What are the advantages of investing in real estate in Panama? Investing in real estate in Panama is one of the best decisions, thinking of short, medium and long terms. This is a market in constant growth, from which you can get many advantages. We’ll share three of them here.
Every investment is always a risk. However, investing in the purchase of an apartment in Panama is much less risky than investing in shares. The explanation is simple. Real estate properties don’t suffer as much from volatility as stock markets do. These assets generate income that continues to increase exponentially with the passage of time.
Investments in properties allow you to diversify your portfolio. You recuperate your initial expenses very quickly with them, starting with the increase in value from rent. Plus, these investments become a good strategy for your retirement.
They increase your income through rent
Where should you invest in real estate in Panama? Experts suggest that the best decision is to purchase small, well-located properties, above all in the capital. These properties are in great demand, so renting them is quite easy. Further, rent prices continue to increase, even in times of difficulty caused by the Covid-19 pandemic. As the years go by, it’s quite possible that the zone where you’ve invested will be re-evaluated, so your monthly income from rent will increase.
Pay less taxes and other advantages from investing in real estate in Panama
An advantage from investing in real estate in Panama is that you can lighten your tax burden. For example, if you purchase a property with a ratable value lower than 120,000 dollars, you’ll never have to pay property tax on that property, according to law 66 of 2017.
- Between $0 and $120,000 = exonerated
- Between $120,001 and $700,000 = 0.5% of the value
- More than $700,000 – 0.7% of the value
With an investment of 300,000 dollars you can obtain residence in Panama
The Panamanian government has put into force a real estate investment visa program. This consists in granting residence to those individuals who invest a minimum of 300,000 dollars in real estate. The application process takes a maximum of 45 days. In the case where the applicant has dependents, he must invest an additional 2,000 dollars for each person.
If you don’t have the entire amount to invest, explain your situation to us and ask us how to obtain residence with a lower investment.
This advantage when investing in real estate in Panama is used a lot these days. Especially because, beginning in October of this year, the government will begin to require a minimum value of 500,000 dollars for real estate investments.