Fearing their left wing President Chavez will shape Venezuela in into a highly Communist regime like Cuba, wealthy Venezuelans are fleeing to Panama. Entire Venezuelan companies are being picked up and moved, employees and all, to Panama. International companies that previously had regional headquarters in Venezuela are moving to Panama. Individual Venezuelans, uncomfortable with the direction of there homeland, are purchasing condos in Panama City as a “Plan B” should they wish to leave Venezuela in the future.
Venezuelans, like others, are attracted not only by the beauty, but by Panama’s booming economy and a lively Latin culture. Panama City is the “hot” Latin American capital city with numerous lavish shopping malls and vibrant night life.
Attempts at constitutional change proposals to scrap presidential term limits and limit press freedom during political crises by Chavez make Venezuelans increasingly nervous.
Maria Alejandra Chacon, a journalist from Venezuela, is quoted as saying, “I love Venezuela. I feel happy to have been born in a country that has everything, but there is one important thing called liberty.”
Estimates are that as many as 15,000 Venezuelans have relocated to Panama City in the past two years. Real estate agents in Panama City report that Venezuelans are the hot market for Panama’s jungle of new high rises.
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If you are thinking about Panama, be you from Venezuela, the EU, or the US . . .
You may be interested in these comments of Chuck Dolce of the Sovereign Society who recently held their 2008 Total Wealth Symposium in Panama City.
Panama is truly spectacular. If you’ve never been, it’s a country on the move. Skyscrapers rise up from what was once a depressed Central American country. Skyscrapers are built IN the ocean. Architecturally, the juxtaposition of the new and the old creates almost a surreal effect. It’s 2008 on one side and 1940 on the other.
Panama is a country rebuilding itself both structurally and economically. The third largest economy in Central America, Panama specializes in service industries like banking and tourism. What were once military bases are now malls filled with excellent restaurants, bars and shops. It’s now an offshore haven in the ranks of Switzerland and Lichtenstein. It has been the perfect place to host this year’s conference.
The Paradise that is Panama
. . . [This is] a country that is at once beautiful, booming, affordable and friendly.
Contrary to what some may think, Panama offers a diverse, yet very temperate climate. Temperatures average in the 80s on the beaches and in the city year-round. But in the highlands region, the temperatures can cool down enough at night to require some heating. Panama essentially has two seasons - the dry season which lasts from January to April, and the rainy season from May through December. But the rainy season is more akin to summer in Florida. You have hard drenching rains for a couple hours a day and then beautiful sunshine for the rest of the day.
Standard amenities here are all “first-world” level. From cable TV to Internet to phone service. The country is accessible by air from virtually anywhere in the world. The roads are well-maintained and the stores offer some of the best shopping in Central America. The malls are populated with some of the most recognizable names in the world. And at largely affordable prices.
More Bang for Your Buck Here in Panama
The overall cost of living in Panama is about 30% lower than in the United States. You can get a three-course lunch for two with wine for about US$25 . . . It’s about US$2 in a cab across the city.
A manicure costs around US$7 and you can get a bottle of beer at the store for around 50 cents. A live-in maid will set you back around US$200 a month. Or you can simply get housekeeping services for around US$15-20.Healthcare is affordable too. An average doctor visit runs around US$35, if you make your appointment the previous day. And the quality of care is excellent. Most medical staff here are trained in the U.S. and the facilities are first rate. Johns Hopkins has just opened an affiliated medical center in Punta Pacifica, one of Panama’s residential areas.
Infrastructure development is booming right along with the economy. Panama experienced GDP growth of over 11% last year and Panama is expected to grow another 8-9% this year. And this is not an “inflation-based” economy like so many other countries. In fact, Panama has no central bank to tinker with inflation! Instead, economic growth is productivity driven.
Home to over 200 banks, Panama is the second largest banking center in the world. Plus they adhere to strict banking privacy laws.
Taxes are reasonable. If you live in Panama, you’re only taxed on Panama-sourced income. Standard deductions are applicable, including medical expenses incurred in the country. There are property tax exemptions as well, including older exemptions that can be grandfathered in when real estate is purchased. And the real estate boom is continuing. City condos can be had from US$100,000+ to luxury resort residences from US$260,000 and up.
And as I mentioned [previously] . . . investment amounts are going to increase soon. How much is anyones guess, but they are going higher. So if you have any interest in exploring residence options in Panama, the time to act is now.
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How much money, Ed asks . . .
I found this blog when looking for information about Boquete and Panama. Most of the other Panama sites are tragic. Your writing is wonderful.
How would I find out how much money I need to live in Boquete? Ed
First, Ed, thanks for the compliment! Now, about the money . . .
You know how it is when you visit some Caribbean island where they don’t speak English and have their own currency . . . you get off the plane . . . grab a cab to the hotel . . . have no idea . . . so you just hold out a bunch of funny colored money (Well, we used to have greenbacks, now, thank you George, we have funny colored money as well . . . who ever thought we’d have a purple $5 bill?) Anyway you hold out the money so the driver can take the correct amount . . . and he takes ALL of it.
Does that answer your question?
I saw a study, now a few years old, that said that the average expat who moves to Panama has about $2,500 in disposable income to spend each month. To get an expat “pensionado” or retirement visa that allows you to live in Panama full time and import a container of household goods duty free, you must show $600 pension income per couple. Not that you can live on $600 a month. We live very comfortably on our combined Social Security and pension income, which is roughly $3,400 a month. Of course we both have cars, have several properties to keep up, maybe spend more than the average couple on medicine and travel a lot.
Cars are a little cheaper to buy here because they don’t have things like catalytic converters and air bags are not required (but available as an option). Houses in Boquete that an expat would find comfortable run from $100,000 to $2 Million. Most new construction has a 20-year property tax exemption which can be passed on to future owners. And yes, since we are finishing up a new house on our farm, my present home in Valle Escondido (private, gated, luxury community, house overlooking the valley, river, and 9th hole of the golf course) is for sale for $459,000 give or take.
Hope that helps!
















