Panama: Owner’s Manual 2011 – International Living

Panama: Owner’s Manual 2011

Format: Ebook (PDF)

“Give Me a Break!”

All he wanted was a dignified retirement… a little comfort and respect after a lifetime of hard work. Here’s what he got:

A gorgeous condo with a fantastic ocean view. A doorman who takes care of everything and a maid who keeps the place clean and does the laundry. Fabulous meals at the city’s best restaurants. Freebies. Discounts. Special treatment everywhere. And never a minute spent waiting in line…anywhere.

Thanks to Panama’s Pensionado Program, he says
“I’m living like a celebrity!”

Dear International Living Reader,

A few years ago, at his home in Orlando, Al Fine fell and cracked a hip. After several phone calls to the local Medicare office, one thing became clear: Medicare refused to pay for the hip replacement surgery he needed.

In his mid 70s, Al was told he was “too old for a hip replacement surgery.”

This was the ultimate humiliation, he felt. After all, he’d worked hard all his life, paid his taxes, and paid into Social Security and Medicare. And this was his payback?

Al was furious. He grudgingly paid for the expensive surgery out of his own pocket. But he wasn’t happy about it. All he really wanted was the care he was entitled to. And to live out his retirement years as comfortably as possible, with the dignity and respect he felt he’d earned after a lifetime of contribution.

So when his wife, Carmen, suggested they move to her home country of Panama, Al was all ears.

“The Panamanian people are very kind and courteous,” he says. “And they’re very respectful, especially to people my age. They open doors for you, offer you a chair….”

But would this courtesy and respect extend to everyday living in the country, Al wondered?

What he found out shocked him. And delighted him. Because respect for seniors is something like a law in Panama.

In 1987, you see, Panama passed Law 9. Originally designed as a way to reward Panama’s own senior citizens for a lifetime of hard work, the government of Panama extended these same benefits to foreigners who retire to Panama.

Now known as Panama’s pensionado program, it’s the most generous and appealing program of special benefits you’ll find anywhere in the world today.

Best of all, you needn’t be any ‘official’ retirement age to qualify.

The more Al Fine learned more about Panama’s pensionado program and the appeal of Panama itself — the more determined he was to start a new life there. He and Carmen sold the house in Orlando and bought a brand-new, high-rise condo with a sparkling view of the Bay of Panama.

Today, six years later, he couldn’t be happier with that decision. As he says, “Opportunities don’t go away. They go to someone else. I was determined not to let the opportunity to live this fantastic lifestyle pass me by.”

In Panama, he says, “I live like a celebrity…like I have all the money and prestige in the world. And I’m doing it all on a pensioner’s budget.”

As he tells it, he never has to wait at a bank, hospital, or restaurant. (Pensionados have their own VIP lines or go right to the front at these places.)

And he gets special discounts on everything from movie tickets to plane tickets and just about everything in between.

“By law, you get a discount on everything you touch,” he says. “I pay $2 to watch a first-run movie at a 14-screen theater…in English. I pay $5.50 for a blood test to check my cholesterol at the Johns Hopkins affiliated Hospital, and I pay $185 for a round-trip air ticket from Panama to Miami.”

Plus, he says, he and Carmen eat out regularly at some of Panama’s most popular restaurants. “A couple of bucks for breakfast, $2.25 for lunch, less than $5 for dinner. Is this a great country or what?!”

Panama Should be in the Top Spot on Your
Retirement Destination List

I have to agree. Panama is a great country. My name is Jessica Ramesch and I’m Panamanian. I’m proud of my country and all it has to offer…to those who are born and raised here as well as to those who come here in search of a lifestyle upgrade.

I think Panama should be in the top spot on anyone’s retirement destination list. And not just because of the pensionado program. (I’ll give you all the details about this best-in-class program in just a minute.)

The truth is that the pensionado program is just the icing on the cake. If I had to pick the most important things you should know about Panama, it would be these:

It’s politically stable and safe. And because of the U.S. influence in the former Canal Zone, it’s arguably the most modern and sophisticated country in Latin America. And it’s one of the world’s most affordable places to live.

If you’re looking to retire, set up a business or start a new life, there are so many reasons Panama makes sense:

• It’s close to the U.S. (just a 2 ½ hour flight from Miami).
• Besides being politically stable, Panama boasts low crime rates.
• The weather is excellent and there is a climate for everyone, thanks to both tropical beaches and temperate mountains.
• The health care is top-quality and affordable – our gleaming new Punta Pacifica Hospital is affiliated with Baltimore’s renowned Johns Hopkins Hospital.
• You’ll pay zero income taxes in Panama on your foreign-earned income.

And yes, some of the things I’ve just mentioned are also true of many Latin American countries. Some are even closer to the U.S. (but not by much). And most have democratically elected governments. (Although few are as stable and safe as Panama.)

But there are some things that are unique to Panama that you may not be aware of:

• You can drink the tap water nearly everywhere.
• You won’t pay a dime in property taxes on most homes or condos constructed in the last 20 years.
• The U.S. dollar is the official currency.
• There is a built-in community of English-speaking locals and expats.
• No hurricanes here – ever!

Plus…affordability, affordability, affordability! And yes, of course…the world’s best retirement incentive program.

The Perks and Prestige of a Pensioner in Panama…

As a qualified pensionado in Panama, you’re entitled to:

• 50% off entertainment–such as movies, theaters, concerts, and sporting events — anywhere in the country
• 50% off closing costs for home loans and more…
• 50% off hotel stays from Monday through Thursday
• 30% off hotel stays from Friday through Sunday
• 30% off bus, boat, and train fares
• 25% off airline tickets
• 25% off at restaurants
• 20% off medical consultations
• 20% off professional and technical services
• 15% off hospital bills (if no insurance applies)
• 15% off dental and eye exams
• 10% off prescription medicines
• And more…

You’re also entitled to a one-time exemption from duties on the importation of your household goods (up to $10,000) AND, an exemption every two years from duties on the importation or local purchase of a car.

Since the cost of living in Panama is so low in the first place, you’ll be able to live on much, much less than you ever dreamed possible. I know many people who are living very well on budgets as low as $1,500 per month – including rent! With just a little bit more…say $2,500 per month…you can live very, very well. I do!

Keep reading for a look at exactly what kinds of monthly expenses you might expect in Panama…

But first, I’d like to tell you about a new report called The World’s Best Retirement Program: Your 3-Step Guide to a Pampered Life (Value $49). In this quick reference report we’ll share our three top tips that will get you on the road to living the life you’ve always dreamed of in Panama. We’ll share with you some of the best places to look for your dream home, how to start your real estate hunt and very importantly the visa options available to you, including comprehensive details on Panama’s famed Pensionado program.

And we’re making this report available to you absolutely free when you purchase Panama: The Owner’s Manual.

We’ve been publishing this hefty best-selling manual for more than a decade now. There’s nothing else like it on the market. Not a travel guide it’s a complete encyclopedia of everything you need to know about life in Panama for the expat (although we do include our insider recommendations for hotels, restaurants, and more).

We’ve included details, information, names, contact information, and more. I guarantee Panama: The Owner’s Manual will help you decide if Panama is for you. But again, you needn’t just take my word that Panama is the place to be. According to the Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, the number of Panama visas issued to U.S. and Canadian citizens alone began to rise dramatically after 2003, and an estimated 25,000 U.S. expatriates live in Panama today.

“With Americans aging, the economy in shambles, and, possibly, Medicare benefits on the cutting block, it is reasonable to assume that more Americans will retire abroad, particularly to warm, sunny locations such as Panama, where they can get more value for their dollar,” says the Institute’s president, Demetrios Papademetriou.
I’ll tell you more about Panama: The Owner’s Manual in just a minute. But first…I know the biggest question on everyone’s mind right now:

Are There Still Deals to Be Had on Panama Real Estate? YES!

As Business Week magazine reported just last year, “a luxe beachfront manse can be had for the same price as a dump in Daytona.”

In that same Business Week article, International Living reader Jon Nickel was quoted.

“We would have been looking at $3 million in Miami,” he says of his 3,000-square-foot oceanfront penthouse in Panama City. But Jon and his wife, Gretchen, bought their home in late 2007 for $250,000, right after Jon retired from his corporate law job in Portland, Oregon.

Their sprawling, sparkling condo in Panama City’s upscale Punta Paitilla neighborhood has a birds-eye view of the equally sparkling Bay of Panama from the floor to ceiling windows. They have a doorman who screens visitors, helps carry packages, and more. They have daily household help for cleaning, cooking, laundry… They enjoy a luxurious lifestyle that they couldn’t have afforded in the U.S.

In fact, by moving to Panama, Jon was able to retire earlier than he had originally planned – at age 58.

And yes, four years later, deals like the Nickels got on their condo are still available in Panama. Thanks to the global economic downturn, I daresay some prices are about the same as they were when the Jon and Gretchen bought their home.

Check out these bargains I just found:

• In Panama City’s Betania neighborhood where I live (and where many Panamanian professionals make their homes), a classy-but-small (just 620 square feet.) condo is on sale for just $65,000. (Monthly fees are just $18!) Or be the first to move into a brand-new ultra-modern 820-square-foot condo going for just $85,000.

• In the new Punta Pacifica neighborhood (where Al Fine and his wife, Carmen, live), a new two-bedroom, two-bathroom condo, fully furnished by an interior designer. There’s a nice balcony to catch the ocean breezes and views of the bay and the city. The building has a large swimming pool and exercise room, too. Price: just $165,000 and remember, that includes the furniture!

• In the established Cangrejo neighborhood (very popular with expats) you can pick up a 2700-square-foot three-bedroom, four-bathroom penthouse with two large balconies for just $239,000 – and the owner says the price is negotiable.

And remember, Panama offers a big buyer’s incentive in its tax-exemption programs. Buy new construction and you may well be exempt from paying any property taxes for up to 20 years!

According to International Living Real Estate Editor Ronan McMahon, who has logged hundreds of thousands of travel miles in pursuit of the world’s best real estate bargains:

“The past five years has seen an unprecedented boom in Panama as the skyline has been transformed with cranes and new construction. As condo buildings complete, some buyers (mostly from the U.S. who had planned on raising funds from lines of credit at home) find themselves unable to close. They need to sell—or they will lose their deposit, and maybe more. They are joining the growing ranks of motivated sellers.

A motivated seller will sell for much less than the “official” price per square meter. With the right contacts and information, you can buy a quality condo for $1,500 per square meter—more than 40% less than that “official” price.”

You can find these ‘distress-sale’ opportunities if you know where to look. In Panama: The Owner’s Manual, you’ll learn exactly where to look to find the best bargains.

Prefer to live outside bustling Panama City? That’s where the real bargains are found:

• A four-bedroom home on a lot of nearly half an acre in the cool mountain town of Cerro Azul, just 30 minutes from Panama City. It has two covered terraces and a swimming pool. Price? An unbelievably low $90,000!

• In Boquete, the boutique mountain town in the Chiriqui province that’s become somewhat of an expat enclave (although it certainly retains its Panamanian flavor) you can buy a 1,600-square-foot two-bedroom home on a large lot, an easy walk five minutes from the heart of the village for just $90,000. It’s equipped with cable TV, Internet, and phone… and you’ll love the shady yard with its lemon, orange, and mango trees.

A word about Boquete it’s been named one of the top destinations to retire outside the U.S. by the likes of Forbes, Fortune, and AARP’s Modern Maturity magazine. That’s thanks to its stunning vistas, healthy temperate mountain climate, its modern amenities, delicious fresh food, and more. (Boquete is known for its fresh strawberries and cream and for having the best coffee in the world! Need I say more?)

You’ll learn all about the bounteous beauty and benefits of Boquete when you order Panama: The Owner’s Manual.

Maybe beach living is more your style? You, too, will be happy in Panama:

• On Ismito Beach on the Island of Bocas del Toro, there’s a one-bedroom condo in a canary-yellow plantation-style building right on the water. It has a big balcony with jaw-dropping views of the Caribbean. Price: just $92,000.

• On the Pacific side, in classy Gorgona, a new two-bedroom, two-bathroom apartment with a birds-eye view of the dazzling blue ocean and the swimming pool is offered for just $139,000.

Reclaim Your Retirement Dreams Like Steve and Linda Did

Panama is safe and secure. It’s close to the U.S. You’ll find world-class health care there for a fraction of what you pay back home. In fact, everything…including real estate…is more than affordable in Panama. And foreigners are offered the same property rights and discounts as locals.

I honestly can’t think of any other country in the world that offers so much to international visitors, expats, retirees, and entrepreneurs.

It’s no wonder that the rest of the world is catching on – or that those that have already discovered Panama are so enthusiastic about it.

Like Steve and Linda Johnson. In 2002, Steve was a corporate executive and just about to turn 57. Linda, 51, owned a successful specialty dog-food business.

They were starting to think about retiring. Problem was, they’d gotten a late start on their retirement planning. They didn’t have as much equity built up in their home as they would’ve liked. They had watched their friends struggle in retirement with rising taxes and runaway health care costs. And these were friends who were better off than they were…

Over late-night glasses of wine on their patio, they talked about their options. Linda had taken up surfing on her 50th birthday, and she wasn’t ready to give that up. Steve wanted to be in a place where the cost of living was low since his pension would amount to 40% of his pre-retirement income of $150,000.

But they were pretty sure they wouldn’t be able to maintain their current standard of living once they retired. To do that, they knew they’d need to move somewhere with a lower cost of living.

They made a checklist of all the things they were looking for in a retirement destination, and they started doing the research.

One place stood out. Panama.

In 2003, Steve and Linda traveled to Panama and, they say, with help from International Living, decided that “this place looks pretty promising.”

Just outside Panama City, they toured likely beach towns where Linda tried out the surfing.

“We bought a spacious three-bedroom house with a nicely landscaped yard for $100,000 in a little town called San Carlos,” Steve says.

Three years later, Linda sold her business and Steve retired.

“We moved to Panama with a dog, a cat, and our suitcases,” he says. And they’re more than happy. “Panama may not be the end of the rainbow, but it’s pretty close.”

A Man, a Plan, a Canal: Panama’s Economy is Strong and Growing

As if the low cost of living and affordable property weren’t enough, Panama also has one of the region’s top two strongest economies. From 1970 to 2007 inflation averaged less than 2% per year. That’s simply unheard of south of the U.S. border.

In fact, while many Latin American economies have been in recession, Panama’s economy is one of the few to continue growing.

That’s largely thanks to that Modern Wonder of the World called the Panama Canal… despite the global recession.

I’m sure you’ve heard of the $5 billion Panama Canal expansion project — just one of several mega-projects expected to fuel Panama’s economy in the years to come and just one of many reasons the Latin Business Chronicle ranked Panama the number one “growth champion” in the region in its 2010–2015 GDP growth forecast.

Not bad for a ‘Third World’ country, huh? Well, call me biased, but Panama is hardly Third World … For instance:

• Panama is more modern than any of its neighbors. You can stay at a rainforest resort or an island hostel and still enjoy the same high-speed Internet that you would in Panama City. (I can work from anywhere, even holding conference calls via VoIP programs like Skype.)

• From the quickly expanding international airport at Tocumen, also known as the Hub of the Americas, you can travel anywhere in the world…often on a direct flight.

• New cars of every make and model travel perfectly paved roads and highways…the country is small, so you can easily drive from the city to the rural, interior areas, including those gorgeous cool mountains, in just a few hours. See the sun come up over the Caribbean and go down over the Pacific all in one day!

• With historically low inflation, one of the world’s biggest banking sectors, and a business-friendly president with a “go get ‘em” attitude, Panama offers a combination of benefits that no other Latin American country can match.

You’ll Enjoy the Ultimate Overseas Lifestyle in Panama

So let’s talk affordability… I’ve already touched on the low costs of buying real estate in Panama. And I’ve mentioned the low cost of living here. But just to give you an idea, here’s a typical monthly budget, based on calculations for two people living in a mid-range, two-bedroom apartment in Panama City:

Note that this sample budget doesn’t include groceries or entertainment, but a good rule of thumb is to budget about half of what you spend at home. We’ve listed a range for some other costs, because some depend on your habits and consumption. And, of course, if you pay outright for your home you won’t have any housing costs.

And remember: this budget is typical for a city dweller. If you choose to live outside Panama City – in a pretty little beach town or even in a mountain village like Boquete, your monthly expenses will be considerably less…up to 50% less than what you spend at home.

Take it from me: in Panama, even the lowest budget affords a very good lifestyle. You really can enjoy guilt-free conspicuous consumption at laughably low prices. And on a daily basis!

For instance, splurge on a day of beauty at a local salon ($30), pay a maid to clean your house ($15 a day). A complete blood workup at that gleaming new Hospital Punta Pacifica I told you about earlier (managed by Johns Hopkins Medicine International, remember) is $36. A checkup with a physician is $50.

And if you’re in Panama on a pensionado visa, you’ll get a discount of up to 50% on these already amazingly low prices!

How about health care and health insurance? I know boomers who were paying roughly $1,200 a month in the U.S. for health insurance who say that in Panama, they are paying roughly $800 a year for coverage. My friend, Barbara Dove, for instance, is 67 years old and suffers from Parkinson’s disease. Worried that she would eventually need in-home care if her condition deteriorates, she first researched rates in her hometown of Seattle, where she found that nurses run $25 an hour. Here in Panama City, where she has lived since 2007, they cost $25 a day.

So are you ready to learn more about all that Panama has to offer?

Take Action Now—There’s Never Been a Better Time

In of July 2009 Panama’s current President—Ricardo Martinelli—took office. Bucking a trend of left-wing leadership in the region, he was elected with over 60% of the vote… more than any other Panamanian president in memory. One of Panama’s richest men, Martinelli’s wealth is estimated at hundreds of millions of dollars. But as the country’s president, he takes his own personal plane on state business…and doesn’t charge a salary.

His predecessor, Martin Torrijos, was Latin Business Chronicle’s Leader of the Year in 2006. And President Martinelli is even more business-friendly. He has great plans for this near-perfect nation: to attract foreign investment… slash red-tape… take a hard line against graft… expand the excellent infrastructure… revamp the transport system… he has even begun building Panama City’s first metro.

Whether you plan to live or invest here, you can be sure you’ll benefit from Panama’s business-friendly, stable government…

If you’ve ever dreamed of starting a new life in an idyllic haven like Panama, but thought that it’s too late… too expensive… or even too crazy an idea to start with, you’re in luck.

Your Quickest Route to Enjoying the Good Life in Panama

Nothing compares to Panama and its pensionado program.

Importantly, Panama’s world-class pensionado program was designed to attract foreign retirees. And what a warm and wonderful welcome it is!

With all the economic problems, social unrest, and political upheaval going on elsewhere in the world, Panama shines as a tranquil, safe haven…where you can live affordably, securely, and happily. And that’s all we really want, isn’t it?

In Panama you can have it all – great weather, gorgeous beaches, fresh mountain air, a safe, sparkling city, warm, friendly people and all the luxuries you deserve…but at a fraction of the cost you’d pay at home.

You’ll learn all about it…and then, no doubt, be on the first plane to Panama…once you reserve your copy of Panama: The Owner’s Manual.

As I mentioned, Panama: The Owner’s Manual is one of the best-selling publication in the International Living library. And for good reason. It’s a comprehensive 280+-page guide that contains the latest inside information and research gathered by our on-the-ground experts and sources in Panama.

Dig into Panama: The Owner’s Manual and get the inside scoop straight from experts and expats living here full-time. You’ll be introduced to Panama’s best resources… attorneys, bankers, real estate and insurance professionals, and more. (There’s a comprehensive section on moving your pets to Panama. There’s generally no airport quarantine, just documentation to present on arrival.)

We’ll introduce you to the country’s best cities, towns, beaches and islands where you can start your new life:

Affordable, cosmopolitan Panama City. It’s a city of skyscrapers, modern office buildings, state-of-the-art hospitals and hotels of shining glass. You can dine in gourmet restaurants. Attend plays, symphonies, and the ballet and shop at the many unique boutiques. High-speed Internet is everywhere. And in Panama City, you can enjoy these First-World luxuries at about half the price you’d pay in any U.S. city. You’ll learn all about this future-forward city in Panama: The Owner’s Manual. We’ve even devoted one complete chapter to helping you find the home of your dreams here. Read all about the best neighborhoods to buy in, and at bargain prices, including historical colonial Casco Viejo.

A lush, hidden valley just an hour from the city. Closer than you’d imagine to Panama City, an idyllic valley awaits. With lush green mountain vistas, tinkling waterfalls, bright flowers that offer explosions of colors, markets filled with fragrant tropical fruit, near-perfect, spring-like weather year-round… and surprisingly inexpensive homes and land. Cradled in one of the world’s largest inhabited volcanic craters, this town is also less than an hour from Panama’s best white-sand beaches. More and more expats are moving to this secret garden valley…and you’ll understand why after you read Chapter 8 of Panama: The Owner’s Manual.

Glorious coastlines, pretty beach towns and unspoiled tropical islands. Where are the best and most affordable places to buy beachfront property right now in Panama? Remember, we have both a Caribbean Coast and a Pacific Coast…and hundreds of tropical islands plucked straight out of a travel guide poster. There are a couple of beach areas, in particular, that are poised to boom. Read all about them…

Boquete and its up-and-coming (and affordable) alternative. For all the reasons I’ve already explained, Boquete is, hands down, one of the most popular destinations for foreign retirees. But there’s another nearby village with many of the same traits. With the same spring-like climate year-round, the same fresh mountain air, and the same beautiful scenery as Boquete—but with prices that are 40%-70% less! You’ll want to know about this secret spot. And you will, when you get your hands on Panama: The Owner’s Manual

No one has better insider intelligence, better resources, or better advice about Panama than International Living… and in Panama: The Owner’s Manual, you’ll be privy to it all, including:

• How to choose and easily qualify for the right visa. The residency process is simple. And unlike some other countries we know, Panama has never revoked residency rights. So once you have your residency it’s yours…for life. Your visa is quick to process. You just need to know which visa is right for you and where to start.
• Where to find affordable, first-rate health care. You’ll find all the health care services that you want and need, but at a fraction of the prices in the U.S. or elsewhere. Insurance, too, is highly affordable, as are prescription medications. Many that require a prescription in North America are available over the counter in Panama. Get the complete rundown and well as contact info for doctors, hospitals, insurance agents, and more in your newly updated Panama: The Owner’s Manual
• Financial privacy and tax benefits. Long before Panama became known as a top retirement destination, it was known by a select, wealthy few as a business and offshore banking haven. Open a bank account, set up an offshore corporation, trust, or private foundation… and take advantage of major tax and asset protection benefits. And remember, when you move to Panama, you’re poised to take advantage of exemptions on import taxes, exemptions of up to 20 years on real estate taxes, and zero income tax on your foreign-earned income.

Of course, this is only the tip of the iceberg…just a small glimpse at what you’ll learn in Panama: The Owner’s Manual.

If you think about it, you can see that it would take years to gather all this information on your own. But you don’t have to. You can leverage our expertise, experience, and resources when you reserve the newly revised