Thursday, December 31, 2009

Beyond Panama Properties - The Tax Advantages to Starting a Business

We've been talking to lots of people lately about not only buying real estate in Panama, but also opening a business there. They may have already decided to build a home on one of the gorgeous Panama properties, but aren't aware of the major tax advantages they'd receive if they also started a business.

In order to encourage tourism, and ecotourism in particular, the government of Panama passed two landmark pieces of legislation. The first, Panama Law 8, was meant to give financial incentives to those willing to build tourist-related businesses in Panama. The law includes tax breaks on business real estate in Panama, on some income earned from tourism businesses and also includes long-term exemptions from taxes on imported materials.

There are many ways you could build a business around tourism -- a bed and breakfast, a boat rental firm or an eco-tour company are all possibilities. The rules for what is and isn't considered tourism under Law 8 can be complex, but, depending on what area you're considering starting a business in, it could bring substantial tax advantages.

The other piece of legislation that should be of interest to would-be business investors is Panama Law 9. Hoping to revive interest in the old city (Casco Viejo) district of Panama City, this law was passed to offer big tax incentives for developing property there.

Imagine retiring to Panama and then investing in commercial property in Casco Viejo. You could be allowed a ten-year moratorium on income tax from the rental or sale of that property. You might also be allowed to exempt renovation materials from import taxes. Best of all, you could deduct all of the costs of that renovation from your income taxes!

As you can see, Panama is very serious about developing a vibrant tourism and commercial real estate sector. Not only do they hope to attract foreign investors like you, they also hope to give their local entrepreneurs more reason to expand. This kind of advantageous legislation, aimed at building a stronger financial base, is one more reason Panama is fast becoming the location of choice for savvy investors.

And so, if you've already decided to purchase real estate in the Canal Zone, do your tax burden a favor and look into investing in business there, too. It's just one more reason moving to Panama could be one of the best decisions you ever make.

Saturday, December 26, 2009

Five Great Reasons to Build a Vacation Home in Panama

Americans who would like to have a vacation home in a beautiful, tropical paradise close to home should definitely consider Panama. Vacation real estate in the Canal Zone offers unique qualities not available anywhere else. Here's our list of five great reasons to build your vacation home in the Republic of Panama.

Reason #1: Panama's Beautiful Weather
There's a saying among the Panamanians that "God was born in Panama." One reason they make this boast is the absence of earthquakes and hurricanes here. Panama's unique geography protects the southern end of the isthmus from Caribbean hurricanes, unlike Mexico's coastline and island paradises in the Caribbean.

Bordered on the south by Colombia and the north by Costa Rica, Panama also enjoys a stable geological base, with none of the major fault lines that bring earthquakes to other parts of Central and South America. All this adds up to a safe, stable place to build your vacation dream home.

Reason #2: Panama's Growing Eco-Consciousness
If one of your passions is exploring nature responsibly, Panama is your perfect vacation spot. Because Panama bridges North and South America, it's home to species from both continents. Eco-tourism companies are building a substantial industry here, similar to what's being done in Costa Rica.

Another big push is ecological construction in Panama. Eco-conscious contractors are helping home owners build structures that preserve Panama's natural beauty. Be sure to look at vacation real estate in the Canal Zone to see wonderful examples of sustainable, eco-friendly homes.

Reason #3: Ease of Communication
Unlike many Central and South American paradises, Panama enjoys excellent telephone and Internet service. Many Americans are opting to live here full-time and operate their businesses remotely, in part because of the ease of communication.

Reason #4: Abundance of Natural Attractions
There's a wonderful abundance of places in Panama to enjoy the beauty of pristine nature. Right in the middle of its capitol city, for example, you'll find a tropical rainforest to explore! Another marvelous place you'll want to explore each time you visit your Panamian vacation home is Volcan' Baru', or the Baru' Volcano, an exotic wonderland of bamboo forests and pristine rivers.

There are too many naturally beautiful spots in Panama to mention here, but you'll definitely start spending all your time outdoors once you build your vacation home here.

Reason #5: Well-built Panama Properties
The basis for newly-built Panama properties, designed as vacation homes or for year-round living, is American architectural standards. That means you'll enjoy the same quality and safety in your home here as back in the States.

Combine the five reasons we've listed with a clean, safe water supply, ease of access from major US airports and the fascinating diversity of Panama's culture, and you've got the perfect place to build your next vacation home.