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Please email questions to keisha@propertymaven.com.  I'll answer them here, so check back daily! Note: Upon publishing this article, I heard from a few developers working in Panama! Please note their perspectives in the comments section. 

Pam asked...

Q: "Ed and I, and maybe our Georgia families, are interested in possibly purchasing a vacation home/condo in Panama. We have heard great things about living there that has sparked an interest -- things like NO PROPERTY TAXES for retirees for the next 20 years. What are your thoughts??"

 A:

My initial question was Panama like Panama City Florida, or Panama, like the Central American country with the Canal?

Now that I have that cleared up, here are my thoughts on retiring abroad, and in Panama specifically. Also, don't pack up and move just yet!  There ARE property taxes in Panama, but there are specific ways you can have zero tax. I will also talk about property taxes, and how they work at the end of the article.

Research U.S. relations... 

First, it is  important when considering retirement in another country to research the historic relationship of that country and the United States.  Panama and the United States have a long history that spans from getting a voted President in office, to having a say in the restructuring of the Panama Canal.  A good place for research is Wikipedia.  Click on that link to read about Panama and the U.S. Also be sure to research the cultural differences.  This article notes some of the cultural differences that may drive an impatient person crazy! 

Real Estate Market.... 

Next, know that the town of Boquete (Panama) received the designation of being one of the best places to retire in the world in Modern Maturity magazine a few years ago.  Following the article, many people erected websites advertising Panama real estate, and Panama as a point of attraction was born!

As a result, real estate prices increased, but property is still affordable, and the retirement benefits are extremely enticing. There are however, taxes on property, but they are discounted.  (see below)

Highligts.... 

Take a look at some of the highlights I found on retirement in Panama.

1. Panama has an infrastructure much like the United States.  In that way, it should feel familiar, and not very foreign for U.S. citizens.  The currency is even the U.S. dollar.

2. In an effort to encourage investors, Panama does not have many qualifications, permits or restrictions. Edit: I received an email from a developer in Panama who says that times have changed, and that there are requirements that can take up to a year to meet!  No more easy rides, the cat is officially out of the bag!!

3. Foreign property owners in Panama are afforded the same rights and protections as citizens.  

4. Panama has beachfront and waterfront properties that will remind you of any coastal resorts or vacations, just without the high price. 

5.  The weather is warm, and spring like.

6. Panama has the Pensianado program* which affords discounts and benefits to those who qualify.

Property Taxes.... 

For real estate, there are property tax exemptions that apply on a sliding scale, according to the property value.  However, it's true that if you buy land, and build a new property, you will be exempt from property taxes for 20 years.  This isn't a retirement benefit, it's just the way the country operates to encourage new construction!

There are many, many more things to discuss about Panama, but I hope this answers your question and gives you a little information on Panama.  Have fun exploring this opportunity, and be sure to invite me to your offshore housewarming if you do decide to buy! 

*Panama's Pensianado program* is designed to offer discounts on services like healthcare, entertainment, hotels, meals, closing costs (50% discount),home loans, and more.  These discounts can be claimed by anyone who qualifies for the Pensianado program, and you do not have to be retirement age to qualify.  If you are 18 or older, and  receive a pension, disability, or Social Security, you can qualify for the Pensianado discounts.