| General Noriega's ruthless regime in Panama ended | | | | with no property taxes for 30 years and no |
| in 1989. Within ten years all American military | | | | income tax due if you rent it out or sell in the |
| bases were decommissioned and the US had | | | | first ten years. |
| handed over ownership of the Panama Canal. | | | | The high-rise skyline of Panama City rivals those |
| Panama is now completely independent of the US | | | | of developed waterside US and Canadian |
| and has continued to develop into an attractive | | | | townships. New five-star hotels, corporate |
| tax haven ripe for investment by multinational | | | | buildings and penthouse apartments look down on |
| corporations and financial institutions. | | | | the old quarter and an archaeological park housing |
| But this reputation is not just for big business to | | | | the remains of the first Spanish settlements of |
| exploit. In this long isthmus of a country with so | | | | the 16th and 17th centuries. The city crackles |
| many miles of unspoilt coastline, and a | | | | with life day and night. The living is cheap and |
| mountainous tropical interior, even small investors | | | | cosmopolitan. You can buy luxury goods made all |
| can reap exciting benefits. | | | | over the world at knock down prices. Restaurants |
| If you are looking for a Panama investment in a | | | | offer a wide range of delicious cuisines and night |
| small, new-build home that will cost under $62,000, | | | | clubs let you party till dawn. |
| you could be eligible for a low cost mortgage of | | | | But if you're after a quiet life, remote coastal |
| under 3%. This threshold may be increased to | | | | havens are plentiful, with many bargains to pick |
| something over $80,000, making this offer even | | | | up. Or the cooler environment of the mountains in |
| more enticing. | | | | the interior offers houses and land in sleepy |
| If you are more business minded, you should | | | | towns and villages. One such is Volcan, for those |
| investigate government incentives for tourism | | | | who can overcome the challenges of getting |
| projects. For example, if you invest $50,000 | | | | there, needing a domestic flight from Panama City |
| dollars or more in a project in the interior of | | | | and then at least an hour long road journey. |
| Panama, you won't have to pay real estate taxes | | | | Nevertheless, it is starting to become popular with |
| on the assets for the first 20 years and they will | | | | ex-pats who want to retire to a slower pace of |
| depreciate at 10% a year. You will not have to | | | | life and a lower cost of living. Volcan is in a |
| pay airport or seaport taxes, and have no import | | | | highland area of Chiriqui Province in the far west |
| taxes on cars and furniture, materials and | | | | of the country, bordering Costa Rica. A new road |
| equipment. If your project sits within one of the | | | | to the town is under construction and due for |
| government's designated tourist zones, you could | | | | completion in spring 20009. It will make Volcan |
| be exempt from income tax for 15 years. | | | | much more accessible and push up the price of |
| You'll find even better incentives if you invest in | | | | property there, so it should be a good investment |
| the old quarter of Panama City and buy a | | | | in the short term. |
| property to renovate. If your purchase is over | | | | Indeed, there are so many opportunities for |
| $50,000, it will attract no transfer costs. | | | | investment in Panama, it really does seem that |
| Whatever the amount of your investment, the | | | | there is something here for everyone. |
| costs of the renovation are fully tax-deductable, | | | | |
