Panama OverviewPanama is a cosmopolitan capital city (see more about Panama City Panama), incredible rainforest and some of the finest snorkeling, surfing, birding and deep-sea fishing in the world, so it's hard to figure out why travelers tend to steer clear of this country or just whiz through. It may have something to do with the fact that Panama is known internationally for its canal, the 1989 US invasion and the name it donated to a style of headgear, but this does it no justice.
The reality is a proud prosperous nation that honors its seven Indian tribes and its rich Spanish legacy and embraces visitors so enthusiastically that it's difficult to leave without feeling that you're in on a secret that the rest of the traveling world will one day uncover.
Full country name: Republic of Panama
Area: 75,500 sq km (29,157 sq mi)
Population: 2.8 million (growth rate 1.3%)
Capital city: Panama City (pop 700,000)
People: 65% mestizo, 14% African descent, 10% Spanish descent, 10% Indian
Language: Spanish, English and Indian languages
Religion: 85% Roman Catholic, 10% Protestant, 5% Islamic
Government: Constitutional republic
President: Martin Torrijos
GDP: US$8.8 billion
GDP per head: US$3200
Annual growth: 4.1%
Inflation: 1.1%
Major industries: Banking, construction, petroleum refining, brewing, cement and other construction materials, sugar milling, shipping and agriculture
Major trading partners: USA, EU, Central America & Caribbean, Japan
Visas: Every visitor needs a valid passport and an onward ticket to enter Panama, but further requirements vary from country to country and occasionally change. UK, Germany and Switzerland citizens and many other nationalities need only a passport, while people from Japan, New Zealand, USA, Venezuela and more need a tourist visa or tourist card (US$5) as well. Contact an embassy or consulate for current details.
Time: GMT/UTC minus 5 hours
Electricity: Variable - either 110V or 220V
Weights & measures: Metric
Currency: US dollar
Hospitals/Medical Facilities: Johns Hopkins International Hospital, Paitilla Hospital, Cleveland Clinic 2 Panama City has a wide selection of state-of-the-art reliable medical facilities with American and European trained doctors. Because some hospitals, such as the Hospital Nacional, are on a par with U.S. hospitals at about 50% less cost, Panama is carving out a niche in “health tourism”. Private hospitals and clinics are often very good; public hospitals and clinics do not offer services comparable to Canadian facilities. Medical facilities outside the capital are limited.
Expect to pay for medical services at the time of the visit; credit cards are accepted at most hospitals for hospital charges but not doctor’s fees.
- Centro Medico Paitilla (tel. 265-8800/269-5222)
- Clinica Hospital San Fernando (tel. 229-3800/229-0300)
- Clinica Hospital San Fernando Hospital Pediatrico (tel. 229-2299/229-2477)
- Hospital Nacional (tel.207-8100)
- Hospital Punta Pacifica :Johns Hopkins Affiliated Facility
Universities: Florida State University, University of Louiseville
International Organizations: UNICEF, UN Security Council
Airlines: US Airways-Delta, American Airlines, Copa, Continental, Northwest
Crime: Panama is considered one of the safest countries in the Americas. Pinkerton Intelligence Services gives the country the highest rating for tourist safety. As a country accustomed to being an international crossroads, Panama is more than visitor-friendly, it’s welcoming. The crime rate in Panama is the lowest in Latin America; pick pocketing and purse-snatching are rare and taxi drivers are honest.
Moreover, Panama has a special tourism police force dedicated to protecting tourists. Panama is also positioned geographically for safety. The country does not experience destructive hurricanes or earthquakes, as do Panama’s Central American neighbors. The tap water in Panama City is excellent; and it is the only Latin American capital where it is safe to drink the tap water. As with all countries, however, there is information relating to health and safety risks of which visitors should be aware.
Food and Water Precautions: Tap water in Panama City is potable. Water in main cities is normally chlorinated and safe. Sterilize or drink bottled water outside the capital. Milk is pasteurized and dairy products are safe for consumption. Local meat, poultry, seafood, fruit and vegetables are generally considered safe to eat.
Immunization & Vaccination: Routine immunizations should be up to date. Vaccinations for hepatitis A and B, yellow fever, typhoid and rabies are recommended depending on the area of Panama. Insect protection measures such as Deet are advised. Depending on the area, precautions should be taken against malaria and dengue fever. There is no malaria risk in Panama City or in the former Canal Zone.
Roads and Traffic: Panama’s beautifully pleasant tropical climate has an average temperature of about 27 degrees Celsius (80 F). The country experiences a variation of only a few degrees between seasons, called the rainy season and the dry season. The former occasionally brings flooding that can make some city streets impassable. Occasionally, some interior roads can be washed out.
Panamanian roads, traffic and transportation systems are generally safe. As in Canada and the U.S., traffic moves to the right.
Though roads in Panama are largely pothole-free, drivers do encounter road conditions that differ from American and Canadian roads. One can encounter ineffective signs, lack of traffic signals, dense driving, poor lighting and driving habits that create challenges at times.
Traffic lights may not be present even at busy intersections. Conditions can vary: urban roads and maintenance are fair to excellent though rural are poor. Roadside assistance is fair though limited in rural areas. The old Panama City – Colon highway can be hazardous for night driving.
Public transportation is fair and relatively safe and retirees have the benefit of discounted fares. Conditions of buses and taxis vary due to lack of regulatory enforcement.
Auto insurance is not mandatory, and many drivers are uninsured as a result. By law, vehicles involved in an accident must remain in place until police arrive. Law requires seat belts as well.
The Consular Section of the U.S. Embassy is located in The Clayton Building (formerly Fort Clayton Building 520) in the Clayton section of Panama City.
Mailing Address:
Apartado 0816-02561, Zona 5, Panama,
Republic of Panama. The U.S. mailing address is U.S. Embassy Panama, Department of State, Washington, D.C. 20521-9100.
The telephone numbers for the Embassy are 011-507-207-7000, after hour emergencies, 011-507-207-7200; Consular Section 011-507-207-7030 and fax 011-507-207-7278.
Why do we like San Carlos for investment?
1. Weather: The warm, dry climate is probably the most suitable year-round climate for beach tourism in Panama.
2. Location: It is situated just 1-hour 10 mins. from Panama City, making it the closest, high-quality beach in the country. Highly accessible, the Pan-American Highway passes directly through this area.
3. Infrastructure: Because this region has always been a popular weekend getaway location for Panama City residents, there is a nice tourism infrastructure (restaurants, B&Bs) to be enjoyed by investors or retirees.
4. Investors: Influx of foreign investors.
5. Attractions: Panama’s Pacific Coast area lies within a two-hour drive from Panama City and has long been a second home haven for the nation’s wealthy. A new project, dubbed Ocean Embassy Panama, will attract even more interest to this popular area. The Florida-based Ocean Embassy group, which has consulted on over half of the world’s dolphin swim facilities, has acquired land in Panama’s San Carlos district for the company’s first-ever Ocean Embassy aquarium and resort.
The Ocean Embassy resort will boast marine-focused activities, lush accommodations, ocean-themed shopping, beach sports, and top-notch dining and spa facilities. The first phase of construction—featuring marine animal care, animal training and learning facilities—is currently underway. The project will encompass 16 acres of land and three large natural seawater lagoons. The total investment will amount to some $300 million over the next seven to 10 years, and will employ about 400 Panamanians.
There has been much criticism from local environmentalists, who object to the capture of bottle-nosed dolphins for the resort’s aquarium. Ocean Embassy says that critics should study the group’s practices and impressive track record. Company representatives say that the interactive exhibits in Panama will teach people to care for and respect ocean wildlife, and that the dolphin habitat will hold some 870,000 gallons of water (over five times the water volume required by U.S. regulations).
Just last month, Ocean Embassy announced it would launch a comprehensive marine mammal conservation strategy. The strategy’s research, breeding, and educational components will aim to encourage the protection of wild dolphins.
This measure has not silenced many critics. Alexandra Cousteau (granddaughter of the famous explorer and ecologist, Jacques Cousteau) has been vociferous about the park, and local organizations are banding together in a national campaign to prevent the capture of dolphins in Panamanian waters. Panama’s La Prensa newspaper cites a recent survey in which over 80% of the Panamanians polled say they do not agree with the capture of dolphins here.
San Carlos is just 1 hour and 15 minutes from downtown Panama City. The entire drive is a mostly flat, well-maintained highway. This is the closest pretty Pacific beach to the Capital city. This region has excellent weather, picturesque beaches and scenic views of the Farallon (lighthouse) Island.
Three major resort projects reside in this region and have enjoyed tremendous success. The Decameron and Barcelo Resorts are both massive, all-inclusive hotels that also offer villas for sale and the Buenaventura Project is adding a Bristol hotel later this year. Several other projects are in the works. With good swimming beaches, nearby restaurants and grocery stores, this area is poised to become Panama's first true resort town.
Panama Real Estate Laws
Foreigners can buy and own property in Panama with the same rights and protections as Panamanian citizens. In 1998, the Investment Stability Law was created to encourage foreign investment. This law protects foreign investors for ten years and provides a guard from changes in tax, customs duties, and both municipal and labor laws.
If property is bought in the name of a company, the National Registry of Tourism grants a 20-year exoneration from real property tax. The exoneration covers the company as long as land is used for tourist activities. In addition, the government also grants a one-time exoneration from import duties to help in construction, remodeling, and furnishing of building used for tourism. Property tax exemptions apply to all new construction on a sliding scale according to value.
The following was taken from the U.S. Embassy Website:
Panama Information
Purchasing Property
April 2005
INTRODUCTION AND SUMMARY. The following is general information on purchasing real estate in Panama. It is not to be construed as legal advice. The different categories of land make it imperative to engage professionals for more detailed information. Real estate laws on the mainland can be quite different than those on islands, coastal areas, and areas near national borders.
Generally, there are two very different ways to buy real estate: 1) the purchase of titled property, and 2) the purchase of rights of possession (derecho posesorio). Titled land, and the process of buying this, is similar in concept to that in the U.S., and land and deeds are duly recorded with the Public Registry (Registro Público). “Rights of possession” is an entirely different process, a kind of squatter's or concession rights. For rights of possession on the mainland, it might be possible to convert this later to a titled property; on islands and coastal and border areas, it is much more difficult if not impossible. Many areas in and around Bocas del Toro, including beachfront and island properties, are government property, and cannot be owned, although there are very limited and complicated exceptions. One should not buy "non-ad judicable" lands (áreas inadjudicables) unless the purchase is from the Government of Panama. Ultimately, there is only one-way to acquire property in Panama to the fullest extent of the law: titled land. Rights of possession are not titled land.
TITLED PROPERTIES: Panama has a reliable Public Registry system, and this office maintains a record of all titled properties throughout most of Panama. Information regarding titled properties is readily available through the Public Registry, and is a fairly routine process to undertake through due diligence on a lot or property (finca). Your attorney can issue you in writing an abstract title of the land, along with any and all liens, mortgages, covenants, encumbrances, maps, verification of tax payments and utility bills, special characteristics, ownership history, fence lines, encroachments, shared driveways, and registered surface area, and can verify that the person who is selling the property is the actual owner.
RIGHTS OF POSSESSION: Not all properties in Panama are of private domain and thus are not subject to Public Registry registration. Such properties are public property, and can rarely be owned or titled outright. In such cases, it might be possible to obtain "rights of possession," a kind of squatter's or concession rights, as an alternative to title, permitting one to acquire a right to possess based on the occupation and use of a certain area of land over time. (Think of trying to "buy" parts or all of the Grand Canyon, New York's Central Park, or the Washington Mall. You obviously cannot. However, a U.S. rancher can buy grazing rights in a U.S. national park, a company can buy limited use of national lands for mining or drilling, and a company can gain a concession to build a restaurant within a national park. But none will ever hold title.) Much of the property in and around Bocas del Toro, beachfront properties, islands, and areas in rural, agricultural and special tourism zones, are government-owned. In some cases, families hold titles from many generations back and obtaining rights of possession might be possible, but the buyer would still have to pay for the land when and if, he or she obtained the title. This is a risky method of acquiring real estate.
It is important that all properties undergo a title search before purchasing. There are potential conflicts in owning rights of possession. Properties can be subject to third-party and and/or conflicting claims of ownership, and the vagaries of Panamanian law and local politics. It might be possible that the original owner return to claim it, or the government could exercise its right to re-occupy it without compensation or warning. For titled property, no one can do this without following a condemnation process similar to that in the U.S., with the owner compensated for land and improvements. Rights of possession are handled and recorded by the Ministry of Agriculture's Agrarian Reform Office, not the Public Registry.
Although Panama law allows nationals and foreigners to purchase titled property in many parts of Panama, it is important to note that Article 121 of the Panamanian tax code states that foreigners and Panama corporations with foreign ownership cannot purchase property located less than ten kilometers from borders, or on most islands. Although some have contested the constitutionality of this law, until this situation is resolved, buying such property remains a risk to foreign investors. Exercise caution of "Panamanian corporations" that appear to grant entitlement to such lands.
Another important difference between titled property and rights of possession is that the latter cannot be mortgaged. This makes sense: if you do not actually own the land (hold title), you cannot mortgage it. The buyer should ensure that the activity contemplated is allowed, that the construction is acceptable to the government, and that the award be extensive for a period of time suitable to the purchaser. The length of the transaction process for the possession rights transfer varies and can take months, depending on many factors, such as the date of recognition of these rights and the granting entity’s inspection, etc. Many land developers in these areas have already procured the rights of possession documents and transfer the ownership of them by means of the sale of a Panamanian corporation and its assets. Aside from the problems with this (stated above), be aware that corporations might have other businesses besides that related to the property, and there is no official registry of this.
LANDS IN NON-ADJUDICABLE AREAS (áreas inadjudicables or áreas insulares). These are lands that the government has set aside and are NOT subject to title or rights of possession.
CONTRACTS IN ENGLISH HOLD NO LEGAL WEIGHT IN PANAMA. All juridical processes in Panama are conducted in Spanish. For any real estate transaction in Panama, a contract written solely in English carries no legal weight, and is generally not recognized. All contracts for property must be in Spanish on a formal public deed, and signed before a public notary, in order to be legally enforceable and to be filed at the Public Registry.
GET PROFESSIONAL HELP. Buying real estate in a foreign country should not be guesswork. As when purchasing real estate in the U.S., common sense should be the guiding factor. Again, engaging a reputable attorney and licensed real estate broker is recommended. Even some Panama City-based real estate lawyers might not be fully familiar with such intricacies as land law in certain areas, e.g., Bocas del Toro.
Panama’s Bar Association and Supreme Court advise that the Supreme Court issues a "Certificate of Good Standing" to lawyers. The Court receives complaints about lawyers and decides whether to sanction them. This certification may be requested via fax or mail from the Panamanian Supreme Court from: Lic. Carlos Cuestas, Secretario General de la Corte Suprema de Justicia Organo Judicial, Calle Culebra, Edificio 236 and 237, Ancon, Panama, Republic of Panama. Tel: (507) 262-8358, Fax: (507) 262-2505. Note that such a certification is still no guarantee.
Embassy also maintains a list of lawyers; write us at
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for the list. The Embassy assumes no responsibility for the professional ability or integrity of the persons or firms whose names appear on this list. They are, however, selected with care.
REAL ESTATE TRANSACTIONS IN PANAMA are usually done in two steps. The Promise to Purchase Agreement is a preliminary contract between the buyer and seller, and gives the buyer time to work out financing and due diligence before committing to buy. It also can be used to get the seller to meet certain commitments and conditions before the sale occurs, and list "contingencies" under which the buyer can be released from obligation to buy if questions are not resolved, or if hidden defects are later found. Only when the buyer is completely satisfied should the sale close. If the buyer is satisfied, a Purchase and Sale Agreement (or Contract) is made in the form of a public deed and registered at the Public Registry of Panama, at which time the buyer becomes the owner.
The safest way to pay is by an irrevocable letter of payment issued by a bank, contingent on receiving from the seller proper title to the property. The bank holding the funds issues the irrevocable letter of payment to the seller and pays it as soon as it is presented with the registered public deed transferring title to the buyer. The buyer often opens a bank account (or gets a mortgage) and then formally requests that the bank issue this letter, which is considered to be an appropriate form of payment. If the buyer does not obtain a mortgage, he pays the bank for this service.
Real estate agents normally get paid only when the sale closes. Contracts signed are legally binding documents, and you should ensure that you have read and understood them completely before signing. While a good real estate agent can help you through the steps of buying, he cannot provide you with legal advice; an attorney does that. Escrow and title insurance are not generally used or needed in Panama, as such functions are performed by the bank and Public Registry, as described.
