San Jose - Panama City, here I come!

The Judge · #1 05-01-2007, 03:38 PM

Well fellas, it’s time for another trip to my favorite part of the world, Central America. I’m leaving this Saturday morning for four days in Costa Rica followed by four more in Panama City. This trip should be particularly interesting as it will be primarily devoted to looking for investment and retirement opportunities.

I had almost decided on retiring to Costa Rica but when I was discussing this with someone in the offshore gambling industry a few months back, he strongly recommended that I look into Panama before making a decision. I recently contacted this person again and he put me in touch with his brother who runs the sportsbook at the Veneto Hotel & Casino and who will be my host for the trip. The Veneto has been described to me as a cross between Caesar’s Palace and the Hotel Del Rey in San Jose, CR which is a combination that I really find appealing.

As it turns out, Panama City is a beautiful and modern city which is in the midst of an unbelievable real estate boom. According to a recent article that I read, there are currently 172 high-rise condo projects either under construction or in the planning phase in Panama City. Well, you’ll never guess what I do for a living; design high-rise condos.

In 1987 the Panamanian government passed what is called Law No. 9 which was aimed at boosting foreign retirement income under the Pensionado program. Additionally, the Investment Stability Law, passed in 1998, protects foreign investors from any change in tax, customs, municipal and labor rules for a period of 10 years after an investment is registered.

Some of the benefits of this program for foreigners that spend time, invest in or retire to Panama:

● Newcomers who buy or build a new house won't owe any property taxes for 20 years.

● Residents pay no taxes on foreign-earned income.

● Tourism investments have 20-year exemptions from import duties, fees for construction materials and equipment, and income, real estate and other taxes.

● The U.S. dollar is legal tender in Panama, which insulates its economy from global shocks. During the Asian monetary crisis of 1998, Panama became one of the healthiest economies in Latin America.

● Once you become a resident "pensioner" of Panama under the Tourist Pensionado Visa, you are eligible for the most appealing program of benefits for retirees available anywhere in the world right now. The rules for becoming a "pensioner" and qualifying for this visa program in Panama are probably not what you'd expect.

In fact, anyone over the age of 18 may apply and can qualify as a pensionado in Panama. All you need is a guaranteed pension income of $500 per month ($600 for a couple). It must be a pension from a government agency (e.g. Social Security, disability, armed forces, etc.) or a defined benefit pension from a private company.

As a qualified pensionado in Panama, you would be entitled to the following:

50% off entertainment anywhere in the country (movies, theaters, concerts, sporting events, etc.)

30% off bus, boat, and train fares

25% off airline tickets

50% off hotel stays Monday through Thursday, 30% off Friday through Sunday

25% off restaurant meals

15% off at fast-food restaurants

15% off hospital bills (if no insurance applies)

10% off prescription medicines

20% off doctors' consultations

15% off dental and eye exams

20% off professional and technical services

50% off closing costs for home loans and more

Panama has one of the lowest costs of living in all Central and South America: A U.S.-style home can be built for about $40 per square foot; unskilled labor costs $6.40 per day; a full-time live-in maid costs $120 to $160 a month; a beer at a bar costs 35 cents; a cup of coffee, 30 cents; a haircut and shave can cost as little as $2; an afternoon at a beauty salon is $8; electricity is about 10 cents per kilowatt-hour; water bills are $18 per year; telephone service costs roughly $30 a month; Internet access is $14 a month; wireless is available for a bit more; cellular-telephone service costs about $30 a month plus a per-minute charge of around 22 cents; and cable TV will cost you about $30 a month.

Sounds pretty good, doesn't it! I will post a couple of trip reports from both destinations to let you guys know how it’s going.