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- philip@igrpanama.com
- Calle 47 Bella Vista y avda. Aquilino de la Guardia
In the know
Panama Real Estate FAQs
What are current trends are driving Panama’s real estate market?
The Panama market for real estate is a stable and growing sector of the country’s economy. For the last ten years, Panama City and its communities have experienced steady appreciation in both price and overall activity volume, particularly in upscale neighborhoods offering world class design and amenities at affordable prices.
How important is Panama's strategic location to the country’s real estate market?
Panama’s central location between the U.S and Canada and South America means that its real estate market includes the entire western hemisphere. Its status as an international aviation hub also connects it non-stop to over 80 of the world’s most important cities.
What kind of return can be expected from a real estate investment in Panama?
Foreign investors can realize returns between 6 – 8% a year when investing in a luxury property in a popular neighborhood where short- and long-term rental returns are established and occupancy rates are high.
Are properties designed for rentals delivered furnished or unfurnished?
Normally, properties in Panama are delivered unfurnished and in some cases without appliance packages. However, more developers now offer new, luxury properties fully-finished and even furnished down to the décor, homeware, and kitchen and bath products.
Does the Canal contribute to Panama’s real estate market?
The Panama Canal is a significant economic driver of Panama’s economy, and many multi-national corporations have regional headquarters in Panama City. This creates demand for real estate, especially rental homes and apartments.
Are there specific laws governing Panama City’s rental market?
There are currently short-term rental restrictions in Panama City. However, many developers are able to negotiate exemptions, grandfathered in, or have experience maneuvering within the law.
Are there property management companies and what services do they offer?
Several companies offer a wide range of turnkey property management services in Panama, including maintenance, marketing, monthly reporting, and guest management.
What are the current mortgage and financing conditions in Panama?
Panama offers residential mortgage financing terms to both locals and foreigners that are similar to the U.S. Typical loan to value ratios are 50% to 70% amortized over 25 years, and mortgage interest rates are competitive, currently in the low 7% range.
Are there international colleges and universities in Panama?
Panama has almost ninety higher education institutions, including large universities as well as smaller liberal arts and specialized colleges. For those seeking a U.S.-based education, several universities like Florida State also offer satellite campuses with the ability to transfer.
What are Panama’s income taxes?
Panama operates on what is called a “territorial” tax system, which means that both citizens and residents are taxed only on income earned from sources within Panama.
How can I obtain residency in Panama?
There are several ways that foreign investors can apply for Panamanian residency—in some cases, depending on a person’s nationality and the amount of their real estate investment, in as little as 30 days. This process is best carried out through an experienced immigration attorney.
How is the cost of living in Panama in relation to other countries?
The cost of living in Panama is significantly lower than most other cosmopolitan global cities that are important to upper end buyers and investors. Recent statistics indicate that a person can live comfortably on US$2,500 per month all in. Panama’s healthcare system is also one of the best and most affordable in Latin America.
Is Panama safe for foreigners?
Panama is considered one of the safest countries in Latin America. Visitors can enjoy culture, cuisine, and night life throughout the country without fear of drug or gang violence, which is lower than in most large American cities.
How does Panama’s stability affect the real estate market?
Panama’s political and economic stability makes it the top location in Central and South America for foreigners living abroad or investing in a business. The income from the Panama Canal alone offers significant support for many of the country’s infrastructure, conservation, public safety, and development initiatives.
What real estate investment opportunities are there in Bocas del Toro?
Bocas del Toro has a variety of residential real estate product and investment opportunities. The upcoming introduction of 4 Elements Isla Colon, for example, represents an upper end, branded resort opportunity designed and managed for investors.
Are there eco-friendly properties in the real estate market in Panama?
There are several eco-friendly property options, reflecting the country´s commitment to sustainability and nature conservation.
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Panamá:
Calle 47 Bella Vista y avda. Aquilino de la Guardia. PH. Ocean Business Plaza. Piso 10 Oficina 10.
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Is a global real estate legend—and widely considered to be one of the world’s foremost experts in marketing and selling luxury condo developments to high net-worth international buyers and investors
Philip Spiegelman — Principal, IGR PANAMAA Division of Six Diamond Resorts International