Panama’s economy is thriving — in 2015 alone, almost half of all the foreign direct investment (FDI) that entered Central America was received by Panama, equating to 5.8 billion dollars according to The World Bank data.
In addition to this, 134 international companies currently base their headquarters in Panama; including Nestlé, Heineken, Nike, and Dell. It is estimated that Panama’s Headquarters of Multinational Operations government initiative has increased investment in the country by 820 million dollars, and created 5,500 jobs.
But it’s not just businesses who are thriving — the real estate market has also rebounded back after the 2008 recession much faster than the majority of other countries in Central America.
Much of this recovery has been helped by the influx of retirees to Panama. Persuaded by the high quality of living and low cost, plus the mild tropical weather. Panama was even recently named the best place to retire in the world! Panama also offers retirees financial incentives, including discounts on utilities, entertainment and tax-free imports of household goods.
When it comes to the real estate market in particular, foreign investment is highly encouraged by the Panamanian government, and there are several incentives for new construction projects. For example, residential construction with a value of up to $120,000 receives 20 years of property tax exoneration on the renovations and improvements! Construction with a value above $300,000 gets five years exoneration — making real estate in Panama an attractive prospect for foreign investors.
If you would like more information about real estate in Panama and the beautiful island of Punta Coco, click here.