Tax Exemption, Low Prices and Quality of Life
Any investment is always a risk. However, it is much less risky to invest in the purchase of an apartment in Panama than in shares of any company. The explanation is simple: real estate does not suffer as much from the volatility of the stock markets. These assets generate income that continues to increase, exponentially, over time. These investments become a good strategy when you are thinking about retirement.
Renting Increases Income
Experts suggest that the best decision is to buy small and well-located properties, especially in Panama City. These properties are in high demand, so renting them out is a breeze. Likewise, rental prices continue to rise, even during Covid-19 post-pandemic.
Pay Less Taxes and Other Advantages of Investing
One advantage of investing in real estate in Panama is that it is possible to reduce the amount of taxes to be paid. For example, when buying a property with an assessed value of less than $120,000.00, it is not necessary to pay real estate taxes for that property, according to Law 66 of 2017.
Between $0 and $120,000 = exonerated.
Between $120,001 and $700,000 = 0.5% of value.
Over $700,000 = 0.7% of value.
Investing Allows You to Obtain Residency in Panama
The Panamanian government has a real estate investment visa program in force. This consists of granting residency to those people who invest a minimum of $300,000.00 in real estate. The application process takes a maximum of 45 days. In the event that the applicant has dependents, then they must invest an additional $2,000.00 for each one.
The Best Places to Live in the Interior
When thinking about living in Panama, Capital city is the first place that come to mind to many people. However, the country area has several places where quality of life is higher, and cost less than in the big city.
- Bocas del Toro
It is the best option for those looking to live in paradise. The province is one of the best places to start that chapter of life in the Caribbean, close to the sun and crystal clear waters.
Here it is possible to enjoy the simple pleasures of life without worrying about many things.
Cost of living:
In Bocas del Toro it is possible to live for as little as $900.00, including rent. And if the income is between $2,000.00-$2,500.00 you can live like a king or queen.
- Boquete
This town was once a small agricultural area that prospered over the years, thanks to its volcanic soil and mild climate.
Boquete is full of mountain activities, shows. Besides the local Panamanian citizens, a large number of foreigners mainly from the United States and Europe reside here, however, the population is only 20,000 inhabitants.
Cost of living:
The average monthly cost of living in Boquete is between $1,100.00 and $2,500.00 dollars for a simple and medium-high lifestyle.
Now, if you want an extremely extravagant life, you need an income of up to $3,267.00 a month. Renting a three bedroom house with two bathrooms is approximately $800.00 a month.
- Taboga Island
This volcanic island is located just 20 kilometers from Panama City, in the Gulf of Panama. Currently, several foreigners have begun to move to this island for its quieter environment. Taboga has that appeal of isolation that most retirees or people who no longer like the city stressing environment.
Cost of living:
It is possible to live well starting at $945.00. An estimate of the expenses of a couple. Rent also ranges from $300.00.00 to $750.00.00, depending on the size and location of the house or apartment.
- Santa Fe de Veraguas
Like New Mexico’s Santa Fe, Panama’s is a vibrant center of culture, eccentricity, and authentic town life.
Santa Fe de Veraguas is surrounded by green hills and situated in the highlands, just like Boquete.
Cost of living:
You can live comfortably with a monthly income between $800.00 and $1,000.00 per month in Santa Fe. Renting a fully furnished house is possible with only $475.00 per month. To get an idea of how cheap many things are in this part of Panama, a good breakfast is only $3.00 and a beer is still only $1.00. The standard and cost of living in Santa Fe is within its reputation of being holistic and closer to nature.
