As a receiver of the greatest amount of foreign investment in the region, Panama has developed a highly desirable real estate market. A modern city, first world touristic developments and most of all the same benefits for locals and foreigners.
The arrival of foreigners to the country, given the high volume of investment that the country is presenting in the last few years, has created a real estate market with great opportunities for the investor, especially foreigners.
Similar to how some have decided to invest in permanent residences, there is another group of foreigners that, taking advantage of the benefits that the country provides and its stability, aim to invest in some sort of living through the so called “residential tourism”, which is estimated to have reached around 10 thousand millions of dollars last year.
The only difference that there is today between the Panamanian and the foreign investor is that while the first has to pay 10% of the initial cost, the second has to pay 30%.
Given the financial stability of the country, the tax benefits that Panama provides and high revaluation of properties, the real estate business is a good option for those looking to invest.
Some important aspects to take into consideration:
- There is a wide array of banks (national and international) where the buyer can ask for a mortgage.
- The payment terms are up to 30 years.
- Depending on financial background, the payment plans can extend up to 30 years.
- Similar to the previous case, 80% of the property value can be financed.
- Life and fire insurance are required for purchase. Life insurance is extensive up to 75 years of age, which can limit the time deadline of the loan.
This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.
