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


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

Panama is an option that many investors are looking for, due to its geographical positions, with a first-rate financial center and being able to receive returns in dollars. Panama offers tax subsidies and immigration benefits to those who choose Panama as their investment destination. One thing to keep in mind is that the annual taxes paid on a property are relatively low, if we compare it with other investment destinations in Latin America.


Establishing an ideal return on investment from a real estate investment is key when analyzing a new market where. On the one hand, real estate investments can be tedious and can generate quite a lot of worries when trusting a new market that you do not know yet. 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


Panama has policies that protect investment.


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

Another aspect that potential investors should keep in mind is that Panama regulates the professions on which investors rely, such as lawyers, real estate agents and investment advisers. All must have licenses, have proven knowledge and have civil liability bonds or are collegiate and have a code of ethics as in the case of lawyers.


Safe and Secure Investment Holdings


The real estate market in Panama is constituted in a safe way to guarantee the protection of the investment. 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 commemorative foreign investment environment in Panama. Law 54 of 1988 describes the “Foreign Investor Protection Law” that values the rights and settlements of foreign investors and how they can participate in offshore business in Panama. These investment protocols are designed to protect the investor and guarantee their investment.


New Projects Means 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 - CORREDOR DE LAS PLAYAS (SECTION: LA CHORRERA - SANTA CRUZ), PROVINCE OF PANAMA WEST

Place La Chorrera, West Panama

Completion date October 2023

Amount US $ 603.2 million

Project Name EXPANSION TO SIX (6) LANES - CORREDOR DE LAS PLAYAS (SECTION 2: SANTA CRUZ - SAN CARLOS)

Panama West place

Completion date October 2023

Amount US $ 388.1 million

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

Atalaya Place, 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 PANAMÀ,

Place Panama, Panama

Completion date October 2020 (Delayed due to pandemic)

Amount US $ 70.9 million

Project name DESIGN AND CONSTRUCTION FOR THE REHABILITATION Streets OF THE DISTRICT OF PENONOMÉ, PROVINCE OF COCLÉ

Place Penonomé, Coclé

Completion date March 2021

Amount US $ 22.4 million

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

Place Panama, Panama

Completion date October 2021

Amount US $ 18.2 million

Name of the Project STREET REHABILITATION OF THE DISTRICTS OF LOS SANTOS AND MACARACAS, PROVINCE OF LOS SANTOS; LINE N ° 1

Place Macaracas, Los Santos

Completion date August 2021 (Delayed due to pandemic)

Amount US $ 2.1 million

Project extension 36.87 km

Name of the Project STREET REHABILITATION OF THE DISTRICTS OF LOS SANTOS AND MACARACAS, PROVINCE OF LOS SANTOS; LINE N ° 2

Place Macaracas, Los Santos

Completion date September 2021 (Delayed due to pandemic)

Amount US $ 2.2 million

Project extension 42,285 km

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

Place Aguadulce, Coclé

Completion date November 2021

Amount US $ 1.5 million


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



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 offshore investments, 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's real estate markets:


● Tax, immigration and geographic benefits.

● Regulated real estate market.

● Protection against worrisome inflation, safe banking and legal security.

● 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 roads to new investment sources, such as the case of the Caribbean coast of Veraguas, which is considered the new jewel of the Crown, currently there are developments with investments in excess of $ 200,000,000 in course.


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%) 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 Panama Tourism Authority (ATP). The investment in these tourism companies can be for new projects, or extensions of existing tourism projects, in both cases being projects located outside the District of Panama.


Additional Features of Offshore investment in Panama Real Estate Market


Numerous Fiscal Incentives and Benefits


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


Strategic Market for rental and sale of real estate properties


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.


Things to consider when investing in the Panama Real Estate Market.


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 Promise 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 promise purchase contract is signed.

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

● Investors should also assign a suitable lawyer to practice in Panama and preferably with experience in real estate matters, when trying to invest in the real estate market.


I hope this article is helpful when it comes to 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.


Let us know any questions you have about how to invest in Panama and we will gladly help you.


Until next time!

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