Panama is located in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Columbia and Costa Rica, forming the lowest and narrowest portion of the Isthmus linking North and South America. It maintains an inviting tropical climate ~ on average, 85 degrees year round, and between 70-85 degrees in the mountains.
Modern Panama City is set on beautiful Panama Bay, & has a prosperous business district, a first-world infrastructure including 100 banks, a lively nightlife, a fantastic restaurant scene and the only rainforest within city limits in the world- the Metropolitan Natural Park. Countless beautiful residential neighborhoods add to the cities charm. It is also one of the safest cities anywhere.
Because Panama City is historically an international crossroads, its people are accustomed to visitors and are some of the most friendly and helpful in the world. More than 80% of the population over 10 years old is literate, and the majority of people in Panama City and Colon (Panama's second largest city), are fully bilingual.
Panama is a peaceful country with no military, and personal securities concerns are low among residents. Previously ranked as one of the world's freest economies, Panama is a member of the World Trade Organization (WTO) and a beneficiary of the Caribbean Basin Initiative (CBI).
Property of all types is available in Panama for surprisingly less than U.S. real estate and that of other popular tropical destinations. During the closing of a real estate transaction in Panama, the costs generally assumed by the buyer include notarial services, registration fees, legal expenses and banking expenses. The seller pays the tax on the transfer of real property, which cooresponds to approx. 2% of the sale price or cadastral value of the property. The seller also pays the income tax for the profit generated from the sale. Typically, this tax is about 10% of the total profit, however it is strongly advised that you consult an in country fiscal advisor for information about this tax.
The creation of a Panamanian corporation, or any other offshore vehicle or foundation is suitable for the ownership of property. Including legal expenses, it only costs approx. $1,000USD for the incorporation of a company or foundation. To come into possession of the property, the buyer must complete property registration with the Panamanian Public Registry, a process that takes about 10 days to fully process. For $250USD, in addition to the registration fee, you can have this processed with priority.
Another excellent benifit offered by the Panamanian Government allows properties to enjoy a period real estate tax exemption, depending on their total value, as follows: up to $100,000USD is exempted for 15 years; above $100,000USD & up to $250,000USD is exempted for 10 years & those having a value exceeding $250,000USD are exempted for 5 years. Projects that recieved their construction permits before September 1, 2006 were granted 20 years of tax exemption, regardless of the value of the property, on condition that the registration of the improvements is performed before August 31,2007.