What about Property & Rental Management?

Property management is available through a cooperative Owner Group.

How does the transaction compare to a typical home purchase in the US?

Unlike many other Latin American Countries, Panamanian purchases are strikingly similar to a US purchase. The US dollar is the official currency so there is no exchange rate. Their survey and title process (for titled property) is predominantly the same as the US with the exception of metric units (square meters instead of square feet). The transaction is handled by an attorney that primarily deals with US, English-only speaking clients. The attorney will handle formation of the corporation, the transaction, facilitation of the title policy and commitment, and opening of a bank account.

Is my investment in Panama safe?

Panama is democratically controlled stable country that is a strong US ally. Panama has long been one of the top three retirement destinations in the world. However, through the concerted efforts of their government and developers, Panama has recently become a dominant force in the Latin American tourist market. Property in Los Buzos is titled, not possession rights as in many areas of Latin America, and can be insured through US title insurers.

Panama is the third largest international banking center, eclipsed only by Switzerland and Hong-Kong, a clear indication of its world-wide reputation for stability and financial security.

What about property taxes and income taxes?

Currently these homes qualify for multi-year property tax exemptions depending upon when they are built. This exemption stays with the home once it is built even if the property is sold.

What are the closing costs for a typical transaction?

For a $250,000 purchase the costs including the formation of a corporation will be approximately as follows:
-Legal Fees (corporation, transaction, and bank account): $3,500
-Title Insurance & Commitment (optional): $3,000
-Surveys, Recording & Misc. Taxes: $1,000
-First Year Corporate and Director Fees: $650

What about property insurance?

All of the coverage normally expected in the US is available, more competitive, and in my experience much simpler to obtain. Panama’s absence of natural disasters and favorable legal system are the driving force behind this circumstance. At 7 degrees latitude, the Azuero does not experience hurricanes, is not on an active earthquake fault, and does not have any active volcanoes. Additionally, most Los Buzos homes are constructed at an elevations ranging from 20 to over 200 feet above sea level.

Typical Los Buzos policies are as follows:
-Homeowners Policy – Fire (based on $150,000 coverage): $315
Homeowners Policy - Contents (based on $ 20,000 coverage): $116
-Boat (based on $25,000 coverage): $1,000

Our broker speaks fluent English and handles all types of policies including home, auto, life and health.