Baby Boomer Retirement in Panama

The Panama Letter

Panama, "Warts and All"

You probably know at least a little of Panama City. It's a vibrant, electric place of business, banking, and entertainment. A wonderful hub from which you can easily reach most major cities in Latin America. I like Panama City for its First-World infrastructure and amenities for doing business. That's why we've chosen to make it our home, right now. Baby Boomers can retire in Panama on a limited income.

But there's so much more to Panama beyond its capital. We'd like to introduce you to these other sides of Panama (beyond the expat hot-spots of David and Boquete, too).

Every month in the Panama Letter, Editor Lee Zeltzer will show you a new area within this beautiful country.

He'll tell you about a particular neighborhood, a certain beach, a little-known town--what it has going for it...how much living here would cost...who this region will suit...who wouldn't be happy here...and who--on the ground--can help you settle in... It's Lee's mission to introduce you to less-known places. Places like the little beach town of Las Tablas on Panama's Azuero Peninsula...a town of 10,000 people without a single traffic light...

Of course, anyplace featured in the Panama Letter will have more going for it than affordability. Lee, like our entire Panama Letter team, understands what it takes to build a rich and rewarding life in this country, and they're every one committed to vetting every destination they consider for coverage accordingly. In addition to details to do with cost of living and cost of real estate, you also need to know all about things like good medical facilities, leisure and entertainment opportunities, safety issues, who your neighbors would be...

Panama Bridge Kit

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Panama at a Glance

Population	3.3 million (July 2007)
Gross Domestic Product (GDP)	$29.14 billion (2007)
GDP Per Capita	$9,000 (2007)
Inflation Rate	5.1% (2007)
Currency	U.S. Dollar (and also the Balboa)
Exchange Rate Versus U.S. Dollar	1 Balboa = 1 U.S. Dollar
Language	Spanish (official), English (14%)
Capital	Panama City
Population of Capital City	1 million
Time Zone	GMT minus 5
Seasons	Tropical; rainy season lasts from May to January
International Dialing Code	507
Electricity	110V (Panama City 120V)/60 Hz; Plug Types: A, B (US style)
	Constitutional Democracy
Name and Party Affiliation of Current Leader	President Ricardo Martinelli, Democratic Change Party
Income Tax Rate for Residents	0% to 27%
Property Tax	0% for first 20 years, 0% to 2.1% thereafter
Capital Gains Tax	10%
Inheritance Tax	0%
Rental Income Tax	0% for first 15 years in designated areas, 15% thereafter for non-residents; taxed at income tax rate for residents
Transfer Tax	2%, paid by seller
Sales Tax	5%
Restrictions on Foreign Ownership of Property	None
Local Chamber of Commerce	www.panacamara.com Edificio Cámara de Comercio, Industrias y Agricultura de Panamá Panama City Tel: (507) 227-1233
American Chamber of Commerce	www.panamcham.com .O. Box 0843-00152 Panama City Tel: (507) 301- 3881
Primary Exports	Bananas, shrimp, sugar, coffee, clothing
Residency and Visa Requirements	Tourist Visa: 90 days Residency: pensionado, person of means, investor, forestry investor, small business investor Citizenship: after 5 years of legal residence and full immigrant status
Special Benefits for Foreign Residents or Retirees	Pensionado Program: tax free import of home goods; tax free importation of a vehicle every two years; 50% reduction on home loan closing cost; 25% discount utilities; 50% off all entertainment; 25 to 50% off goods and services from airline tickets to health care
National Airline	Copa Airlines www.copaair.com