Reforestacion en Panama

Siempre que salgo en el auto, veo tantos lugares donde podriamos sembrar plantas!, es una pena que solo talemos arboles y rellenamos con cemento, porque no plantar en cada espacio disponible?, porque no poner potes grandes donde no se puede plantar o encima del cemento? porque no incentivamos la reforestacion MASIVA!!!, lo poquito que cada uno de nosotros hagamos nos dara un beneficio increible!, porque no sembrar en las azoteas?, SE PUEDE, ya lo hacen en otros paises.

Creo honestamente que estamos acabando con el mundo, calentando el medio ambiente, nos estamos matando y es tan sencillo el Plantar!!.

Que hacen los ALCALDES?, los MUNICIPIOS?, NADA............., estan para ver como se rebuscan y nada mas.............. y esto que supuestamente tienen Viveros como el del SUMMIT en Gamboa, regalen las plantas a todos los que quieran reforestar, debe ser gratis!!!!

Porque no hacer el cambio, FOMENTEMOS LA REFORESTACION, EDUQUEMOS A NUESTROS NIÑOS, aun estamos a tiempo y si las autoridades no lo hacen, hagamoslo nosotros mismos, empecemos, demos el ejemplo....................

Si fuera Alcalde promuevo la Reforestacion Masiva, quien plante se le reconoce algo (de alguna manera) y el que tale se penaliza (bueno eso es dificil pues este es el pais de las maravillas!).

Saludos,

Deja Vu Investment
http://www.dejavuinvestment.com

MIAMI IS OUT PANAMA IS IN

Miami is out and Panama is in
Simon Black, international traveler and investor, has written an article about how investment is and will continue to move out of Miami and seek another home. He list a number of options, but ends up selecting Panama for a many reasons. An interesting article with an interesting take on our world in Panama.
The Capital of Latin America
Simon Black
For Latin Americans, Miami has been a lot of things– the major financial center, the cultural Mecca, prime tourist destination, the business capital, and a symbol of international success.
The city made its riches and opportunities available to all nationalities, reaching the point during the most recent real estate boom where one could become financially successful and never speak a word of English.
Truly, Miami was a frontier island between North and South, sort of a Hong Kong of the Americas, infusing business savvy and capital with cheap labor and an extraordinarily large market.
The fact that Miami is so close to the United States and participated in the US banking system (the world’s #1 tax haven for non-US citizens) was a major benefit to individuals and businesses.
Naturally this is all changing now.
Read the rest of the story at The international Man website.
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Imprescindibles cambios en Tocumen

Múltiples crónicas hemos consagrado a través de los años al tema del desenvolvimiento profesional de nuestro aeródromo principal. Muy a pesar de los positivos cambios realizados, la tarea nunca termina. Al contrario, se convierte en un continuo reto al sentido común y la evolución de incesantes transiciones, ecos de nuestro mundo moderno.
Si bien es cierto, se elimino el desordenado mercado de buhonerías existente durante el quinquenio anterior, la Administración Torrijos procedió a crear un cuasi monopolio en la zona libre que afecta la venta de productos claves en el aeródromo a favor del expendio de productos típicos del ambiente duty-free como licores y tabaco, perfumería, ropa, electrónicos y joyería.
Recientemente fuimos cortésmente acogidos por Graciela Gutiérrez, funcionaria con tres décadas de servicio a la institución, en el kiosco que la Autoridad de Turismo ha ubicado frente a la puerta de embarque # 22 en la zona franca. Nos explicó Graciela que allí se ofrecen fascículos por provincia en castellano e ingles. Posterior a un lógico análisis, me pregunto si un turista reconoce la diferencia entre Darién y Los Santos como para escoger el correspondiente cuadernillo. Es como viajar a Guatemala y recibir opciones de catálogos de Huehuetenango o Jutiapa ¿No sería mejor ofrecer un Panamá Pack que ofrezca el ramillete completo de la oferta turística disponible, incluyendo la opción en formato CD multilingüe para la gran mayoría de los visitantes que viajan con sus computadoras personales?
Interrumpió súbitamente nuestra entrevista una frustrada pasajera Sudamericana que nos expuso que había recorrido íntegramente la terminal en busca de una tienda de artesanías. Algo anda mal cuando vendemos Marlboro, Cartier y Sony pero no molas, sombreros Panamá ni taguas.
Algo anda bien mal cuando no hay un solo puesto de expendio de libros y periódicos, negocios harto típicos de aeropuertos en todas las latitudes. ¿Reflejo tal vez de nuestra indiferencia por la lectura o resultado del cuasi monopolio? Algo anda supremamente mal cuando después de ganar el galardón como el mejor café del mundo consecutivamente por un lustro, no hay ningún sitio en la terminal donde se promocionen y se vendan nuestros cafeses acompañados del cintillo #1 Coffee in the World.
Nos jactamos de nuestras virtudes comerciales, pero contamos con un solo restaurante en la zona franca que peca por su pésimo servicio, exagerados precios y su limitado menú. ¿Quien ha sido beneficiado por este monopolio durante las últimas tres décadas?
Según el Reporte Estadístico 2008 de Tocumen, un total de 4,549,170 pasajeros que se trasladan a 54 diferentes destinos utilizaron la principal terminal aeroportuaria del país. De estos, 1,505,324 desembarcaron en Panamá. Gozando de tantos espacios disponibles ¿no sería beneficioso para el istmo venderse a esa audiencia cautiva de más de 3 millones de pasajeros que pululan anualmente sus pasadizos?
Si lográsemos la distribución masiva de material publicitario de optima calidad y la decoración del terminal con impactantes pautas de nuestra gran oferta turística, desde los records mundiales de pesca fuera de borda, la diversidad de las playas Caribeñas y de la Riviera Pacifica, nuestras numerosas islas, tierras altas, la capital más moderna y hermosa de Latinoamérica con su imponente Cinta Costera y Casco Antiguo, el Canal, las bondades de Coiba y Kuna Yala, el verdor del Darién y el Museo de Diversidad, entre otros, abriría el extraordinario apetito de los transeúntes hacia un turismo diferente y variado. ¿Se imagina el amable lector el efecto multiplicador que tendría en nuestra economía si lográsemos que un ínfimo porcentaje, por ejemplo, trescientos mil turistas adicionales o menos del 10% de los transeúntes, regresaran a Panamá? Sería un negocio redondo y jugoso para el país, sobre todo en estos momentos de incertidumbre y crisis financiera mundial.
Vale entonces la pena explotar al máximo Tocumen, ese fabuloso diamante sin pulir. Enhorabuena, ¿Qué estamos esperando? El autor es especialista en turismo.

Courtesy of: Panama Real Estate & Investment

Panama Going Strong Against All Odds

It seems as if Panama was a country totally independent to the rest of the world; while other countries are restraining investment, managing the world crisis and its effects, low tourism, imports, exports, investments as a whole, this small but fast growing economy and beautifull country.

Come and be a part of it!

Visit Panama

FORESTAL INVESTMENT IN PANAMA

When I first came to Panama in 1995, I was involved in a number of reforestation programs in the central provinces of Panama; most were run by the Panamanian government and focused on reforesting denuded, barren fields that had once been dense rainforest. We planted Caribbean Pines and some Teak, but few native species of trees. While working in these reforestation projects, I realized very clearly that the process of deforestation in Panama, as with most tropical countries, is a human induced ecological problem. The cycle went like this: A population of farmers from an already exhausted environment moved into a jungle area, cut down large trees and then burned the forest to make agricultural fields. After burning all the vegetation, the land was used in a long fallow agricultural system: the land was used for two or three years and then was left to return to high forest for 10 to 12 years. But over time as the population grew and more food was needed the fallow, or resting period, was shorten until farmers were using their land every year or every two years. At some point the land became useless for agriculture; at this point, most of the land was turned into cattle pasture.
The turning of the land into cattle pasture meant the quality of the soil was further degraded – at some point the land wasn’t even good enough for cattle grazing and was abandoned and became known as cerro – useless land.
Futuro Forestal is trying to stop and reverse this process. What Futuro Forestal is emphasizing in their tree plantations is diversification on each plot in order to protect their investment and encourage biodiversity - a good policy. Futuro Forestal is also experimenting with about 50 other native and exotic species. Basically, Futuro Forestal buys the seeds from government centers (IDIAP is the government agency) and then starts the trees off at their nursery for the first 4 months or so. Sites are prepared, including digging a 1 m planting hole, which is filled with their special organic soil mix. Once the rainfall pattern is stable (May, June), the seedling is then transplanted in this medium, and it literally takes off! Visiting the various plots and seeing the growth heights of the species and then being told their age, you can’t help but be astonished.
Futuro Forestal: Investing In Reforestation
Futuro Forestal is a private German-Panamanian Reforestation and Forest Services Company that has spent the last 11 years developing and refining an innovative investment model based on ecologically and socially sustainable reforestation in the tropics. Futuro Forestal offers investors the chance to own a forest that produces high yield, fine tropical hardwoods. The sale of the wood, seeds, as well as carbon credits enables the savvy investor to make a substantial profit while contributing to a socially and environmentally sustainable project. Investors receive fully titled land, planted with up to seven species of valuable tropical hardwoods, AND the forestry services of Futuro Forestal for 25 years. Profits of 6-11% IRR can be obtained on a 25 year term. The company works closely with the Smithsonian Institute in Panama as well as the Yale School of Forestry and Environmental Studies and the University of Panama; it is FSC (Forest Stewardship Council) certified. The project is also being monitored by the Panamanian Environmental Authority ANAM.
Futuro Forestal has recently won the Metafore Innovation Award in Portland, Oregon, for their investment product WoodStockInvest. The award recognises improved social, environmental and financial results in the area of forest products.
Futuro Forestal’s project aims to create an attractive environment for the investor and at the same time help to restore the biodiversity of Panama. Their reforestation activities take place in two areas. One is located in the Chiriqui Province in the town of Las Lajas, which is located on the Pacific Coast of Panama, about a 5-hour drive from Panama City and an hour-and-a-half drive from Boquete. Their newest reforestation project is located in the area of El Pito/Soná in the Veraguas province, where they have established their new “Finca Las Huacas”. The new Finca, specially dedicated to the Forestry Visa, offers 2 ha plots of titled land with 25 years of sustainable forestry management services for 40,000 US$ which is the minimum required by the Panamanian authorities to qualify for the Reforestation Visa.
Depending on species, after the 20-30 year growing period and silvicultural management, Futuro Forestal expects to have about 400 crop trees to harvest, with heights of around 25-35 m. Most trees will reach the incredible heights of 20m within their first 4-8 years (compare that to coastal BC where best site growth is about 2-3m!). First income will be generated with the different thinnings, which occur at year 10, 15, 18, 22. and 25. A profit can also be expected from the sale of carbon credits. After that, the key is to transfer the growth to the girth, to put on diameter growth. Thus, further thinning and fertilizer applications. Unlike in the slow-growing conditions in North America, in Las Lajas, silvicultural investment must be intensive in order to keep up with the fast growing trees. By the way, all fertilizer applications consist of 100% recycled organic by-products, such as chicken manure and sugar cane leaves.
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How To Invest And Why
Most investors in the project buy a 5 acre parcel or more – most investors invest 40,000 to 200,000 dollars in the project, most see a yearly return of 8% to 12% or more on their investment. But it is also possible to invest in smaller plots of ½ ha. After your initial investment you receive title to your land. Your land is then managed by Futuro Forestal: taking care of the trees intensively, fertilizing and executing the first thinning after approximately ten years. Thinnings will occur after years 15, 18 and 22 with the main harvest in year 25. Basically what you are doing when you invest in Futuro Forestal is investing your money in a valuable natural resource – tropical woods – that will grow in value as the demand for tropical woods grows, as it is, and as demand grows prices will rise. At the end of the 25-year cycle you will still own real estate in Panama as the land that is used to grow trees is in your name.
Security And Best Quality
There are no active volcanoes in Panama. There are no hurricanes on the Pacific side of Panama. There is no history of strong earthquakes in Panama.
Unique System of Insurance pool. More than 5 % of reforested land will be held back for investors in case of total loss.
Fire insurance for the first 5 vulnerable years
Key person-insurance with Generali (1.5 million US coverage).
Auditing through Deloitte.
FSC Certification through SmartWood (“well managed”).
Rating as No.1 Forest Investment in Latin America (SIRIREC 2004).
Risk minimization through ecological portfolio model (6 mainly native species of fine timber plus teak).
Co operations with renowned Universities such as Yale School of Forestry and Environmental Studies.
Tree guarantee: Futuro Forestal commits to replant trees which have died due to disturbed growth.
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Benefits To The Surrounding Community
Futuro Forestal is now employing 50 full-time workers and 80 seasonal workers. This has allowed families in the area to stay in Las Lajas and not migrate out of the region to Panama City or to the regional capital of David. The project has also helped farmers in the area learn about the benefits of reforestation. Hopefully, what the farmers learn at the project will change the way they farm, specifically not to cut down or burn trees. If the farmers can see there is money in preserving the environment, then they will be able to stay on the land and not become landless urban workers who can’t feed themselves. This process of change in agricultural practices is similar to what happened in Costa Rica 30 or 40 years ago: people stopped burning, stopped migrating to the city, and started to realize that protecting the natural environment meant food and money. Panama is just beginning this process.
Most rural farmers in Panama have a hard time making a living in the countryside, most have large families and most see their children leave the countryside and go to Panama City to look for work, so the family structure in rural Panama is breaking down because the agricultural base or natural resource base of the countryside is so depleted. If you go to the Panamanian countryside today you see mostly very old people and very young children who are left with their grandparents by young mothers who work in Panama City as domestic servants.
What I believe would be good is that people in the countryside of Panama have to find a way to reclaim land that has been destroyed because of poor agricultural practices. The first step in reclaiming denuded and barren land is reforestation, but reforestation that promotes biodiversity and not monoculture. In short, there has to be a migration from the urban areas back to the countryside and when this happens there must be some new agricultural system that is in place that will allow the population to survive on the land without destroying it. Reforestation now will help this process along later and what Futuro Forestal is doing in Las Lajas is planting the idea in the surrounding community about how to reforest and how do it in a way that is profitable and will allow people to stay together in the countryside and become prosperous farmers.
Farming was a prosperous activity in Panama in the past. Before roads were extended into the deep interior of the country, people had to produce to feed themselves. But when roads penetrated deep into the countryside, the road in became the road out and people started pouring out of the countryside to the city and when that happened agriculture and an instinct for natural resource management suffered. Food was shipped into these remote areas because of the new roads. Before the roads were cut it was difficult for people from outside these small rural communities, with names like Pan Dulce, Comensito and Agua de Salud, to reach them - they could only fly to the towns by light airplane. At that time, all the small towns had markets on Sunday at which people from the countryside and the local aristocracy bought their food - there was no food trucked in. Reforestation is the first step in improving agriculture and hopefully change people's feelings about seeing the importance of the environment as something from the dark past.
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Investing In Panama
The advantage of investing in Panama is that it has become very politically stable over the last 14 years and the U.S. has a vested interest in seeing this incredibly important country stay stable. As an investor you have the benefit of having modern services in Panama, especially modern banking services. There are over 150 banks in Panama for a country that probably has 200,000 people who could put money in the bank; in other words, there is a lot of foreign money in Panama and in order to protect the inflow of foreign money, banks have to treat investors well.
The banking laws that made Panama an offshore haven were passed by Omar Torrijos in 1970: those laws stated that there would be no tax on interest from any kind of account. Offshore business deals would be tax-free. No laws or restrictions on the setting of interest rates. Money could move in and out of the country freely. Numbered accounts rather than named accounts: Switzerland in the tropics it was called. Another reason why Panama became a banking center was the fact that the U.S. dollar is used as the national currency as well as the fact that Panama is in the same time-zone as Wall Street – making its banking hours identical to New York.

Types Of Businesses You Might Start In Panama
The place is swarming with great lawyers who are very inexpensive and for the most part honest. Now what kind of business would you want to open? A lot of people that are relocating to Panama are opening Internet based businesses, from clothes to tourism. Tourism has taken off over the last two years in Panama, though the tourist infrastructure in the country is still underdeveloped, especially the marketing of tourism. Another type of investor are those working in e-commerce, selling real estate in Panama through the Internet or shipping products out of Panama’s Duty-Free Zone to the world. For trading Panama is in an excellent position: perfect location between North and South America, there are great storage facilities in Panama as well as easy shipment of merchandise, you have a large duty-free zone from which any product can be assembled and sold in the region. Most people that trade out of Panama buy their goods in China, from China they ship merchandise to Panama’s duty-free zone and from the free zone they ship to other countries in Latin America, say, Venezuela, Costa Rica, Ecuador or wherever.
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Special Benefits For Retirees In Panama
The law outlining benefits for retirees in Panama was written in 1987, known as Ley No. 6 del 16 de junio de 1987 adjustments to that law were made in 1989 and 1992. The benefits for retirees in Panama are some of the best worldwide and certainly the best in the region. Here is a list of retiree benefits:
You can import a car into Panama every two years tax free.
Discounts on pensions, motels, or hotels.
Pay less on medical bills if not covered by insurance.
Prescribed drugs are discounted by 10%.
Airfares are discounted by as much as 25%.
Restaurants will give a discount.
30% off Public transportation.
You may import household goods worth up to $10,000 tax free.
20% off Medical services.
25% off light bills, water bills and cable bills.
No property Tax if Panama is where you own your only home.
Lawyers, Nurses, Therapists and other professions give discounts.
Home furnishings bought in Panama are tax free.
Interest rates on Commercial loans are lower for retirees.
National and foreigners are equal under the law in Panama.
50% off recreation, such as movies, sports events, ballet, parks all have a discount for retirees.
50% off Hotels.
Studying In Panama
FSU-Panama is the second oldest University in Panama. It has been operating in Panama since 1957 and offers majors in Computer Science, Environmental Studies, Information Studies, International Affairs, Interdisciplinary Program In Social Science and Latin American and Caribbean Studies. The University is located in the old U.S. Canal Zone and lies directly under the Bridge Of The Americas, the bridge that connects North America and South America. The University provides housing at a very reasonable price and tuition to the school is much less expensive than most universities in the States. Classes are in English and most students that spend their four years at the University learn Spanish. So you get Spanish as well as English as well as a U.S. recognized degree and you also stay out of the cold and get the chance to visit other countries in the region without having to travel so far.
Click Here to read more about FSU-Panama.
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Letters From People Who Have Visited Futuro Forestal
"I invested into FSC certified forestry with Futuro Forestal, because this is a smart way to combine ecological economical and social approaches in a stricken third world country. Especially the idea of reforesting in Panama as a profitable investment convinced me. I have been in Panama to see the project with my own eyes. I was impressed to see how professional the job is done there to benefit local people as well as the investor. This concept as a whole approach was important to my decision to invest and parts of my future retirement savings will be shifted into this opportunity"
Bernt Kamin Chairman of the Work Committee Seaport Hamburg
"We appreciate your practical experience with the plantation and the capacity to create a multiculture forest of primarily native species and to succeed in making the venture profitable and sustainable. We look forward to a continued positive relationship with Futuro Forestal."
John Spears, Senior Advisor, the Forest Team, and Socially Sustainable Development The World Bank in a letter to Futuro Forestal

Courtesy of:http://www.dejavuinvestment.com

PANAMA HIGHEST ECONOMIC GROWTH IN THE AMERICAS

Panama will continue to have Latin America's highest economic growth, while Mexico will have the lowest, according to a Latin Business Chronicle analysis of new data from the International Monetary Fund (IMF). All in all, Latin America is expected to increase its GDP this year by 4.4 percent, the fund said in its latest World Economic Outlook released last week. That's a slight revision upwards from the 4.3 percent GDP growth the IMF had forecast earlier. It's also better than the IMF's forecast for global growth (3.7 percent) and economic growth in the United States (0.5 percent), the European Union (1.8 percent) and newly industrialized Asian economies (3.9 percent). However, Latin America will lag areas like developing Asia, Africa, the Middle East and the Commonwealth of Independent States when it comes to GDP growth this year. (more)
Next year, Latin America's economy should grow by 3.6 percent. That will be higher than the forecasted growth in the United States and the European Union, but will lag all other areas and be slightly less than the expected global average of 3.8 percent.
Mexico, Latin America's second-largest economy, will likely expand its GDP by 2.0 percent this year and another 2.3 percent next year. That will be the slowest growth in Latin America in 2008 and 2009, our analysis shows. Mexico had the third-lowest growth last year - 3.3 percent. The 2008 growth will also be the lowest since 2003.
Brazil, Latin America's largest economy, will post GDP growth of 4.8 percent this year and 3.7 percent next year, the IMF predicts. That compares to 5.4 percent last year, which was the country’s best since 2004.
Argentina, Latin America's third-largest economy, will grow by 7.0 percent this year. That will be the second-best result in the region, along with Peru. Next year, Argentina's GDP should expand by 4.5 percent. Last year the country's economy grew by 8.7 percent.
Panama will see GDP growth of 7.7 percent this year and 7.2 percent next year. That's the highest rate in Latin America and follows Panama's growth of 11.2 percent last year, which also was the best in the region. In fact, it was also the best result in Panama's recent history, according to IMF data for the past 27 years.
Another star is Peru, which will see growth of 7.0 percent this year and 6.0 percent next year. Both are the second-best in Latin America. Last year, Peru's GDP grew by 9.0 percent, which also was the second-highest in the region and its best result in 13 years.
Among the leading losers are countries like Ecuador, El Salvador and Venezuela. Ecuador, which had the worst result last year (1.9 percent), will post the second-lowest growth this year (2.9 percent). However, it will fare better in 2009, with 4.1 percent GP growth, the IMF predicts.
El Salvador will post the second-lowest growth next year (3.4 percent). That follows an estimate 3.0 percent GDP expansion this year (Latin America's third-lowest growth) and 4.7 percent last year.
Venezuela, Latin America's fourth-largest economy, is expected to see a marked slowdown from recent years to next year. While the South American country's economy will be the fifth-best this year, it will be the third-worst next year. Venezuelan GDP will grow by a mere 3.5 percent in 2009, the IMF says. That follows an estimated 5.8 percent growth in 2008 and a more impressive 8.4 percent expansion last year.

Courtesy of: http://www.dejavuinvestment.com

Lawyers Advise in Real Estate Panama

It is a fairly common practice in Panama for a real estate brokerage firm to provide free corporations for the buyers of newly built condos. Usually they have an in-house attorney or a law firm that is an in house attorney in disguise, doing the corporations.
Well the problem is the real estate is being titled into the name of the corporation. The corporation has nominee directors, and a resident agent who is tied to the real estate company that sold you the development through their lawyer. The lawyer forming the corporation does not have an arms length relationship with the realtor and you. There is a conflict of interest not in your favor in that the realtor is the one who is paying the lawyer not you. How many condos are in that building 150-200. That is a lot of corporations for the lawyer. All the lawyer cares about is seeing that the real estate deal closes and the developer gets paid.
What if you need to start a lawsuit concerning the real estate because something was not done correctly? Now having his lawyer do the work on the corporation that owns the real estate that your hard earned money paid for does not seem like such a good idea, does it?
Second Year Fees - A decent price for second year fee is $695.00 including three nominees, resident agent, resident address and the $300 tax. Some of these law firms charge $1200 or more for the second year fees and that is how they make their money. So the free corporation may not be that free.
Free Immigration Work from Broker - Again be careful if there is a dispute over the real estate why do you want your broker or their lawyer to have involvement with your immigration case. What if a lawsuit is necessary regarding the real estate?

Courtesy of: http://www.dejavuinvestment.com

Investing in Real Estate Panama

Buying Real Estate in Panama
Q. Can foreigners own property in Panama?A. Yes. All citizens and foreigners are equal under the Panamanian Constitution. Anyone can own property in Panama. And, while not required by Panamanian law, it is advisable to establish a legal entity to buy land and engage in the building or purchase of a house.Q. Do foreigners enjoy the same property rights as Panamanian citizens?A. Yes, with one exception: foreigners cannot acquire land within 10 kilometers of the country border and on islands that have not been declared a special development area.Q. Why do so many foreigners choose to buy a second home or retirement home in Panama?A. The main reason that foreign investors have targeted Panama is cost. Property in Panama is relatively affordable. Buyers can purchase highly-desirable property in Panama for less than one half what they might pay for comparable property in the rest of the world.Buying property in Panama is safe and easy - foreigners enjoy the same property rights as Panamanians. Additionally, there is real estate readily available in Panama to suit all budgets and tastes. From a luxurious high-rise apartment, to a tropical beachfront condo, or a breezy mountain retreat, there is a perfect piece of Panama property for every type of person.Q. What makes Panama appealing besides affordable prices?A. Panama is the most North-American in makeup of any nation in Latin America. Panama has most of the conveniences found in the U.S. from Direct TV, to American movies, to excellent health care. Plus, the major cities have the amenities and comparable infrastructure to the U.S.Panama is truly a tropical paradise with almost zero violent crime and an extremely hospitable attitude toward foreigners. The country is peaceful, has a low population density and almost no pollution. It uses the U.S. dollar as currency so there is never any currency exchange issues.Whether investors just want a place where they can relax on the beach and surf in the ocean waves, or relax on a mountain top in the cool highlands, Panama has it all.Q. Why is there a sudden surge in interest in Panama property as an investment?A. Panama's recent vote to start a $6.0 billion expansion of the Panama Canal will result in a huge injection of money into Panama's economy. Canal officials say the expansion, due to be concluded in 2014, will create up to 40,000 jobs. By 2014, the Canal is expected to contribute $1.3 billion a year to the nation's treasury, up from $580 million today. The entire country will benefit, and real estate, especially property near the Canal, will likely appreciate significantly.Q. How is title to property held in Panama?A. The Republic of Panama has one of the most sophisticated Public Registry systems in the region. The Public Registry Office keeps records of all titled properties in all nine provinces of Panama.Q. Is Panama attractive to retirees?A. Panama has tried to encourage foreign investment by appealing to affluent retirees. For that reason, the requirements to own property and establish permanent residence are not nearly as onerous as in some other countries.Foreign retirees who want to make their home in Panama must get a pensioned tourist visa. This visa will include the right to import up to $10,000 worth of possessions for personal use duty-free, as well as the duty-free import of a vehicle every two years.A huge plus for retirees, both foreign and domestic, are discounts of 10%-50% at restaurants and hotels, for transportation and many medical services, and for some financial dealings.Q. What other retirement incentives are offered for foreign investors in Panama?A. Retirees are eligible for many outstanding incentives that include:
Import tax exemption for household goods
Tax exemption to import a new car every two years
25% discounts on utility bills
25% discount on airline tickets and 30% on other transportation
15% discount on loans
1% reduction of home mortgages for homes used for personal residence
20% discount on doctor's bills, 15% on hospital services if no insurance applies
15% off dental and eye exams
10% discount on medicines
20% discount on bills for professional and technical services
50% discount on entrance to movie theaters, cultural and sporting events
50% discount at hotels during Monday to Thursday, 30% on weekendsQ: Does Panama offer any tax exemptions to foreign buyers?A: Yes. This tax exemption is an exciting benefit of buying property in Panama and applies to nationals and foreigners who buy property in Panama.A major incentive to buy any property in Panama is the 20-year property tax exemption law. The law was first passed by the Panamanian government in 1990 as a way to encourage economic growth and investment. The exemption mandates that buyers of new homes or condos do not have to pay property tax for up to 20 years.In late December, 2007, Panama extended the 20-year tax emption until the end of 2009. This means buyers who close on a property before December 31, 2009 are exempt from paying property tax for 20 years. Maybe it's time to take another look at Panama properties. Of course, buyers should check with a project's developer and/or their personal accountant to ensure that this law applies to their purchase.Q. When selling real estate property, does the seller have to pay a transfer tax?A. Yes, sellers of real estate are required to pay a 2% tax for each transfer of property. Real estate transfer tax can be offset as a direct credit against the income tax levied on the capital gain arising from the sale, if any.Q. What types of property are foreign buyers purchasing in Panama?A. Foreign buyers purchase single-family homes, condominiums and also a relatively new type of real estate called condo hotels.Q. What are condo hotels and why is it becoming popular in Panama?A. The condo hotel concept has been rapidly gaining acceptance all over the world. Panama has joined in by planning to build several outstanding condo hotel resorts.The condo hotels are four- or five-star resorts offering fantastic amenities like full-service spas, fine-dining restaurants, pools, concierge services and more.These vacation homes are ideally suited for international people buying a second home because owners can use their condo hotel unit when they want.When they're not in residence, their condo can be placed in the hotel's rental program, and they will receive a share of the revenue it generates.Plus, the hotel takes care of cleaning and maintaining the property, operating its many amenities, and promoting it to attract hotel guests. It is hassle-free second home ownership at its best.Q. Are Panama condo hotels appropriate for retirees?A. Yes, they're an excellent solution for retirees who may want to spend a few weeks or months a year in a warm climate and a resort atmosphere but don't want any of the typical responsibilities like property maintenance associated with home ownership.
General Information About Panama
Q. What's the capital of Panama, and what are some major cities?A. Panama has two main cities: Panama City, the capital, and Colon, on the Caribbean Coast.Panama City is the main economic center and Colon is a city that houses the largest free trade zone in all of the Americas. David is Panama's third most populous city and is located at the center of a rich farming region of Chiriqui which includes the beautiful town of Boquete only 20 minutes away.Q. What about the government and economics of Panama?A. The government of Panama is democratic and is trying to make it easier for foreigners to buy real estate and live in the country.The economy is broken down as follows: 74% service, 16% industry, and 10% agricultural.The country's inflation rate has averaged less than 2% per year over the past 40 years which is extremely rare south of the United States. Panama's economy is one of the best performing economies in Latin America.Q. What is the climate like in Panama?A. In Panama, there are two distinct seasons: The dry season-summer, or verano-(January-May); and the rainy season-winter, or invierno-(May-December).The dry season is considered the tourist season. The rainy season brings regular afternoon showers of short duration. Panama City has an average temperature of 78 degrees F.Q. Where does the word "Panama" come from?A. "Panama" means "abundance of fish" in Indian language, and Panama lives up to this name as a world-class sport fishing destination.Q. What is the best way to travel to Panama?A. Panama has good air connections with destinations throughout the Americas and part of the Caribbean and Western Europe. International flights arrive at and depart from Tocumen International Airport, 15 miles northeast of Panama City.Carriers serving Panama with nonstop or connecting flights include:American Airlines, Continental, Delta, Iberia, Air Madrid, Copa (the national airline of Panama), TACA, LACSA, and Cuban. Another international airport is expected to open in Playa Blanca, Panama in 2008.Panama's gateway cities in the United States are Atlanta, Houston, Los Angeles, Miami, Newark, Raleigh-Durham and Orlando. The busiest flight is Miami-Panama City, which takes just under three hours.Q. What are Panama's most popular attractions and tourist activities?A. The country's most famous attraction is, of course, the Panama Canal, the world's grandest shortcut and one of the great engineering marvels of all time. It is currently undergoing a major expansion which will greatly increase its capacity as well as attract millions of visitors in the coming year. The U.S. relinquished control of the Panama Canal in late 1999.There are several superb tourism activities that can be easily reached from Panama City. There are five golf courses in or near the city and beach areas. Dining is excellent in Panama City, and there are numerous. bars, discos and cafes. In addition, there is birding, diving/snorkeling, ecotouring, fishing, hiking, rafting/kayaking, surfing, and more.The Parque Nacional Coiba is one of Panamas's ecological treasures, and its rich aquatic life has earned comparisons to the Galapogos Islands.Panama boasts the largest number of bird species in Central America. Bird watchers consider Panama as one of the world's best birding sights.Q. What outdoor activities does Panama offer?A. Panama's exciting attractions include world-class deep sea and lake fishing, surfing, wild-water rafting, kayaking and trekking throughout the country.There is also first-class diving and snorkeling in Bocas del Toro, Coiba Island, the Pearl Islands, Isla Grande, the Golfo de Chiriqui and even in the Panama Canal.Q. Is Panama safe?A. Yes. Like many countries, Panama sees poverty and richness, and often the division is obvious. However, Panamanians are very charming and welcome tourists and foreign residents.Q. What precautions should be taken to avoid health risks while in Panama?A. No special precautions are needed for travel in Panama. The only exception would be for travelers planning remote and uninhabited parts of the jungle for several days.Q. What currency is used in Panama?A. The U.S. dollar is the main currency in Panama.Q. Do most places in Panama accept American credit cards?A. Yes. All major credit cards are widely accepted. Traveler's checks are not as convenient as most banks and hotels charge a fee for cashing them.Q. Are there any national parks in Panama?A. South of the city of David, the Golfo de Chiriqui is home to the "Parque Nacional Marino Golfo de Chiriqui," an immense national marine park protecting 25 islands, 19 coral reefs and an abundance of wildlife.Other national parks located at the Peninsula de Azuero are: Montuoso Forest, Reserve, Cerro Hoya National Park, La Tronosa Forest Reserve, Isla Cañas Wildlife Preserve, Isla Iguana Wildlife Refuge and Peñón de la Onda Wildlife Preserve.Q. Is living in Panama like living in a third-world country?A. No, not at all. Panama has a good infrastructure with excellent services such as Internet access, cable TV, good cell phone service and reception, access to American-style products and services, and affordable quality healthcare.In many retirement havens, foreigners must give up many of the technologies and amenities they enjoyed in their home countries. But, in Panama, foreigners will find that the country offers the state-of-the-art benefits and conveniences usually found only first world countries.Q. How does the cost of living in Panama compare with the U.S.?A. Prices are generally less expensive than in the United States, but, as with most countries, things are more expensive in the capital than in outlying areas.Food prices can be comparable or less expensive depending on whether the product is local or imported.Healthcare is substantially less costly than in the U.S.Q. Is hiring a maid feasible?A. Definitely. Most homes are equipped with a maid's quarters. Typical salary for a maid is approximately $200 per month plus food and housing.Q. Does Panama offer good health insurance?A. A number of companies offer a wide range of insurance options. Premiums usually between $40 and $200 per month, depending on coverage.Also, most doctors in Panama are educated in the U.S., and quality standards in Panamanian hospitals often meet the standards of hospitals in the U.S. There is at least one hospital in each of the major cities of Panama.Q. Can foreigners bring their dog or cat to Panama?A. Yes, foreigners can bring pets, and the country has made this a very easy process. A veterinarian located at the airport will inspect the animal and give it any required shots.Pet owners will be charged a fee for the various forms and shots, but the animal will not need to be quarantined. Foreigners should bring all related paperwork for their pet.Q. Does Panama have a reliable banking system?A. Panama has about 90 banks. Of these 90, over 40 bear a general license, which allows them to provide general banking services to local and foreign residents.Panama's banking system is well regulated, and differs from other countries in that banks must have a physical presence (offices, staff, operations, etc.) and comply with all required laws and asset minimums, as well as with banking rules and regulations.Q. Do foreigners need a visa to visit Panama?A. Most foreigners enter Panama with a Tourist Visa or a Tourist Card, which allows them to visit the country for a 90-day period. Currently, almost all foreigners are allowed to enter Panama with a "Tourist Card," which can be obtained from nearly all airlines flying into Panama, while the tourist visas are issued by the Panamanian Consuls.A valid passport is also required to enter the country.Q. How can a foreigner obtain a permanent resident visa?A. Under Panamanian Immigration laws, there are different kinds of visas that authorize an alien to reside in Panama provided they meet the established requirements.Tourist Pensioner Visa (Turista Pensionada): this is designed for people whose pension from a government entity or private corporation is $1000 or more.Private Income Retiree Visa (Rentista Retirado): this visa is designed for people who, despite not receiving a monthly pension, are no longer working and have received a lump sum retirement payment which may be deposited into a five-year certificate of deposit with the National Bank of Panama, yielding a minimum of $1000 a month.Person of Means Visa (Solvencia Económica Propia): this visa is designed for those, not employed or starting a business, but living of their own means. The person must have a one-year certificate of deposit in any bank in Panama with a minimum of $250,000. Upon applying for renewal of the visa, the certificate must also be renewed for one more year.Investor Visa (Inversionista): this visa is designed for those who want to start a business in Panama with a minimum investment of $250,000 and a minimum of three permanent Panamanian employees employed.Q. Is the visa application process difficult and expensive?A. The visa process for the pensionado program is very simple. It's a one-time application. There are no renewals and no additional fees.Other visa programs require foreigners to file a renewal each year. This involves time, paperwork, and additional fees. The process takes only a couple of weeks and the legal fees are about $2,000.Q. Are there general requirements when applying for a visa?A. Yes. All visas applications must be made through a Panamanian lawyer. All overseas documents to be presented to the authorities in Panama must be notarized and authenticated by the Panamanian consulate or by a notary and the Apostille.The Apostille (Via the Hague Convention of 1961) is a quicker way of authenticating documents and is normally obtained through the Secretary of State in the foreigner's home state (in the United States) or through the Foreign Office (in Great Britain). Canadians should check with the Panamanian Embassy or consulate nearest them.All documents must be fresh, (within two months of visa application) and passports must have at least one year to run.A note regarding dependants: If a spouse will be covered by your visa, the foreigner will need to bring a marriage certificate. However, original marriage certificates are not acceptable if over two months old, so foreigners may need to obtain new ones.If children under 18 are to be covered by the visa, they'll need to bring fresh birth certificates (not originals).Q. Do foreigners who own property in Panama have to pay income taxes in Panama?A. The Panamanian Fiscal Code defines a taxpayer as any person or entity (corporation or partnership), national or foreign, receiving taxable income.According to the code, only income that is produced from any source within the territory of the Republic of Panama is subject to income tax, regardless of the place where it is received. This means income from sources outside Panama is not subject to taxes in Panama.

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PANAMA NEW CONDO-HOTELS CONCEPT

This format will come to alleviate the lack of rooms in Panama City
In the province of Panama there are 72 hotels with 7,456 rooms, as indicated by the Panamanian Institute of Tourism IPAT . According to preliminary numbers of this institution, last year the hotel occupation in Panama City surpassed 65%. Whereas the last year 1,358,051 visitors entered the country, 17.4% more than in 2006, the numbers of available rooms in the capital city have remained short and in other words the demand surpasses the supply.
At the moment it is difficult to obtain available rooms in Panama City, reason why some investors have seen an opportunity to try to alleviate this situation by bringing the concept of condo-hotels to Panama. The format of the condo-hotel consists on a buyer of an apartment with a previous agreement with the hotel’s administration and who defers his residence for hotel use.
Both parts decide on a commission for the use of that building. Jorge Loaiza, president of the Panamanian Association of Hotels APATEL showed that the construction of these condo-hotels would greatly alleviate the demand on hotels, since hotel occupation is high and there are no rooms available. He explained, that the condo-hotel concept means that the client can buy an apartment with two alternatives. First is, that he buys it and uses it exclusively for himself or second is, that he defers it to the hotel so that it rents it out with all the hotel services when the client does not use it.
Advantages
“The advantage is that the client is receiving an additional income when he is not using the apartment, that is, not having it closed up doing nothing, but he is receiving money and he is providing the service and maintenance as if it were a hotel”, said. Loaiza. As a matter of fact, a similar format is put in practice at the Decameron hotel, located in Farallón, with the golf course villas.
Under this system, the hotel has around 180 villas for rent, commented Loaiza, adviser to the president of the Decameron chain of hotels. The hotelkeeper said that the acceptance of this system in Decameron has been excellent, since it is also a way to be able to take more people into the hotel, because there are room limitations. In order to make use of the room, the owner of the property must coordinate with the hotel the days he wishes to use it. Loaiza indicates that when a contract is set for a condominium to be used by the hotel, the hotel has the priority in case that the unit has been rented out.
Some Projects
Between some of the condo-hotels that are expected for construction in the capital city are The Orchid Residences, Megapolis by Decameron, Sfera, among others. The Orchid Residences is a five star property that will be located in the center of the banking district of Panama. Elías Mizrachi, commercial manager of Procasa which will build this condo-hotel indicates that the owner of the unit could use it for four weeks per year in intervals of a week with prior reservation, without cost and the rest of the time refer its residence to a rent program administered by Benchmark Hospitality International company, a company of high quality resort, shopping center and hotel services.
The project at the moment is under construction since the beginning of March 2008 with an investment of US$20 million. The company indicates that The Orchid will have 180 studios and one-bedroom residences. The units of The Orchid Residences can offer attractive income to their proprietors, which can be used to pay off their own costs for the property, such as mortgage payments, maintenance expenses or taxes. The units are sold completely decorated and furnished, therefore avoiding any additional cost when buying a property. The administrator covers the operational costs, such as, personnel and other direct expenses.
Rents
This company has planned to begin the rent of these suites at around US$180 per night. It is expected to have the project ready in two years. During its construction it is considered to generate around 700 direct and indirect jobs. Another project that is expected to be built is Sfera. Michelle Saint Malo de Carbonell, is one of the owners of the company Great Estates Services Panama, company contracted to be the master broker of Interplus, which develops projects in Balboa Avenue, in Panama City as is the case of the Sfera project. Sfera has approximately 70 floors and at the moment its promoters are in negotiations to choose the hotel franchise that will manage the project.
The location of Sfera is Balboa Avenue, in the old Importadora del Este Importer of the East . The project is in presale and the design is being finished. It will have a social area, jacuzzi, Spa, miniature golf, Squash field, business center, security and 24 hour Internet. Saint Malo mentioned that for example, if the client buys a unit at US$300,000. She assures him that the hotel will annually give him a check of between 10% to 15% return to his investment, instead of having it in a bank. If the hotel is at its maximum capacity and rents the entire year, the return is higher, this varies from project to project.
The executive indicated that generally the condo-hotels have between 40 to 65 meters of space; it’s like a mini suite of a hotel with a bed, living room and bath with the services of a hotel such as cleaning, laundry, restaurants, bar and others. Another one of these condo-hotels is Megapolis by Decameron, which will be managed by the Decameron chain of hotels. In this project US$500 million will be invested and will be built next to the hotel Radisson Decápolis which is also operated by the Decameron hotel chain. The Megapolis by Decameron will have two towers, one of 63 floors with 855 units and a second of 80 floors with 1,200 rooms.

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Panama obtains second place in hotel occupancy in the world

Also reached most solid RevPAR growth of Central and South America In 2007, Panama climbed up from the 30th position to the second index of hotel occupancy in the world, becoming the first city of Latin America in reaching an occupation within the Deloitte Global Ranking Index GRI . The document also indicates that Panama reached the RevPAR growth entry average by room available most solid of Central America and South America with more than 37.9%. Deloitte Touche Tohmatsu presented the results during the fifth edition of his annual GRI report that compares the performance of 165 cities outside North America.
The study reveals that the first place goes to the city of Perth in Australia with a result of hotel occupancy of 85.1%, replacing the city of Brisbane from this position in the same country and that was located in fourth position with an 84.3% of hotel occupancy. Second place was given to Panama with 84.7% of hotel occupancy and replacing the city of Melbourne, Australia that fell to ninth place in 2007 with an 83.1% See Ranking . The document clarifies that to complete this report information of the Hotel Benchmark Survey database, which at the moment follows the implementation of more than 7,800 hotels around the world, excluding North America.
The study indicates that most of the hotels that participated in the survey they are classified as three stars and more. In this analysis they have included those hotels that additionally have been able to provide data from the year 2000. According to the document, in Latin America, Panama is the country of fastest economic growth, with an increase of Gross National Product GNP of more than 10% in the last year.
Secure Destination
This isthmus that also unites to Central America and South America is considered a relatively secure destination, unlike some neighboring countries. As a result of this, the number of visitors has increased during the last decade. The World Tourism Organization of OMT indicates that during 2007, this increase was of 27%. Its political stability is of attraction for EE.UU. tourists and investors, as well as for long distance travelers from Europe who want to explore new destinations in the region. The study explains that Panama is the only city in the world that has a tropical forest inside of its borders, as well as beaches and an impressive port.
Jorge Loiza, president of the Panamanian Association of Hotels Apatel , indicates that this is a great step for the country in achieving the second position at world level in hotel occupancy and that “we must feel proud to ascend to this position”. The investments in the country like the expansion of the Panama Canal, the Coastal Strip and other projects have caused Panama to be a positive tourist destination, said Loaiza. Annette Cardenas, trade manager of Marriott hotel indicates that the hotel industry of Panama has increased much in the last three years due to a great amount of factors among which she mentioned the real estate boom that has happened because of international advertising. In addition the use to the dollar, the tourist advertising of Panama as destination and of the efforts of the Panamanian Institute of Tourism IPAT and the private sector hotelkeepers, operators of tourism and others has helped the country to be placed in the world-wide ranking of GRI.

Occupancy Global Ranking index 2007
City
Ocupancy GRIRcanking 2007
Occupancy GRIRanking 2008
Occupancy GRIRanking 2008
Perth
1
7
85.1
Panama
2
30
84.7
Dubai
3
3
84.5
Bishbane
4
1
84.3
Hurghada
5
41
83.9
Singapore
6
10
83.8
Abu Dhabi
7
5
83.5
Gatwick
8
9
83.3
Melbourne
9
2
83.1
London
10
8
82.8
Hong Kong
11
6
82.4
Heathrow
12
4
82.4
Sydney
13
20
82.4
Adelaide
14
15
81.9
Belfast
15
22
81.8
Amsterdam
16
11
81.3
Cairns
17
14
80.2
Hanoi
18
12
80.2
Edinburgh
19
16
79.3
Zurich
20
13
79.1
Source: Hotel Benchmark Survey by Deloitte
Other Data
The study also indicates that Panama also reached the RevPAR growth entrance average by room available most solid of Central America and South America with more than 37.9% to US$121. In Central America and South America the RevPAR increased of 19.4% to US$74 in 2007, becoming the region with the most accelerated growth in terms of RevPAR.
Caesar Chong, managing partner of Deloitte said that “approximately 900 million people traveled around the world during 2007; globally the hotel sector has benefitted numerously by this increase. Most of the regions have reflected a solid economic growth, particularly in Central America and South America, reinforced specially by travelers of the U.S.A.
Making forecasts for 2008, Chong said “the global scene for the hotel industry is promissory. During 2008 there will be numerous amounts of sporting events around the world that will attract thousands of travelers, particularly to the Olympic Games in Beijing.
The great progress in the aviation industry, including the expansion of low cost airlines and the introduction of the Airbus A380, will also allow travelers to mobilize themselves more easily by the world. Panama continues positioning itself as a place of great expectations for the tourist, looking to offer greater facilities and better treatment to the tourist”.
According to the World Tourism Organization most of the travelers of the world chose Europe as its favorite destination during 2007. The European cities continue leading in terms of RevPAR occupying 12 of the 20 positions of the GRI. In spite of this record the growth of the tourism in other parts of the world raises a challenge for the European cities that look to maintain their high positioning next year. Globally, Venice occupies the first position in RevPAR, fifth GRI slot for a consecutive year with an increase of RevPAR of 22% to US$265. Rome, Florence and Milan also were between the 20 best placements, Italy being the country with more cities considered in the world.

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PANAMA CANAL EXPANSION BOOST TO THE ECONOMY

Panama Canal Awards the Largest Expansion Contract Thus Far
Paving the way for construction, the Panama Canal Authority ACP awarded the third and largest expansion contract to dredge the Pacific sea entrance. The ACP kicked off this next phase of expansion awarding the contract to Dredging International. The dredging of the Pacific sea entrance is essential to provide enough draft and width for longer, wider ships to pass and enter the new locks.
"As the third and largest expansion program contract in terms of volume, geographical spread and price awarded to date, the selection of Dredging International is a critical next step in the creation of the new lane. This is a solid, top-tier global dredging firm with the know-how and equipment we need to commence the job at hand and complete it on-time and within budget," said ACP Executive Vice President Engineering and Program Management Jorge Quijano."We received bids from the industry s dredging leaders and now we look forward to issuing the order to proceed to Dredging International over the coming days so that they can begin their mobilization effort promptly.
"Dredging work in the Pacific sea entrance is expected to begin during the third quarter of this calendar year. When expansion concludes, as shown in this rendering of the Pacific sea entrance, the dredging project will widen the Canal s approximate 9 mile-long 14 km navigation channels to a minimum of 715 feet 218 meters and deepen them to a maximum level of -51 feet -15.5 meters Mean Low Water Springs MLWS .
The ACP released its Request for Proposal RFP for the contract August 30, 2007, and previously held site visits and an informational session to answer questions regarding the project. On March 19, three bidders from two countries submitted proposals to dredge the Pacific sea entrance. After a thorough review of the lowest priced proposal, the ACP awarded the contract to Dredging International. The Expansion Program will build a new lane along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships.
About Dredging International
Dredging International is one of the most important dredging companies in the world and its proposal for the Panama Canal includes the utilization of some of the most advanced equipment that the industry has to offer. Dredging International is also working on other important projects around the world such as the construction of Port 2000 in Havre, France and the deepening of channels in Rio de la Plata located at the Argentina and Uruguay border.
Panama Canal Expansion Named Best Long Term Performance Project

• CANAL RECEIVES "STRATEGIC PROJECT OF THE YEAR" award IN Latin america • CANAL DEPUTY ADMINISTRATOR RECOGNIZES PANAMANIANS FOR THEIR FORESIGHT
Panama Canal Authority ACP Deputy Administrator/CFO José Barrios Ng was presented with the "Best Long Term Performance Project" and "Strategic Project of the Year" awards for the Panama Canal Expansion Program at the 6th Annual CG/LA Infrastructure Latin-American Forum held at the Miami Marriott Biscayne Bay. Every year, CG/LA Infrastructure forms a committee to select executives and companies that have demonstrated remarkable strategy, clear vision and prominent ideas to move the region forward.
The panel made up of sponsors from different countries recognizes those executives and companies for their leadership. The Panama Canal Expansion Program received two awards: "Best Long Term Performance," as it will be ongoing for at least five years, and the "Strategic Project of the Year" award in Latin America. Other countries that were also awarded for their infrastructure initiatives were Mexico, the Dominican Republic and Costa Rica.
"We are honored by this recognition and I share this with the best asset of the Canal, our hard-working world-class work force. This award also represents the foresight of all Panamanians whose support has been instrumental in making this project a reality," said Deputy Administrator/CFO José Barrios Ng.
Expansion will build a new lane of traffic along the Panama Canal through the construction of a new set of locks, which will double capacity and allow more traffic and longer, wider ships which will transform global trade.

PANAMA STAYS WITH YOU!

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PANAMA HOTTEST MARKET IN LATIN AMERICA

This article was written by Sherly Diaz
Mega-projects of more than US$14.000 million. Coast Line, Howard, the Canal are already under construction
The development of real estate, construction, tourism, the banking industry and exports, are some of the elements that have favored the economic growth of the country. Although the official numbers are still not known on the economic increment of the country, some experts consider that the economy of Panama surpassed 10%, the highest in Latin America.
In addition, Panama has a privileged geographic location in its favor, the use of the dollar as currency of national circulation and judicial security are amongst other factors which have currently contributed to the creation of mega-projects, with investments that could surpass US$14.000 million. Among some of these projects is the coast line, work that is being done in Panama Bay, with an investment that surpasses US$189 million.
Another of the projects that is a new source of development is to take place at the old Howard air base, which will cost US$705 million. A third project that has gone ahead since last year is the extension of the Panama Canal, with a value of US$5.250 million. A fourth mega-project would be the refinery in the area of Puerto Armuelles, province of Chiriquí, which is to be constructed at a cost of US$8 million. Nevertheless, its future will be decided next August.
Coastal Project
After the proposal was made in June of 2007 in which the Brazilian company Norberto Odebrecht was the winner, works began on the project named Coast Line. The work includes a refill of 25 hectares of the marine bed Panama Bay, a “jetty” or rock wall to mitigate the actions of the sea, the construction of a route 2.6 kilometers in length with four lanes 3.50 meters wide each, and three interchanges or vehicular bridges. The project also contemplates the construction of two elevated viaducts, cyclist and pedestrian sidewalks, as well as a culvert for the cleaning project of Panama Bay.

Native trees also be planted, of at least five meters in height, existing palms and trees in the area of project development will be transplanted, gardens will also be included, water sources, paths and preferential pedestrian walkways which will be of great impact for the architectural landscaping and scenic beauty of Panama City, declared, Carlos Ho, Director of Special Projects of the Public Works Ministry MOP , in an official press release for the organization.
The notice indicates that according to the company’s plan, the sand refilling of the bay will be simultaneously carried out with the construction of the viaducts in the Israel Route, at 3 de Noviembre Avenue, soon after to be followed with the new road and its organization.
This project will be using the highest level of construction technology, one that is only used in the most advanced countries of the world, with the top standards of architecture and urbanization, maximum security guidelines, quality, respect for the environment and public security. The work has a term of 540 calendar days for its construction, that is to say, approximately until the month of April of 2009.
The head of the MOP portfolio, Benjamin Colamarco, commented that the project among other things, improves vehicular flow, increases road capacity, revitalizes Balboa Avenue, increases the value of personal property in its proximity and above all will improve the quality of life for Panamanians. This mega-project seeks to alleviate the vehicular congestion in Balboa Avenue, since 72,000 vehicles circulate daily through this route.
Old Military Base
An industrial area with logistics operations, of businesses and commercial offices, a residential, tourist and of recreational development are part of the project that will unfold in the old military base of Howard. This project will have a total investment of US$705 million, of which US$405 million will be invested in the first eight years and the remaining US$300 million in next 32 years. The construction of the Special Economic Area, Panama Pacific of Howard will be done as part of a key plan that will be executed by the London & Regional Corp, company that is dedicated to property investments and development.
This key plan consists of seven components like a logistical park in center of the city, a technological campus in the district of Farfán, a forested park in Southern Hills and in the Hills of Kobbe. This project will be built in four stages the first of which will be done in eight years and will build 460.00 square meters of commercial area. During this stage a hotel of 500 rooms will also be constructed, a conventions hotel, businesses and another next to a golf course. It is estimated that these works will add around 1,100 room keys.
In the end, it is hoped to have 20,000 residential units. In the first phase of the project 13,000 jobs will be generated to total 35,000 job openings by the end of the undertaking. Up until now, the promoters of this project have had meetings with several interested investors that seek to participate in this new focal point of development, but preferred not to offer greater details until the contracts are finalized.
Canal Expansion
The project of expansion of the Panama Canal, with a third set of locks, whose investment of over US$5.25 million advances in a satisfactory manner. According to a special publication made by El Faro, the internal bulletin of the Panama Canal Authority ACP , the works of expansion were made in November of 2007, marked by the explosion in Cerro Paraiso.
Members of the board of directors as well as affiliates of the Advisory Council of the ACP have a walk through of the earth moving works of the first contract of the expansion of the inter-oceanic route in the Cerro Paraiso, which is responsibility of Constructora Urbana, Corp. CUSA .
The ACP maintains that one of the objectives of this first contract of the expansion is to reduce to the level of the Cerro Paraiso. At the beginning of the project, last September, the elevation was of 136 meters and at this time it registers 84 meters at sea level. As part of this work around a million cubic meters of materials have been removed, which would be the equivalent of filling around 70 soccer fields with a meter of soil.
Those in charge of the project informed that the first contract of dry excavation registered a 24% advance, which is within the plan. The internal bulletin of the ACP also indicated that an advancement of 50% in the cleaning of the 146 polygonal hectares has been done; whereas the relocation of the Boriquen highway has advanced 40%. The ACP also received from the National Environment Authority ANAM the final decree of approval of the category III environmental impact Study.
Through the expansion it would double the capacity of the Canal thus allowing greater traffic. This effort would create new column of traffic in the maritime routes by means of the construction of a third set of locks, which construction must culminate in 2014. The amplification of the Panama Canal includes the construction of two lock berths, one of them located in the Pacific and another on the Atlantic side, each one with three chambers that include three collection pools for recycling of water.
This also implies the excavation of three new access channels to the new locks, the extension of the existing ship navigation channels, the deepening of the navigation channels and the elevation of the maximum level of operation of Gatún Lake. According to the ACP, the project would be self financed by the increase in tolls and would take approximately from seven to eight years to construct. It is estimated that during construction the work will generate 7,000 direct jobs and 40,000 indirect ones.
Refinery
One of the most ambitious projects for the country is the refinery that is planned for construction in the area of Puerto Armuelles, province of Chiriquí. This refinery with an investment estimated at US$8 million would have capacity to process 350,000 barrels of crude daily.
Not only would it supply the local market but the region, Latin America, the east coast of the United States and the Middle East. In order to materialize this project, the government through The Ministry of Commerce and Industries MICI made a strategic alliance with the companies Qatar Petroleum and Oxy. Qatar is a state company that manages and is responsible of the petroleum and gas industry in the country of the same name and was the first company of the Persian gulf to produce unleaded gas, whereas OXY is the fourth oil company of United States and the largest petroleum producer of Texas.
Nevertheless, the future of the construction of the refinery will be defined in the month of August, when the Foster Wheeler company presents the oil producing companies with the studies of the design of the project. It is expected that the refinery begin operations in 2012. The companies, Oxy and Qatar, contracted the services of the Foster Wheeler engineering and construction company so that they delineate the basic functions of each unit, configuration of the plant, site preparation and infrastructure evaluation, evaluations of manual labor requirements, logistic plans, total cost estimates for the venture, among other things.
It is estimated that during the construction of the refinery more than 5,000 people will be hired, and another 1,000 for operation and manual labor. Alexander Ferrer, MICI professional indicated that “the geographic position of the country is awakening great interest, but main and most attractive thing is without doubt the potential that the project of the refinery represents for the port of Armuelles, with the endorsement of Qatar”.
The representatives of organizations with which the civil servant of the Arab country has met, perceive the refinery as a great project that can transform the economic and social growth of Panama. The architectural landscaping and scenic beauty of Panama City, declared, Carlos Ho, Director of Special Projects of the Public Works Ministry MOP , in an official press release for the organization.
The notice indicates that according to the company’s plan, the sand refilling of the bay will be simultaneously carried out with the construction of the viaducts in the Israel Route, at 3 de Noviembre Avenue, soon after to be followed with the new road and its organization.
This project will be using the highest level of construction technology, one that is only used in the most advanced countries of the world, with the top standards of architecture and urbanization, maximum security guidelines, quality, respect for the environment and public security. The work has a term of 540 calendar days for its construction, that is to say, approximately until the month of April of 2009.
The head of the MOP portfolio, Benjamin Colamarco, commented that the project among other things, improves vehicular flow, increases road capacity, revitalizes Balboa Avenue, increases the value of personal property in its proximity and above all will improve the quality of life for Panamanians. This mega-project seeks to alleviate the vehicular congestion in Balboa Avenue, since 72,000 vehicles circulate daily through this route.

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PANAMA REAL ESTATE RENTALS

Panama Real Estate Rentals
Introduction to Panama Rental Property – Some of you may feel like it is a good idea to rent before you buy in Panama. You may not know where in Panama you want to live. So we will discuss the basics of rental agreements and rentals in Panama.
Why Rent? – Panama is currently undergoing a real estate boom. Florida had such a boom a few years ago and now the prices are down 25% to 40%. Panama may experience the same price drop in the near future, or it may continue to rise. A lot of the Panama condos under construction are now selling for $1600 to $3000 a sq. meter (10.75 sq. feet in a sq. meter). Just one and a half years ago prime condos were selling for $900 to $1000 a sq. meter. What changed is the real estate speculators are investing in Panama trying to get quick profits by flipping real estate. So if a real estate bust comes to Panama like Florida the prices will go down so those who bought at the high side will not be happy and those who waited and rented may get a chance to guy in at relatively low prices. Unfortunately no one knows how the market will move, one can only guess. For these reasons we think the use of the lease option is a good move and we cover this in another sections.
Panama Rental Prices – What is being done today is the property owner takes the asking price and multiplies it by 1% for the monthly rent. So they ask $3500 for a condo with a $350,000 asking price. This is wishful thinking on their part. The real estate speculator is trying to make money on the property and will invest to make a profit. The renter is not going to make a profit (the exception is the lease option renter) so they rarely go for the big rents. After a few months on the market with no takers the rents come down. The property owners don’t get the differences in the mentality of the Panama renter versus the Panama real estate speculator. There is no linear progressive market for rentals with asking prices of $500,000 and up. Panama has few renters that would consider paying $5000 a month. True there are a few embassies that rent nice homes for their top people but there are not that many of these and most of the embassies already own homes. The embassy tenant is the dream of the property owner, not a reality. The properties that are being sold with asking prices of $500,000 to $900,000 are renting for about $3500 a month give or take a few hundred dollars no matter what the asking price is. A property with an asking price of $350,000 will probably rent for $2500 to $3000. I am talking unfurnished by the way. The top heavy condos and houses are offering a poor return on the investment in the rental market compared to the mid-level homes. Homes with asking prices in excess of $1,000,000 will rarely rent for anything even close to the rental asking prices these people try to get. It often takes a few months on the market for the owner to realize that the hi-end renter market in Panama is just not there. Maybe once in a great while someone has a 1,000 sq. meter duplex penthouse in a new building that they might get $7500 a month for but usually these are short term rentals or possibly they are rented to a person of means who is waiting for their condo or home to finish construction and they have no problems paying this kind of money for rent in the near term. This sort of situation is most rare and unusual. The property owner with a condo or home worth $1,500,000 will usually not turn it into a rental because of the low rents they will get. They prefer to just keep it on the market empty. The Panamanian does not really understand that a lived in property with nice furniture will sell better than a vacant empty one. A point in the favor of the Panamanian is that much of this real estate boom is due to speculators buying who never even see the units in person.
Real Estate Rental Case Histories – We actually assist our clients in their purchase or rental of property in Panama so we have some experiences. One recent situation involved a large 500+ sq. meter condo on a very high floor (it was a make believe penthouse that they called a penthouse) located on Balboa Ave. across the street from Panama Bay with sweeping water views. To understand Panama Penthouses view this page.
The unit had four bedrooms and was beautiful. The floors were highly polished marble. The ceilings were high and had murals painted on them. The unit had pillars, wet bar, bidet, solid wood closets, etc. It was the only apartment on the floor. The asking price was in the $800,000 range. When we saw the unit they were asking $5000 but we were told it might go for as low as $3800. The main problem with this unit was it was near Punta Patilla and at low tide around 4 PM it stinks of sewage so the windows would need to be kept closed and the air conditioning run and this will be costly due to the size of the unit. The other deficiency of this unit was that it had no balcony and the windows barely opened so the unit was built to keep the bad smells out. There was also a building going up next door which is fairly normal for Panama City. It actually rented for $3500 a month.
Another unit we negotiated on was in Punta Patilla on the good side in a great building a few years old. It was $350 sq. meters, they were asking $500,000 for the unit and wanted $3500 for the rent. It has a nice wet bar, beautiful floors, some rooms had water views. It was on a low floor and thus was one of the cheapest units in a 50 story building. We declined to make an offer but $2500 was suggested. If you are going to rent may as well not rent one of the cheapest units in the building.
The next unit was in a landmark building on Balboa Ave. It was mid way up in the building with sweeping water and city views. The unit had 375 sq. meters. It was two apartments to a floor. The building was beautiful even had valet parking and a concierge desk. Lobby had sweeping water views and waterfalls. The apartment was associated with a hotel so there was room service available. It had a full health club, massive swimming pool, tennis and a beauty salon. They started out at $5000. They were willing to move walls and insert doors in other words build out to suit for $3750, we declined and eventually broke off negotiations due to another property offer but it was felt that they would have taken the $3500 offer in a day or two.
On the lower side of things we worked on a nice older building 200 sq. meter apartment in El Cangrejo a desirable neighborhood walking distance to restaurants, bars, shops etc. We got them down to $800 a month for a three bedroom, no swimming pool but it did have security.
The point is the property owners can not get the rents they wish they could get. After the situation ripens with the property going unrented you can move in and make an offer that is somewhat lower that will be accepted because it beats a vacant apartment with money going out and nothing coming in.
Panama Real Estate Broker for Rentals – Do not expect to get a good rental from a Panama Real Estate Broker that is heavily involved in selling the new projects. These people have inflating real estate prices in their sales presentations and probably believe it. They will tell you how high the rental market is. They want to drive rentals up as high as they can so more people will be inclined to buy. They make very little on rentals compared to sales so they are a poor choice for a rental since they prefer sales. Go to a smaller broker who is probably not involved with the new projects under construction. They will value a rental commission which is typically one month rent on a minimum one year rental contract.
Panama Rental Agreement Contracts – Do have a competent attorney review or even write your rental agreement. If you break the rental agreement you generally are liable for loss of your security agreement which is one month rent and that is it. Be careful that the agreement is not otherwise written. It is wise to take pictures or movies of the apartment or house when you move in to document the condition of the property. Feel free to change the locks on the door and not provide them to the landlord unless there are other provisions. In some condos the keys are required to be on file with the building manager in case of a flood but many do not keep current with the keys on file.

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CLOSER LOOK AT PANAMA REAL ESTATE

The Panama real estate market is something that is interesting to many investors as well as individuals that are looking to buy property abroad. Panama offers beautiful beach front properties as well as properties that are just as beautiful, but not on the water. Not only are many of the properties beautiful, but they can also be very affordable for investors and individuals alike. In addition to being affordable, most of these properties, when kept up, appreciate very quickly, allowing those that buy them to invest and then sell for a profit in relatively little time.
One of the things that draws many home and property buyers to the real estate market in Panama is not only the surroundings, but also the tax incentives. There are many tax breaks for those that buy in Panama, and for many the tax benefits are enough to have them consider Bocas real estate as well as real estate in other areas. When you buy property in the area and you plan on building a new dwelling you will benefit as there are no taxes on the dwelling for 20 years! What this allows for individuals to do is buy property that has not been built on quite cheaply. Then, the individual or investor can build a beautiful home or business office, and then sell, all without paying taxes! This will allow for the property to be sold for much more than it was purchased with the benefit of never paying taxes.
Bocas del toro is a beautiful place to buy real estate, though it’s being bought up quite quickly. The property that has already been purchased is worth more than it was just six months ago, because supply and demand simply are not balanced. There is still property for sale in this beautiful province, and it includes residential as well as commercial property. This means that there is something for everyone, and this will always be a great place to buy as well as sell property. This province on the Caribbean will continue to be a great place to buy Panama real estate in the future, though the prices will probably continue to rise as more and more people want to buy and there is less and less in the way of available property. Panama real estate has never been more prime, and when you buy in an area such as Bocas you are almost guaranteeing a successful investment.
Caitlina Fuller is a freelance writer. There are many tax breaks for those that buy in Panama, and for many the tax benefits are enough to have them consider Bocas real estate as well as real estate in other areas.
When you buy property in the area and you plan on building a new dwelling you will benefit as there are no taxes on the dwelling for 20 years! Bocas del toro is a beautiful place to buy real estate, though it’s being bought up quite quickly.

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CONSTRUCCIÓN CON SIGNOS DE VIDA

KEREM PÉREZ
kperez@prensa.com
EDICION N° 581 26 DE MAYO DE 2009
El crédito a la construcción no se detiene pese a la crisis.
Aunque persiste la aplicación de más restricciones por parte
de la banca para otorgar créditos interinos, hay viviendas
unifamiliares y proyectos de infraestructura que mantienen a
flote el crecimiento de la cartera.
Según la Superintendencia de Bancos de Panamá (SBP),
durante el primer trimestre de este año el saldo del crédito a
la construcción en el sistema bancario llegó a 2 mil millones de dólares.
Esto representa un aumento de 41.7% con respecto al primer trimestre del año 2008, cuando el monto era de mil
414 millones de dólares.
En el caso del crédito interno para la vivienda, durante el primer trimestre de este año, el aumento fue de
99.4%, pasando de 538 millones de dólares en 2008, a mil 73 millones de dólares.
El crédito en infraestructura se incrementó 154% en el primer trimestre del año, ya que pasó de 100 millones a
254 millones de dólares.
Entre los proyectos que han dinamizado la cartera se encuentran la cinta costera, la ampliación de la carretera
de Panamá -Colón, carretera Arraiján-La Chorrera y el Corredor Norte.
El sector comercial creció 13.9%, mientras que los préstamos nuevos interinos para el sector de la construcción
acumularon 106 millones 640 mil dólares, lo que representa un incremento del 13% con respecto a marzo de
2008, cuando los préstamos nuevos sumaron 94 millones 346 mil dólares.
Pero el crecimiento de esta cartera podría estar comprometido.
Hasta ahora los desembolsos que se han dado corresponden a préstamos que ya estaban aprobados, por lo que
habría que ver cómo se desenvuelve el mercado en el segundo semestre de este año.
La Asociación Bancaria de Panamá (ABP) se reunió a finales del mes de febrero con la Cámara Panameña de la
Construcción (Capac) para expresarle su compromiso de que la banca sigue otorgándole créditos al sector,
reconociendo que existe una crisis internacional muy grave que ha causado una incertidumbre en el segmento
dirigido a clientes internacionales.
Crisis. Disminuirá construcción de edificios. LA
PRENSA/Gabriel Rodríguez
“Los proyectos residenciales de alto costo son a los que en este momento no se les ve un potencial de
construcción, por la baja demanda”, afirma el presidente de Capac, Jaime Jované.
Las ventas de los proyectos no son iguales a los años anteriores, porque no existe la misma cantidad de
extranjeros dispuestos a comprar, dice Jované.
El ejecutivo expresa que los que poseen mayor facilidad de financiamiento son las viviendas unifamiliares,
urbanizaciones, comercio e industrias destinadas al mercado local.
Aunque las tasas de intereses de los bancos no hayan aumentado significativamente en este sector,
especialmente para la solicitud de nuevos préstamos para la construcción, Jované asegura que el
“endurecimiento” por parte de la banca se ha centrado en la minuciosidad del análisis del financiamiento en
cada proyecto al momento de otorgarlos.
Jované afirma que las nuevas inversiones de proyectos de edificios están teniendo dificultad para adquirir
crédito, “aunque para los proyectos que actualmente están en ejecución la banca ha mantenido sus
compromisos de financiamiento”.
En 2008 este sector económico contribuyó con el 30% del crecimiento del producto interno bruto (PIB). Este año,
se prevé que su aporte al PIB sea de 20%.
La construcción en la economía es un reflejo de lo que sucede en otros sectores.
En proceso de bonanza las empresas emprenden inversiones en nuevos locales, remodelan sus sedes y amplían
sus centros de distribución.
Aumenta el riesgo
La SBP registra a marzo de este año créditos al sector construcción de carácter seguro (normal + mención
especial) por el orden de los mil 900 millones de dólares, comparados con los mil 332 millones de dólares
otorgados en 2008.
En el registro de los préstamos riesgosos (subnormal, dudosos e irrecuperables), para marzo de este año el
monto asciende a 105 millones de dólares, mientras que en 2008 sumó 82 millones de dólares.
Osvaldo Marchena, presidente de la Asociación de Corredores de Bienes Raíces (Acobir), asegura que el país se
está proyectando como un centro de negocios, los bancos deben tener claros los fundamentos para continuar con
el crecimiento económico.
“La banca debe prestar atención al tipo de proyecto al que se le está presentando, que lo puedan analizar, ver
sus proyecciones y hacia qué mercado están apuntando, si es viable o no”, aclara Marchena.
En todo esto, la clave es invertir en la infraestructura, y no solo para beneficiar al cliente local, sino también al
extranjero, abonando en facilidades viales y edificios residenciales, porque las empresas multinacionales
seguirán visitando el país y estableciéndose.
Por ello, es necesario prestar atención a la continua llegada de ejecutivos extranjeros, porque si estos siguen
realizando negocios en Panamá habrá que acoplar la infraestructura y la construcción a las necesidades que se
presenten, comenta Marchena.
La idea es compartida por Jované, porque las inversiones en infraestructuras públicas ayudan a que la industria
mantenga “el motor andando”. Confía en que la máquina no se frene.

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