Easy, breezy, beautiful - U.K.'s Living Abroad magazine

Easy, breezy, beautiful

April 2010 Issue 

 

Whether you’re an entrepreneur looking for an investment or a retiree looking for the quiet life, Panama has something for everyone, says Isobel Palmer

Is Panama the 21st-century version of Shangri-La? For those approaching retirement, in possession of an average income, love of nature and tropical climate, plus an easy-going attitude to life, it certainly looks that way.

For this little Central American jewel – it’s smaller than Scotland – combines topping quality-of-life indices with an unparalleled scheme of incentives and perks for pensioners. Tax relief is a huge part of this, and is fundamental to retirement planning of course, but how about 25% off airfares; 25% off restaurant meals; 10% off prescriptions; 20% off professional and technical services?

All you have to do is qualify for the government’s “pensionado” programme by proving you have a guaranteed income of a certain amount. The only age limit is 18. Yes, 18.

This nation of around three million clearly plans to stay culturally and racially diverse, judging by its incentives for foreigners. These include paying no tax on foreign-earned income and escaping property taxes for 20 years if you build a new home. There’s another 20-year let-off on income and real estate taxes.

An American-style infrastructure has developed, thanks to their control of the Panama Canal until 1999. This lends a comforting familiarity to some areas of life – good roads, reliable phone lines and high-speed Internet.

The low cost of living will also be a surprise. The Panamanian “Balboa” is in reality the US dollar but it is a buck with much more bang. Taxi rides around the capital come in at $5; a beer on the beach, 23 cents; department stores carry US lines at much cheaper prices.

A country enjoying new political and economic stability is beginning to appreciate the value of tourism. As web entrepreneur Matt Landau says: “Panama has always been focused on its canal trade and banking.” The 27-year-old from New Jersey adds that the last four years have seen huge changes. His information and real estate website, www.thepanamareport.com, now receives 60,000 visitors a month. “I’ve also opened a guesthouse in my neighbourhood to meet demand in what is an up-and-coming area – Casco Viejo. I come across a lot of Brits around here – they like the colonial feel.

“Because there are all these niche markets left unexplored, this is an entrepreneur’s paradise. I can’t tell you how many expats have come out of retirement because there are so many opportunities.”

Drawn by bio-diversity which almost equates with the Galapagos Islands, empty white beaches and welcoming natives, incomers were quick to take advantage of bargain prices. Suddenly neighbour Costa Rica was so last year.

For physical proof of Panama’s boom, it’s hard to miss Donald Trump’s first investment in South America – a $260 million, 70-story condo and hotel tower reminiscent of buildings in Dubai and featuring a pool, spa, shops, restaurants, casino and business centre. It’s due for completion in August so check out www.trumpoceanclub.com and our featured agents for more.

Trump chose Panama City for his location and with its impressive cityscape, shops and culture, this is a good place to begin your property search if a serviced apartment or condo is your goal. Jaime Figueroa-Navarro, of Panama All in One (www.panamaallinone.com) is dealing with the Trump Ocean Club development, amongst an impressive portfolio of properties on the Pacific coast and in the Highlands, where the property is mainly villas. He says British investors seem particularly drawn to these cooler climes, which are also quieter. Places to consider include Boquete and El Valle.

He says: “Many Brits don’t know about Panama and what a fun place it is. We have a different vision of life – we are on this earth to enjoy ourselves.”

Read more in the April 2010 issue of Living Abroad magazine or review link: http://www.livingabroadmagazine.com/property-section/property-articles/366-201004panama