Property Yield Panama – 5 Reasons for Real Estate Investments

 

1️⃣ Stable and Growing Real Estate Market:

Panama’s real estate market has shown signs of recovery and improvement, with the private sector estimating an economic growth of around 7.3% in 2021. Panama offers a variety of real estate options and settings, including beachfront, mountain, island, and urban properties. With a strong and growing economy based on services, trade, tourism, and finance, Panama’s strategic location as a hub for commerce and transportation between North and South America adds to its appeal. (Source: Panama Realty Zone)

2️⃣ No Taxes on Rental Income:

Foreign investors in Panama benefit from zero taxes on income, capital gains, and rental income. This means you can enjoy the full benefits of your real estate investment without paying any taxes to the Panamanian government. Panama also has tax treaties with several countries to avoid double taxation. However, please note that if you have a main or secondary residence in another country, you may be subject to taxes in that country. (Source: FRAPAN Invest)

3️⃣ Visa When Buying a Property:

Buying a property in Panama grants you the opportunity to apply for a “Friendly Nations Visa,” which offers permanent residency and a work permit. The minimum investment required is $100,000 for a property or $300,000 for a bank deposit or a combination of both. The visa is valid indefinitely and can be renewed every five years. After five years of residency, you can even apply for Panamanian citizenship. The visa covers citizens of 50 countries that have friendly relations with Panama. (Source: Panama Equity)

4️⃣ 5-8% Rental Yield Per Year:

Panama boasts an annual gross rental yield ranging from 5% to 8%, depending on the property’s location, type, and condition. This rental yield surpasses the average in other countries in the region. With a high demand for rental properties from both locals and foreigners, Panama offers a vibrant and cosmopolitan capital city, beautiful beaches, islands, mountains, rainforests, and national parks that attract tourists and expats. (Source: Panama Equity)

5️⃣ Attractive Lifestyle and Amenities:

Panama offers a high quality of life for foreigners, with a tropical climate, diverse landscapes, political and economic stability, and modern infrastructure. The country’s international airport and canal ensure great connectivity with the rest of the world. Panama’s pro-business and foreigner-friendly government provides incentives and benefits for investors and entrepreneurs. With a young and diverse population expected to reach around 5 million by 2050, the country offers promising opportunities and growing demand for real estate investments. (Source: Panama Equity)

If you’re considering real estate investments, Panama offers a compelling proposition with its stable market, tax advantages, visa opportunities, attractive rental yields, and an appealing lifestyle. Take advantage of the diverse real estate options and the country’s growth potential in the years to come.