PanamaTropicalProperties Panama Tropical Properties Hugo Martinelli Real Estate Land Lot Beach House Condominiums Condo Apartment Loft Lodge Penhouse Balcony Sale For Sale Rent Villa Town Hose Mansion Ranch Building Skyscraper Cabin Hostel Hacienda Beach Country Bathroom Bedroom Kitchen Hall Living room Studio Foyer Lobby Elevator Floor Car Swiming pool Restaurant Snack bar Resort Tennis court Convention Center World class hotel Golf course Discoteque Night life Club Horse back riding Jacuzzis Casino Evening show Boutique lodge spa Petite Hotel Inns Ecolodge Hospital Johns Hopkins Trump Organization Frank Ghery Smithzonian Bambito Bananas Village resort Contador Resort Shop Shopping Mall Mall Tour Service Clinic Church Museum Dollar Balboa Lenguage English Spanish Hispanic Huaca Ambulance Embassy Airplane Ircraft Helicopter Charter Bus Taxi Boat Train Aguadulce Anton Boquete Campana Cerro Azul Cerro Punta Changuinola Colón Colon Chitre Chitré Costa Arriba David Punta Barco Bejuco Punta Bejuco El Valle Guararé Tonosi Monagrillo Os Posos Pese EL Caño Potrerilos Guarare Macaracas Las Tablas Los Santos Penonomé Penonome Santiago Volcán Volcan Volcan Baru Chilibre Gamboa Canopo Tower Rainforest Gorgona Avalon Coronado Vacation Holliday Hacienda del Mar Salto del Macho Piedra Pintada Las Mosas Las Mendozas El Níspero Zoo Tropical Park Plaza 5 de Mayo One Man Army Studio Resevation OneManArmyStudio Taborcillo John Wayne Punta Chame Santa Clara Volcano San Blas Archipielago Kuna Indians Decayeron Playa Blanca Melia Canal Sheraton Clayton Albrook Howard Decapolis Caesar Park Crowne Plaza Veneto Hotel & Casino Hotel De Ville Bristol Intercontinental Miramar Courtyard Marriot El Panamá Plaza Pitilla Inn Riande Continental El Ejecutivo Country Inn, El Dorado Country Inn, Canal Granada Albrook Inn Continental Aeropuerto Tower House Suites Royal Plaza Roma Plaza Hotel El Parador Costa Inn Soloy Veracruz Marbella Andino Alamo Apartotel Apartment hotel Mi Pueblito Pueblo Los Pueblos Food Tamal Cutarra Guiro Mejorana Churruca Tortilla Machete Pollera Tembleque Batea Mola Sancocho Patacon Tinaja Totuma Boveda Las Bovedas Casco Viejo Old Panama Cuisine Yachting Yacht Bocas Del Toro Chiriqui Comarca Gnobe Bugle Veraguas Cocle Herrera Los Santos Colon Colón Panama San Bas Comarca Kuna Yala Darien Changuinola Rio Sereno Boquete Concepción Boqueron Dolega Alanje Puerto Armuelles Guanaca Soloy Horconcitos Las Lajas Remedios Bisira Kankintu Hato Pilon Buabidi Cerro Iglesis Chichita Buenos Aires Las Palmas Cañazas La Meza Zona Zora Rio de Jesús Montijo Atalaya Santiago San Francisco Santa Fe Mariato Las Minas Los Pozos Calobre Calovebora Coiba Pcri Pedasi Chire Parita Santa Maria Nata Ola La Pintada Aguadulce Penenome Chagres San Carlos Chame Capira Chorrera Arraijan Portobelo Palenque Isl Grande Isla Cabra Playa La Angosta Playa Langosta El Porvenir Chepo Chiman Wargandi Cemaco Cebaco La Palma Embera Wounaan Chepigana Pinogana Sambu Choco Taboga Samoga San Miguel San Miguelito Cobtadora Teribe Bocota Guami Punta Barco Punta Mala Punta Burica Isla Colon Bahia Piñas Bahia Piñas Pinas Bay Piñas Bay Palacio de las Garzas Goleen Altar Panama Canal Museum Nacional Theater Curundu Diablo La Boca Corozal Paso Conas Paitilla Punta Pacifica Marbella La Cresta San Francisco Bella Bista Calle 50 El Cangrejo Via Argentina Los Angeles La Loceria El Carmen El Dorado La Alameda Dos Mares 2 Mares Las Mercedes Coco Del Mar Atrapa IPAT Panamenian Institute of tourism Villa de Las Fuentes Bethania Betania Obario Obarrio Area Bancaria Banking District Causeway Amador Kigali Convention Center Naos Island Perico Island Flamenco Island Flamenco Shopping Plaza Panama is one of the most beautiful places and one of the newest emerging growth real estate markets on Earth. We enjoy helping good people make their dreams of owning real estate on this magnificent country a reality. Those of us fortunate enough to live here or spend extended time here are truly blessed. Our company believes in working hard to protect and preserve the amaizing enviroment that surround us. We donate both time and money to several Non-Profit organizations. Our firm is smaller than some of the larger brokerages on the country and we like it that way. It enables us to provide our clients (most of whom become good friends) with a much more personable and pleasurable Real Estate experience. We can help you find the perfect luxury home, condominium, parcel of land, or development/investment project that meets all of your wants, needs and desires. And, we can also help you and your family plan an amaizing tropical adventure that will never be forgotten. INVESTMENT Panama is still a bargain, but not for long. It is not too late for you to have a part of this “Paradise” for yourself ... but only if you act quickly. As you enjoy our Panama vacations you will discover the best values for real estate in Panama. Panama Tropical Properties tours, unlike any you’ve ever experinced, will help you uncover the possibilities. We are offering our one-week, all inclusive Investment Tour for $1,499 per person based on double occupancy. For single occupancy add $150. You will be offered an opportunity to review a broad spectrum of Panama real estate investments ... more than you can imagine. You will have meetings with lawyers, developers, business people, even expatriates ... they will answer all your questions honestly, without pressure. You will tour the country from the sophistication of Panama City ... to the mountainous, staggeringly beautiful Boquete ... to the Caribbean shores of the intriguing, multi-island landscape of rustically individual Bocas del Toro. You will explore Panama as the average tourist never does. You will be “behind the scenes” learning what only the locals know. You will see the eighth wonder of the world, the Panama Canal, not from the railing of a cruise ship, but from eye level as the natives see it. You will be offered the options of horseback riding in Boquete, or swimming, diving and fishing in Bocas del Toro should sports be on your agenda. Panama is the proud holder of more than forty world fishing records. SIGHTENING CITY AND PANAMA CANAL TOURS Three cities in one. Panama´s history stretches back almost 500 years to when the Spanish created their first major settlement on the Pacific Coast of the New World, “Panama La Vieja”. After being ransacked by English pirates, a walled city was built on a more defensive point know known as Casco Antiguo. You will end the tour on the Amador Causeway with a view of modern Panama and the Panama Canal. PANAMA CANAL TRANSIT Once A month follow the same path that over 12,000 vessels from around the world take each year-from ocean to ocean. Learn the fascinating history from the expert guide as you pass through the three locks and across one of the largest artificial lakes in the world. EMBERA-DRUA COMMUNITY A fascinating trip on a motorized dugout canoe up the calm waters of the Chagres river, bring us to the passionate and friendly Embera-Drua village. Discover their culture and traditions, their natural medicines and artisan handicrafts. Join in with the traditional body painting using vegetable dye that they use to create temporary tattos. PORTOBELO Portobelo became perhaps the most important settlement in the Spanish Americas and the site of an annual fair that was celebrated for over 200 years. All the riches plundured from South America arrived on a narrow path cut by the Conquistadores across Panama. TRANSCONTINENTAL TRAIN Retrace the journey of the 49ers as they rushed to California in search of gold. The Panama Railroad was the shortest route and from it´s completion in 1885, it´s carriages carried-thousand of prospectors, other travelers and goods across the isthmus. BARRO COLORADO A nature lover´s dream and considered one of the region´s best tours. The ecological richness of this 1500 hectarea island in the middle of Gatun Lake has been the site of a Smithsonian Tropical Research Institute station since 1943 and a biological reserve since 1923. ADVENTURE RAFTING Our classic trips offer sites of rare and remote beauty experienced uniquely by navigating the rivers on rafts. A combination of whitewater excitement, spectacular panoramas, and brushes with foreign cultures make our trips that much more special. SURFING Panama has a wide variety of surf spots from a beginner to a professional level. 4x4 OFFROAD Anyone who loves to follow the less traveled pathways in the high country will think they have found heaven when in Panama. The opportunities for testing your driving skills, and vehicle are endless. Head for the hills to see the quiet places that most people never will as they travel the interstate at 65 miles per hour. FISHING Over 250 IGFA World Records broken. Geographic location, diverse habitat and lack of exploration all play roles in the long standing reputation of Panama as a sport fishing paradise. Only about 8 degrees above the equator, Panama's warm sea temperatures attract a long list of marine game fish DIVING Diving in two oceans in one vacation with Panama Divers... you can do just that! From the deep Pacific with its pinnacles, sea mounts and large schools of fish, to the tranquil Caribbean with outstanding colorful shallow water reefs, Panama Divers is committed to delivering to you a world class dive experience. Casco Viejo Investment Incentives Incentive Law for Casco Viejo The Decree-Law N° 9, by means of which incentives special rules were established for the restoration and revaluation of the Casco Antiguo of Panama, was issued on August 27, 1997. The due date for this Decree-Law was August 2002. However, in December 2001, the National Assembly of Panama approved a modification proposal to the above mentioned Decree-Law, by which the expiring dates are extended for the majority of the established incentives. A summary of the Decree-Law N° 9 of August 27, 1997 as well as its more relevant aspects follows: Former laws in force in Casco Antiguo are modified in order to extend the protection area, so it could include part of the neighborhood of Santa Ana, Salsipuedes, and part of the Terraplén. The classification of the protected properties is developed in detail, together with the usage and type of restoration that will be permitted to carry out in such properties, depending on their architectural, historical, and environmental characteristics. A system of mortgage loans with preferred interests is established for the restoration of real estate in the area of San Felipe. The property owners in Casco Antiguo will be exempt from paying the Real Estate Tax owed at the moment of the transfer (sale) of the property. The profits derived from the transfer of real estate will be exempt from paying the Income Tax. The land and improvements of restored buildings will be exempt from paying the Real Estate Tax for a period of thirty (30) years counted as from the restoration of the property. The first sale or sales that take place after the completion of the building´s restoration will be exempt from the Real Estate Transfer Tax. The profits generated by commercial, professional or industrial activities which are carried out and have their effects in the Casco Antiguo, are exempt from the Income Tax for ten (10) years counted from the restoration of the occupied property. The equipment and materials used in the construction, restoration, and equipping, will be exempt from the Import Duties. The tenants of the properties in Casco Antiguo can deduct from their Income Tax the rates of rental for a period of five (5) years. Those buildings destined for public parking will be exempt from the Income Tax for a period of ten (10) years. An indemnity payment is established for those tenants of apartments in Casco Antiguo who must vacate the property because of a restoration project. The restoration project developer will receive a transferable fiscal credit with a value equivalent to the payment done. In order to benefit from these incentives, the investments must be made during the ten (10) years following the establishment of the Decree-Law, that is, until August 2007. For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Investment Incentives for Foreign Investors Republic of Panama Law no.8 (June 14, 1994) "Whereby tourist activities are promoted in the republic of Panama" The Panama legislative Assembly decrees: CHAPTER I - Objectives and Definitions CHAPTER II - Tourist Activities CHAPTER III - Incentives and Benefits CHAPTER IV - National Tourism registry CHAPTER V - Duties CHAPTER VI - Penalties CHAPTER VII - Concessions for Tourist Development CHAPTER VIII - Final Provisions CHAPTER I OBJECTIVES AND DEFINITIONS Article 1. The objective of this Law is to establish a simple, prompt, and rational process to develop tourism activities in the Republic of Panama; grant incentives and benefits to persons engaging in tourist activities; adopt the necessary mechanisms for the public and private sectors to join and coordinate their efforts in the area of tourism; and promote tourism in Panama. Article 2. The Executive Branch, through the Panama Government Tourism, shall assist the private sector by facilitating and expediting the required processing to establish and develop the tourist activities covered by this Law through the Executive Branch, other units of the Government of Panama and municipalities. Article 3. Tourism is hereby declared a public service industry, and one of national interest. Article 4. For the purposes of this Law, a tourist offering is understood to mean any commercial activity for the purpose of encouraging the stay of tourists in the country, and developing domestic tourism. Tourist entrerprises are defined as follows: Hotel: An establishment whose entire structure is used for public lodging, and has been built and especially equipped to furnish continuous lodging services and, as a general rule, meals to its guests, as well as other related services such a s reception services, a lobby, public telephone, and daily cleaning rooms and its other service units. The incentives set forth in this Law are available for golf or tennis courts, sauna baths, gyms, discotheques, restaurants, discotheques, and other activities connected with investments in hotel facilities. Motel: A tourist lodging establishment located in rural areas, or near beaches or roads, for the purpose of providing lodging and meals for a price to motorists. Apartment Hotel: A building for rental or lease to domestic or foreign tourists, equipped with the required furniture and provided with daily cleaning service and individual kitchen facilities for guests to prepare their own meals. Cabins: A group of individual structures for lodging in rural areas, beaches, beach resorts, and ecotourism areas. Time-Shares: An ownership mode whereby a co-owner or co-owners of a property destined for public tourist lodging manage same under a contract granting rights of use to various parties, during different periods of the year. Tourist Horizontal Property Regime: An ownership mode where by the all the units of a building destined to a tourist lodging are owned by different owners. Camping sites: An area destined to the exploitation of ecotourism, equipped with restrooms, potable water, and first aid materials. Restaurant: A commercial establishment engaged in the sale of meals and beverages, with a minimum investment in infraestructure, not including the cost of the land, of one hundred thousand balboas (US$ 120,000.00) in the metropolitan area, and minimum of twenty thousand balboas (US$ 20,000.00) in the rest of the Republic of Panama. Theme Park: One with an easily identifiable image, in wich a theme ranging from history to fantasy and even the world of the future, is developed within well-defined areas. Bed and Breakfast: A tourist facility operated by an individual or family adjacent the owner's home or rooms. A small establishments that renders personalized service and home-cooked meals to guests, its architecture is typical of that which prevails in the area. Inn: A lodging facility for travelers at a tourist site, where visitors may obtain self-service lodging and meal. Convention Center: A facility adequately equipped to hold conferences; meetings; or technological, cultural, and tourist events; where clerical and simultaneous interpreting services into several languages are available, and several events may be held concurrently. CHAPTER II TOURIST ACTIVITIES Article 5. The incentives and benefits provided under this Law are available to natural persons or companies engaged in tourist activities as defined herein, who are registered at the National Registry of Tourism (Registro Nacional de Turismo). Article 6. For the purposes of this Law, tourist promotion and development activities are understood to mean those that effectively contribute to increase of foreign visitors to the Republic of Panama and the diversification of tourist offerings in the country, as well as any investment in activities that encourage such an increase in the number of visitors, to with The construction, furnishing, renovation and operation of hotels, motels, apartment hotels, boardinghouse, inns, bed and breakfasts, buildings under the horizontal property regime that are destined entirelyto public tourist lodging, wether managed by their co-owners or by third parties, tourist time-share quarters, cabins, camping sites for the exploitation of ecotourism, and theme parks. Construction, furnishing, the building of access infrastructures, renovation, and operation of convention centers, shops for native crafts of tourist interest, recreational parks, zoos, tourist resorts, ecotourism, and marinas. Land, air, and maritime transportation for passengers within the Republic of Panama, mainly for tourist. Construction, furnishing and operation of restaurants, discotheques, and nightclubs catering to tourists. Construction, renovation, restoration, remodeling, and expansion of any real property for commercial or residential use at Historic Landmarks where these types of activities are authorized. The National Bureau of Historic Oatrimony (Dirección Nacional de Patrimonio Histórico) of the Panama National Institute of Culture (Instituto Nacional de Cultura) shall be the agency in charge of authorizing and regulating all matters pertaining to any project performed to preserve the historic value of such landmarks. The operation of tourist agencies handling incoming tourism; devoted entirely to such an activity. Any company producing feature films and international artistic or sports events to be broadcast over closed circuit television or abroad by satellite, that include spot promoting tourism in the Republic of Panama prior to, during, or after such events. Any investment in the desing, restoration, construction, maintenance, and lighting of historic landmarks, municipal parks, national parks, or any other public area under the direction of the Panama Institute of Tourism (Instituto Panameño de Turismo - IPAT), in coordination with the National Institute of Culture (Instituto Nacional de Cultura - INAC). Article 7. The right to claim benefits under this Law is recognized upon registration of a company at the National Registry of Tourism (Registro Nacional de Turismo), and the issuance of a certification by the Panama Government Tourism Bureau (Instituto Panameño de Turismo-IPAT), specifying the rights and duties of the party entitled to such benefits. CHAPTER III INCENTIVES AND BENEFITS Article 8. For the purpose of ecounraging investment in new projects and activities to offer tourist facilit ies, the following tax incentives are granted to natural persons or companies covered by the provisions of this Law. (Modified by the Decree Law No.4 / February 19, 1998) Public Tourist Lodging: The following incentives are granted for the construction, furnishing, and efficient development of the public lodging establishments covered by Article 6, 1, of this Law, in which a minimum, not including the cost of the land, of three hundred thousand balboas (US$50,000.00) if they are located in the rest of the Republic of Panama, except in the case of inns and bed and breakfast, for which the minimum investment shall be set by IPAT. A twenty- (20) year, full exoneration from import duties, contributions, taxes, or fees of any type or class, for the introduction into Panama of any materials, appliances, furniture, equipment, vessels, and automotive vehicles with a minimum capacity of eight (8) pasengers. The latter must be certified by IPAT as indispensable for the regular consuct of tourist activities. These materials and equipment must be used to build and furnish public lodging establishments. This incentives shall be granted provided these items are not produced locally in sufficient quantity or of the proper quality. Any equipment a company may bring into Panama for the purpose of saving energy or providing the necessary safety at the project area shall also be exonerated. In the case of ecotourism activities covered by Article 6 of this Law, the exoneration of four-wheel traction vehicles with a minimum capacity of five (5) passengers shall be allowed. A twenty (20) years exoneration from real property tax, starting on the date of registration of the company at the National Registry of Tourism (Registro Nacional de Turismo). This exoneration shall cover all real property owned by the company, provided it is used in its entirety for tourist activities. Exoneration from any tax or assessment on its capital. Exoneration from warfare or any fee for landing on piers, airports, or heliports owned, built, or repaired by the company. The Government of Panama may use these facilities free of charge. Exemption from payment of income tax on any interest earned by creditors in operations for investing in public lodging establishments. An annual rate of ten per cent (10%) shall be for allowed real property depreciation, not including the cost of the land. Investment in Historic Landmarks: The following incentives are granted for the activities contemplated in Article 6, 5 of this Law located within Historic Landmarks, for which the National Institute of Culture (Instituto Nacional de Cultura-INAC) authorizes the construction of projects with a minimum investment of one hundred thousand dollars (US$100,000.00), not including the cost of the land. A ten (10) years exoneration from real property tax on the land, and thirty (30) years exoneration for improvements to real property. Exoneration from income tax on the company 's profits during the first five (5) years of operation of the appropriate commercial activity. After this period expires, the company may deduct any losses as expenses during the first three (3) fiscal years following the fiscal year in which such losses were sustained. A one time exoneration from import duties on any equipment and materials used in construction, remodeling, and furnishing, provided such items are not produced locally in sufficient quantity or of the proper quality, and that they are not for sale to the general public. Article 9. A natural person or company may treat as fax deductible any investment it makes in the restoration, maintenance, or lighting of Historic Landmarks, municipal parks, national parks, or public site; also, any investment made in tourist promotion or education considered by the Ministry of Finance a nd Treasury in coordination with IPAT; as activities that encourage the development of tourism. Article 10. The following tax incentive is granted to companies engaged exclusively as operators of incoming tourism in the Republic of Panama: Exoneration, every three (3) years, from import duties on microbuses, limousines, vessels, and their spare parts, provided they are so certified by IPAT as indispensable for the proper operation of tourist services. Such equipment may be resold upon payment of the appropriate duties. Article 11. Natural persons or companies providing mass transportation to tourists at airports, piers, and hotels are exonerated from import duties on automotive vehicles exclusively destined to tourist activities, as approved by IPAT. Article 12. Companies engaged in restaurant, discotheque, or nightclub activities that have been certified by IPAT as beign of tourist interes, in which a minimum investment has been made, not including the cost of the land, of one hundred twenty thousand balboas (US$ 120,000.00) if located in the metropolitan area, and of a minimum of twenty thousand balboas (US$20,000.00) if located in the rest of the territory of the Republic of Panama, are exonerated for a period of three (3) years as of the date of their registration in the National Tourism Regiatry (Registro Nacional de Turismo), from import duties on the materials, equipment, and appliances used in the construction and furnishing of such establishments, provided they are not produced locally, or are not produced locally in sufficient quantity or of the proper quality, and are considered by IPAT as important for the development of such activities. Article 13. The following benefits are granted to any company conducting activitie within the territory of the Republic of Panama for the filming of international feature films or artistic, sports, or any other type of international events to be broadcast abroad, that include spots promoting tourism in the Republic of Panama prior to, during, or at the end of such event. Full exoneration from income tax on profits from such event, unless a tax paid in Panama is considered a tax credit in the company's country of origin. Full exoneration from any national tax on such events. Temporary exoneration from any import duty, contributions, tax, charge, or fee on any type or class of equipment, supplies, spare parts, or technical material brought into the Republic of Panama by communications companies for the broadcast of events to other countries; or on all the material used during the event, which shall be reexportes upon completion of the event. Income tax exoneration to any sportsmen, or national and foreign artists participating in such events. Article 14. All tourism publicity material is exonerated from import duties, provided it is distributed free of charge, subject to inspection by IPAT. IPAT shall have a period of fifteen (15) working days to approve or object to the material to which this article refers. Article 15. Income derived from the following activities is exonerated from income tax: The exploitation of vessels or aircraft of registered in foreign countries, if reciprocity is granted there to Panamanian merchant marine vessels or aircraft registered in Panama, for income derived in such countries; The exploitation of vessels or aircraft of any nationality by foreign nationals residing in the territory of the Republic of Panama, provided the country of nationality of the natural person or company, or the country under whose laws the company is chartered, grants an equivalent exemption to companies chartered under the laws of the Republic of Panama, or to persons who have established their domicile in the Republic of Panama, by virtue of the principle of reciprocity. Article 16. The follow ing tax incentives are granted for the construction, furnishing, building of access infraestructures, restoration, and operation of convention centers, recreational parks, zoos, tourist and ecotourism resorts, and marinas: A three (3) years exoneration from import duties on materials and equipment used in their construction and furnishing, provided such items are not for sale, are not produced locally, and are considered by IPAT as important for the development of such activities. A ten (10) years depreciation for real property. A twenty (20) years exoneration from real property tax. Article 17. At the request of IPAT, the Panama Cabinet Council may declare as Tourist Development Zones of National Interest those areas that meet the requirements as special tourist development zone, who meet the established minimum investment, shall enjoy the following tax incentives: A twenty (20) year full exoneration from the payment of real property tax on the land or any improvements owned and being used for tourist development activities. A fifteen (15 years full exoneration from the payment of income tax on the company's activities. A twenty (20) years full exoneration import duties, contributions, or taxes, as well as the sales tax (ITBM tax) on the imported materials, equipment, furniture, accessories, and spare parts used to construct, renovate, and furnish their establishments, provided such items are not produced locally, or are not produced in sufficient quantity or of the proper quality. For the purposes of this Law the term "equipment" is understood to mean vehicles with a minimum capacity of 8 passengers, aircraft, helicopters, minimum capacity of 8 passengers, aircraft, helicopters, motorboats, ships, or sports supplies used exclusively for tourist activities. A twenty (20) years exoneration from duties, contributions, taxes, or fees on the use to piers or airports built by the company. The Government of Panama may use these facilities free of charges, according to the appropriated regulations. A twenty (20) years exoneration from the payment of income tax in interest earned by creditors from operations for investing in the tourist activity being conducted. Article 18. Any public tourist lodging company or restaurant not covered by the above articles, but solely engaged in a tourist activity; outside the metropolitan area according to this Law shall have the operation of being entitled to a Tourism Employment Certificate (Certificado de Empleo al Turismo-CET) issued its name, equivalent to twenty-one and a half per cent (21.5%) of the gross monthly payroll as of the promulgation of this Law, provided this gross monthly payroll does not exceed four hundred dollars (US$400.00). In the case of restaurants, this option shall be for a period of three (3) years. Article 19. CET's as contemplated in this Law, shall be issued in Panamanian currency by the Ministry of Finance and Treasury, and may be applied to the payment of income, dividend, complementary, real property, or sales taxes, as well as import duties. These are nominal certificates transferable by endorsement. They are exempt from all types of taxis, and may not earn interest Article 20. To be entitled to CET's, companies must meet all the requirements set forth in this Law. CET's may be used six (6) months after their date of issue, but not within the same year of issue. They shall be valid for a period of three (3) years from their issue date. Article 21. Wages of foreign employees, or those for any employment period of less than twelve (12) months may not be included in the payroll for the purposes of calculating the CET's established herein. Payroll control procedures shall be established. Article 22. Natural persons or companies engaged in tourist ac tivities may use their vehicles to transport their own materials, furniture, or equipment. They may also provide tourist transportation service to their facilities, and to and from airports and seaports. Article 23. In order to encourage investment and financing for the development of the tourist industry and the construction of hotels outside the metropolitan area, public tourist lodging companies may issue nominal tourist investment instruments until January 1st. 2000. The following incentive is granted to investors in these instruments who are not connected directly or indirectly with public tourist lodging, are not the result of the division of a company into several companies, or affiliates or subsidiaries of tourist companies: For income tax purposes, fifty per cent (50%) of the amounts invested by natural persons or companies in the purchase of bonds, shares of stock, or other nominal instruments issued by tourist companies may be considered as deductible expenses. The Ministry of Finance and Treasury (Ministerio de Hacienda y Tesoro) shall regulate the application of this article. Companies registered with the National Tourism Registry (Registro Nacional de Turismo) must register any bonds, shares of stock, or other financial instruments with Panama's National Securities Commission, and must issue them within the first three (3) years from its registration. A company issuing such bonds, shares of stock, or other nominal instruments may not redeem them in any manner whatsoever for at least ten (10) years. Any bonds or instruments issued by a tourist company shall be valid for a minimum period of ten (10) years, and may not be redeemed earlier. These companies may not purchase their own shares of stock, contributions, or convertible bonds, and may not be redeemed earlier. These companies may not purchase their own shares of stock, contributions, or convertible bonds, and may not grant loans to the holders of any such bonds, shares of stock, or nominal instruments; nor may they make use of any other mode for the purchase or payment of said financial instruments for a minimum period of ten (10) years. Article 24. Tourist yachts calling at ports in the Republic of Panama whose stay does not exceed ninety (90) days are exonerated from the payment of any and all types of the usual charges, taxes, or service fees upon arrival or anchorage. Customs authorities may only perform their routine inspection duties. No processing of documents by these agencies shall be required. The Executive Branch shall regulate his provision. CHAPTER IV NATIONAL TOURISM REGISTRY Article 25. The National Tourism Registry (Registro Nacional de Turismo) is hereby established under IPAT Natural persons or companies wishing to be covered by this tourism incentive regime must register in this Registry. Article 26. Applicants must complete a registration form obtainable from IPAT for a fee of ten dollars (US$10.00), with the following information: Applicant's name and surname, nationality, and personal identification number or passport number. If the applicant is a company, its business name, the country where it is chartered, and its Panama Public Registry (Registro Público) registration entry data, as well as the name address of its legal representative. The applicant's domicile or address. A detailed and precise description of the tourist activity, the applicant is conducting or will conduct. In the case of a tourist project with and initial investment of more than there hundred thousand dollars (US$300,000.00), a feasibility study, and the drawings and technical studies required for and justifying the project must be submitted with the application. The amount of the investment the applicant has made or proposes to make. The number of jobs it proposes to generate. Any additi onal information required by IPAT, according on the nature of the proposed tourist activity, as needed to evaluate the merits of the application. Article 27. The registration form must be submitted with a copy of the personal identity card, or passport of the legal representative, if a company. In the latter case, a certification issued by the Public Registry (Registro Público) must also be submitted stating that the company is a registered and valid one, the name of its Board members, its officers and legal representative, the amount of its capital and its term of duration. Article 28. The Board of Directors of IPAT is the only body in charge of approving the registration of companies in the National Tourism Registry (Registro Nacional de Turismo) and issuing certifications to that effect, stating the date in which the company was registered at the National Tourism Registry and that it is thus entitled to benefits under this Law. The General Manager of IPAT shall sign these certifications. Article 29. Upon receipt of the registration form with the required information and documentation, IPAT has a period of not more than sixty (60) calendar days to study the technical, economic, legal and tourism aspects of the proposed project; and upon approval, to register the company in the National Tourism Registry and issue a certification stating the date of registration of the company in the National Tourism Registry, and that it is thus entitled to benefits under this Law. Projects involving National or Historic Landmarks or wildlife reserves under the National Institute of Culture (Instituto Nacional de Cultura-INAC) or the National Institute of Renewable Resources (Instituto Nacional de Recursos Renovables - ANAM) require a resolution issued within thirty (30) calendar days, counted as of the date of receipt of the project documents. CHAPTER V DUTIES Article 30. Any party seeking benefits under this Law has the following duties: Actually make the investment in the proposed tourist activities, as shown on its application, and maintain such an investment throughout the period stipulated in this Law. Start the construction, remodeling, refurbishing, or restoration of the real property for the proposed tourist activities within a period of not more than six (6) months counted as of the date of registration in the National Tourism Registry, unless a longer period is required because of the nature of the tourist activity, as determined by IPAT. Start rendering tourist services within a period of not more than three (3) years counted as of the date of registration, unless a longer period is required because of the nature of the tourist activity, as determined by IPAT. Conduct tourist activities according to the regulations issued by IPAT. Keep an accurate record of the exonerated items available for the competent officials of the Ministry of Finance and Treasury, the Ministry of Commerce and Industries, and IPAT. Post a performance bond in the name of IPAT and the Office of the Comptroller General of the Republic, in an amount equivalent to one per cent (1%) of the amount invested. In no case may this bond be in excess of three hundred thousand dollars (US$300,000.00). Comply with the ratio established in the Labor Code for hiring Panamanian citizens, except for the experts and skilled technicians deemed necessary, for which authorization by the competent Panamanian authorities is required. Provide technical training to Panamanian citizens and maintain scholarships to train them abroad, if such training is not available at local industrial establishments or schools. Waive all rights to file claims through diplomatic channels in the event of differences or conflicts with the Republic of Panama. Submit said diff erences to the jurisdiction of Panamanian tribunals. CHAPTER VI PENALTIES Article 31. Noncompliance with the duties described in Article 30 of this Law shall cause the revocation of the registration and forfeiture of the bond, unless it is proven that this noncompliance was due to force major or a fortuitous event. The revocation of a registration in the National Tourism Registry may be ordered by ordered by means of a resolution issued by the Board of Directors of IPAT, as notified to the concerned party. Nonetheless, any parties that consider themselves affected may file and appeal with the same authority for reconsideration. The period to make this appeal is of five (5) working days counted as of the notice of the resolution revoking the registration. Article 32. Any items imported under this Law may not be sold or transferred without first paying the corresponding taxes or assessments, calculated on the basis of the value of the property at the time of its sale or transfer. The sale or transfer of imported items between the companies covered by the provisions of this Law only requires the approval of the Ministry of Finance and Treasury (Ministerio de Hacienda y Tesoro). Except as provided in this article, any person importing items exonerated under this Law, and selling, leasing, transferring, disposing of or otherwise giving them a use other than that for which the exoneration was granted shall be punished with a fine equivalent to three times the amount of the import duty due at the time of the sale, lease, transfer, or disposal of the items. Article 33. Violators of the provisions of this Law shall be punished with a fine equivalent to five (5) times the amount of the benefit claimed, and the revocation of any benefit to which they had been entitled, in addition to any other penalties under the Law. CHAPTER VII CONCESSIONS FOR TOURIST DEVELOPMENT Article 34. As recommended by the Board of Directors of IPAT and ("1)) subject to ratification by the Public Finance, Economic Planning and Policy Committee of the Legislative Assembly of the Republic of Panama). The Executive Branch is authorized to grant for tourist use in accordance with IPAT Master Plan, without affecting any preexisting rights, periods of up to twenty (20) years, concessions for islands Government owned lands, lands requiring fills, and areas for the construction of marinas and piers that the Government may decide to devote to public tourist activity. Article 35. Not withstanding the provisions of the above article, any concession contracts may be made for a period of up to forty (40) years in the case of projects whose investment amount, economic impact and job generating potential require a longer contract term in the judgement of the boards or Directors of IPAT by means of a justified resolution ("2) duly rafted by the Public finance, Economic Planning and Policy of the Legislative Assembly of the Republic of Panama whit the exemption of concession of reverted property under the jurisdiction of the Interoceanic Region Authority, which in this case is the organization in charges of granting the appropriate concessions. Article 36. Noncompliance with the period established for a concession to develop authorized tourist activities that authorized should cause the revocation of the concession. It is understood that in this case any improvement built in the area shall become property of the Government at no-cost to it, not with standing any penalties applicable under the Law. Article 37. The following is required to apply for a concession: Submission of the project budget, its technical specifications, and the appropriate project schedule; Proof of payment of the required fees; A description of the type of services to be rendered, and their benefits to users, Certifications establishing the financial means and source of the applicant's resources. The applicant's experience in similar projects. The agency responsible for granting a concession shall provide continuous inspection service in all stages of the project, in order to ensure proper compliance with the terms of the concession. Article 38. Concessionaires or their subcontracts, as the case may be, shall comply with the approved project schedule until completion of the project. Noncompliance of the schedule or the approved technical specifications may cause the administrative revocation of the contract, forfeiture of the performance bond posted, and revocation of all rights under the concession contract. Article 39. Prior to declaring them as finally awarded, any concessions granted under this Law, including their terms shall be published in local newspapers for a period of fifteen (15) consecutive days. CHAPTER VIII FINAL PROVISIONS Article 40. The Government shall consider native Indian territories as tourist development zones, and shall promote native and rural cultures and traditions as tourist attractions. Article 41. (Transitory). Any applications for contracts with the Government of Panama being processed on the date this Law is promulgated may continue with the procedure established in Cabinet Decree No. 102 of June 20, 1972, for the purpose of obtaining the benefits set forth in that Decree, which shall remain in force only for such purposes. Article 42. (Transitory). Any contracts for the operation of tourist activities in force on the date of promulgation of this Law are valid until the expiration of their respective terms. Nonetheless, if a concessionaire wishes to make additional investments, it must apply for incentives under this Law and meet its requirements. Article 43. This Law supersedes Law Decree No. 26 of September 27, 1967 as amended by Law No.81 of December 22, 1976; Cabinet Decree No.77 of March 18, 1971; Cabinet Decree No. 102 of June 20, 1972 and any legal provisions and regulations contrary to it. Article 44: This Law shall become effective upon its promulgation. Promulgated and published. in panama city, on the 10 day of the month of may of nineteen hunrded and ninety four. The President Arturo Vallarino the Secretary General Rubén Arosemena Valdés National Executiv Branch Presidency of the Republic Panamá Repúblic de Panamá, 14 of june of 1994 Guillermo Ford Boyd in charge of the Presidency of the Republic Ricardo A. Fábrega Ministry of Commerce and Industries For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Panama Real Estate Taxes Article 764 of the Panamanian Tax Code indicates which properties are exempt from property tax. These properties include: Properties registered at a value of 30,000 USD or less including improvements to the land, i.e. construction Land used exclusively for farming and registered with the Ministry of Agriculture and Development at less than 150,000 USD. The tax basis should be understood as being the value of the land plus the improvement. Article 766 of the Tax Code goes on to establish the property tax table to be the following: If you have a property valued at 100,000 USD you should pay the following in property taxes: 2.10% of (100,000 USD – first 30,000 USD which is tax exempt) = 1,470 USD Alternative Property Tax Calculation - following Appraisal Under the recent real estate tax amendment of 2005, the following alternative tax rate is applicable to properties whose property taxes are paid up to date and whose registered value in the public registry has been updated with a sworn declaration of the estimated value of the property, duly signed by an appraiser: So the same property under the alternative property tax calculation would be as follows: 1.0% of (100,000 USD – first 30,000 USD which is tax exempt) = 700 USD Those properties which are not paid up to in property taxes and which have not presented their estimated value in a timely manner, may not take advantage of this alternative calculation. If you have real estate, with no improvements built on it, and you register the property with an updated cadastral value within one year of the publication of the amendment to the Tax Code - i.e. February 2006 - you will be eligible to have the property taxed according to the alternative tax rate. In order to apply for the alternative property tax calculation you must present the following documentation: Application addressed to the Director of the Cadastral Department Paz y Salvo (Certificate of good standing from the tax department) Paz y Salvo (Certificate of good standing fro the Public Registry) Copy of cedula of the property owner or Paz y Salvo from the Company which owns the property Current appraisal issued by an approved appraisal official For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Property Tax Exonerations/Incentives for New Construction There are various tax incentives for new construction which grant property tax exonerations on the improvements made to the property. These property tax incentives/exonerations include the following: Properties with building permits granted before August 31, 2005 and certificates of occupation granted before August 21, 2006 are exempt from property taxes on the improvements for 20 years from the date that the certificate of Occupancy is issued. The tax exemptions only go towards improvements or new construction made to the property. If the property itself is valued at more than 30,000 USD property taxes must still be paid on the portion above 30,000 USD. Properties with building permits granted after September 1, 2005 or certificates of occupation granted after September 1, 2006 are exempt from property taxes on the improvements for 10 years from the date that the certificate of occupancy is issued. The following exceptions are applicable: If the new construction is valued at less than 100,000 USD you are entitled to receive a 15 year property tax exoneration, from the date that the certificate of occupancy is granted. If the new construction is a commercial building, then the tax incentive can only be applied for a period of 10 years, irrespective of the value of the improvements. The land and improvements of restored buildings located within the areas Santa Ana, Salsipuedes, and sections of Terraplén within the historical district of Casco Viejo which is declared a historical patrimony will be exempt from paying the Real Estate Tax for a period of 30 years counted as from the restoration of the property. In order to benefit from this incentive, the investment must be made during the ten years following the establishment of the Decree-Law, that is, until August 2007. For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Real Estate Law 2 of 2006: Island and Concession Real Estate Panama real estate law distinguishes between two kinds of property: titled property public or state owned property Titled property is that property whose ownership, area, value, boundaries and details are recorded in the Public Registry of Panama. The Property section of the Public Registry contains a record system of all titled property in the Republic. Public or state owned property includes all lands and territories owned by the Republic of Panama. These lands can be used in several ways: By an individual or company once administrative concession has been granted. For agricultural purposes once Right of Possession certification has been granted by the Ministry of Agriculture. Law 2 of the year 2006 acknowledges recognized Right of Possession land as possible subject for concession. Concessions Concessions are lease agreements with pre-established time frames and lease amounts, between the Ministry of Economics and Finance (MEF) by way of the Cadastral Office and individuals or corporations. Law 2 defines the following characteristics for concessions located within the tourism zones defined by Ministry of Tourism. These characteristics apply to all lands, including islands, coast, and other properties of the State within the defined tourism zones. Longer concession periods are granted to investors for use of state-owned land depending on the size of the investment and the potential for employment. An accelerated procedure will be applied to the procurement of concession on land to be used for tourism projects. All improvements and construction on the concessioned land may be titled and recorded in the Public Registry. Law 2 of 2006 creates a Ventana Unica or Express Window within the Cadastral office of the Ministry of Economy and Finance (MEF) which is the authority in charge of receiving all applications, as well as processing all approvals and authorizations required for concessions. This department will have representatives from all entities whose approval is necessary to start a project. In order to expedite the start up, once the developer presents all requirements; the Ventanilla Unica department may issue provisional requirements for permanent concession. To obtain a concession created by this law, the following requirements must be made available to the Ministry of Economics and Finance: Preliminary master plan Budget Development program Evidence of financial capability Certificate from the IPAT (Panamanian Institute of Tourism) stating that the project is located within a tourism development zone. Approved Environmental Impact and Social Impact Study. Certificate of Registration with the Tourism Enterprise Registry of the IPAT Direct Purchase of Island Property Islands, whose ownership until now, as per the Panamanian Constitution, was limited to nationals, have always been an area of interest for tourism related investments. Law No. 2 of 2006 provides the following incentives to foreign, national individuals and/or corporations interested in purchasing island territory for developing a tourism project: Island Territory may be sold for tourism related purposes, provided the purpose of the investment and number of jobs to be created as a result is confirmed. No more than 50% of an island can be sold to foreigners or foreign interests in a corporation. The sale of the island territory must be submitted for public bidding. However, projects with right of possession already initiated or in place on an island before the enactment of Law 2 of 2006 may request direct sale of the island property. Individuals or corporations legally occupying island territory will have the right to obtain a concession, and be able to transfer it to a third party. The contract for purchase of an island territory should contain the following: Description and specifications of the land. Value of the land for sale. Estimated amount and details of the investment, including utilities and infrastructure. Environmental Impact and Social Study and Mitigation Plan Complete description of the public domain and assets located within the island property A bond of at least 10% of the value of the contract which will be valid during the term of the project. All projects within these island regions must comply with the territorial zoning, master plan to be prepared by government authorities. Until this master plan and territorial zoning is approved, each project may submit its own zoning plan which will be processed and approved through the Ventanilla Unica. The same Ventanilla Unica within the Cadastral office of the MEF will be in charge of receiving all applications, as well as processing all approvals and authorizations required for direct purchase of island territories. Restrictions: Due to the nature of islands, and for the purpose of sovereign protection, the following restrictions have been placed for these special tourism areas: The lands in question cannot be located within 10 km of national borders. The lands in question cannot have been designated as areas of historical or national heritage. The lands in question cannot have been dedicated to the conservation of the environment. The lands in question cannot be part of an Indian Reservation. The sale of these special tourism areas cannot exceed 50% of the total territory of the island on which it is located; furthermore, ownership cannot be transferred to another State. Tourism projects pursuant to Law 2 cannot exceed 30% of the total territory of an island. In order to conserve nature, the following restrictions have been set for certain areas: The construction over coral formations is forbidden as well as any activity that may cause the death or destruction of their ecosystem. The cutting, use or commerce of mangroves, their products, parts or derived products is forbidden, except for tourism projects after the approval of the respective Environment Impact Study. As a final note regarding limitations, concession and sale of beachfront property may only be granted up to 22 meters from the high tide mark. The area of 10 meters from the high tide mark is considered beachfront and cannot be granted concession under any circumstances. The area of 12 meters from the beachfront can be granted concession as a coastal easement. Special Situations Law 2 of 2006 also covers a special procedure for individuals living in an area, who have kept permanent and uninterrupted possession of national island property for at least 2 years before the enactment of the law 2 of 2006, and can prove that they have used said property for their own home or agricultural purposes. These persons will be granted a concession of 90 years without having to participate in a public bidding process, not having to comply with the requirement of posting bond, and being exempt from payment of concession lease. Also set forth by law 2 of 2006 is the obligation of concessionaires and investors to hire non-skilled local personnel from the area during the construction of the project in question. 2nd Home and Vacation Housing In an further effort to promote residential tourism investments in Panama, Law 2 of 2006 also provides incentives for “Vacation or Permanent Residential Units”. The purpose of this incentive is to promote the development of vacation and retirement homes, which may be built over concession areas on islands, or coastlands, provided they are located within a tourism development zone as defined by the government, and only one parcel per petitioner. Moreover, these projects will benefit from the incentives of Law 8 of 1994. Enabling regulations will be enacted to provide rules for the size of the parcel, costs of construction and improvements thereon. For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Retirement Incentives Panama offers an attractive incentive program for retirees, and because of the lower cost of living, great climate, lower crime rate and tax advantages, Panama compares with many European choice of retirement destinations. A partial list of retiree incentives include: Household goods can be brought in to Panama free of taxes. New cars can be brought in duty free every two years. Discounts between 15% and 50% are offered on hotels, restaurants, movies, many professional services etc. Panama is a safe country. Panama City has a modern, American style infrastructure due to the near 100 year presence of the Americans in Panama. High-band Internet connectivity, cellular phone networks and ADSL in-home phone capability are readily accessible throughout most of Panama. Full-service satellite and cable TV are also very common. Panama's cost of living is a fraction (approximately 1/5th) of the United States. Panama has an ideal climate. Panama has medical facilities on a par with the United States. Panama is close to the United States with direct flights to Panama from 5 major US cities. Retirement visa requirements are minimal. Foreigners can buy and own property in Panama enjoying the same rights and protections as Panamanians. English is the second language in Panama and is widely spoken. For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones Tax Incentives for Projects in Special Tourism Zones Panama has declared different parts of the country as Special Tourism Zones which can receive multiple tax exemptions holidays among other benefits, which include: Property taxes exemption including land Income tax exemption for a period of 15 years 20 years exemption from Import taxes including the Sales tax ( 5%) 20 Years Income Tax Exemption originated by the interests charged by creditors in the tourism activity investment Exemption from liens due to the use of docks or airports built by the company The Special Tourism Zones are: Zone 1, La Amistad: Located in the provinces of Chiriqui and Bocas del Toro, characterized by the presence of La Amistad International Park and Baru National Park. The structure is composed of 61 attractions (47 are natural and 14 are cultural) which make this zone propitious for ecological tourism. The main areas of this zone are concentrated in Boquete and to a lesser extent Cerro Punta, Volcan and the Sereno River. Zone 2, Bastimentos: The province of Bocas del Toro has one of the largest Marine Parks in the country which includes beach areas, reefs and the presence of the Afroantillian culture which is most present in the architecture of the city of Bocas del Toro. The tourist areas of this zone are made up of 78 attractions (58 are natural and 20 are cultural), predominating sandy, white beaches and crystalline waters which are ideal for diving and ecological tourism. Zone 3, Arco Seco: The Arco Seco is conformed by the coastal areas of the provinces of Herrera and Los Santos, unique for their traditions and socio-cultural events which attract large amounts of visitors. Zone 4, Farallon: Farallon includes 80 kilometres of Pacific Coast, distributed between the provinces of Panama and Cocle. Its tourist potential is comprised of 24 natural attractions of which 17 are beaches and the remaining attractions are in the area of the Anton Valley for ecological tourism. Zone 5, Metropolitan: The principal attractions are related with Panama City, shopping, business activities, historical and cultural attractions as well as the natural parks that surround it. This zone has 126 attractions (72 are natural and 54 cultural). One Man Army Studio Web Design Zone 6, Portobelo: Portobello is located in the province of Colon; it consists of beaches and innumerable diving areas, a National park and an assembly of Historical Monuments. Zone 6 accounts for 82 attractions (54 are natural and 28 are cultural) mainly reefs for underwater explorations and ruins of the forts of Portobelo. Zone 7, San Blas: The Caribbean of the Kunas, an exotic place due to its islands and areas of corral reefs and white sandy beaches guards one of the most traditional and native of the Americas. There are 200 attractions in this zone (173 are natural and 27 are cultural). Its potential is characterized by more than 300 coral based islands and associated white sandy beaches. Zone 8, Archipelago de Las Perlas: Composed of more than 30 islands and 83 beaches in the Pearl Island Archipelago, complimented by ample coral reefs and innumerable sport fishing areas. Zone 8 is made up of 136 attractions all of which are natural, characterized by beaches and fishing spots. Zone 9, Darien: The tourist potential of this zone is made up of 72 attractions (39 natural and 33 cultural). The main attraction is the Darien National Park declared by UNESCO as a Biosphere Reserve ideal for the ecological and adventure tourism, additionally it integrating the indigenous groups that live in this zone. For more information, please Contact Us. Other Laws/Incentives: Casco Viejo Investment Incentives Investment Incentives for Foreign Investors Panama Real Estate Taxes Pearl Islands Investment Incentives Property Tax Exonerations/Incentives for New Construction Real Estate Law 2 of 2006: Island and Concession Real Estate Retirement Incentives Tax Incentives for Projects in Special Tourism Zones ALL ESTATES SERVICES Panama tropical Properties has the misión of satisfying our customers expectations by providing a full range Solutions. Professionally Advising with the Real Estate Market Conditions Buying Properties in Panama Selling Properties in Panama Renting Properties in Panama Title Searches Property Negotiation Purchase Contracts and Agreements Plots of Land, Apartments, Residence and Other properties. Title Insurance Consulting and Cancelling Property Mortages RELOCATION SERVICES Pre-Relocation Assistance Temporary Living Assistance Transition Support Repatriation Assistance INMIGRATION & VISAS SERVICES Immediate Passaport Program Self Economic Solvency Visa Agricultural Investor Program Small Bussiness Investor Program Tax Free Processing Zone Investor Program Retired or Pensioned Program Student and Missionry Visa INVESTMENT SERVICES Bussiness and Investment Advisory Services Partnering with Local partners and Investors Mergers and Adquisitions LEGAL SERVICES Incorporation of Panama Corporations Incorporation of Panama Foundations Banking Account introducing for Corporations and Foundations Merchant Accounts Personal Banking Account Offshore Advising Mail Forwarding Panama is a country of services: Panama Canal Banks Colón Free Zone Insurance Ports Ship Registry Tourism Shrimp, Coffe and Banana exports General Information: Land: 78,200 sq. Km. Coast Line: 2,490 Km. Habitants: 3,000,463 President: Martín Torrijos (PRD) Gobernment: Democratic (2004-2008) Currency: American Dollar Economy: $18.78 billons 6,300 per capita 4.1% Anual Growth 3.8% unemployment. Location: Easy and cheap access Direct flights from Miami, Houston, New York, Atlanta, Los Angeles, Colombia, Costa Rica y Madrid, among others. Other Relevant Factors: Transportation: Good conditions Comunications: Aprox. 850,000 people use celular phones Cultural Aspects: Dress code (Men): Suits for bankers, short and long sleave shirts for meetings, jeans for constructions, sport jackets are commonly used. Dress code (Women): Coktail dresses are commonly used for meetings, Linen clothing or similar are also used regularly. Extended lunch or dinner bussiness meetings at peoples homes. Tips at restaurants: 5% lunch, 10% Dinner at fancy restaurants. When you are a guest at someone home usually a gift is common (flowers, wine or sweets). Elder people are treated with more respect than youger ones. 14 Reasons to invest in Panama Location Currency (US Dollar) Banking System Ownership of Property (Title) Good Weather Modern Infraestructure Blessed Geography Medical Facilities Low Prices Social Oportunities Cultural Heritage Security Incentives for foreigners 1er. Country for retirement according to (Forbes, Internacional Living) US Dollar The US Dollar has been our currency since 1914 No currency devaluation Stable and healthy economy Appreciation of currency on property investment. Inflation (0.1%) Banking System More than 85 Banks International Banks Low Mortage interests 2.0% - Prefered rate to ($25,000.00) 3.0% - Prefered rate to ($62,500.00) 4 % / 4.25% - 30 years – 90% ltv residential 4% / 4.25% - 30 years – 70% / 85% retired ltv 8% - 15 años – 90% ltv commercial NOTE: Aprox. Values Ownership of Property (Title) There is no restrictions for foreigners to own waterfront properties. Panama has Title Insurance Companies The Public Regitry of Panama is the most actualized. Good Weather Sunny weather year-round Temperature 80°F on winter y 90°F on summer Huracanes Modern Infraestructure Modern roads y highways that travel to the suburbs of the city. Modern Glass Skycrappers Intelligent and digital buildings New sub-urban neighborhoods. Commercial Malls with Modern Technolgy and Infraestructure with international brand stores. Blessed Geography Mountains Beaches Islands The fardest place from the city is 7 hrs (Chiriqui Province) 2 Hrs. From the Pacific side to the Atlantic side by car. Medical Facilities Hospitals with American quality at very low prices (Hospital Johns Hopkins - Hospital Oschner). We have one of the best Medicine Schools from LatinAmerica. English speaking Doctors Low Prices Beach Properties are 50% to 70% lower in prices than in USA and comparable places in Costa Rica and The Dominican Republic. Construction is done in cement and concrete in its entirety. Social Oportunities English is a second language spoken and understood by many. Panamá is a mix of races. The larger foreign comunities are Chinise, Jew, Hindu, European and Arab. Cultural Heritage Panamá has a mix of the American and latin Culture. Relaxed, Fun and Folkloric with the comodities and attributes of any European and Americam City. Security Crime in Panama is extremely low in comparison to neighboring countries. Violent crimes and kidnappings seldom apeen. We are one of the safest countries in Latin America. Incentives for foreigners: Incentive for ReInversion: If you ReInvest in the same bussiness 4 times the profits of the sale of homes to $62,500, is exent from taxes on property. Prefered Interests: Incentives for the owner of the property to $62,500. Interests 4 points below the reference rate of the banking Instituion. Exoneration of the transfer tax: Appliable to the first sale of the property from the promotor to the client. Exoneration of the Property Tax: Properties that have construction permits before August 2006, will be exonerated from the Property Tax and occupancy permit before August 2007 will be exonerated from paying taxes for 20 years. After August 2007, the properties worth up to $100,000 are exonerated for 15 years. The properties worth from $100,000 to $250,000 are exonerated to 10 years. The properties worth more than $250,000 are exonerated to 5 years. For all these reasons many retired are coming to Panama to live. BOCAS DEL TORO Bocas del Toro is a province of Panama. The capital is the city of Bocas del Toro, found on the island of Colon. The population of the province numbers some 89,300 people. It's extension is 8,745 kilometers and is formed by 9 principal islands. There are many plantation of plantains here, often called the oro verde or green gold of Central America. Panama’s Caribbean jewel has been recognized as a prime tourist destination. The Bocas region boasts clean, calm waters, huge tracts of virgin hardwood and rain forests. It is a last refuge for many endangered species. The diversity of birds, coral and aquatic life are rivaled by few other places in the world. CHIRIQUI Chiriquí is a province of Panama. The capital is the city of David. The province is divided in 13 districts. The province of Chiriquí is located in the western region of Panama. It is bordered to the north by the provinces Bocas del Toro and Ngobe-Buglé, to the west by Costa Rica, to the east by the province of Veraguas, and to the south by the Pacific Ocean. It has a size of 6,476.2 km², with a population of 368,790 people occupying 87,509 houses as of the year 2000. Until the arrival of Spaniards, Chiriquí was populated by a number of indigenous tribes, known collectively as guaymies. These tribes include changuinas, zurias, boquerones, buricas, doraces, bugabas, and gualacas There is a magical quality to the Chiriquí highlands. In a misty land of eternal spring where bright flowers grow at the roadside, the traveller is rewarded with surreal images of surpassing beauty. They may be of herds of horses galloping wild in the mist on a highland thoroughbred ranch; peaceful vistas of terraced farmland below majestic peaks; shards of sunlight reflecting from gurgling trout streams and rivers rushing through gorges; crags like dragon’s lairs and around every bend in the road— a rainbow. COCLE Coclé is a province of central Panama on the nation's southern coast. The capital is the city of Penonomé. This province was created by the Act of September 12, 1855 with the title of Department of Coclé during the presidency of Dr. Justo de Arosemena. It became a province, Decretory Number 190, on October 20, 1985. Coclé is primarily an agricultural area, with sugar and tomatoes as major crops. The province has a number of well known beaches, such as Santa Clara, Farallon and Rio Hato, and tourist activity has increased in recent years. Their main attraction is their culture. A region of quaint little towns, history and strong religious beliefs, their relative isolation from Panama City during the colonial period contributed to the strength of their Hispanic traditions. The city of Penonome, capital of the Coclé province, can serve as a center from which visitors can discover some interesting sites, including the town of La Pintada, known for the famous “Sombrero Pintado” hats, which are an important element of the“Montuno”, Panama’s national costume for men COLON Colón is a sea port city on the Caribbean Sea coast of Panama. In 2000 it had a population of about 204,000 people. It is near the Atlantic entrance to the Panama Canal. The city is the capital of Panama's Colón Province. Colon is all the tropic ports of Joseph Conrad and Somerset Maugham. Rightly so. Every street corner and bar here knows ten thousand tales as exuberant or as melancholy or as cockeyed or as ironic as any those two travellers spun. Colon is a strange town which has relished bonanzas and endured depressions throughout its history. The town was born around the time when California-bound Fortyniners added gold fever to the other fevers that Colon endured in those days of trying to find its landfill footing on the mangrove island that had been declared the Atlantic terminal of the Western Hemisphere’s first transcontinental railroad. Canal construction followed and Colon and its adjacent port Cristobal, flourished as the waterway’s terminal as well. Colon then became one of the world’s busiest cruise ports as passengers from scheduled liners frolicked down gangplanks to shop on fabled Front Street. After this boom in the nineteen fifties, Colon languished in an economic limbo until the last decade of the century, despite the Colon Free Zone which grew year by year and which now generates $10 billion per year in imports and exports. Colon now seems poised for another boom. The railroad which had ground to a halt has been re-built. Four new ports, the biggest (Manzanillo International Terminal) which alone is bigger than Miami, are converting Colon into a giant transhipment center. Colon is now experiencing a renaissance of the cruise ship business. The new cruise port, Colon 2000 and Pier 6 in Cristobal are receiving an increasing number of ships. DARIEN Darién is a province in eastern Panama. It is hot, humid, heavily forested, and sparsely populated. Europeans first discovered the region in 1501, and Christopher Columbus sighted it on his fourth voyage in 1503. The Spanish established the first European colony in South America, Santa María la Antigua del Darién, in Darién in 1510. The settlement did not prosper, however, and was soon abandoned. From this town Vasco Núñez de Balboa made his march to the Pacific in 1513. Some of the refugees from Santa María went on to found Panama City in 1519. In 1698, the Scots launched another attempt to colonize Darién: the Darién scheme. It too ended in failure and led to the Acts of Union 1707 which joined Scotland and England in the United Kingdom. Today the chief town in Darién is La Palma, located where the Tuira River empties into the Bay of San Miguel. The province was formed in 1922 from Panamá province. Darien appears in Keats' poem "On First Looking Into Chapman's Homer"; in the poem, "stout Cortez" is in Darien when he first sees the Pacific Ocean. (In fact it was Balboa, not Cortez, who was involved in this historical event.) HERRERA Herrera is a province in Panamá. Named after General Tomás Herrera, the province was founded on January 18, 1915 after a division of the Los Santos province. The capital city of Herrera is Chitré, which is located near the province's coastline. Herrera is bordered on the north by the provinces Veraguas and Coclé, on the south by Los Santos, on the east by Golfo de Parita and Los Santos, and on the west by Veraguas. Herrera province has a desert, Sarigua National Park, a 8,000-hectare arid coastal plain. The region is also known for its fine pottery, which can be found along the streets of Chitre and Las Tablas. Small, but interesting museums in these towns cover everything from the pre-Columbian period to the role of both provinces in Panama’s independence struggle. LOS SANTOS Los Santos is a province of Panama. The capital city is Las Tablas, which is famous for its carnivals, the Festival Nacional de la Pollera (National Festival of the Pollera), and the Festival of the Patron Santa Librada. The province Los Santos and Herrera are important in Panamanian folklore because they are believed to be the birth place of the Pollera, the traditional Panamanian dress. Los Santos has a surface of 3,804.6 kilometers squared and 83,485 inhabitants. The primary economical activities are growing corn, rice, coffee, sugar cane and the raising of livestock and commerce The Azuero Peninsula is next along the route, comprising the provinces of Herrera and Los Santos. Turn off the Panamerican Highway at the town of Divisa and you enter a region famous for its festive spirit, which year after year attracts thousands of city folk during the famous, pre-Lenten Carnival celebrations. It is said that the“Pollera”, the country’s national dress, originated in Azuero. NGOBE-BUGLE Ngöble-Buglé is a comarca (roughly, "county" though signifying a high degree of administrative autonomy) in Panamá. It was formed in 1997 with lands from the provinces of Bocas del Toro, Chiriquí, and Veraguas. The capital is Chichica. Ngöble-Buglé has a population of 110,080 (2000 census), mainly Guaymí (Ngöble and Buglé). PANAMA Panamá is a province in Panamá. The capital is the city of Panamá. The current governor of the province is Gladys Bandiera, she's the new governor since June 2006 Panama is the economic, political and cultural center of Panama. Sometimes it can make problems because people from other poorer provinces come to Panama looking for a better life but it does not always go that way. Panama City earns its sobriquet “Crossroads of the World”. The fact that so many people pass this way, and so many pause awhile, gives this Latin city a uniquely international feeling. The city has a population of about 450,000—about the same as Portland, Oregon—and a vitality about the same as a parlay of Rio de Janeiro, San Francisco, Rome, and Macao. Any resemblance to Panama City, Florida, means your tour conductor has goofed. Scholars have put it forth, after fusty etymologic foraging, that Panama is an Indian word meaning“an abundance of fish.” Any tourist could have told them so after 30 seconds of foraging through a restaurant menu here. Panama City offers its visitors nightlife, daylife, dusklife, and dawnlife. SAN BLAS Kuna Yala is an autonomous territory or comarca in Panama, inhabited by the Kuna indigenous people. The name means "Kuna-land" or "Kuna mountain" in the Kuna language. The area was formerly known as San Blas. Kuna Yala has an area of 924 square miles (2393 km²) and a population of 36,487 people (2004). The comarca consists of a strip of land stretching 232 miles (373 km) along the Caribbean coast of Panama, bordering Colombia and the province of Darién. The San Blas Islands, an archipelago of over 360 islands, runs along the coast. About 36 of the islands are inhabited by Kuna communities. An additional 13 communities are located on the mainland coast, for a total of 49 communities. Within this territory, the Kuna Indians, a short, stocky people of great simplicity and charm whose ancestors peopled these shores long before Columbus landed, govern themselves in a virtually autonomous society. The pattern of their lives is simple and comfortable. They live on tiny, palm-fringed islands, hundreds of which dot the surface of the blue and emerald sea. The islands are totally free from animals or snakes and have a perfect, breeze-cooled tropical climate. VERAGUAS Veraguas is a province of Panama. The capital is the city of Santiago de Veraguas. The province of Veraguas is located to Central-West of the Republic of Panama. It has 10,677.2 km²; and is divided in twelve districts The “Central provinces” of Panama include the provinces of Coclé, Veraguas, Herrera and Los Santos, situated to the west of Panama City, along the Pan-American Highway. Their main attraction is their culture. A region of quaint little towns, history and strong religious beliefs, their relative isolation from Panama City during the colonial period contributed to the strength of their Hispanic traditions. Leaving the peninsula and striking westward once again, brings the traveller to Veraguas, the only province with coasts on both oceans. From its capital city, Santiago, visitors can venture out to the Gulf of Montijo, and from there, to the fishing meccas of Leones, Cebaco, Gobernadores and Coiba, on the Pacific. The province also offers majestic mountain scenery.