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Mountain, Beach, and City Life in Paradise

American retirees discovered buying Panama real estate ten years ago with its great variety of choices from mountain hideawys to coastal retreats to penthouses overlooking the Pacific Ocean in Panama City. Panama links North and South America and is roughly the size of North Carolina. It combines jungle with mountains, scuba diving with walks along the beach, shopping modern malls with eating in fine restaurants.

You can purchase beach property in the Provinces of Chirqui, Los Santos, Herrida, Panama, all on the Pacific Ocean, Veraguas on the Pacific and Caribbean, and Bocas El Toro or Colon on the Caribbean.

Mountains down the spine of the country from Chiriqui and Bocas del Toro to the province of Panama provide hidaways or, if your prefer, gated communities with security reminiscent of the USA.

If you prefer the activity, shopping and night life of the capital city, Panama has penthouses overlooking the Pacific Ocean and homes on shaded lots in San Franciso and el Dorado. The capital city has malls to compare with the USA as well as shopping in the calles of Calidonia to match any trip to Mexico. Restaurants include mom and pop operations with sancocho and arroz as well as elegant Italian cuisine in el Cangrejo.

Value of Real Estate in Panama

Although housing costs have gone up in the current real estate boom there is still great value to be had in Panama real estate. Prices throughout the country are still below comparable properties throughout the Caribbean not to mention in the United States and Europe.

You can find apartments overlooking the Pacific outside of the capital city for $40,000 as well as penthouses in the upscale neighborhood of Paitilla for $450,000. Beachfront and interior land is still available at competitive prices for building your own dream home in this tropical paradise.

Tax Breaks on Panama Real Estate

New housing is free of property taxes for up to 15 years. An older property appraised at $100,000 is taxed at 1% of $100,000 minus $30,000, namely $700 a year. In addition, Panama Law 8, provides many incentives for developing ecotourism projects including write offs of income taxes and property taxes for as many as 15 years.

You pay income taxes in Panama only on income earned here. If you do work here the rates are much better than the USA. They start with 2% on your first $3000 and work up to a 30% tax rate for $200,000 a year.

The New York Times says:

[despite] the price increases, property here remains a fraction of what one would pay for similar real estate in the United States. And with enticements like a 20-year suspension of property taxes to those who build houses or renovate in a historic district, and an income tax hiatus for those starting some small businesses, the opportunities are appealing not only for those seeking a place to retire but also for entrepreneurs.

Come look at Panama real estate and investigate the mountains, beaches, and city life. Look at the value and tax breaks you get for buying property here in paradise.

NY Times article