If you’re looking to invest in Panama, buying property in Panama should be at the top of your agenda. Panama has a growing economy, uses the US dollar, and has almost unparalleled economic stability when compared to other countries in the region. There’s the booming business center of Panama City, the retirement havens of Boquete and Coronado, and the up and coming suburban areas in and around the capital. If you’re looking for a unique Real Estate investment opportunity, Panama’s probably got it, and got it at a great price. There is a huge demand for foreign workers, and an even larger tourism boom, making the Real Estate market red-hot.
Meeting the demand with an abundance of supply
To keep up with the demand, and in many cases even anticipate it, new construction is bigger than ever in the Central American nation. When it comes to Real Estate in Panama, your options are as diverse as what you’re looking for. Be it residential or commercial, you can find the investment that’s right for you. You just need to know how to look for it.
Real Estate in Panama is as diverse as you want it to be
When you’re thinking of investing in Real Estate in Panama, you need to find the best fit for your goals, and your budget. Residential Real Estate is the hottest market for foreigners to invest in Panama, and it pretty much runs the gamut as far as location and price. A mid-priced family home can be purchased from $200,000-$300,000, with luxury options running into the millions. This all depends on the year of construction, neighborhood, and size, but when compared to similar properties in the US and Canada, Real Estate in Panama really gives you a better bang for your buck.
Commercial properties also make great investments, and are in abundance in Panama, especially in new construction projects. Panamanians are huge fans of multi-use zoning, and many new business park developments are built alongside, or even as part of larger residential and community projects.
How to make money off your Real Estate investment in Panama
The most popular way of turning a profit on Real Estate in Panama is residential and commercial leasing. Rent prices are on a steady rise, as demand for housing burgeons, and property values are following right behind. Like anywhere, it’s best to look for good buys in areas with high potential, and low prices. Panama is full of these areas, and many would make the argument that even the higher-end prices are undervalued when you look at the potential economic growth and Real Estate demand in the country. Another tip for finding great deals in Panama is to look for areas outside of the city that are connected by highways, or better yet, the new national Metro line (which will begin construction on phase two in 2016).
Tax Benefits of investing in Real Estate in Panama
One of the biggest draws to Panama for investors, of any kind, is the low tax rate across the board. This is especially true for Real Estate. All newly constructed residential building condo owners are exempt from paying property taxes for 20 years from the date of the occupation permit. .You can even transfer this tax break, minus time spent, if you decide to sell your property during that period, which is a huge selling point for many. You will also receive a 20-year exemption of import taxes for any materials or furnishing you import to Panama. Whether you buy straight out, or finance your Real Estate investment, this tax break will save you thousands each year, which will add serious gains to your project over time.
What to do before you invest in Panama
Like any sound investment, you need to do a lot of research and preparation before making a decision. We can help connect you with trusted realtors and brokers in the area, as well as walk you through each part of the legal process in purchasing property, whether you’re in Panama or not. Make sure to talk with your bank, as well as finding a local bank to finance if needed, and most importantly, check that your financing options are diverse, and reliable. If it seems like it’s too good to be true, it may be, and we can help you do your due diligence to find the right people, and the best course to get you the investment you want.
