F A Q SFREQUENTLY ASKED QUESTIONS
1. Why Panama ? Why not Costa Rica, or Nicaragua, or other countries?Answer : There are many foreign investment opportunities around the globe. We have taken a conservative approach, using responsible and prudent investment guidelines. It is now well known that Panama offers the most legal protections, the greatest banking privacy, exceptional living and retirement benefits, and uncommon real estate appreciation potential, based upon its government, laws, and track record. Panama offers exceptional opportunities for investment and portfolio diversification, inexpensive retirement, and second residency – in short, a solid “back-up plan.” Panama, now discovered, is presently less expensive than neighboring Costa Rica and its government far more secure and stable than other Latin American neighbors. Panama's Pensionado Visa is rated as the world's finest residency program on the Globe.
2. Tell me about Panama’s banking privacy laws ?
Answer : Panama has the strongest and most stringently enforced banking privacy laws for its customers. The Panamanian government has gone to great lengths to ensure that your accounts, your identity, and your assets remain confidential. Furthermore, Panama does not tolerate deposits of illegal funds and has taken the long range view in enacting its banking laws to avoid the problems of illicit deposits. There are over 135 different banks from 35 different countries based in Panama, with Panama City being banking headquarters of Central America. Panama has courageously and appropriately declined to acquiesce in the improper demands of the current US administration, US Justice Department, and IRS to divulge confidential information about you and your deposits in Panama.
3. What happened to Noriega ?
Answer : General Manuel Noriega was well-known in Panama as a dictator running an illegal international drug trade during the administration of President George H. W. Bush.
In 1989, the US Army was deployed in Operation Just Cause to remove Gen. Noriega from power. He was captured and is now imprisoned in the US. In the aftermath of Noriega’s departure, the US government has abandoned its military bases in Panama, which are now available for purchase to be remodeled as private residences and rentals. Since the departure of Noriega, Panama has formed a constitutional democracy, with a legislature, Supreme Court, and president. Panama’s national currency is the US dollar. Panama's President, Martin Torrillos, was voted Latin America's Best Leader in 2006.
At the date of this writing, Noriega's jail sentence in the USA has been completed and he will be deported to either France or Panama, to serve sentences for convictions of other crimes.4. What is this I hear about the Chinese overtaking the Panama Canal?
Answer : False. When the US control of the Panama Canal expired in 1999 under the terms of the Canal Treaty during the Carter administration, ownership and operation of the Canal was turned over to the country of Panama. The lease to operate the Canal locks was let out to bid. The low bidder was a Hong Kong-based British-owned firm. The firm employs nearly 100% Panamanian citizens to operate the Canal and the locks. This is yet another example of the importance of doing accurate research to dispel stories inaccurately reported in national newspapers. Of greater importance, the Panama Canal is now under expansion to accommodate increased international Commerce and the "Super Ships" of the 21st Century.
5. Is the real estate expensive ?
Answer : No. The real estate in Panama is a bargain compared to the US. Investment opportunities include city apartments and highrises, single family residences, coastal retreats, oceanfront golf course communities, islands, mountain land and homes, subdivisions, coffee plantations, teak forests, and jungle habitat. Most real estate is listed for sale with brokers. Real estate closings require the participation of a Panama real estate lawyer. Investors are cautioned to retain the services of licensed professionals when considering real estate investment because the laws and practices in Panama are different than in the US, as certain lands are untitled. We are here for you, in Panama, to guide you through the processes of investing in and acquiring real estate.
6. Explain the use of foreign corporations, or foreign international business corporations, to hold title to property and other assets?
Answer : The term “foreign” simply means any location outside the continental borders of the USA. A foreign corporation simply means a corporation formed in Panama. In the USA, we commonly hold title to real estate in our own names, or the name of a family trust, or in an LLC. In Panama, title is advisedly held in the name of (your) newly formed Panama corporation. Why ? Privacy. Security. Asset protection. Limitation of liability. You may also hold businesses, bank accounts, and other assets in a Panama Corporation, which will be formed by your Panama lawyer. This is yet another service we provide to you.
7. What do Panama lawyers charge for their services ?
Answer : You will be very happy to know that lawyers take their jobs very seriously in Panama and charge a fraction of what lawyers charge in the US. Some will quote a flat fee for an assignment and others will charge between $100-$200 per hour. Compare that rate to $400-500, per hour in major US cities! Your Panama lawyer will be an indispensable member of your team.
8. What if I need Medical care, or Dental care ?
Answer : Medical and dental care and services are readily available in the cities of Panama and are provided to Americans residing in Panama on Resident (or other) visas at greatly reduced costs, as are prescription medications. The services are known to be delivered in a highly competent manner, as public education through college and professional schools is a top priority in this culture. This is another example of how the Panamanian government has consciously considered the needs of its retirees and citizens. As a Panama Pensionado Visa holder, you are entitled to great discounts on medical care, dental care, and prescription medications.
9. Is it safe to travel in Panama ?
Answer : Pinkerton International Detective Agency rates Panama one of the safest places in the world to live. It is widely known that traveling and living in Panama is safer than living in the USA, or other neighboring third world countries. Panama has taken its role and reputation as a tax and investment destination very seriously. Taxis are inexpensive and, if you prefer, renting a car is easy and available. Air fare from one end of the country to the other is approximately $60. Panama is a culture of diversity and, accordingly, has no “axe to grind,” or national policy to export abroad. Accordingly, everyone gets along and is focused on education, jobs, and making a better life for themselves and their families. Spanish is the indigenous language, while English is widely spoken throughout the country. You would be very well advised to travel with experienced guides when here, and we at Panamerican look forward to serving you.
10. Will I get sick if I eat the food and drink the water ?
Answer : No. On my first trip to Panama I ate everything and drank water right from the tap. I would never do this in Mexico, Africa, or Asia ! The food is of excellent quality, nutritious, and mostly organic. The fruits, vegetables, beef, and, especially, the local fish are all delicious. P.S. Panamanian beer is great, too. Remember the names Balboa, Atlas and Soberana!
11. What is the cost of living in Panama compared to the US – what is the bottom line ?
Answer : Depending upon your lifestyle, approximately one third to one-half as expensive. Food at the local markets and grocery stores is a fraction of the cost. Housing is less than half and, frequently, a third of the cost, depending upon the area and type of property. So, too, are the services of contractors, laborers, maids, and other labor-related service providers greatly reduced as compared to costs in the US. Typical building costs for new rural residential construction range from $60.00 to $80.00 per square foot, again, depending upon how elegantly you wish to appoint your home. Gasoline is at the effect of global markets and similarly priced to Mexico and the US. Monthly telephone is comparable, and household utilities are less than in the US. A live-in full-time maid runs approximately $250.00 per month, depending upon the area. Because of the real estate "boom" in Panama City, prices per square foot have risen rapidly. However, luxury apartments with 24 hour security, covered parking, swimming pool and spa, are still available for $130/sq. ft. Compare that to USA prices at double to triple that amount.
Remember : you do not have to become a citizen of Panama to own property. However, if you obtain a Resident Visa, you will be eligible for enormous savings on such items as medical care, prescriptions, transportation, cinema, etc. By any measure, Panama is a bargain.
12. What is the deal on this “real estate tax abatement” I hear about ?
Answer : Depending on the price of the new structure, you will receive up to a fifteen (15) year abatement of property taxes. Correct. No property taxes for fifteen (15) years! If the building was built earlier, for example, five (5) years ago, you will have ten (10) years of tax abatement. Why are they offering this? Because Panama is serious about attracting Americans and American investment dollars into their economy. Remember, the US dollar is the currency used in Panama.
13. Why isn’t everyone doing this – opening bank accounts in Panama and investing in real estate in there ?
Answer : Most Americans do not know about Panama, or much about foreign investments in general. And, there has been much misinformation disseminated about Central America over the years. Americans are typically patriotic and happy with what they have, but this is changing, as world events force us to open our eyes and minds beyond our own territorial borders. The cost of living in the US is at an all-time high. Security and personal safety issues are at the forefront of every news report. Real estate prices, locally, and nationally, have skyrocketed, and our healthcare services are expensive and inefficient. We also now know that our environmental (food and water) pollution is so severe that one out of every two Americans will contract some form of cancer in their lifetimes.
Panama is, also, an evolving Latin American country with abject poverty adjacent to staggering wealth. Panama is in the process of redevelopment and new construction of its infrastructure, real estate, land, forests, and businesses, with investors from South America, Asia, Europe, Canada, the US and many other countries around the globe. Perhaps, the best way to look at this picture is to stand back, take it all in, and remember how many times you have stood at the edge of a parcel in the US and said, “If only I’d invested in this five/ten/fifteen years ago, I could have retired by now.” In the final analysis, investment is about foresight, underpinned by due diligence and being at the right place at the right time. In this regard, Panama and its responsible commitment to its own future speaks for itself. Panamerican Investment Services, Ltd. is purposefully and strategically positioned to make the connection for you.
14. What do you charge for your services in Panama?
Answer : All costs and fees are set forth in a written contract from Panamerican Investment Services, Ltd. Please call Brady and ask for a Due Diligence Questionnaire © followed by a written estimate of all costs and fees. In Panama, from the U.S. dial: 011-507-6518-4017
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