The Ultimate Guide to Investing in Panama
Are you considering investing overseas? Have you been thinking about whether to invest in Panama real estate and wondering if the country would be a good choice for you?
We have sourced all the information you need about Panama as an investment destination, meaning that you can take the next step to buying a new home, a piece of land, or other property with confidence.
Here we take a look at some of the main reasons for buying property in Panama and investing in this land of vibrant cities, majestic rainforests and tranquil tropical islands.
7 Reasons to Invest in Panama Real Estate
1. Breathtaking Natural Beauty
2. Political & Economic Stability
4. Attractive Real Estate Market
3. Fantastic Lifestyle
5. Welcoming Retirement Program
6. Strong Tourism Sector
7. Easily Accessible Destination
Best Places to Invest in Panama
Investment Opportunities in Panama
Find Out More About Investing in Panama
With its vibrant capital city, idyllic tropical islands and welcoming incentives for foreign investors, there are many great reasons to choose to invest in Panama. Here are our top 7 reasons for selecting this Central American country at the crossroads of North and South America.
First and foremost, Panama is a strikingly beautiful destination, which makes it the ideal location for a lifestyle investment such as a second home or a vacation home. The country may well be best known for its canal, but there is much more to see and enjoy here. The landscape ranges from rainforest-covered mountains, cloud forests, rushing rivers and emerald waterfalls to 1,400 tropical islets and islands including the palm-fringed archipelagos of Bocas del Toro and San Blas. An incredible 63% of the country is covered in tropical rainforest – more than any other country in Central America. Home to unique destinations such as Darien National Park – the largest protected area in Central America and the Caribbean – Panama is exceptionally bio-diverse, attracting more bird species than Europe and North America combined, and more plant species than the US and Canada combined.
Aside from the stunning scenery, Panama offers plenty of other advantages to investors, perhaps most importantly, its stable democratic political system and robust economy which has achieved very high levels of economic growth in recent years. The country consistently achieved an annual economic growth rate ranging from 5.4% to 7.2% from 2001 to 2018. While the country experienced a contraction in 2020 (like so many other countries due to the impact of Coronavirus), the International Monetary Fund (IMF) has forecast a rebound this year. Describing Panama’s economic outlook as “optimistic,” the IMF forecasts 12% growth for the country in 2021.
Another factor of importance is that Panama has an attractive real estate market. Buying property in Panama could not be easier as the Panamanian Government is keen to welcome potential investors and offers buyers the same legal rights as local citizens and the buying process is similar to other countries. Foreign investors are protected by laws guaranteeing rights of ownership, property title can be checked at a public registry and mortgages are available. A wide variety of investment opportunities are available in this solid real estate market, including luxury apartments in Panama city, affordable new construction condos, houses in gated communities and villas in coastal retreats, both on idyllic islands and along the wonderful Pacific coast. There is therefore something for everyone.
Thanks to the country’s stunning natural beauty and year-round warmth, Panama offers a fantastic lifestyle whether you enjoy the hum and energy of the city, the tranquility of life by the beach or exploring the great outdoors. The country’s national parks are ideal for walking, hiking and bird watching. Destinations along the Pacific coast such as Playa Venao in Pedasi offers world-famous surfing and fishing while Bocas del Toro on the Caribbean coast is perfect for diving and snorkeling. Best of all, as Panama City is the world’s only national capital with a tropical rainforest within its city limits, both the rainforest and the beaches of the Pacific coast are just an easy day trip away for those based in the capital. Furthermore, if you prefer the buzz of the city to a quiet escape, you are in for a treat. Panama City is the largest city in Central America. Cosmopolitan and progressive, the city has a vibrant culinary scene, lively rooftop bars and a unique historic district to explore.
If you would like to enjoy all that Panama has to offer, there are various visa options that could make that dream a reality. Qualifying citizens of over 50 friendly nations (including the USA, Canada, UK and EU) can apply for a Friendly Nations Visa which offers a fast track route to permanent residency. If that route does not suit, there is another option. Those with at least $1,000 of pensionable income per month can apply for a pensionado visa under Panama’s retirement program. This program offers immediate permanent residency to successful applicants, as well as a wide range of discounts on entertainment, restaurants, medical care, airfares and utility bills.
Find out more: Retire in Panama
Thanks to a solid domestic rental market and a strong tourism sector, investing in Panama investment property can also offer significant income-generating potential. During the decade from 2009, the number of visitor arrivals grew each year, rising to 2.49 million in 2019. While international tourist arrivals have dropped significantly since the outbreak of coronavirus limitations on international travel, the country remains a strong tourism market and demand is expected to rebound when the country fully reopens to tourists. In addition, the country’s domestic tourism market has also grown significantly in recent years. Tourism drives high demand for accommodation which offers huge potential for generating a strong ROI for investors.
Last but not least, Panama is a very accessible destination thanks to efficient air links via Tocumen International Airport. Panama is served by a wide range of airlines and flights. Better still, Tocumen International Airport is just 24km outside of Panama City and has recently been updated and expanded to offer even better flight links than before.
Summary: A Sought After Investment Destination
So, in summary, whether you are drawn to the country’s lush tropical landscapes or its high standard of living, there are plenty of reasons to invest in Panama and high potential investment opportunities across the country.
To find out more about where to invest, explore our guide to the best places to buy property in Panama.
Discover investment opportunities in Panama on our website:
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7th Heaven Properties is here to help you. We have the insight and advice you need to begin investing in Panama real estate.
To find out more, contact 7th Heaven Properties, the Luxury Caribbean Property Specialist.
We look forward to working with you and helping you find your perfect property in Panama.