Why Look at Panama Real Estate for Sale?
Panama City Ocean View Apartments
Over the past 15 years, Panama has solidified and expanded its role as the Hub of the Americas. This expansion and positioning makes the Panama real estate and Panama property investments market one the safest bets to invest or buy real estate in Central America.
The Panama Canal is the backbone of the economy. The completion of a US$5.25 billion expansion will enable it to accommodate the largest modern cargo ships.
The country has converted itself into a business hub for the Americas, with many multinational corporations opening regional headquarters in Panama.
The international airport continues to expand, supporting the increased traffic and luxury homes and high-rises in and near the city fuel the real estate market.
- One of the world’s strongest economies
- Continued investment in logistics infrastructure (Panama Canal, Port of Colon, Tocumen International Airport, second Metro line) support continued economic expansion.
- Foreign direct investment (FDI) at 10.8% of GDP in 2013, according to International Monetary Fund (IMF) – highest in Latin America
- Easy access from North and South America, and Europe
- First-world business infrastructure in Panama City
- Established expat communities make Panama an easy transition for retirement or moving abroad.
- City, beach and mountain living options
- Panama’s currency, the Balboa, is pegged to the US dollar and US currency is used, eliminating exchange risks and facilitating movement of money.
Panama Real Estate Market
We have Panama real estate brokers in Panama City, Bocas del Toro, and an expert in Panama property investments. Please contact our Panama real estate buyers agents for current prices of real estate for sale in Panama, as well as current rental rates.
Casco Viejo House in Panama City
There is a wide variety of Panama real estate to live or invest in – from condos, apartments, land, farmland, houses and home. These can be condos, houses, and colonial property in vibrant Panama City real estate market – to mountain homes and land in Boquete – to beach front homes on the Azuero Peninsula – to Caribbean real estate in the Bocas del Toro real estate market.
There are also a lot of types of Panama real estate investments available. These Panama investment opportunities range from development land, vacation rentals, agricultural, and farmland investments in Panama mango farms and Panama pineapple farms.
Some highlights of the Panama Property Market:
- Market is driven by demand from both North and South America, plus some European property investment.
- Prices have risen, but not returned to over-priced heights.
- Property values in Panama City climbed 5% in 2017 – a health growth rate.
- Prices rose most for luxury city condos with ocean views.
- Balboa Avenue, Punta Pacifica and Costa del Este are most in demand, averaging US$2,600 per square meter.
- Rental ROI: 4-9%
- Beach properties near the city popular with both Panamanians and expats
- Pacific beach development continues strong along the Panamerican Highway, 1-2.5 hours from Panama City.
- Boquete remains a popular mountain expat community in western Panama.
- Strongest sales in the Boquete region: homes under US$200,000
- Recent uptick in Boquete’s high-end market, $800,000-2 million
Panama Real Estate Investment, Taxes and Doing Business in Panama
- Buyers’ costs: 2.25% (2% legal fee + .25% registration fee)
- Total round-trip transactions costs: 7.25-9.25%%
- Only restrictions on foreign ownership: islands under Panamanian jurisdiction and land within 10 kilometers of national borders
Rental income taxed progressively:
- 0% on first $11,000 or less;
- 15% on income between $11,000 and $50,000;
- 25% on rental income over $50,000.
- Property taxes are based on local government appraisals, but transactions over the appraised amount are subject to higher taxes.
Landlord and Tenant
- Rental contracts can be negotiated freely between landlord and tenant, regarding both duration and rents.
- Landlord collects a deposit equal to one month’s rent and consigns it to the Ministry of Housing, which will return it to the tenant at the end of the lease, barring damage or default.
- Tenant can break the lease at any time with a 30-day notice to the landlord.
[Source: International Monetary Fund]
Panama Property Investment Visa
- Panama has a long list of visa options for residency and investment.
- Visa applications have to be made through a lawyer in Panama.
- Citizenship can be applied for after five years of residency.
- We can assist you in tying a Panama property investment to the Panama Friendly Nations Visa.
Real Estate Markets of Interest in Panama
Panama City is the country’s only major, first-world city, and only in wealthy areas. The are some spectacular condos and apartments for sale and rent in Panama City.
Pacific beaches such as Playa Coronado and Playa Blanca are more developed and accessible than the Caribbean beach communities. The beachfront properties are within two and a half hours of Panama City where there is high-rise and luxury home development.
Bocas del Toro is Panama jewel on the Caribbean coast. Not only do you have beautiful Caribbean beaches – but the unique lifestyle in Bocas del Toro makes in a great place to live and invest. We have a Bocas property tour.
Azuero Peninsula is somewhat remote but development is starting to happen – especially in the Pedasi real estate market. The Azuero offers beautiful mountain and Pacific Ocean scenery at 5-6 hours from Panama City. There are some master planned communities under construction as well as some lucrative Panama agricultural investments in the “breadbasket of Panama”. We also have a Pedasi property tour.
David located in western Panama, has an airport and services utilized by expats in Boquete.
Boquete set in the western mountains has spring-like weather, lots of rain, coffee plantations, cultural events including orchid and jazz festivals, and a thriving expat community.
Living in Panama
Panama remains popular with expats from North America, as well as Colombians, Venezuelans and other South Americans seeking a stable and prosperous economy.
The cost of living has increased dramatically in recent years, with supermarket prices in many cases equal to those in the U.S. Services continue to be less expensive, but the country is no longer a bargain retirement or expat destination.
As a well-established expat choice, it is an easy place to find relocation and legal services in English. Most Panamanians, however, speak only Spanish. Translators and guides are available for hire to help English-speakers navigate the process of relocating or buying property.
Panama Location and Geography
Panama is the southern-most country in Central America. The isthmus of Panama runs east and west, between the Caribbean Sea to the north and the Pacific Ocean to the south.
A chain of lush, jungle-covered mountains runs the length of the country. The Azuero Peninsula juts out into the Pacific Ocean to the south.
The climate is tropical and humid, supporting one of the greatest diversities of flora and fauna in the world.
In most of the country, the dry season lasts roughly three months from late December through March. Rain varies through the rest of the year, generally increasing in October and November.
[Source: For more information – Wikipedia Panama]
What to do next if you are interested in Panama Real Estate
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Contact our Panama buyer’s agents – not only can they find you the perfect property – they can also help you with Panama residency and relocations.
Browse our Panama real estate listings below and contact us for more information on any Panama property that interests you.
