Nestled between the Panama Canal on one side and Panama City on the other Casco Viejo is the oldest city on the Pacific Coast of the Americas. From its humble beginnings nearly 500 years ago, Casco Viejo is acknowledged as the city's most recognizable suburb, located in the district of San Felipe. While this historic community has lost its economic importance with the expansion of Panama City, Casco Viejo still captures the hearts and imaginations of many, appearing songs, poems, videos, television commercials, and other elements of the city's daily life. Now Casco Viejo is one of the country's most popular tourist attractions, frequented by tourist guides and photographers alike.

Through decades of neglect, this incredible area fell into disrepair. The government decided to stop that trend and Panama real estate incentives and laws were created to restore the beauty of this historical area. Investment law No. 9 was written to encourage restoration in this famous and important district.

Law No. 9 was established for the restoration and improvement of the Casco Viejo area of Panama City. This law was issued on August 27, 1997. Law No. 9 represents important Panama real estate incentives and laws in the restoration of the city's bienes raices. This investment law has the following features:

1. Past legal provisions in place for Casco Viejo were modified in order to extend the protection area to include part of the neighborhoods of Santa Ana, Salsipuedes, and part of the Terraplén.
2. A detailed classification of the protected properties was developed, including explanation of the usage and type of restoration that will be permitted to be carry out in such properties. Such factors as their architectural, historical, and environmental characteristics had an effect on the work required or allowed.
3. A system of mortgage loans with preferred interests is established for the restoration of real estate in the area of San Felipe.
4. A property tax exemption was awarded to the owners in Casco Viejo at the moment of they took ownership of their properties.
5. Capital gains on these properties were made exempt from income tax.
6. A 30 year real estate tax exemption was approved for land and improvements of restored buildings.
7. The owner at the completion of the building's restoration received an exemption from the real estate transfer tax up its resale.
8. The profits generated by commercial, professional or industrial in Casco Viejo have a 10 year tax exemption.
9. The equipment and materials used in the construction, restoration, and equipping, will be exempt from the Import Duties.
10. For 5 years, tenants of the properties in Casco Viejo can deduct their rent from their income tax
11. Those buildings destined for public parking will be exempt from the Income Tax for a period of ten (10) years.
12. An indemnity payment was established for those tenants of apartments in Casco Viejo who had to vacate the property because of any restoration.

The Spanish term for real estate is "bienes raices." In a location with a rich Latin and Spanish history like Casco Viejo, nothing could better describe Panama real estate. Incentives and laws like Investment Law No. 9 show that Panamanians value both their rich tradition and the real estate that is a living representation of it.