initial stages of development. This city of 100,000 had no highways (only small roads), there's no government run transportation (simply private bus operators), few cars on the road, few large business, and a very small airport. The area outside the city has few paved roads and very little businesses. Don't get me wrong, it's a thriving community, but a small and underdeveloped one. The city is at the heart of Panama's principal meat and agricultural region.

What makes David so special is its warm sunny climate and its proximity to both the mountains, a clean river, and a pristine shore (not to mention that it's located just 30 minutes from the Costa Rican border). Whatever you're looking for, the David area has it. But the reason it's a better investment destination than Panama City is because it's 30 - 50% cheaper. There's also less crime, traffic, tourists, noise, and pollution and it hasn't nearly developed--yet.

David could also share in the country's burgeoning banking industry. It's worth reminding you that Panama is the new Switzerland and the banks don't all have to be limited to Panama City. When we were first in David, there were more loan and pawn shops than banks, the complete opposite of in Panama city. Downtown David, or the "centro bancario" had a handful of national banks, but new international banks like HSBC had recently opened an office there. Although most of the buildings downtown were no more than 3 stories, there were two soon to be tall bank offices buildings under construction. Clearly, David's banking center is in the beginning stages of development.

Up & Coming Neighborhoods near David

1. Las Colinas

This neighborhood is located in Dolega, a larger community just north of David on the main highway that connects to Boquete, a popular mountain town. Very new, inexpensive suburban neighborhoods dot the area of Dolega, but on the main roads, you'll find larger, more expensive ones. Best of all is that area is right next to the upper David River, a clean, clear stream with an abundance of fish, beautiful stones, and a waterfall. This area is clearly where most Westerners live and also home to the wealthiest in David. Within a half mile, in the northern section of David, you'll find: a KFC, TGI Fridays, a Toyota Dealer; produce stands, bars, authentic restaurants, and bars; a shopping Center with an El Rey supermarket, sporting goods store, and a furniture center. Even better, you'd be just a stone's throw away from a Panamanian national league baseball stadium (the Chiriqui team).

Last year, new homes being built in neighborhoods such as Las Colinas de Santa Cruz were priced from $ 30,000 with monthly payments at about $160. These one floor houses typically have 3 bedrooms, 1 bathroom, a kitchen, living room, dining room and a doorless garage. They're built with solid steel rods and concrete (they'd never think of building with wood!) and have tin roofs so your ceiling stays dry. You couldn't put a price on the stunning views of the hills and mountains from our backyard and huge red boulders from our front yard. The stunning landscape is also home to a few farms and wooden areas with exotic birds. A few miles north of Las Colinas, you'll encounter new home neighborhoods closer to the mountains. They're larger and have even better views of the mountains. Since they're on higher elevation at at the foothills of the mountains, it's cooler and more breezy than sweltering David. For 4 bedrooms and 2 bathrooms in a gated neighborhood, homes run anywhere from just $ 45-60,000

2. Cerro Punta

If you'd rather have the mountains, cooler weather (50's to 70's ˚F), and serenity, then head to the Cerro Punta area. When we first took a day trip there, we were blown away. It's cool and rainy and has stunning views of the tallest mountains in Western Panama. It's also Panama's principal agricultural center, producing lots of fruits, vegetables, and coffee. You should invest in the Cerro Punta area because it's a less popular, but up and coming area. Westerners have long popularized Boquete, a very gorgeous small mountain town founded by the Swiss and Germans who came to the region decades ago, planted a bunch of pine trees and built homes with Alpine architecture. Property is much less expensive in Cerro Punta and has much less tourists and American retirees. You're just a scenic hour away from David, but you'll still have the convenience of restaurants (Panamanian, Chinese, and a few American), bars, and markets. Lots cost less than $ 10,000 per acre and could give you a comfortable and beautiful vacation or investment property.

3. Playa de la Barqueta

David is about a half hour's drive from the Pacific shore and the best kept secret is a wonderful beach at Playa de la Barqueta. Beachfront homes with 2 levels run just $200,000 in gated communities with 4 or more bedrooms. The beach is has black sand and is lined with tropical and coconut trees. Very few people frequent the beach but there is a restaurant, convenience store, and bar/club adjacent. For under $200K, you can get a condo at an adjacent gated development with its own clubhouse/restaurant.

4. Bastimentos, Bocas del Toro

Finally, if you're seeking your own Caribbean island retreat, then head about 100 miles north of David through a spectacular national park rain forest, and you'll come across the islands of Bocas del Toro (which literally translates to Mouth of the Bull). The islands are only accessible by taxi boat (which runs between $2 and $4). Here, the beaches have white sand with shaded, unfettered shorelines. Bastimetos was a our choice because it was less touristy and developed than Bocas del Toro Island, the center of regional commerce. On Bastimentos, we found a few hostels, restaurants and shops in the main town which consists of just one pedestrian street along the western coast. Crime was inexistent and the people, mostly English-speaking, seemed happy on this island of just a few hundred inhabitants. The beaches on the Caribbean side were amazingly beautiful, undeveloped, and secluded. For me, Bastimentos was the epitome of Paradise.

As you can see, not only does Panama offer a significantly lower cost of living, a business-friendly environment, a safe banking industry, you'd get an abundance of investment opportunities in a safe, beautiful, and diverse landscape. If you'd like more information on acquiring homes or land in any of these up and coming neighborhoods then contact us.