The Republic of Panama is situated at the southern end of the Central American region. Panama is one of the fastest growing economies in Central America, with a growth rate exceeding 10% between 2006 and 2008.
The capital is Panama City and the main language is Spanish. In spite of the better economic growth, nearly one-third of the Panama population is living below poverty line. To attract direct foreign investments, the government of Panama had been provided special Panama real estate price offers and significant tax discount and incentives to foreign investors in Panama real estate for sale and Panama rentals.
The enactment of Law No. 8 by the government of Panama is considered one of the most modern and comprehensive steps to boost tourism investment. Under this law, international real estate investors obtain 100% exemptions on real estate taxes, income tax, other real estate related taxes, and import duties for construction materials and equipment. The government has also created special zones to promote tourism-related Panama real estate investment that provide multiple tax exemptions and substantial tax holidays. This had created a greater awareness among international real estate investors about the prospects and profitability of the Panama real estate listings in recent years.
International real estate investors do not have any restrictions in Panama real estate investments. They could obtain property ownership either through direct titles or through rights of possession. All title deeds of properties are recorded in the public registry. On the other hand, rights of possession relate mainly to untitled and unclaimed lands and they are handled by the department of agriculture, which records their possession. Properties with title deeds could be mortgaged but the Panama real estate obtained through rights of possession could not be mortgaged. Building permits could be obtained locally without too much difficulty.
The government of Panama had announced a moratorium on property taxes for all new constructions for 20 years. However, the investors in Panama real estate for sale should pay a 2% transfer tax at the time of the sale of the titled property. Apart from Law 8, the Panama Law 54 also offers protection to foreign investment in Panama real estate listings and Panama rentals. Under this law, foreigners enjoy the same rights as local citizens. They are allowed to possess all profits of their investments and repatriate capital dividends, profits, and interest accrued on their investments without any restrictions. However, the investors should comply with Article 16 of the Law 54, which imposes certain compliance stipulations on international real estate investors. This article should be studied thoroughly by international real estate investors before putting their money in Panama real estate for sale or Panama rentals. Still, the positive gestures of the Panama government to international investors provides ample scope for profitable Panama real estate ventures both in short-term and in long-term perspectives.
Taylor White is an international real estate investor and leading the charge at International Real Estate Listings the worldwide leader in Panama real estate listings, Panama real estate for sale , and Panama real estate . Panama real estate owners, agents, and developers are encouraged to create an account, upload an unlimited number of listings, write as much creative property details, include a You Tube property video, and it will be activated as a basic listing for 6 months, free.