Exclusive apartment just in front of Santa Maria’s golf, the most exclusive community of Panama, this incredible apartment is a jewel of Panama Real estate with 3 wide bedrooms and a huge balcony with an incredible view of the Santa Maria golf court.
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Panama has long been known as a tropical paradise with its pristine beaches, lush rainforests, and warm climate. But it’s not just a popular tourist destination. In recent years, Panama has also become a hot spot for real estate investment. In this article, we will explore the ins and outs of investing in Panama real estate.
Why Invest in Panama Real Estate?
There are several reasons why Panama is an attractive location for real estate investment. Firstly, the country has a stable political and economic environment. Its currency is the US dollar, which provides a sense of security for foreign investors. Secondly, Panama’s real estate market is booming due to its growing economy and tourism industry. This means that there is a high demand for properties, especially in popular areas such as Panama City, Coronado, and Bocas del Toro.
Panama also offers tax benefits to foreign investors. There is no capital gains tax on the sale of the property if the property is held for more than two years. Additionally, there is no property tax on the first $120,000 of a property’s value, making it a cost-effective option for investors.
Types of Properties
Panama offers a wide range of properties to choose from, ranging from luxury condos in Panama City to beachfront villas in Bocas del Toro. The most popular types of properties include:
Legal Requirements
Investing in Panama real estate is relatively straightforward for foreign investors. However, there are some legal requirements to be aware of. Firstly, all transactions must be conducted in Spanish, so it’s recommended to work with a local attorney to ensure a smooth process.
Foreign investors can purchase properties without the need to be residents but can take benefits of the real estate purchasing obtained through this one residency. This can be obtained through a lawyer.
The Panama real estate market has been growing at a steady pace over the past decade. According to the Panamanian Association of Real Estate Brokers and Developers (ACOBIR), the real estate market in Panama grew by 2.2% in 2020 despite the pandemic. This growth is expected to continue in the coming years, making Panama real estate an attractive investment opportunity.
One of the primary factors driving the growth of the real estate market in Panama is the country’s strong economy. Panama has one of the fastest-growing economies in the region, with an average GDP growth rate of around 5% over the past decade. This growth has led to a rise in disposable income and a growing middle class, which has fueled the demand for housing.
Another factor contributing to the growth of Panama’s real estate market is the country’s favorable tax regime. Panama has a territorial tax system, which means that individuals and companies are only taxed on income generated within the country. This has made Panama an attractive destination for businesses and high-net-worth individuals seeking to minimize their tax liabilities.
Additionally, Panama has a stable political environment, which has instilled confidence in foreign investors. The country’s legal system is based on the civil law system, and its property laws are investor-friendly. This has made it easier for foreigners to invest in the country’s real estate market.
Panama also offers a wide range of real estate options, from luxurious beachfront properties to modern apartments in the city. The country’s real estate market caters to a diverse group of buyers, including retirees, expats, and investors. Furthermore, Panama’s real estate prices are relatively affordable compared to other countries in the region, making it an attractive investment opportunity.
Investing in Panama’s real estate market can also provide attractive rental yields. According to ACOBIR, rental yields in Panama range from 4% to 7% per annum, depending on the type of property and its location. The country’s growing economy and stable political environment make it a safe and attractive place to invest in rental properties.
In conclusion, Panama’s real estate market is a promising investment opportunity that offers a stable and investor-friendly environment. The country’s growing economy, favorable tax regime, and stable political system make it an attractive destination for investors seeking to diversify their portfolios. With a wide range of real estate options, affordable prices, and attractive rental yields, Panama’s real estate market is worth considering for investors looking to invest in the Latin American region
In conclusion, Panama’s real estate market is a promising investment opportunity that offers a stable and investor-friendly environment. The country’s growing economy, favorable tax regime, and stable political system make it an attractive destination for investors seeking to diversify their portfolios. With a wide range of real estate options, affordable prices, and attractive rental yields, Panama’s real estate market is worth considering for investors looking to invest in the Latin American region, regardless if you are looking for a luxury condo in the city or a beachfront villa, Panama has something to offer for everyone.
Panama’s real estate market has been on a growth trajectory in recent years, and this trend is expected to continue in 2023. Despite the challenges posed by the COVID-19 pandemic, the Panamanian Association of Real Estate Brokers and Developers (ACOBIR) predicts a positive outlook for the real estate sector in Panama.
The Panama Canal expansion project, completed in 2016, has boosted the country’s economy and created new opportunities for real estate development. The expansion has led to increased demand for infrastructure and commercial real estate, particularly in Panama City.
According to ACOBIR, Panama’s real estate market is expected to grow by 3% to 5% in 2023. This growth will be driven by several factors, including increased foreign investment, a growing middle class, and government initiatives to attract investment in the real estate sector.
One of the primary drivers of growth in Panama’s real estate market is foreign investment. The country’s favorable tax regime and stable political environment have made it an attractive destination for foreign investors. In recent years, Panama has seen an influx of foreign investment in the real estate sector, particularly from the United States, Canada, and Europe.
Another factor contributing to the growth of Panama’s real estate market is the country’s growing middle class. The middle class has been expanding rapidly in Panama, driven by economic growth and rising incomes. This has led to increased demand for housing and commercial real estate, particularly in urban areas.
The government of Panama has also taken initiatives to attract investment in the real estate sector. In 2021, the government introduced a new law that allows foreign investors to obtain permanent residency in Panama if they invest in real estate. This initiative is expected to attract more foreign investment in the real estate sector in the coming years.
Panama’s favorable tax policies and stable political environment make it an attractive destination for foreign investors. The country has a territorial tax system, which means that individuals and businesses are only taxed on income generated within the country. This, coupled with Panama’s investor-friendly property laws, makes it easier for foreigners to invest in the country’s real estate market. The stable political environment and legal system also instill confidence in foreign investors, making Panama a safe place to invest.
Also, the government’s efforts to promote tourism are expected to boost demand for real estate in Panama. The country has been investing in infrastructure, including airports, highways, and hotels, to attract more tourists. This has led to an increase in tourism, which is expected to continue in 2023. With more tourists visiting the country, demand for vacation rentals and commercial real estate, such as hotels and resorts, is expected to increase.
Lastly, the development of the Panama Pacifico Special Economic Area (PPSEA) is expected to drive demand for real estate in Panama in 2023. The PPSEA is a special economic zone located near the Panama Canal that is aimed at attracting foreign investment and promoting economic growth. The development of this area is expected to create new job opportunities, attract more businesses to the region, and drive demand for real estate in the surrounding areas.
In terms of the types of properties that are expected to see the most growth, residential real estate is expected to see growth, particularly in the luxury market. Panama’s luxury real estate market has been growing steadily in recent years, driven by demand from high-net-worth individuals seeking luxury homes and apartments in prime locations.
In conclusion, the forecast for the real estate market in Panama in 2023 is very promising. With a growing economy, favorable tax policies, a stable political environment, a growing middle class, and government efforts to promote tourism and economic growth, the demand for real estate in Panama is expected to continue to increase. This presents an attractive opportunity for both domestic and foreign investors looking to invest in a stable and growing market
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We divide this section in economic sectors as Hospitality, Financial, Factories and General business where you could find business in those 4 economic sectors working and normally operating in Panama City.
All the businesses we promote in this section have been inspected and validated they are having profit in their last 2 previous accounting periods.
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