Tax joy for Panama investors

Property investment in Panama is set to become even more attractive for overseas buyers…

Housing Minister, Balbina Herrera, recently announced that the country will be extending its 20 year property tax exemption for foreign investors. Those who purchase property developments with building permits issued prior to 31st December 2009 will be exempt from paying any taxes on property transactions carried out in Panama until 2030.

According to Jose Boyd, president of the Panamanian Real Estate Association, (Asociación de Corredores de Bienes Raíces – ACOBIR), “What this does for the industry is fantastic. This does not just apply to new buildings and covers existing colonial style structures as well and will appeal to lifestyle, retiree and the pure investment buyer.

Panama in a ‘privileged position’

He added: “This puts Panama in a privileged position in the Central American real estate community as our neighbours are having a hard time in the current economic climate and this is creative and shows the world that we are a happening and serious location for international property investment .” analyst, Sara Romera, concludes: “ Panama City centre property performs immaculately in the investment scale – property appreciates well as in other quality negatively geared investments yet cash flow income returns are apparent.”

“The country boasts increasing visitor numbers, 85% of which remain in the city centre during their visit. The strong influence of the Canal is apparent, accentuating the city’s status as a commercial hub, offering a gateway between the Atlantic and Pacific Oceans .”