Panama Real Estate for Ex-Pats

by Andrew Cowan

Living in Panama, you run into a lot of Americans. We seem to frequent the same restaurants, live in the same neighborhoods and seem to find second homes at the one or two "gringo" bars that Panama City hosts. In meeting all of these ex-pats you start to see patterns. The biggest one I've noticed is a reoccurring trend of the same vague occupation. It usually surfaces along these lines:

"What are you doing down here?"
"I work in real estate."

Really? Are you a developer? An agent? Do you own your own real estate? Do you like to look at picture of real estate? Are you a buyer? Do you have buyers in the States?

"What does that mean?"
"Oh, I do various things related to the real estate industry here in Panama."

I've learned to nod my head and mumble something along the lines of "that's nice". Is there a need for all of these Americans down here working in "real estate?" Looking around, I would say yes.

Panama City right now looks like the floor of a child's room Christmas morning after he just got twenty Erector Sets. I can't wait to meet the American who answers my question with, "I'm a self erecting crane salesman." Ka'ching! That guy can buy the bar a round.

These half completed apartment and condominium projects are everywhere. Thanks to the lax zoning laws here in Panama, or their lack altogether, you'll find cement trucks cruising down residential streets, headed to the new development next to the Panamanian equivalent to Home Depot.

Pick up any real estate magazine here and you will find ads for more real estate projects than anything else. I sat down and counted 56 ads for real estate companies and associated services, many of them full page, in a 98 page Panama lifestyle and travel magazine. The ads are all in English, targeting Americans, and for companies that are run by or employ the real estate professionals I seem to meet everywhere I go.
But why Panama?
Panama is a real estate paradise for the savvy investor. With many Americans looking offshore for investments, a country that is a 3 hour flight from Miami, stable, uses American currency, and along with beautiful tropical beaches and untouched coastlines, contains the only real first world city in Central America, looks great. Developers see it. Investors see it. Panamanian real estate is booming.

The number one clients for these realtors are Baby Boomers. They are starting to retire, the kids are out of the house and they are looking at buying a second home or moving out of the country. That pension check goes a lot farther when a nice sit-down lunch will run you $5.00 and your local bar is selling fifty cent beers.

The Panamanian government is doing their part to entice foreign investors. Tax breaks can be found for houses, condos and land. Most recently built houses and apartments qualify for a 19 year tax exemption and if you are looking at purchasing land, plant some teak trees on it and benefit from a reforestation exemption.

You may be wondering what all that nonsense you just read was. Who wrote this? What does he do? And I'll tell you,

"I work in real estate."

About the Author
Andrew Cowan works in Panama with a Panama Real Estate Company as well as Panama Travel a lot.