Latin America's real estate Panamania

Once a sleepy Latin American capital, Panama City has become one of the world's hottest real estate markets. How long can the fever last?

By Eliza Barclay, Fortune Magazine

July 3 2007: 3:44 AM EDT

(Fortune Magazine) -- Off in the distance, where Panama Bay becomes the Pacific, container ships loaded with merchandise bound for the U.S. bob in the haze. Closer in, a flock of construction cranes hovers over densely clustered high-rises. Fourteen stories below, on Balboa Avenue, cars inch along, their windows sealed tight against the sweltering heat.

The view belongs to Jim and Imogene Buckley, a retired couple from Greensboro, Ga., who purchased their one-bedroom condo a few years ago, before it was built, for $140,000. The apartment, which they'll use every other winter month, alternating with another couple from Wyoming, gives them a ringside seat overlooking one of the world's hottest real estate markets.

Panama looked like a good investment and a place to have a good time," says Jim Buckley, 76, a former U.S. Air Guard pilot, while admiring the view. "You don't need a lot of sense to see that it will increase in property value."

Panamania - See the boom

Panama City is in the midst of an unprecedented real estate boom that is transforming the skyline of this once-sleepy Latin American capital. More than 30,000 units worth about $5.7 billion have come on the market since last July, according to Paul McBride, CEO of Prima Panama, a real estate marketing company.

That's a lot of condos in a country where the total economy measured $16.2 billion last year. And the boom shows no sign of abating: Among the showiest of the new projects is the Ice Tower, a 106-story luxury apartment building and Hilton Hotel complex that will be the tallest building in Latin America when it is completed in 2011. Even Donald Trump has a project on the boards.

Part of what's driving growth in Panama City, where the median apartment price recently surpassed the median home price in the U.S., is a wave of retirees from North America, like the Buckleys, looking for a place in the sun. So far, few Americans have moved permanently, but many are buying second homes or just plain speculating. Europeans are here too, and there's plenty of new wealth in Latin America, in places like Venezuela and Colombia, looking for a safe haven.

Construction workers on the Punta Pacifica construction site.

Call it Panamania. Is it a bubble in the making, or the rise of a new Miami? Despite the abundance of cranes around Panama City, only about 10 percent of the projects being sold are under construction, says McBride. "We're not even seeing the construction boom in Panama yet," he says. "This place will look like Manhattan if all these projects come to fruition."

Certainly the decision to spend $5.2 billion to double the width of the Panama Canal, the country's biggest source of revenue, is a sign of Panama's prosperity. The addition of a new lane and a new set of locks will allow post-Panamax container ships, the world's largest, to pass through the canal. "The expansion of the canal has woken up the curiosity of a lot of people," says Saul Faskha, the local developer of the Ice Tower and one of Panama's biggest boosters.

7 Up-and-coming destinations

Panama's economy has been growing at breakneck speed - 8.1 percent last year, compared with 6.4 percent in 2005 - and the government finished the year with a surplus of $576 million. Exports from Panama's free-trade zone, the second largest in the world after Hong Kong's, have helped fuel the growth. The U.S. Congress is expected to sign a free-trade agreement with Panama sometime this year, which should boost exports even further. And several multinational corporations have moved or are moving their Latin American headquarters to Panama City, including Caterpillar, Sanofi-Aventis and Samsung.

Consumer spending has also swelled, the banking sector is strong, and 40,000 new jobs were created last year. All that is good news for the government of Martín Torrijos, son of former strongman Omar Torrijos, who ruled Panama from 1968 to 1981.

Unlike his father, the younger Torrijos came to power in a fair election in 2004. And unlike his father, Torrijos doesn't have to deal with a U.S.-occupied Canal Zone: Panama took control of the canal in 1999 and has proved adept at running it. Gone, too, are the U.S. troops that toppled another dictator, Manuel Noriega, a corrupt former general who is nearing the end of a 17-year U.S. prison term for cocaine trafficking.

Rumors that Noriega might want to return to Panama have cast a cloud over an otherwise bright mood. But the country, 36 percent of whose population lives in poverty, has other problems to deal with. For one thing, says Torrijos, during a recent trip to a small mountain town, "there is a huge demand now for a skilled workforce."

Indeed, a labor shortage has already helped slow construction activity in Panama City, and developers are concerned that other factors may hinder the completion of projects. Materials and equipment are in high demand, from rebar to cement to earthmovers. The construction frenzy has also put a strain on the city's infrastructure, and the government is struggling to build enough roads, water-treatment facilities and other projects.

One big problem: All of Panama City's sewage is dumped into the bay, and a treatment plant won't be completed until 2009. "Panama has grown very, very fast - we didn't anticipate this," says Ubaldino Real, Minister of the Presidency. "The government has had to take out more money to be able to act much faster to build roads."

But that hasn't dampened the enthusiasm of people like José Manuel Bern, director of sales and projects for Empresas Bern, one of Panama City's oldest and largest developers. The company's Bayfront Tower, completed in April, is among the first buildings designed for foreigners - distinct from those built for locals because they have balconies but no maid's rooms. Bern says that he sold nearly all the apartments in the tower four years ago, and that units that originally went for $130,000 now sell for $330,000. "We used to be very focused on the local market," he says, "but now I sell to a foreigner every other day."

Prima Panama's McBride and others are worried that the building boom is ultimately going to exceed demand. "I do not think there will be sufficient buyers to absorb capacity, if in fact capacity is delivered," McBride says. "When you see prices going up, driven by speculative investors, that points to a bubble."

Try telling that to Adolfo Olloqui, a Spanish developer whose company, Grupo Olloqui, is building what will be one of the tallest luxury towers in downtown Panama City, the 77-story Palacio de la Bahia. "Panama is the Miami of the future," he says. "With the visa problems in the U.S., South Americans, Central Americans and North Americans will want to come here to do business and to live."

Or try telling it to the Buckleys, who at least have a splendid view from their new Panama perch.

Pictures and more in http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/09/100122336/index.htm

Term of Tourist Visa reduced to 30 days

... or how to shoot the hen which lays the golden eggs...

Law 15 of 2007, entered into force upon its publication on May 25, 2007, which reduces the duration of Tourist Visas from 90 days, with a 90 day extension (originally in force since 1995), to 30 days with a 60 day extension. While European Union Schengen Treaty citizens are exempt from a visa requirement to enter and US citizens are sold a $5 "tourism card" as reciprocity visa upon entry, all foreigners are subject to this 30 day limit. The Immigration website has a list of the current visa requirements by country. http://migracion.gob.pa/eng/servicio.php?cont=paisvisa

The Law was submitted as Bill 292 of 2007 http://www.asamblea.gob.pa/buscador/2007/2007_P_292.pdf "whereby measures are enacted for the protection of citizen safety" by Olga Golcher, Minister of Government, in April 3, 2007. The Bill had measures to counter the rising power of juvenile gangs, and buried into the text was a new definition of Tourist Visas:

Artículo 36. El numeral 1 del artículo 1 del Decreto Ley 16 de 1960 queda así:
Artículo 1. Los extranjeros que ingresen al territorio nacional serán clasificados como
turistas, transeúntes, viajeros en tránsito, viajeros en tránsito directo, visitantes
temporales e inmigrantes:
1. Son turistas los que llegan con fines exclusivos de recreo u observación por un
lapso de treinta días, prorrogable hasta por sesenta días.

Over-zealousness at all levels

Obviously, nobody foresaw the effect this will have on residential tourism, since it takes more than 30 days to have a feel for the country, look at properties, purchase a home, and THEN decide to apply for a residence visa. The April 18 "Technical Report" made by legislative staffer Agapito González Gómez says that "the costs of the implementation of the bill will be compensated with the benefits that its special measures produce. However, given the provisional character of said measures, it would be convenient to take into consideration that all the costs of its application, in the end, may exceed the material benefits they may produce." Translation: We are worried about gang warfare and we have doubts about whether increased prosecutorial powers may have lasting benefits (forget about the tourism aspect).

The Technical Report recommended calling to committee hearings several government entities and child welfare instutions (UNICEF Panama, Alianza Ciudadana Pro Justicia, Pastoral Penitenciaria) and NGOs in general but flatly excluded the Panama Tourism Institute IPAT, Ministry of Commerce and did not identify real estate and tourism industyr associations. Eventually, Union Nacional de Abogadas, Asociacion Panama Verde, Consejo Nacional de Juventud, Creation Associates International and other child welfare and criminal law groups participated in the Committee hearings. The April 19 Minority Report by opposition legislator Jose Blandon only mentions "the lonely immigration provision" to criticize the PRD for not voting on an Immigration Bill submitted in 2004 (which also reduced the 90 day tourism term).

Only when the final Law was published in the official gazette as Law 15 of 2007 "whereby measures for the speeding of the prosecution in ordinary criminal procedures and special procedures for criminal liability of teenagers and other measures are enacted" (in Spanish "que dicta medidas para la agilización de la instrucción sumarial en los procesos penales ordinarios y en los especiales de responsabilidad penal de adolescentes, y otras disposiciones") and La Prensa http://www.prensa.com/hoy/panorama/997953.html printed the results of a press conference by the Immigration director did most of the non-criminal law community learn about the 30-day tourist visa.

3 days later, the Tourism Minister issued a press release announcing that "the project “Tourism, a reason to create business ventures and decrease poverty” was launched by Minister of Tourism Ruben Blades before hundreds of micro-entrepreneurs at the inaugural ceremony of the AMPYME National Meeting that took place at the ATLAPA Convention Center."http://www.ipat.gob.pa/eng/page.php?page=news&art=44 We presume that the 30 day limit will discourage those who may take longer than that to buy a property and thereby help businesses which reduce poverty. The Ministry has a "Contact Us" http://www.ipat.gob.pa/eng/page.php?page=contact_us page where comments can be sent.


More legal trivia

In the haste to approve the law (52 days), Article 3 of Law Decree 16 of 1960 on Immigration was left without alteration, which provides that
"tourism cards will be valid to remain in the country for ninety (90) days until completing one hundred and eighty (180) days".,
as well as Article 5 ("The Panamanian Consulates shall issue tourism cards valid for ninety (90) days, after paying five" balboas). Under Article 14 of the Civil Code ("Cuando las disposiciones tengan una misma especialidad o generalidad y se hallaren en un mismo Código, se preferirá la disposición consignada en el artículo posterior"), these 2 provisions prevail over the amendment to Article 1, so... tourist cards (not necessarily those tourist visas without a card) should be granted for 90 days...



The other side of Panama friendlyness

So what can a violator of the 30-day rule expect? Tourists exceeding their visa term are apprehended and taken to a small cell at the Immigration offices to determine their status. In the best case, their lawyer is allowed 24 hours to submit all papers for a visa where he/she can qualify for. In the worst case, it would be a weekend or evening, so the tourist is taken to the untouristy Directorate of Police Investigations (DIIP). Depending on the perception of how dangerous the tourist is, he/she will be held separately from the other violent criminals held for felonies from all over the city. It is not the Turkish Express, but certainly not a night at Waldorf. If the tourist does not qualify for any visa, he/she is deported and not allowed back into the country.

In the meantime, the government still refuses to demand visas from countries with high immigration rates, such as Colombia. Actual criminals will not be deterred and will continue using the shipping lanes into Colon and other routes to enter the country. A user-friendly system for granting of multiple-entry tourist visas for financially sound citizens of Dominican Republic, Venezuela and Colombia (just show passport, tax return and valid credit cards at the consulate to get the equivalent of B-1/B-2 US visa) is a necessity to bring investment into the country and discourage criminal elements.

Options when being close to the end of the 30-day period

So the legal alternatives when the 30-day term comes are:

1) Separate 2 mornings at Panama Immigration and file for a final 60-day extension form http://migracion.gob.pa/eng/documentacion/corregidos/prorroga_de_turista.pdf along with
a. Valid passport, tourist visa/card and 2 copies of its ID page and Panama entry stamp
b. Return airplane ticket valid for a flight in 60 days or more
c. Letter from Panamanian or legal resident who will sponsor and assume responsibility for the applicant, with copy of the signor's ID.
d. Proof of economic solvency of the applicant or the sponsor : tax return, credit card or bank reference letter showing more than $500 monthly available.
e. 3 passport-size pictures
f. Magazines and newspapers to read while you wait

2) File an appeal under Articles 3, 5 and 86 of Law Decree 16 of 1960,

3) Head to Costa Rica http://www.migracion.go.cr/visas/DirectricesvisasMayo2007.doc, where a tourist visa for US, European Union / Schengen and Central American citizens lasts 90 days Sounds brutal, but that is how tourists think and their pockets move.

High U.S. Government Officials to attend ExpoTrans in Panama

A delegation of high officials of the U.s. Government, lead by U.S. Secretary of Transportation Mary E. Peters, will travel to Panama on May 7-9 to attend ExpoTrans 2007, a transportation conference organized by the U.S-Panama Business Council

The conference will take place at the Miramar Intercontinental Hotel and will address topics related to maritime, aviation, land transportation and logistics. During the luncheon of May 7 the Council will present its “Friendship Awards” to Panama Canal Administrator Alberto Alemán Zubieta and on Tuesday evening, during its traditional “Friendship Awards Dinner”, will recognize the prestigious companies Copa Airlines and Panama Ports Company.

For additional information contact Enrique Sosa, Executive Director of USPA, at 269-2178, uspa @ cableonda.net

Panama mortgage loans for foreigners

One of the many questions we receive is what are the requirements for a mortgage loan. Each bank has their own list of requirements and not all cater to expats arriving to Panama. All banks ask that a bank account be opened with them as additional collateral, which in turns means that a new customer must provide all due diligence and know your customer documents.

We received this list from Credicorp Bank which responded to our survey:

A. Source of Funds Identification

This process is necessary to identify the source of funds and also to measure the large of the account. Basic documents are as follow:

1.Personal Accounts

• Personal accounting balances

• Personal Income Tax Declaration

• Last two month personal bank account statement.

2.Corporation Accounts.

• Copy of the Registration of the Corporation

• Balance Statement of the corporation. Must be stamped/duly signed by an Authorized Accountant.

• Last two month personal bank account statement.

B. References.

1.Personal Accounts

• Personal Bank References

• Personal Credit Office References (from a credit bureau office).

2.Corporation Accounts.

• Corporation Bank References.

• Commercial References of a Service Provider or important client.

• Corporation Credit Office References (from a credit bureau office).

C.Copies and Other Documents.

1.Personal Accounts

• Passport copy (copied in the bank premises.)

• Driver License (copied in the bank premises)

• Copy of a utility bill.

• Fill out of internal account opening forms.

2.Corporation Accounts.

• Copy of a utility bill.

• Copy of product brochures, annual corporation book or any other important document related to the operations of the corporation.

• Fill out of internal account opening forms.

D. Mortgage Loans.

1.Basic Documentation

• Draft of Sale Contract.

• Fill out internal forms.

• Most recently-made appraisal (if required)

• Copy of the Title (if required)

• Opening of Bank Account (information above).

2.Basic Parameters (subject to negotiate)

• Competitive Interest Rates

• Term up to 30 yrs for personal and 15 yrs for commercial

• Loan amount up to 70.0% of property value.

• Life insurance of debtor for total amount of loan endorsed to the bank.

• Fire Insurance for 80.0% of construction value per appraisal submitted endorsed to the bank.

• 1.0% of FECI tax (if applicable)

• Up to 1.0% of commission based on loan amount.

Their website has a handy online mortage calculator.
.

Panama Attorney Delivers Presentation Before Chamber of the Americas

Attorney Alvaro Aguilar delivered a presentation on Panama real estate laws before US investors with the 2007 VIP Real Estate Mission to Panama organized by the Denver-based Chamber of the Americas

Panama, Panama, April 03, 2007 --(PR.com)--
Lombardi, Aguilar & Garcia (http://www.laglex.com/) attorney Alvaro Aguilar delivered a presentation on Panama real estate laws for US investors, co-authored by Kevin Mullin of the Denver, CO, law firm of Mullin, Dean & Heimos, LLP (http://www.mdhlex.com/). The presentation was part of the 2007 VIP Real Estate Mission to Panama organized by the Chamber of the Americas (http://www.chamberoftheamericas.com/) & Continental Airlines. Real estate businessmen from Colorado and the rest of the US attended the event.

Mr Aguilar spoke about the procedure for acquiring title to property and financing a property purchase in Panama. While Panama is a booming real estate market attracting buyers from the U.S. and Europe, due diligence is necessary when purchasing rural properties. Current regulations offer tax incentives to property owners and builders and encourage foreign retirees to reside in Panama. Slides of the presentation may be downloaded from the law firm website.

Co-author Kevin J. Mullin, J.D., CPA, LL.M. (International Taxation), has been practicing law for over 20 years with a focus on advising foreign investors on their U.S. real estate and other investments, and international business, estate and tax planning. His law firm of Mullin, Dean & Heimos, LLP, focuses on international tax, real estate and business, including foreign persons investing in the US and US persons investing abroad, especially in Latin America. Its specialties include U.S. and foreign real estate and closely-held businesses; multi-jurisdiction estate planning and wealth preservation; cross-border joint ventures, global licensing of intellectual property, including e-commerce; and shari'a compliant instruments. Both law firms work together on an on-going basis to provide guidance to US clients from both the US and Panamanian tax, real estate and business perspectives.


Full text in http://www.pr.com/press-release/34166

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Off-topic: Open House for Hogar Lucy Tzanetatos del Hospital del Niño

A charity called "Las Amigas del Hogar Lucy Tzanetatos del Hospital del Niño" (The Friends of the Lucy Tzanetatos Home of the Children's Hospital) is holding an Open House this Thursday from 4-7 pm. There is no charge for the event. The Lucy Tzanetatos Home provides free lodging, medical care, meals, clothing and activities for mothers who have very sick children in the Hospital del Niño and do not have anyone to stay with in Panama City. The mothers come from all provinces and usually arrive with the just the clothes on their backs. The home has hosted over 5,000 mothers since the mid.1990´s. The organization "Las Amigas del Hogar Lucy Tzanetatos del Hospital del Niño" was founded in 1998 by a group of international ladies.

"We are in the final stage of obtaining our non-profit status. I am a founding board member, past president and current board member. We host an Open House every year to bring awareness to what we do and to invite new people to participate. While "Las Amigas" is a ladies group, we would certainly welcome help from our gentlemen friends too. Experienced roofers, carpenters, etc. would be welcome as we are charged with the maintenance of the home". The Open House will be this Thursday, March 22, from 4-7 pm. The Hogar Lucy Tzanetatos is located on Calle Ecuador and 34 (entering from Avenida Balboa), adjacent to the British Embassy residence and next to the new entrance to Hospital del Niño´s emergency room. The phone number to the house is 512-9801, extension 226. Refreshments will be served. Please email me if you have any questions. Pamela Oakes-Aguilar, pam_in_panama (at) yahoo.com

More information in:
http://www.hden.sld.pa/contenido/hogar_lucy_tzanetatos.html
http://panama.usembassy.gov/panama-esp/citation.html
http://mensual.prensa.com/mensual/contenido/2005/06/02/hoy/resena.shtml
http://www.ellasvirtual.com/history//2005/05/27/columna/semana3.htm
http://mensual.prensa.com/mensual/contenido/2005/11/06/hoy/rempresarial.htm
http://www.diaadia.com.pa/archivo/07042007/imp07.html
http://www.diaadia.com.pa/archivo/07082007/imp02.html

http://www.gacetaoficial.gob.pa/pdfTemp/25816/4754.pdf

DVD features Panama real estate

Home:World Panama DVD

Home:World Panama DVD - Buying the Home of Your Dreams in Paradise

(2007)

Director: Sasha Owen Rating

Editorial Reviews

Product Description

Shot in gorgeous high definition (HD) video, Home:World Panama shows you how you can buy the home of your dreams in one of the world's most sophisticated and affordable countries: Panama. In this 60 minute video, we take you from the gleaming luxury highrises of Panama City to the laid back tropical island paradise of Bocas del Toro and introduce you to expats who are living the life they've always dreamed of, for far less than they would have paid in their home countries. We also take you to the beautiful mountain oasis of Boquete, which has long been regarded as one of the world's best places to retire. We interview many expats, the people who've made Panama their new home and we follow one couple, Kay Owen and Larry Mattison, as they search for, and ultimately find, the luxury apartment of their dreams in Panama City. We also interview attorneys, real estate agents, developers and other experts who give you the inside scoop about how to get the best property deals in the country. They explain the process and reveal the secrets for making a profitable and wise investment in a country that is truly a nexus of the world. Whether you're looking for a quiet country reatreat or a cosmopolitan luxury penthouse in the sky, Home:World Panama shows you how you can retire or buy the affordable second home of your dreams in this spectacular country in Central America.

Santa Fe Films Releases New Video Series to Help People Buy Their Dream Homes in Paradise (PR.com)
Home World: Online blog

The Expat Show features Panama real estate law on ABC Radio

Getting around and understanding the law in Panama with Alvaro Aguilar. Alvaro is with the Panama based law firm Lombardi Aguilar & Garcia. www.laglex.com

LISTEN NOW ON MP3

THIS WEEK ON THE EXPAT RADIO SHOW

We return to the exotic country of Turkey to interview with author, former US Marine and leadership consultant now living in Istanbul, Jim Stroup.

Also featured is Alvaro Aguilar of the law firm Lombardi, Aguilar & Garcia (www.laglex.com), on buying real estate in Panama.

Brendan Sharkey from HTH Worldwide (www.hthworldwide.com) talks about global insurance for expats. Tai is joined by co-host Ms Greta Elias. Greta's website is: www.greataelias.com

Tune in February 17th 2007 or LISTEN NOW ON MP3

THE EXPAT SHOW is heard weekly 12:30pm eastern time over WTBQ1110AM radio NY/NJ and the world wide web at www.theexpatshow.com.
Check out what time the show airs around your part of the planet!

Proud of our affiliation:

---

email: producer @theexpatshow.com phone: 914 422 1990

web: http://www.theexpatshow.com

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Setting up an e-business in Panama

http://www.panama980.com/issue04_05.php
http://www.panama980.com/products1.asp?step=25&id=58&catid=4&pstring=58

>> setting up an e-business in panama
by Alvaro Aguilar


In this day and age of connectivity, modern technology allows many individuals to run their business from wherever they are. When considering where to relocate, Panama provides excellent opportunities to continue managing a business and tend to customers worldwide from your new tropical location.

High bandwidth increases connectivity
The central location of Panama, right in the middle of the Americas, makes it the place where submarine fiber-optic communications circuits between North and South America converge. This allows users in Panama to enjoy extraordinarily ultra-high-speed bandwidth intensive applications such as multimedia and digital video, enabling fast and reliable connections for B2B, banking, ecommerce and other businesses as well as additional high-speed consumer activity units. Currently, Panama has the same bandwidth capability as New York City, with the difference that Panama uses 3% of its capability as opposed to 70% in New York.

Several local companies have set up data warehousing facilities in the Panama Canal area, where these circuits converge. These companies provide large and small online businesses with the use of their servers or can host their servers in special secure rooms
dedicated to providing rack-mount space.

The increased connectivity has encouraged 20 call center companies to employ around 5,000 workers, available for customer service. Currently, most centers serve businesses in the United States, especially Hispanic customers. The Government has increased the availability of English-speaking personnel for these centers with special education programs. An expatriate who only needs a single person for customer service can retain one of the many small virtual office services which provide a receptionist and a dedicated telephone line.

Special laws for online activities
Larger online businesses may have their office in Export Processing Zones, which allows them to claim benefits such as duty-free importation of equipment, low taxation and more flexible labor conditions. Offshore services, such as international marketing, financing, management, consulting and all services related to information technologies for data processing and technological research for clients abroad, may be set up at these Zones.

Additional benefits are provided to businesses set up in the City of Knowledge, a special technology park zone located next to the Miraflores Locks of the Panama Canal. Businesses have a 25-year income tax exemption and are exempt from limits on hiring of foreign staff.

The government grants online gaming licenses to operations whose owners provide full background information and pay a S$20,000 yearly license fee. In addition, they must maintain a bank account in Panama to ensure payment of prizes.

Tax and Financial Framework to Ensure Success
Once the hardware and logistic issues are dealt with, there are many advantages when setting up a business in Panama. A Panamanian corporation can be set up in a few days and its activities are not subject to Panamanian taxes as long as it sells to clients located outside of Panama. With proper legal advice, shareholders can arrange the structure of the corporation to defer or reduce the taxes they have to pay in their home country. In most countries, online transaction tax is based on the nationality of the corporation owning the domain of the business or on the location of its server, which further favors choosing a Panamanian corporation with Panamanian servers to conduct business.

A foreigner who qualifies for a retiree visa but wishes to maintain an active lifestyle can run a business online without the need of a work permit if he or she maintains a minimal business presence.

Alternatively, an expatriate owning a business with physical offices in Panama, 3 full-time employees and US$40,000 in investment can apply for a small investor visa. Other visa options are available when higher amounts are invested.

Panama has around 100 banks, out of which several actively seek out clients for e-commerce services. Prospective businesses must provide all due diligence information on the background
of their owners. Basic information on the structure of the online transactions must be provided to the bank to ensure that no unlawful activities will be conducted through the bank. Once the
bank official is acquainted with the purpose of the e-commerce activities, transactions are conducted in a secure manner under Panama’s confidentiality laws. Alternatively, micro payments can be routed through non-bank “digital cash” online services, some of which are incorporated in Panama but do business though banks elsewhere.

This combination of advantages makes Panama the ideal location for an e-commerce operation. º

lombardi aguilar & garcia Tel. ( 507) 340-6444

http://www.laglex.com/

Is Panama City The Next South Beach?

http://www.washingtonpost.com/wp-dyn/content/article/2007/02/16/AR2007021600623.html



Is Panama City The Next South Beach?

By Ceci Connolly
Special to The Washington Post
Sunday, February 18, 2007; P01

It was sticky hot, and I was grungy after a morning exploring the cobblestone passageways of Panama City's Casco Viejo, a 300-year-old cross between the crumbling charm of Old Havana and the restored glow of New Orleans's French Quarter.

In my baseball cap, khaki shorts and sweaty T-shirt, I was dressed for a sidewalk hot dog stand. But a Panamanian friend had been raving about S'cena, the new Mediterranean restaurant in this colonial-era part of town, and when I stumbled upon its entranceway, it seemed the food gods were summoning me.

Still, I felt a little sheepish as I passed the first-floor jazz bar and stepped into a scene of sophisticated serenity: white tablecloths, fresh flowers and waiters in pressed shirts. I braced myself for dirty looks and a dreary table near a swinging kitchen door.

Instead, the owner greeted me like a lost cousin, whisking me to a prime table and gently draping a linen napkin across my lap.

And apparently I wasn't the only one getting VIP treatment. They were calling the guy in the next room "Mr. President."

"No, no," the waiter whispered, "it is the president -- of Panama."

Somehow, it all made sense. After just a few days in Panama, you start to recognize faces, and the prospect of sipping a midday chardonnay a few feet from the country's most powerful man doesn't seem so far-fetched.

I had seen ads touting Panama City as the next super-swanky Miami, and I was prepared for velvet-roped lines and South Beach-style snobbery. Heck, Jenna Bush was clubbing here just before I arrived. So not having to deal with a waiter with an attitude was a relief.

But I can see why it gets the Miami comparisons. The city tucked on Panama Bay offers a hip urban vibe and a distinctive skyline. It has sunshine, seafood and shopping opportunities galore. And although Panama is part of Central America, its rhythm and stylish Latin inhabitants have a Caribbean flavor.

There are notable disappointments. Panama's tourism industry sometimes struggles to meet the demands of travelers. (The man at the Avis counter had no idea how to get downtown, and cabdrivers were no better.) And though the country has many exquisite beaches, none is within walking distance of the hotel strip as in Miami's South Beach.

But ultimately, the beauty of Panama City is that it hasn't become Miami yet. It's much more welcoming and manageable. And now is the time to go -- before the Panama Canal gets its third set of locks, before Donald Trump finishes his 65-story tower and before the prices shoot just as high.

Glitches, Then Fixes

The woman behind the Louis XV desk at the Hotel DeVille looks puzzled.

Ten, the bistro inside the Hotel DeVille, a new boutique hotel with soaring ceilings, comfortable beds and plenty of room to stretch out.

Hotel DeVille

"No, I'm sorry," she tells my fiance, Manuel, and me. "I do not have a reservation for you."

After arriving late at night in a foreign city where we do not know a soul, this is not the greeting we want to hear, especially because the lobby of this boutique hotel hints at a pleasant stay -- Persian rugs, plush sofas, soft lighting and newspapers on every table.

"It's not a problem," the woman chirps before I can pull out our confirmation slip. "I can take care of you."

It is a scene that will be repeated over and over in Panama -- a glitch followed by an enthusiastic fix. Our room, with 20-foot-high ceilings and exposed wood beams, has all the modern amenities of a five-star hotel, except it's larger and much more affordable. There's a desk with Internet access, piles of feather pillows and soft robes for us both.

We head back downstairs to the hotel's groovy new Ten Bistro, where the gimmick is $10 entrees. (Yes, Panama's currency is the U.S. dollar, so dinner is a bargain.) After two flights, bad directions and a missing reservation, a decent meal and big goblet of wine are just what we need.

But there's a problem: The restaurant is closing at the very un-Miami hour of 10 p.m.

This being Panama, the problem evaporates as fast as it appeared. The manager stays open just for us, guiding us to a table aglow with orange candles. The soothing palette continues overhead, with glorious bird of paradise blooms sprouting out of suspended glass vases. And to top it off: a chilled bottle of a crisp, absurdly inexpensive Chilean sauvignon blanc.

The Canal, of Course

Even today, 93 years after completion, the Panama Canal is an awesome engineering feat, guiding ships the 50 miles from the Caribbean Sea to the Pacific Ocean.

We arrive at the Miraflores Locks and head to the outdoor viewing deck. The sight of 965-foot-long behemoths squeezing through the canal is unbelievable, the precision timing of the locks a marvel. Over a loudspeaker, a bilingual guide rattles off canal stats and fun facts. "The lowest fee ever assessed for passage was 36 cents," he says. "It was for Richard Halliburton to swim the canal." An impressive museum inside is complete with a simulator that gives a realistic sense of what captains experience as they navigate the narrow locks.

The next day, while Manuel works, I ask my cabdriver to drop me at the Plaza de la Independencia in the center of Casco Viejo. The modest square looks much as it did 100 years ago: narrow one-way streets, stone edifices and a few rusty cannons.

On the corner is a lovingly restored four-story colonial built by the French in the 1870s and now home to another canal museum. At one-fifth the price and almost empty, it is a much better deal than the locks museum.

The story of the canal -- from the failed effort by the French in the 1880s to current widening plans -- is presented in bright, colorful interactive exhibits. There's a full recounting of the 22,000 workers who died, most by malaria or yellow fever, and a sobering account of the segregated system that left dark-skinned workers with less money in their pockets at the end of each workday.

Outside the museum, the neighborhood offers the best of Panama City -- past, present and future. In 1671, after pirate Henry Morgan burned the original city to the ground, the King of Spain chose this boot-shaped peninsula to rebuild.

Although Casco Viejo fell into disrepair in the 1950s, today it is enjoying a revival. The two worlds meet on its labyrinthine streets: Elderly women hang laundry on wrought-iron balconies as construction workers transform dilapidated convents into swanky loft-style condos.

By sheer luck, I happen upon the presidential palace just as four magnificent herons strut across the porch. A few blocks away, at the seawall, I take in a gorgeous view of a half-dozen ships queuing up under the Bridge of the Americas.

I'm intent on finding the Church of San Jose with its Golden Altar, and as I study my map, a 30-something man named Ricardo offers his services. In most big cities, this would be the signal to sprint in the opposite direction. But with squadrons of tourist police patrolling on bicycles, I accept the invitation.

Ricardo, a native Panamanian, makes the sign of the cross as we step inside the plain white church. The interior is an odd -- even unsettling -- jumble of periods. But the baroque altar, salvaged by a priest who hid it from the plundering Morgan, is a mouth-gaping gem, an enormous mahogany piece covered in gold leaf.

Later, another local, Julio, guides me to the dungeons used first by the Spaniards and later the Colombians. One has been converted into a touristy restaurant. But Julio leads me to another. I climb through a low-slung doorway, and in the dank, poorly lighted room is a genuine surprise: paintings of every shape, color and style. Portraits of the Virgin Mary lean up against seascapes; stacked in another corner, geometric abstractions are mixed with battlefield images. Many look to be schlock, but a few are captivating.

The paintings, Julio says, are all from the collection of jailed dictator Manuel Noriega. There's no proof of this, but the dungeons are super cool and Julio and his tale -- true or not -- sure beat the standard tour guide spiel.

Tropics to Mountains

We are driving through Cocle Province, 75 miles southwest of Panama City. As we negotiate yet another tight curve, the landscape shifts from the tropical palms of the capital to the sturdy pines of this mountainous region -- all in less than an hour.

As we reach the top of one particularly steep hill, I holler, "Stop the car!" On our right, in the distance, is the Atlantic Ocean's Caribbean Sea, and to the left, down a terrifyingly steep rocky cliff, is the Pacific. We are poised on a ridge separating two continents.

There are many reasons to escape the city and explore Panama's natural wonders. But it is hard to imagine a better one than this view, arguably one of the most distinctive vantage points in all of Central America.

Farther up the slope, we reach El Valle, a town that sits inside a crater created 3 million years ago when a huge volcano blew its top. Today El Valle is one of the largest inhabited dormant volcanoes in the world. The town's fresh air, leisurely pace and cooler temperatures make it a popular weekend retreat for Panama City's elite. (Signs along the road tell the story: "Door to Paradise" and "Villa Nirvana.") Nature lovers rave about the region's hiking trails, waterfalls and horseback riding.

But the main "activities" we encounter are relaxing and eating. New Panamanian friends have arranged lunch on the patio of La Casa de Lourdes, a Tuscan-style mansion with an idyllic poolside restaurant and terraced gardens. Surrounded by Panama's leisure class, we follow their lead and order a bottle of wine. It goes well with a table full of fresh Panamanian and Creole seafood dishes accented by spice rubs, mango salsas and yucca, the ubiquitous root that locals mash, fry and even toss into cakes.

We take a room in the adjacent building, which is not nearly as architecturally inviting as the main house. But our suite is enormous, with a luxurious modern bathroom and tiny terrace looking out on a ring of mountains. At dinnertime, we stroll through the gardens to the restaurant, now aglow in candlelight.

The next morning, heading back to the city, we stop at a roadside stand and order two chichemes, a heavenly blend of milk, sweet corn, cinnamon and vanilla. If we sip them slowly, they should last us all the way to Panama City.

Fish Market Finds

With just a few hours left in Panama, we decide to go to the source of the country's culinary goodness: the Mercado del Marisco, or fish market.

We slosh around the smelly warehouse, marveling at the piles of beautiful, slimy sea creatures. The vendors, friendly if slightly surprised to see a pair of gringos, teach us words in Spanish. The mero we devoured one night is grouper, longo is a giant tubular clam, and corvina a buttery, rich sea bass.

We meet a vendor named Niño and tell him we're craving lobster. But he shakes his head. "Not fresh," he confides.

Standing 5 feet tall in his rubber galoshes, Niño tells us he has worked the same stall for 33 years. He wants to make a sale, but he also wants satisfied customers. He recommends prawns and calamari. A pound plus of super-fresh seafood for $5.25? Who can argue?

With our catch in hand, we climb a rickety wooden staircase to a restaurant of sorts. Our waitress is brusque and the napkins are paper. There's a menu, but we don't need it.

We ask the kitchen to grill up Niño's goodies. The chef adds a pile of perfect French fries, and our bill comes to $6.

Ceci Connolly, a Washington Post reporter currently on leave, is based in Mexico City.

Panama City's Casco Viejo neighborhood has been revitalized after falling into disrepair in the 1950s. (By Keating Holland)

Details

• Panama Birding: Find your way to Canopy Tower and learn what to bring when you take off.
• Panama City: Learn where to stay and where to eat in Panama's growing playground.

This Week in Travel

Panama: Bird watchers flock to Canopy Tower. Also, is Panama City the next South Beach?

Photo Gallery: Panama's for the Birds

	February 17, 2007

A Booming Panama City Awaits Noriega's Return How American retirees -- and a canal makeover -- are transforming the capital By JOSÉ DE CÓRDOBA February 17, 2007; Page P1 PANAMA CITY, Panama -- When Gen. Manuel Antonio Noriega gets back to this lush tropical city after a 17-year absence, the former Panamanian strongman will scarcely recognize his old haunts. I barely did. Makeover: Balboa Avenue, Panama City The news that Mr. Noriega plans to come back to Panama in September after spending nearly two decades in a U.S. prison since being deposed in a 1989 invasion, is the talk of the town. His return has momentarily eclipsed the other omnipresent subject of conversation here -- the real-estate boom fueled in part by American retirees, which has turned this once laid-back city, known as a refuge for spies, arms dealers and out-of-work dictators, into an enormous building site with a Manhattan-like skyline in the making. Good times are expected to keep rolling: The country's famous canal is about to get a multibillion-dollar makeover, and a chunk of its down-and-out colonial city center is getting a facelift. Landing here recently for the first time in many years, I recalled Mr. Noriega's last day in Panama, which I covered for The Wall Street Journal. That day, I spent hours waiting for Mr. Noriega to come out of the Vatican embassy, where he had taken refuge from U.S. troops. Days earlier, soldiers had blared ear-splitting rock from sunup to sunset to drive Mr. Noriega out of his refuge, but to no avail. I still remember some of the rather pointed musical jabs -- Jimi Hendrix's electrifying version of "The Star Spangled Banner" and Elvis Presley's "Jailhouse Rock." TRIP PLANNER: PANAMA CITY See where to stay and what to do in Panama's capital city. Inside, the late Msgr. Jose Sebastian Laboa, who once held the job of devil's advocate in the Vatican -- arguing the canonical case against candidates for sainthood -- used his lawyerly skills to convince Mr. Noriega to surrender. Mr. Noriega, with his acne-scarred face, made a perfect villain, the type of tyrant the U.S. at first loves to use, and then loves to hate. After three days of loud music and 11 days of artful persuasion, Mr. Noriega walked out into the waiting arms of U.S. anti-drug agents and on to an eventual U.S. trial and conviction on drug-trafficking charges (if he does return to Panama, authorities have said they will put him on trial for murder). In his Miami prison suite, Mr. Noriega became a born-again Christian. In his absence, Panama City has also experienced a rebirth of sorts. The place teems with hip new restaurants and salsa joints. New beach and eco-friendly jungle hotels are nearby and ground has been broken on a long-planned biodiversity museum by renowned architect Frank Gehry. The Panama Canal The rebirth is partly the result of another U.S. invasion -- this time by the advance guard of baby-boomer retirees who have landed on Panama City's shores. Not only are the Americans here. So are the Canadians and Europeans. Venezuelans, one step ahead of the installation of fiery President Hugo Chávez's version of "21st-century socialism," are arriving in growing numbers. Another factor in the remaking of the city was last year's vote via national referendum to go forward with a $5.2 billion government-funded project to widen the Panama Canal a few miles from the city center. A third set of locks, which will allow larger vessels to go through the waterway, is expected to be completed by 2015. Panamanians are betting the canal's expansion will boost other related businesses such as insurance and financial services, and help maintain growth rates of about 7%. The canal has been central to Panama's history -- and its sometimes turbulent relations with the U.S. In 1903, President Theodore Roosevelt more or less carved out an independent Panama from Colombia in return for control of a 10-mile swath of Panamanian territory cutting through the middle of the country where the canal was built. U.S. control of the "Zone" fed Panamanian nationalism, leading to bloody riots in 1964. After thorny negotiations, the U.S. finally turned over total control of the canal to Panama in 2000. Change is even making a dent in Panama City's slummy colonial city center, once the domain of prostitutes, pimps and pickpockets. Years ago, even looking at the fetid, jam-packed, crumbling buildings of the old city made one feel in danger of contracting the yellow fever that mowed down thousands of canal workers in the 1880s. There's still work to be done, but private and public money is being used to clean up some streets and a couple of squares are now home to trendy eateries. The Bristol Hotel Many Panamanians appear happy with the way their city and country are going. Carlos Weil, a former Swiss currency trader turned Panamanian art dealer who has six passports, says the country is attracting people from all over the world. Half his clients are now foreign, boosting his prices and expanding his market. Foreigners have brought with them lots of new restaurants -- and even the city's first serious bookstores. From colonial times, when the city was a key transit point for the transport of gold and silver from the mines of Peru to imperial Spain, commerce has always been Panama's driving force. The loot then woke the greed of famed pirate Sir Henry Morgan, who sacked the city in 1671. The ghostly ruins of that first Panama City can still be seen a couple of miles from downtown. One of the world's largest offshore banking centers, Panama still attracts its share of pirates and flim-flam men. My all-time favorite for sheer verve and virtuosity was Lloyd S. Rubin, a Jackie Gleason look-alike widely admired here as the king of the upfront-fee scam. For years, Mr. Rubin lured hundreds of would-be entrepreneurs to Panama where he relieved them of millions of dollars by charging exorbitant fees in exchange for promises to provide investment funds that never materialized. The Bay of Panama In 1991, I wrote about Mr. Rubin in The Wall Street Journal. The following year, a notice appeared in local newspapers announcing Mr. Rubin's untimely death in Thailand. Three years later, Mr. Rubin rose from the dead. He surfaced in Ecuador, with an alias, Carlos Campbell De Cordoba, a name I felt almost turned him into a long-lost cousin. He was returned to the U.S. where he pled guilty in Georgia to fraud charges to do with his Panama scheme, and spent some time in prison. (Mr. Rubin now runs an art gallery here.) Panama has historically been a refuge for deposed autocrats and disgraced politicians. After Iran's Shah of Shahs lost his Peacock Throne, he lived for a few months on nearby Contadora island. Haiti's strongman, Gen. Raoul Cedras, a diving enthusiast, found refuge here after the U.S. knocked him out of the box in 1994. And in 1997, Ecuador's President Abdala "El Loco" Bucaram ended up here after the congress dismissed him from office for living up to his nickname. Mr. Bucaram, who insisted I was an agent for the Central Intelligence Agency in my one interview with him, is said to be a habitué of the city's casinos, but I've never spotted him among the one-armed bandits. A statue of Balboa I'm happy to say that my favorite bar, El Pavo Real, or the Peacock -- billed as Panama's only British pub -- is still around. The Pavo Real was Panama's version of Rick's Café from "Casablanca," a place where gun runners, drug pilots and one of my best sources -- a Cambridge-educated insect exterminator who was also an acute social critic -- got together for drinks. The late prima ballerina Dame Margot Fonteyn, who was married to a Panamanian politician, would drop in for lunch. So did more recently John le Carré -- in town to write "The Tailor of Panama," his remake of Graham Greene's "Our Man in Havana." Casco Antiguo Old Panama City had a cozy, almost familial air to it. Anybody who was anybody was related by blood or marriage. That was brought home forcefully to me on my first visit to the country. I was covering the 1987 riots that eventually led to Mr. Noriega's downfall, when unbeknownst to me, my future father-in-law, the deputy administrator of the Panama Canal and a man proud of his Sicilian bloodline, asked Panamanian and U.S. military police to give me some rough treatment. For reasons too complicated to go into here, he thought -- mistakenly -- that I hadn't done the honorable thing by his daughter, a diplomat in Miami whom I had recently met. To set things right, he wanted the police forces to find me in the chaos of tear gas and flying rocks and give me a light work-over to teach me a lesson in proper etiquette. Luckily, the forces were busy with more important things. I married his daughter shortly afterwards, and now get along famously with her father. That small-town feeling -- where such favors are asked and granted -- is fading fast. Write to José de Córdoba at jose.decordoba@wsj.com1 Trip Planner: Panama City How to Get There: Regular direct flights leave from Miami. Where to Stay: The Bristol Hotel, a boutique hotel close to the city's financial center, is a favorite; rooms start at about $300 (www.the bristol.com2). Close by is the Hotel de Ville, another boutique hotel where rooms start at $175 (www.devillehotel.com.pa3). Where to Eat: Panama has great seafood restaurants. Try Siete Mares, where the specialty of the house is Msgr. Laboa's Lobster, topped with red caviar and named after the late papal nuncio who talked Gen. Noriega into abandoning the Vatican embassy and surrendering to U.S. troops (Tel: 507-264-0144). Madame Chang's is considered one of the best Chinese restaurants in town (Tel: 507-269-1313). What to Do: A visit to the Panama Canal is a must -- take a taxi to the Miraflores locks. Stroll by the ruins of the first Panama City, sacked by the pirate Sir Henry Morgan in 1671, a couple of miles from downtown. Visit the present Old City, known as the Casco Viejo, which is being rehabilitated. There, stop by the cathedral and the Plaza de Francia, with its touching monument to the French engineers who died in the first failed attempt at building a canal. The Amador causeway has lots of bars and restaurants and is great for jogging and bicycling. José de Córdoba URL for this article: http://online.wsj.com/article/SB117166770175011667.html

Copyright 2007 Dow Jones & Company, Inc. All Rights Reserved

Panama becomes Latin America's newest boomtown

Panama on the rise

Construction, global interest booming, eclipsing long-range worries

By Indira A.R. Lakshmanan, Globe Staff December 27, 2006

PANAMA CITY -- Long a freewheeling shipping hub and offshore banking center for the Americas, Panama is enjoying a building boom on a scale unmatched since the construction of its famous canal 92 years ago.

The country is luring investors and expatriates worldwide, with interest further boosted by the recent approval of a $5.2 billion plan that will double the canal's capacity.

A real estate frenzy fueled by easy credit from Panamanian banks, government incentives, and a saturated US housing market for retirees has attracted speculators and prospective residents from California to Dubai. They are snapping up preconstruction bay-front apartments, highland villas, and the latest luxury development from Donald Trump -- a $220 million residential, office, and hotel complex called Trump Ocean Club, with towers shaped like a yacht sail. Two rival Spanish projects are vying to build the tallest skyscraper in Latin America at about 100 stories.

Construction moguls and estate agents say Panama City is a sure bet for investors, offering discount prices for quality of life and healthcare rivaling the United States', more than 100 international banks, tax breaks, and stunning Atlantic and Pacific coastlines.

But urban planners and long time residents warn that overbuilding could ultimately strain the country's roads, water supply, and other infrastructure to the breaking point with devastating consequences.

Almost no one seems to be heeding those alarms.

Cranes, building sites, glitzy sales offices, and real estate package tours aimed at foreigners are everywhere, from Avenida Balboa in downtown Panama City to suburban Punta del Este. Laundered drug money from neighboring Colombia built some of the early mirrored high-rises in the 1980s, but today's buyers include fixed- income senior citizens from the United States searching for a less expensive place to retire as well as billionaires from Monaco and Cannes.

David Btesh, a partner in Pacific Point, a high-end condominium project under construction on a landfill in downtown Panama City with units ranging from $300,000 to $1.1 million, said foreigners are looking for a haven from a world they perceive as unsafe because of crime at home and global terrorism.

"They're not going to Europe because it's too expensive, Canada's too cold, and Mexico's only Spanish-speaking," while many Panamanians speak English, Btesh said.

"Panama is a dollar economy with a democratic government. There's every kind of food, a modern airport with about 54 flights a day, and the second-largest free-trade zone in the world after Hong Kong," he said.

US citizens represent two-thirds of foreign resident visas issued in Panama in recent years, officials say, with at least 1,379 Americans moving to the country since 2003. Celebrities from Mick Jagger to Bono reportedly have purchased property in resort areas outside the capital.

The canal, central to the country's history, also looms large in the current boom.

The United States supported Panama's declaration of independence from Colombia in 1903 in exchange for US control of a canal connecting the Atlantic and Pacific oceans. In 1914, the US-built canal was completed, and the zone remained under US control until 2000.

In October, a majority of Panamanians voted to finance the construction of a third canal lock over the next decade that will allow the 50-mile lock and lake system to accommodate bigger ships and double toll revenues within 20 years, according to government estimates. Ricuarte Vásquez, minister for canal affairs, said the referendum "is a vote of confidence" in the local administration of the canal that has raised interest in Panama as an investment destination.

About 107 residential building projects of at least 20 stories, valued at $3.2 billion, are under construction in metropolitan Panama City, according a survey by Prima Panama, a real estate promotion company. That construction activity accounted for one-fifth of Panama's annual gross domestic product.

The report also found that about 11,000 apartments are scheduled for completion within four years -- the same number that were built over the past 11 years in metropolitan Miami, by comparison, where a glut has softened the market. The survey found that the average price of a new condo in Panama City is $289,111.

The cost has raised concerns about who will be able to afford to live in Panama.

Some will be the jet-set buyers targeted by the Trump complex, which is selling preconstruction condos from $400,000 to $8.7 million. The K Group, local developers of the project, says Americans including Trump, top the list of buyers at about 40 percent, followed by Canadians, Europeans, and Latin Americans.

Other buyers are expected to be baby boomers from the United States seeking more value for their retirement money. Modern Maturity magazine ranked the town of Boquete, in Panama's highlands, as one of the world's top retirement destinations.

Kit Marchel, a 35-year-old real estate investor, said she sold her Los Angeles condo last year for $3.3 million and bought an 8,000-square-foot villa at a southern Panama beach for $335,000. Since then, she has acquired 17 properties in resort areas and the capital, with plans to resell, rent, or redevelop them.

"The communications work, you can drink the water from the tap, there's no currency exchange issue, and it feels a lot like home," she said. "I've made a commitment to this country. . . . I did my research first. There's one baby boomer retiring every six seconds -- add those numbers up."

But a question nagging even the bullish is whether public services and demand can keep up with rising supply and prices. Already the capital suffers from traffic jams and fumes from untreated sewage that is dumped into Panama Bay. Public transport is sorely lacking, and the water supply is insufficient in poor neighborhoods.

"It's a time bomb -- you cannot meet the demand of all these high-rises with the infrastructure that exists," said urban planner Jorge Ricardo Riba, a former top official with the National Planning Office. "What happens when people start to live there?"

If the US economy weakens, he said, "there may not be enough buyers. I see a lot of empty apartments in the future."

Sandra Snyder, an American relocation consultant in Panama City who has written two books about expatriate life in Panama, also worries that the country's infrastructure cannot keep up with the pace of building. "This is such a lovely place, and I hate to see what's happening with this frenzy of building," she said.

A few developers say they are looking beyond the quick buck and want national and local officials to forestall problems before they arise.

José Bern of Empresas Bern, a hotel and real estate giant, said his biggest problem is finding workers to complete his projects on time and within budget. Panama City "is experiencing some growing pains, and it will get worse before it gets better," he said. "But maybe that's good, to slow things down."

Sarah Cox, a consultant with International Living, a publishing and seminar company, says the government has promised a new bridge, a wider main artery, a revamped bus system, a waste-water treatment plant, and a cleanup of the bay.

Cox acknowledges that speculation and overbuilding could bring down Latin America's new boomtown. But for now, she said, "I don't see that they'll stop building until people stop buying. . . . It's like picking up dimes in front of a steamroller. As long as you can stay ahead of the steamroller, you're fine."

http://www.boston.com/news/world/articles/2006/12/27/panama_on_the_rise/

Shipping and Mailing Solutions in Panama

>> my package went were?
Shipping and Mailing Solutions in Panama

When your address changes from “128 Elm Street, Farmsville TX 76508” to “El Cangrejo, la Vía Argentina, la primera calle después del parque, a una media cuadra norte del almacén, frente a la casa amarilla de tres pisos, apartmento tres D, ciudad de Panamá, República de Panamá”, receiving your Christmas cards from family in the States may not be as simple as it used to be. Christmas cards, however, are probably not your main concern. When you choose to live in a foreign country, many items are simply unavailable or out of your budget when available locally. The fact is that sometimes you will need to receive documents and packages quickly and securely. Luckily, there are several solutions.
a po box in miami
In Panama, several companies offer mail-forwarding services. These private mail companies provide you with a PO Box address in Miami to receive your mail and then forward it to Panama within 48 hours. Most companies will deliver the mail to your home. The cost for this service is based on the weight of your correspondence, which generally runs around $3-4 per pound depending on the terms of your contract. It is a good idea to know how much mail you expect to receive in order to select the plan that suits your needs. Keep in mind that magazines with several hundred pages can weigh up to 2 pounds each. Another benefit of maintaining a US mailing address is that you will not be charged a fee by your credit card company for having an address overseas or receive your frequent flier statements in Spanish.

internet purchases
While shopping is great in Panama, there are occasions when you need to shop online. There are several things to keep in mind when placing an order. The first is to know the weight of your purchase as well as the size of the box. With that information, you can consult with your mail-forwarding provider as to the expected cost of delivery, taxes, and customs fees. The cost of bringing in merchandise varies depending on the item, but expect to pay between 10-20% in taxes. If you do not have a credit card from the US, it is often difficult to place orders online. Some of the larger mail-forwarding services place your orders online for you using their credit cards.
air vs. maritime cargo
Depending on how quickly you need to receive your package, you can opt for what is called maritime shipment. Your package will arrive safely, but will take a week or two longer. However, the savings in freight costs can be significant for large, heavy items over eleven pounds. You will still have to pay taxes and customs fees. Once again, it is important to consult with your mail-forwarding provider, since the address for delivery via maritime shipment may be different from the one you would use for shipments by air cargo.
international couriers
Sending correspondence from Panama using your mail-forwarding provider is generally done using their discounted rates with DHL and FedEx. Some mail-forwarding companies offer a less expensive option using the Priority Mail service in the US.
deciding on a service
If you have decided to use a mail-forwarding service, it is a good idea to ask for references. Friends and business acquaintances may offer insight into which companies are more reliable than others. You may also want to visit the office and ask how their operations work.
A mail-forwarding service is a good way to stay in touch with friends and family back home. It is very helpful to be able to receive urgent items in a safe, economical way. If you do your homework and ask the right questions, you will overcome one of the challenges of living abroad.º
By Pamela Oakes Aguilar
Airbox Express
http://www.panama980.com/mailboxes.php

Relocating pets to Panama

IMPORTING / EXPORTING PRIVATELY OWNED ANIMALS AND WILDLIFE FROM THE REPUBLIC OF PANAMA
Before shipping a dog or cat to or from the Republic of Panama, contact local airline personnel, to determine shipping requirements, size and type of cage needed.
To import a dog or cat into Panama, you have to bring:
1) Health certificate authenticated by Panamanian Consul or with Apostille from the Department of State,
2) Vaccinations certificate authenticated by Panamanian Consul or with Apostille from the Department of State,
3) Pay US$130.00 for quarantine fees at any BANCONAL Banco Nacional de Panama with an appropiate form


4) If entering through Aeropuerto Internacional de Tocumen an attorney or acquaintance in Panama has to request an exemption from quarantine in writing before the health minister 2 weeks before the trip - indicating arrival and pet information. The request must be submitted hand-delivered at PETA-MINSA (Proteccion de Alimentos of Ministerio de Salud, at former Gorgas US Army Hospital, tel. 562-1671)
With these documents the pet will be allowed into the country. Without 4), the pet will be subject to 30-days quarantine and then released to you. Without any documents, the pet will be returned back to the country of origin.
Some Panama government officials are off-duty on weekends/holidays. PETS ARRIVING DURING OFF-DUTY HOURS WILL BE LEFT IN THE AIRPORT CARGO SECTION WITHOUT FOOD!!!

BIRDS AND OTHER WILD ANIMALS HAVE COMPLETELY DIFFERENT REQUIREMENTS! Panama requires CITES species control certificates from the country of origin and approvals from ANAM (Areas Protegidas at Autoridad Nacional del Ambiente, Curundu, tel. 532-7223) and MIDA (Cuarentena Agropecuaria of Ministerio de Desarrollo Agropecuario, Curundu, tel. 232-5340).
For a list of Panamanian consulates providing more information, go to Embassyworld, http://www.segumar.com/ or http://www.mire.gob.pa/
This information is subject to changes, specially since government entities regularly change telephone numbers or locations without previous notice and 99.99% of the time do not provide information by email or fax. It is provided for informational purposes only and not intended to serve as advice. Travelers should rely instead on their own inquiries at the relevant entities at least 1 month before the date of travel.