All Forum Posts by: Justin Roberts

Hey Jed,

I currently live and have been living in Bocas del Toro for the past 3 years, and am involved with Real Estate.

As mentioned in one of my earlier post there are 2 types of land ownership: 1. Title, which works just like it does in the US and 2. Rights of Possession (ROP) - basically squatters rights.

In the Caribbean side of Panama there is a lot of ROP land. I personally would avoid this type of land ownership. Several people will say ROP land is fine as long as you get a 90 year concession on it, but to me it's still risky even if you're living here nearly full time.

Bocas is truly an amazing place though with so many naturally beautiful attractions, a solid and growing ex-pat community, some out of this world restaurants and tourism is on the rise.

Mr. Holdman,

You bring up a very good question. I actually just got off the phone with my attorney here in Panama to find an answer for you.

Adverse possession is a possibility. In order for this to take place a squatter must prove to a judge that he or she has possessed the land for a minimum of 15 years without any disturbance or request to vacate from the rightful owner. If this can be clearly proven the judge legally can grant title to the squatter.

Sounds like it is very similar if not the same as the law you refer to in the US.

If you have any additional questions let me know!

Mr. Investor,

In addition to having the largest Free Zone in the Americas and second in the World, all companies receive the following incentives when then they relocate to Panama:

1. Special Legal Benefits
- Companies are automatically granted a 10-year period in which their tax structure and benefits will not be modified by any law or governmental ruling.

2. Customs and Immigration Benefits
- 2-5 year Visas are granted for foreign investor and employees as well as their families
- Tax free import of personal belongs up to $100,000

3. Labor Benefits
- Onsite companies benefit from more flexible labor allowances than the rest of Panama

4. Fiscal Incentives according to Tax Law 41 – companies only pay certain taxes OR they may be eligible to not pay any taxes
- This is all based on what type of business you would plan on offering.
- There are 3 Categories, I believe whole selling, especially at an international level would fall under Category 1/ Zero Tax.

Also the fact that you're right here on the Panama Canal makes it easily accessible and affordable to transport goods to any and all international destinations.

(Note: this information was summarized and provided from a contact of mine who is bringing companies to Panama. This is not my field of expertise and additional research is encouraged. In recent years though Dell, Ford, 3M, Caterpillar and many more large corporations have opened or moved their offices and/or call centers to Panama.)

Just to clarify on Jeff's remarks:

I can't speak for Costa Rica, but Panama has two different type of land ownerships. There is Rights of Possession (ROP) and Titled.

Jeff is correct that ROP land is basically squatters rights. It is extremely risky. However, I did just get off the phone with a friend of mine that is in the legislation of Panama who told me they held a meeting today to try and finalize a law that will allow ROP land owners to convert to title.

The other type of land ownership is Titled. This works just like it would in the US. There is a public registry that records and keeps track of all land ownership. It is completely safe and again just as secure as owning land in the US. Feel free to do further research on this and looking up the Land Public Registry of Panama.

Hey Howard,

I'm actually not a broker in Panama. I do live, work and am involved with Real Estate in Panama, but am not a broker. However, if you'd like to be put in contact with one I'd be happy to do so. Just let me know what you're looking for and I'll refer you appropriately.

In regards to you taxing questions; Leasing immovable property in Panamá is subject to VAT. But entities with an average monthly income less than US$3,000 are exempted from VAT. This tax is imposed at a flat rate of 5% on the gross rent exceeding US$3,000.

The RE estate tax varies between 0-2.1% depending on the agreed upon and publicly registered sales price or appraised value of the land.

In addition the Panamanian government is currently offering a 20 year property tax exemption on all improvements of the land. This exemption is transferable as well.

There are several websites out there too that go into greater detail on the tax incentives in Panama. If there is any additional information or if there is anything else I can do for you Howard please let me know!

I came across a very interesting article about Panama today I wanted to share with everyone.

As everyone is aware the world economy is, well let's say in a slump. However, Panama's economy is the strongest it's ever been. In large part due to Foreign Direct Investment (FDI).

Below are some interesting facts I pulled from this article on the current economic status of Panama. To read the article in full go to: http://www.panamanewsbriefs.com/?p=50805

"Here are a few facts and figures drawn from responsible sources, both public and private, over the last month regarding the economy of Panama. This is my short list, having dropped a dozen items to keep the length within reason. In a sentence or two, they summarize a much longer report. Some are very different indicators than others, but they all are pieces of the big picture.

* Second quarter growth in Panama's GDP (the economy) measured 10.1 percent, ensuring that Panama keeps its place as one of the fastest developing economies in the world. This is also an increase from the first quarter's 8.4%, thus indicating that growth was actually accelerating in Panama, not slowing, during the first half of 2008. The latest figures through the first eight months of the year indicate an overall 9.2% rate for the year so far.

* The construction industry recorded a growth of 59.2% between January and July of 2008, compared with the same period last year.

* Panamanian exports in the first eight months of the year rose 9.9 percent over the same period in 2007.

* Foreign direct investment (FDI) in Panama in the first half of the year reached US$1.1 billion, reflecting an increase of 32.8% over the same period in 2007.

* The country's financial authorities have downgraded the potential affects to the domestic economy posed by the calamitous fiscal situation in the United States. For example, only 0.3 percent (three-tenths of one percent) of the assets at the government's development funds "could be affected by the events of the recent financial crisis in the United States."

* The Colon Free Zone (the largest in the Western Hemisphere and second-largest in the world, following Hong Kong) registered an increase of 12.1% in business for the first nine months of the year, compared to the same period of 2007. The Zone's association attributed the growth to the above-average performance of Latin American economies.

* The Panamanian port system handled 2.9 million shipping containers during the first eight months of the year, representing a 14.2 percent increase from the same period in 2007.

* As of my preparation of this commentary, the Dow Jones Industrial average is down 37% so far this year while the S&P 500 has lost 40% and the Nasdaq 41%. In the U.K., the FTSE 100 is off 40%, the French CAC 40 is down 43%, and the German DAX 47%. In Japan, the Nikkei 225 has dropped 50%. The large emerging markets have suffered huge declines, with Russian stocks down 76%, Brazil off 50% and China down 65%. What about Panama's stock market? We are down 2% this year, 4.8% off our high."

If you have any additional questions at all about Panama please don't hesitate to contact me.

Top Shelf - they are both truly beautiful countries and both have so much to offer.

The strengths I've found in Panama over Costa Rica are:
1. The US dollar is the main form of currency
2. The US provides the military
3. The infrastructure is much more advanced. (ie roads, communication, etc.)
4. The cost of living is lower
5. The medical is stronger (Panama has 1 of 3 Johns Hopkins hospitals in the world)
6. There is a lower crime rate in Panama
9. NO Hurricanes in Panama
7. The real estate boom in Panama is about 5 years behind
8. The Panama Canal! (results in lower taxes, more stability, higher job rate, and a great amount of income for the Panama Govt.)

In addition, living so close to the Costa Rican border, I've had the opportunity to meet a ton of people who have invested and spent time in both countries. 100% of the people have told me they like Panama better. Their main reason being the infrastructure and they say the people are friendlier in Panama.

If you need any additional information please don't hesitate to contact me.

"The first thing to know about investing in Panama is that the moneymaking opportunities abound to a staggering degree. Think 19th century Chicago swallowing up the prairies and birthing the biggest and best meatpacking industries, lumber yards, skyscrapers, public transportation system, department store businesses and futures trading. Better yet, think of the American Wild West - a place where anyone with a bit of cash and a lot of tenacity could become very successful.

The second thing to know about investing in Panama is that you’re not the only one thinking about investing in Panama. In fact, if you’ve never been there, you’re about two years behind. Don’t worry, there’s still plenty of opportunity available.

Welcome to Panama, where the cost of living is cheap, the economy is booming, and the government supports business and foreign investment. The country is posting such tremendous growth numbers in real GDP, per capita income, foreign investment, tourism that Panama is becoming the envy of the developing world. The main city is elegant and sophisticated with daring skyscrapers and an oceanfront, international flavor. In April of last year when Donald Trump announced his quarter-billion dollar luxury development in Panama, he essentially put to rest any argument about systemic emerging market risk. Add to that the looming approval for a $5.3 billion Canal expansion project and you’ll see why the investment floodgates have opened."

To learn more about Panama and some great investment opportunities please feel free to contact me.

I currently am associated with multiple developments across the country. In addition I have two associates who's full time job to travel the country looking for good buy out deals.

As a result of the real estate collapse in the US, several Americans are not able to close on their units they purchased 1-3 years ago and are just trying to get out of their contract. Europeans are jumping all over this and now you can too!

I look forward to working with you all very soon!

Hey Phil,

As you know it is a good time to buy in the US with the housing mark plummenting and the strength of the pound in the Euro. A lot of Europeans have taken an interested in the States, especially in Florida.

Best of luck in your international adventures in real estate, it is sure to be educational and rewarding!

Regards,
Justin Roberts

Bocas del Toro, Panama!

I actually live there now, and it's booming out of control. There are rumors of expanding the international airport that is already in place here to receive flights from Houston and Miami, DIRECT!

If this takes place your investment will double over night!

My only suggestion would be to stick to titled land. I know all over the Caribbean there is ROP (Rights of Possession), squatters rights, etc. Make sure to get title!

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