Incentives For Foreigners
Panama counts with first world lifestyle at third world prices, but apart from the fact that Panama has one of the lowest costs of living in all Central and South America, there are numerous attractive incentives for foreigners to spend time, invest or retire in Panama.
Some of them are:
- No property taxes for 20 years for newcomers who buy or build a new house
- Residents pay no taxes on foreign-earned income
- Tourism investments have 20-year exemptions from import duties, fees for construction materials and equipment, and income, real estate and other taxes
- The Investment Stability Law, passed in 1998, protects foreign investors from any change in tax, customs, municipal and labor rules for a period of 10 years after an investment is registered
- The U.S. dollar is the legal tender in Panama, which protects its economy from global shocks. During the Asian monetary crisis of 1998, Panama became one of the healthiest economies in Latin America
Panama is one of the most desirable destinations in the world for retirees today and top destination for American, combining a low cost of living, near-perfect weather and one of the world’s best discount programs for retirees, with up to 50% off everything from public transport to movies, mortgage rates, doctor’s visits, electricity, restaurants and airfares.