Volcan, Panama is an alpine village misplaced in the tropics. This little community sits near the base of Panama’s highest mountain, the extinct volcano, Volcan Baru. With a year round temperature ranging between 55 and 78 degrees Fahrenheit, Volcan fits the Central American desciption of such locations as “the land of eternal spring.” Real estate in and around Volcan is available for retirement living in Panama and for farming as much of Panama’s flowers and coffee are grown in the Chiriqui highlands in and near Volcan.

Less known than Boquete, Panama, Volcan is more scenic and has better sense of open spaces than the valley where Boquete is located.

The Volcan area is ideal for hiking and mountain biking for those interested in such pursuits. The area, especially, Volcan Baru National Park, is world famous as a birding destination. People come from all over the world to see birds that you can see in your back yard in Volcan.

If such things a white water rafting interest you this part of Panama has a number of outfitters ready to take you on the Chiriqui and old Chiriqui Rivers where you can find Class 4 rapids during the rainy season from May to December.

Volcan is about forty miles from David, the provincial capital and commercial center of Chiriqui Province. Half the distance is on the Pan American Highway. For someone interested in  an active retirement this location is ideal year round. And, like all places in Panama, the capital city, Panama, only few hours away for first world shopping, entertainment, hotels, and restaurants.

Volcan, in many ways, offers the best of all worlds for residency in Panama.

Panama’s immigration services has announced an extension of hours, both at the immigration offices and at port facilities in Colon. The Colon facilities will see be open around the clock and the Avenida Cuba immigration office employees will be available to clients from 8 am to 5 pm.

The primary and on going complaint regarding getting Panama residency is the long lines at the immigration office and the long waits between visits. It is unclear if longer hours servicing those looking for visas will translate into shorter waits or not. Nevertheless the longer hours seem to be a step in the right direction.

Panama’s old residency requirements were updated in August of 2008 making residency in Panama more expensive but still realtively easy. The only complaint one hears is the time it takes to process papers.

Retirement in Panama beats the other choices in Central America.

The Latino news outlets are reporting that deposed Honduran president, Manual Zelaya, is camped out on the Nicaraguan/Honduran border trying to convince the border guards to let him enter Honduras and not arrest him. Zelaya was deposed by the military a few weeks ago causing a big flap and a reminder of the civil wars and coups that plagued Central America for much of the 20th century.

Since the ouster of military stongman Manuel Noriega Panama has had a democratic government and laws very friendly to foreign investment, foreign tourism, and foreign retirement with residency in Panama. Unlike Honduras where Zelaya started talking about abolishing presidential term limits on the way to being another “president for life” like Hugo Chavez in Venezuela, Panama just saw the ruling party lose the elections and step aside as Ricardo Martinelli’s administration took over.

Unlike Daniel Ortega, who is back in power in Nicaragua and trying form new regional power blocks, Panama’s presidents tend to stay home and mind the store. When Panama’s presidents visit neighboring country it is often to help negotiate contentious local issues as Panama is respected throughout the region. A case in point is the smoldering vestiges of a civil war in Colombia and Panama’s past president talking the both the government and the FARC rebels.

If you talk to North Americans who have chosen retirement in Panama you hear a recurring theme. They had a vacation home in Belize (or El Salvador or Nicaragua or Honduras or Costa Rica or Guatemala or Mexico) and over time they liked the place less and less. The common complaint about other Central American countries is that the services and infrastructure don’t work and you cannot find common consumer goods. In addition high crime rates are a problem, compared to Panama.

These same Panama retirement types will tell you that every year they have been in Panama they like it more and more. Panama has the Latino flavor and lifestyle, as well as a tropical climate, that people want but also has a working infrastructure. In Panama City the malls have pretty much everything that you will find in a North American mall and typically for less.

Business Week just ran a set of retirement articles. Guess who they refer to as the “New Florida.” Yep, it is Panama.

For anyone who has spent a little time in retirement in Panama there is nothing new in the article. Anyone who has found retirement in Panama knows about low prices, retiree discounts, the gorgeous climate, the laid back lifestyle, and the first world infrastructure.

But, for those who do not know Panama a reputable source such as News Week may convince more people to travel to Panama to take a look.

With Panama real estate prices in “pause mode” there are exceptionally attractive deals right now for the smart investor. Panama has announced a reduction in electric rates which will ripple through the economy helping to keep prices down.

With discounts on everything from doctor visits to airline tickets retirement and residency in Panama is still a deal that you will not want to pass up.

There are a number of reasons for obtaining residency in Panama and all of them require that you proceed legally. However, there has been a little “side business” running a counterfeit document ring from inside of the Tribune Electoral, the Passport Department, the Public Ministry, and the Judicial Investigation Directorate. Apparently these folks have been selling counterfeit passports, identity cards, and drivers licenses.

According to the senior Anti-Organized Crime prosecutor, Jose Ayu Prado, seventeen people have been arrested, some public employees and some foreign nationals. The problem extends beyond Panama in that a Panamanian passport will allow its holder to enter other nations, including the USA and Great Britain.

It is often frustrating to deal with immigration issues in Panama. The system is tedious and often just seems to be a money making machine for Panama. However, to gain residency in Panama whether for retirement in Panama, business in Panama, or to rent or purchase real estate in Panama you need to have the appropriate documents. Anyone who tried to cut corners in getting their residency visa in Panama may have problems as this investigation moves forward.

For those with residency in Panama yesterday was a holiday as Panama swore in its new president, Ricardo Martinelli. Martinelli is a US educated son of Italian immigrants. Owner of the Super 99 supermarket chain as well as other business ventures, Panama’s new president is variously hyped as a tycoon or magnate instead of a businessman. He is repeatedly referred to as “pro business.” So, for those living in Panama, what will be the differences in a Martinelli administration?

For starters the recession worldwide has slowed down business in Panama. The new administration will need to start out being more frugal which Mr. Martinelli admitted in his inauguration speech yesterday. Also, previous administrations have been “pro business.” What Martinelli seems to want is a level playing field with his flat tax proposeal. That will indeed be pro business if it favors effecient businesses instead of vested interests.

Martinelli believes in projects to create jobs. Martinelli wants to push forward with a metro system for the capital and continue the Panama Canal Expansion. Along with his desire to reduce the size of government Martinelli wants to give raises to public workers.

Martinelli wants to improve the rehabilitation aspects of Panama’s prison system to that they will not be “schools for criminals.” In his campaign speeches he promoted the idea of separating first time offenders from the general prison population.

The new president promises to work closely with Mexico and Colombia in dealing with the drug cartels.

So, how will this play out for those of us living in Panama? At lot of what a new government wants to do depends upon the money to do it.

With the Panama real estate market still in its “pause mode” some of the stimulus for new jobs is waiting for next year. World trade is down but the stats from the Panama Canal reassuring with no more than a 5% drop in traffic by year’s end before things start to pick up. The recent news that there has been an uptick in trade in the Colon Free Zone is encouraging.

What about differences for foreigners with residency in Panama? There is no talk of changing Panama residency laws nor did Martinelli talk about changing banking laws to change offshore banking in Panama.

In all likelihood some of the possible changes will have to do with the attitudes of the people whom Martinelli appoints. If their focus is efficiency and riding Panama of the stigma of government corruption we will likely see a more efficient government.

If Martinelli can find the funding for a metro system it will provide jobs, prosperity, and opportunity in the investment and real estate market in Panama for years to come.

In the meantime Panama residency still means living in a tropical paradise.

Panama will have a new president as of July 1.

For the first time in twenty years of democratic elections the candidate is not from one of the two major parites. Ricardo Martinelli is a successful businessman who is promising “democratic change.”

It would appear as though there will be

no major changes in Panama real estate investment laws regarding foreigners in Panama

nor in rules for

Panama Residency

or travel.

On the matter of travel more cases of swine flu are being noted world wide. However, the cases outside of Mexico have not carried a highg rate of fatalities.

In all likelyhood Panama travel will not be curtailed nor will we see a big drop in tourism once the milder than anticipated flu is noted.

What is notable today is that Panama has had twenty years of democracy and twenty years of progressive economic success.

The banana industry is under stress in Panama. In fact, the press reports that Panama’s largest exporter is negotiating a partial buyout. For an investor interested in real estate in Panama’s Chriqui Province a small banana plantation could be just the thing to provide an investor visa and an interesting life in Panama’s interior.

The Panama investor visa requires an investment of $160,000 and that you employ 5 workers (Panamanians) full time at minimum wage or better.

There are many business opportunities in Panama. We offer this example.

Panama production got more complicated in Panama in the 1960′s when a strain of fusarium mold attacked the only export variety. Since that time growers throughout the world have diversified their production varieties and the judicious use of fungicides. There would appear to be room in this mix for more diversification and less use of chemicals.

Panama grows most of its food, including bananas in its Arco Seca, the dry arch. While we think of Panama as a rainy country it does get dry at the end of Panama summer and without irrigation crops such as bananas are threatened.

With banana producers needing cash infusions it is likely that there will be land for sale at bargain prices. An investment in land, an irrigation system, and planting more banana varieties to lessen disease risk could be a successful business plan.

Real estate, Residency, Business, and Panama

Our point is not necessarily that you start growing bananas but that if you want to live here it does not hurt to think “outside the box.”

Purchasing real estate in Panama’s interior and running a small business could provide you with a visa. Then you can buy the abandoned farm up the hill, build a home, and sip your Panama coffee while you watch the sun come up over the Caribbean. Think about it.

We have started a series of articles on moving to Panama. Number 101 talks about getting a residency visa.

If you are married to a Panamanian national or permanent resident this makes the process easier. However, before you leave home their is one more set of paperwork to obtain. Pick up copies of your old marriage license and your divorce decree. If you are going to get married in Panama you need to prove that you got divorced first!

Hope you enjoy our series on moving to Panama. Next we will talk a little about Panama real estate.

For the last ten years Americans in increasing numbers have been moving to Panama to retire making Panama the premier retirement destination in the world. Retirement property values are still very competitive with the US and Europe as well as the Caribbean. In fact the is a current pause in the high end of the Panama real estate market providing excellent buying opportunities.

Panama is at the junction of North and South American. Close to one forth of world trade passes through the Panama Canal and Tocumen airport near Panama City is fast becoming the major Latin American hub. Panama has a democratic government and Americans can own retirement property here. The economy in Panama is thriving and Panama has roads, telecommunications, and shopping comparable to the USA. Business publications refer to Panama as having first world infrastructure.

Retirement property in Panama comes in varies shapes and sizes. You can purchase a condo overlooking the Pacific Ocean in Panama City and from your Panama retirement property watch container ships on the horizon come and go from the Panama Canal. From the same condo you can take a short taxi ride to any of a number of shopping malls comparable to those in the USA.

For those looking for an escape from the city there is Boquete in Chiriqui Province near to the Costa Rican border. This area is mountainous and a magnet for ecotourism. At about 3000 feet Boquete, Panama retirement property is less humid than the coastal areas and the nights are pleasantly cool. There are retirement property developments in Boquete and similar inland sites bringing all of the amenities of modern living to paradise.

Retirement in Panama

Retired persons in Panama, Panamanian or foreign residents, are entitled to a large number of discounts. These include prescriptions, medical visits, restaurant bills, your light bill, lodging and so forth. By the way, many Panamanian medical specialists are US or European trained making Panama a center for medical consultation through all of Latin America.

Residency is easy and inexpensive in Panama. If you have any questions contact us at ABPanama and we will be pleased to recommend a competent bilingual attorney to help you with the paperwork.

This article is the first in our series of updates on How to Move to Panama. Here we deal with the issue of a permanent visa or residency in the Republic of Panama. Panama real estate is the goal but there are a few steps before you get there.

Unless you are born here it is essentially impossible to become a citizen of Panama. That means you cannot vote nor hold office. However, you can own property, do business, enter and leave the country without difficulty, enjoy all of the same rights under law as a native born Panamanian.

The Panama residency laws were updated in 2008. Anyone who started the process before the end of August 2008 will continue under the old residency law which is basically less expensive than the new.

You need to use a Panamanian lawyer for the paperwork even if you understand all of the laws and speak fluent Spanish. Legal fees are governed by law and run around $1,500 for all expenses directly related to gaining residency, including legal fees.

Be aware that if you are using the attorney to set up  bank accounts, a Panama Bearer Share Corporation, or a Panama Private Interest Foundation that these fees are separate. Also, if you chose one of the residency options whereby you start a business or buy property those expenses are decidedly extra.

The five basic means of obtaining Panama residency are as follows:

Pensionado Visa

Private Income Retiree Visa

Person of Means Visa

Reforestation Visa

Investor Visa

For All Visas:

Before you leave home you will want to pick up a certified copy of a police report from your local police precinct. This is to certify that you have no arrests nor convictions of a crime in the last five years. You will send this to the Panama Consulate in Houston, TX and they will return it to you. You will present the envelope from the consulate to your lawyer unopened.

Send the certified police report by UPS or Fed Ex to be returned to you the same way. If you do this from Panama then this step is especially important as getting mail in Panama, for newcomers, can be difficult.

Consulate of Panama in Houston
24 Greenway Plaza, Suite 1307
Houston, Texas 77046

713 622 4451

The report should be from wherever you have lived for the past five years.

If your passport is soon to expire (six months or less) renew it.

You will need certified proof of you means of income if you are applying for one of the two retirees visas, pensionado or private income retiree. Get this at your social security office or private pension office before you leave.

Make half a dozen copies of the signature page of your passport as well as your police report before you send it to Houston. Panama has a way of always wanting more copies of your documents.

Get a set of 6 passport photos also although these are not hard to obtain in Panama.

Pensionado Visa

If your social security check is $1,000 a month or more plus $250 a month per dependent you can apply for a Pensionado Visa. The cost will be around $1,500. You will need to prove every year that you still are receiving your pension.

Private Income Retiree Visa

This is for retirees with private pensions or income. Like the pensionado visa you will need to prove the source of income with a certified copy showing what you get each month. Retirees without a pension but a lump sum distribution at retirement can deposit a five year CD with the Panama National Bank (BNP) sufficient to yield at least $750 a month.

Person of Means Visa

This option requires a CD of $300,000 in a Panama bank for three years or a $300,000 cash down payment for purchase of property. This investment leads in one year to renewal and a permanent visa with the right to a cedula or identity card.

Panama Reforestation Visa and Panama Residency

With the change in law the temporary reforestation visa is $60,000 minimum with a 10-hectare requirement. The permanent reforestation visa costs $80,000 and you need to reforest 20 hectares. A hectare is two and a half acres so that is 50 acres. This is a popular means of obtaining a visa but you need to follow through with the project.

Panama Investor Visas and Panama Residency

The Panama investor visa requires that you invest $160,000 and employ five Panamanian workers full time at minimum wage. You will need to continue to run the business and hire the workers to keep this visa.

If you have questions contact us at ABPanama,011 507 209 0909

from outside the country, and 209 0909 in Panama. We will be pleased to recommend a competent bilingual attorney to handle your paperwork. Nevertheless, the more you do before leaving home the easier and faster things will go in Panama.

ABPanama is a bilingual realtor headquartered and licensed in the country of Panama. We have over 23 years experience managing real estate portfolios and do business throughout the country.

Visit our web site for general and specific information about Panama, investments inreal estate in Panama, residency and residential real estate

in Panama as well as services as diverse as medical tourism and help with relocation to Panama.

On this blog we cover topics of the day as we believe our clients are best served by being knowledgable about more than just the price of commercial real estate in Panama. Regarding real estate in Panama we take a proactive approach to our clients’ real estate investments. We will help you get into targeted commercial real estate investments and we will tell you when it is time to sell.

Please enjoy our blog and please let us know what you think. Better still drop on by our office to chat. If you need directions call us at 209-0909 (011 507 209-0909 from outside of Panama). The phone is answered in Spanish and English.

One way to gain Panama residency is by investing $160,000 in a business and employing 5 Panamanian workers at minimum wage. The type of innovative project mentioned here can not only provide residency for an expatriate but can be a profitable undertaking. There are certainly worse things in the world than working and making a nice living while living in a tropical paradise.

Panama investment can lead to Panama residency. Panama offers many investment opportunities from real estate purchase and leasing to starting your own business. Pristine Oceans, a Panama Company, has received a government grant of $150,000 to help start an aquaculture project near Colon, Panama. This is the sort of interesting project that can lead to profits, residency, and a happy life in paradise.

Pristine Oceans, SA is working with the United States firm, ETI, out of Seattle, Washington, developing a means of cultivating a deep water fish in the ocean as opposed to using land based aquaculture. The first caged “fish farm” will be a set of corrosion resistant enclosures submerged in the waters off the Panama Caribbean coast near Colon. The enclosures will be at depths normal for this the type of fish, a coiba, which is a popular restaurant fish.

This kind of fish is prone to disease when raised in on land fish tanks. Thus the current technique is an option.

Panama Real Estate Investment and Panama Residency

If you are not interested in running a business in Panama you can still buy and lease commercial real estate to those who do. Panama is a democratic country with a free press. Panama has the highest per capita rate of foreign investment in Latin America. Despite a world wide recession Panama is doing pretty well. Panama’s economy grew by 9.2 percent in 2008 and Panama added jobs while the USA and Europe had shrinking economies and layoffs.

If you are interested in commercial real estate opportunities in Panama or are interested in more information regarding Panama residency through the Investor Visa Program contact us. We are bilingual, have over 23 years experience managing real estate portfolios, and do business throughout Panama.