Tipping in Panama

If you are going to tip and I strongly recommend it, then there are some things you need to know. First these serving people do not make a lot of money so your tip will be very welcome. The minimum wage in Panama is around $1.50 an hour; higher in the city and lower in the countryside.

The percentage that is considered correct is 10% on the whole bill not just the food portion and if you tip more than there is loss of respect for you as this is considered a person who is foolish with their money.

Beware as there are many restaurants in Panama that add the tip to the bill. Look for words like Servicio, or Propina The thing that gets added and is not a tip is the ITBMS tax so if you see that and something else before you see a total than the tip has likely been included. Ask if there is “propina incluye”.

Don’t make the mistake of tipping again or tipping on the tip. Fooling gringos is considered by many to be fair game. And it is easy to get fooled as the bill will look so small compared to what most of us are used to seeing.

I would also suggest that if you want the server to have the tip for sure than pay your tip in cash even if you pay the bill by credit card. Too often the serving staff do not see the tip if it is added to the credit card bill.

Have fun and if you try some Spanish you may be surprised to find that many of your serving staff will respond in English. They were just too embarrassed before by their English but the fact that you tried some Spanish gives them permission to mess up English. Too often I find their English is much better than my Spanish and most of them do want to learn English.

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Minimal Risk Real Estate Investing

Here we are nearly half way through 2009 – and the World’s economy has slowed to a crawl – and Panama’s real estate market is struggling.

Gone are the days when developers only had to announce a new building’s launch…and they would be swarmed by people running cash in hand to put down a deposit. Today there are far fewer buyers and even those wanting to buy can’t always find financing. We have a Chinese dilemma: is it opportunity or is it danger?

Sooo should one invest in the Panama real estate market at this time? If “Yes” where and how?

Simple – buy pre completion construction.

This is not “pre launch or pre construction”…or even the “just started pre-construction”… but the “almost finished hence “pre-completion” construction.”

At this moment, the 20 year property tax exoneration is set to expire December 31, 2009. So, for builders to qualify…they must have their Occupancy Permits on their construction issued by then. As a result, people who bought at pre-launch or at pre- construction or even during construction are now going to have to be able to complete that purchase when the occupancy permit issues.

BUT… fewer buyers today are able to qualify for a local Panamanian mortgage…and the ones who were going to pay all cash when they signed their contracts in 2005 and 2006 no longer have that cash and they can’t find it. So, they need to sell.

But not only do they need to sell but they need to sell before the building is issued Occupancy Permits because if they can’t close when the Occupancy Permit is issued and the Developer says “OK Pony up” then they have to come up with the remainder or the developer will take back the rights to the apartment, cancel the contract, and keep the down payment. The prospective buyer would lose the apartment AND the down payment he or she has already paid – usually 20% – 40% of the purchase price ($350,000 purchase price means around $75,000 – $140,000 in deposit that could be lost).

Often buyers don’t realize this is happening until it is almost too late. By the time they realize they cant get a local Panamanian mortgage AND they dont have the moolah to make up the difference (60% – 80% NOT yet paid) they are in panic mode. About 4-6 months before Occupancy Permits might get issued, buyers start frantically trying to get re-sale agents to help them sell the rights to their contracts (if they are permitted to do so – some contracts won’t allow the contract to be assigned – ask your lawyer and the Contractor to see if your potential Vendor is allowed to assign the contract to you). So now you get the suite you want at the price it was two or three years ago! With more and more buildings getting ready to receive Occupancy Permits in the next 6 months – there will be plenty to choose from.

If you have money and want to buy a Condo or two in Panama, then there are some things for you to start doing now. Remember rentals are still in high demand and the hotels to take up some of the slack are still two years from completion

1. Decide what building you want to invest in;
2. Make sure the developer of that building will let you assume the contract from an existing buyer;
3. Contact as many re-sale agents as possible – see if they have an apartment for sale in the building or buildings that you want – what floor do they have suites on – what model number, etc.;
4. Get the details of the Initial Purchase..find out what their clients paid for the apartment and the amount of down payment they have made;
5. Make an offer no higher than what the client paid for the apartment in the first place-remember you are only paying to get their contract, and they stand to lose everything. So if you know someone has agreed to pay $350,000 for the suite you want and they have put in $130,000,00 as a down payment offer something less than $130,000.00 to assume that contract. Even if they get back $100,000 of the $130,000 they have given to the developer it is better than nothing which is what they will receive if they don’t sell you the rights to complete. People are looking to get a return OF their investment, or at least some of it and they are not concerned with a return ON their investment.

You, in turn, get to buy an apartment at 2005 or 2006 prices…today. If you are lucky you can even buy into some appreciation on that suite.

So remember don’t buy pre-construction buy pre-completion. You can see what you are buying, you know the Developer has the money and it will be completed and you don’t have to wait to start enjoying the benefits.

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Love Music? Guitar Festival AND Bruce Springsteen

Panama will host a Classical Guitar Festival featuring world renowned guitarists. The event will be held May 18 through the 22nd in Teatro Nacional, The Historical National Theater located in Casco Viejo.
This event is sponsored and organized by the Guitar Association of Panama, an entity dedicated to the advancement of culture in Panama.

This event will feature a concert on May the 18th by the Grand Master of Classical Guitar, Manuel Barrueco from Cuba

Panamá será el punto de convergencia de los mejores artistas de la guitarra clásica del mundo, todos reunidos en nuestro pais para participar del VII Encuentro Internacional de Guitarra, programado del 18 al 22 de mayo en el Teatro Nacional por parte de la Asociación Guitarristica de Panamá, una entidad sin fines de lucro dedicada al fortalecimiento de la cultura de nuestro país.Cinco días con una agenda variada y guitarristas de diferentes partes del mundo.

Con la participación del Gran Maestro Manuel Barrueco (Cuba), que brindará un recital el 18 de mayo.

If that is not enough, Bruce Springsteen appears live and in concert on June 25th in the Teatro Anayansi, Atlapa Convention Center
Bruce Springsteen en Concierto en Panamá

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Second Passport? Now Less Costly

With the passing of Executive Decree No. 26 on March 2, 2009, the Government of Panama significantly reduced the amount of money that must be put on deposit to obtain this second passport. At the moment the amount required has gone from US$615,000 to US$260,000 which must be placed in a 5 year term deposit with the National Bank of Panama.

The new rule requires that to qualify for the Second Passport Program a term deposit must produce a minimum of US$850.00 per month in interest which at current interest rates for a 5-year term deposit requires US$260,000 to be on deposit.

Why a second Passport? Many people from many countries face travel restrictions determined by their place of origin or their citizenship as related to their passport. For example US citizens may have restrictions on their travel to countries or may not be accepted in certain countries. With a Panamanian passport they can travel more easily. People from the Middle East and Russian bloc countries, have trouble getting into Eurozone countries, so this can be useful for them. With a Panama Passport, they can enter most EU countries without Visa and without any invitation letters.
One important advantage for people traveling with this Passport is that Panama has Visa-Free entry agreements with 40 countries,

So if you are looking to obtaining a second passport quickly, the only immigration program that provides that opportunity is the Panama Second Passport Program. This passport is excellent because is granted almost immediately, it lasts for 5 years, and it is easily renewed as long as the appropriate amount of money remains on deposit.

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Panama – The World is Looking

Panama’s recent election has caused quite as stir; not only here in Panama, but it has garnered the attention of the American press.

Here is an article which was o found in TIME online http://www.time.com/time/world/article/0,8599,1895827,00.html If this link is not live cut and paste it into your browser

By Michele Labrut and Tim Padgett
Panamanians take justifiable pride in their operation of the Panama Canal. Since the U.S. handed the famous waterway over to Panama nine years ago, the independent Panama Canal Authority (ACP) has run it more efficiently, more safely and more profitably than the Americans did. Too bad, most Panamanians say, that their government is still best known for the kind of corruption and waste that has marred the small Central American country’s reputation ever since pirates haunted the Caribbean. If they could just run the nation the way they run the canal, Panamanians believe, they could become a world-class maritime commercial and financial center — the Hong Kong of the Americas. Or maybe give Miami a run as the unofficial capital of Latin America.

Given that national angst, it’s less surprising that conservative tycoon Ricardo Martinelli upset Panama’s powerful ruling party on Sunday to win the presidency in a landslide. Martinelli, 57, is a U.S.-educated free-marketeer, a millionaire whose business empire includes supermarkets, banks and agricultural firms. Just as important, earlier in this decade Martinelli was chairman of the Panama Canal’s board of directors and Minister of Canal Affairs when the ACP decided on a $5.25 billion expansion of the canal, approved by voters in 2006, which has already created 2,000 new jobs and promises to engender thousands more before the project is finished in 2014. “We will change this country,” Martinelli pledged on Sunday night after garnering 61% of the vote to just 37% for Balbina Herrera of the ruling Revolutionary Democratic Party (PRD). Martinelli, who got only 5.3% of the vote in his first presidential run, in 2004, is the first presidential candidate in Panama’s modern history to win an absolute majority.

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Zoo Time in Panama with a World of Visitors

ALPZA, the Latin American Association of Parks, Zoos and Aquariums
initiated in the year 1990 in a meeting held in Caracas, Venezuela. In 2009
it will have reached 19 years since its creation. As of today, ALPZA has
almost 80 members between institutions, professionals and associated members
of different countries from Central America, the Caribbean, South America,
Europe and the United States.

In 2009 it will be having its XVI Congress in the City of Panama and on this
occasion the Summit Municipal Park will be serving as host. The central
theme of the Congress will be Zoos, Aquariums and Sustainability and there
will be discussions surrounding global environment issues as well as the
role of zoos and aquariums as organizations that promote biodiversity
conservation. Additionally there are programmed workshops designed to
fortify the work done in zoo institutions and aimed at providing the
necessary tools in the areas of design of educational programs, the handling
of wild animals in captivity, aquarium procedures and exhibition designs.
Each one of these workshops are conducted by institutions of worldwide
recognition that contribute with the education of professionals and students
dedicated to the use and conservation of wildlife. This is how the Sao Paulo
Zoo, the Temaiken Park, Pangea Consultants and the Aquarium Committee of
ALPZA have committed themselves to providing the participants with tools
that can be applied in their institutions to promote the conservation and
the fulfillment of their organizational objectives.

To date we have more than 70 confirmed participants from Latin America,
Europe and the United States, that include representatives from world
renowned organizations such as the World Association of Zoos and Aquariums
as well as experts in management of wildlife in captivity of different
countries. The same way as we will be counting with the participation of
important representatives of panamanian organizations recognized at a world
level, who will be linked to the Congress and will bring forth significant
knowledge regarding the handling of local wildlife and world issues that are
being studied in the country. This will be an excellent opportunity to
exchange experiences that are ocurring globally, keep up to date on
environmental issues of general interest, strengthen communication and
cooperation channels and make friends from different countries but with
common interests.

We hope that those of you interested in the subject will attend the
Congress, particularly students, who will have the opportunity to meet and
share with professionals in each of the areas that include environmental
education, architects, veterinary doctors, biologists, communication
specialists, among other diverse professions. Moreover, it is an ideal space
for environmental organizations, NGO´s, Wildlife Management Centers, that
are interested in broadening their knowledge on wildlife management in
captivity and conservation ex situ.

The congress will be held at the City of Knowledge, Convention Center
Building 184, Clayton, Ancon, Postal Address 0816- 03991 from 26 to 29 of
May 2009. The itinerary will start on the 26th at 8:00 a.m. with magisterial
conferences and on the afternoons we will be developing theory-practice
workshops that the participants can choose from depending on their principal
interests. For more information access www.alpza.com

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La Pintada… A Great Place to Invest

Many times people come to a country like Panama and head to the gated communities and the new developments. However some people will look to find a great location, where they can assimilate with the people of Panama. La Pintada in the high hills above Penonome is one of those locations. It is about 2 hours from Panama City and it is farming country. Cattle and citrus crops seem to be the biggest farming enterprises. Here we also find a wonderful bed and breakfast and a great Steak House; enterprises started by expats.

As we toured the area we came across this beautiful, well tended farm. Horses and cattle seem to be what they are raising but the whole thing was attractive and tastefully managed.

I couldn’t help thinking how the farm houses and out building would make a wonderful bed and breakfast or a dude ranch. I don’t know if it is for sale, but it certainly was attractive

So bring your entrepreneurial spirit and find the place to create your dream. It may not be in a development where the prices are high. You may find a tract of land and decide you would like to set up a dude ranch or a spot where you can take people into the foothills and enjoy nature. The new government of Panama is committed to supporting and encouraging green tourism.

Your ideas and your energy will find a welcoming home.

Panama awaits

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Casco Viejo Could Be Your Home

Casco Viejo, which is Spanish for “the Old Quarter” is a very special part of Panama City, the home of the President. Yes the President’s palace is here. In addition the entire area is dedicated to the classical style buildings that you see in the pictures below.

This is the view of Panama City that you get from Casco Viejo, near but not at your doorstep.

These buildings have been renovated and depict the classic style you find in Casco Viejo

Bolivar Square and edificio. This plaza and building are dedicated to Simon Bolivar who liberated 6 countries, including Panama from the rule of Spain.

The entire area of Casco Viejo is dedicated by the government of Panama as a special area where they focus events and activities for the general enjoyment of the populace. So you never need to leave home to participate in the wonderful events of Panama, they come to you. This is not true of Carnival which is simply too large for the small area of Casco Viejo but the Jazz Festival held a full day of free concerts here and included an art show and auction. You had no parking issues and you had the comfort of your home whenever you wanted it, but you also had wonderful entertainment right at your front door, in some cases literally.

You can own a floor in one of these wonderful old buildings, or you can own a smaller condo or you can buy an entire building that needs renovation and enjoy the process of bringing one of these grand old properties back to its former glory.

You can also just come to visit. There are some wonderful old hotels here and bed and breakfast properties. Walk around and just imagine what it was like to live here 100 years ago. There are numerous restaurants with fantastic food choices and often the weekends here include great jazz concerts at places like Simon Bolivar plaza. If you love history be sure to go through the Canal Museum.

So whatever your motivation is to come to Casco Viejo, come! You may find your heart is here and your dream home is calling. Real estate here is booming, but there are still homes for all budgets, from tiny $100,000 bachelor apartments to three bedroom plus penthouses with your own pool and entertainment area, costing a couple of million dollars.

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Panama Elects a New President

Panama elects a new President

A conservative business tycoon has won Panama’s presidential election, promising to guide the Central Latin American country through the global economic recession and widening the Panama Canal.

Reversing a recent trend of left-wing victories in the region, Ricardo Martinelli won 61% of the votes polled Sunday, election officials said. Balbina Herrera of the ruling center-left Revolutionary Democratic Party secured 37% vote

Martinelli, 57, led the opposition right-wing Alliance for Democratic Change to success with 37 seats in the 71-seat National Assembly, and announced he would work for a national unity government.
Herrera’s bloc had 23 seats.

Martinelli is the owner of the country’s largest supermarket chain, now as President he wants to build ports, highways and a Panama City subway.

He also pledged to oversee the $5-billion plan to widen the Panama Canal to enable larger ships to sail through it.

Martinelli assumes office July 1, succeeding President Martin Torrijos.

Panamanians went to the polls Sunday and overwhelming elected Ricardo Martinelli as president in one of the biggest landslides in Panama’s history. Just a short year ago the current PRD government looked like they were a lock to win a second 5 year term in the presidency. However, deteriorating economic conditions, rising crime and a growing backlash to perceived corruption made the PRD vulnerable. Mr. Martinelli took advantage of these weaknesses and ran an effective campaign that resulted in a sweeping victory.

Congratulations to Mr. Martinelli and his Alliance for Change party. Panama faces many challenges in the coming years and we wish him all the best. As a successful businessman he understands the current economic climate so we expect good things in the years ahead.
One of his proposals is already generating considerable controversy and much interest

Mr. Martinelli has proposed a Flat Tax (all income over a certain threshold is treated and taxed at the same rate, usually corporations pay a higher rate than do individuals).

You may be wondering why, if Panama is a tax haven as you may have heard, why do they need a flat tax?

Panama doe actually have a law that taxes individuals and businesses that make money in Panama. If your money comes from outside the country, than there is no tax payble on it, hence the label “Tax Haven”.

Like many countries that tax income, Panama’s tax laws are getting more confusing each year. If you ask 3 accounts a question about taxes you are likely to get three different answers. A simple Flat tax can eliminate the uncertainty about taxes and what you pay and what you don’t and how is it determined etc. etc. Mr. Martinelli as a business man and investor knows only too well it is uncertainty that hinders investors, and since Panama is out to attract investors, the easier it is for them to understand what they have to pay for taxes, and the less they have to do to keep their books and calculate the tax accurately, the more likely they are to invest in Panama.

Excerpt from the WSJ:

BOGOTA (Dow Jones)–Panamanian businessman and free-marketeer Ricardo Martinelli, the leading presidential candidate, proposes to impose a flat tax system in the country if elected, his top economic adviser said in an interview.

“We want to simplify the tax code because it will reduce the informal sector and tax evasion,” Frank De Lima, Martinelli’s top economic adviser, told Dow Jones Newswires in a telephone interview.

The flat tax rate, probably at between 12% and 17% for persons, with a full exemption for revenues below a certain level, and between 18% and 22% for companies, would have a neutral level on tax.

The story goes on and as of yet exactly what Martinelli intends to do with a Falt Tax is unknown but since he has now been elected as Panama’s next President, we are likely to hear much more about his proposed Flat Tax.

Again we see this as something which should prove to be beenficial to Panama in the long run.

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Buena Ventura Beach, Golf and More, Much More

Along the Pacific about 120 kms from Panama City there is a very exclusive Resort and Development; Buena Ventura and the Bristol Hotel.  For those familiar with Panama city the Bristol Hotel is a boutigue hotel situated in the heart of the banking district and it is one of the most exclusive hotels in the world.  The owner has now taken his talents and his pride and moved them out to the beach as well.  This development has some of the most gorgeous beach homes you can find.

Or maybe you prefer something in sand tones

Whatever your style you can find a fantastic lot on the edge or one of the most beautiful beaches in the world and there you can build the home of your dreams. As the Bristol Hotel is also operating here if you do not feel like cooking, you can always call and either go there for dinner or of course they will come to your home and serve you if you prefer. Having a party, call the Bristol, catering is extremely well done and readily available.

Soon Buena Ventura will be home to a Jack Nicklaus Signature Golf Course with one dramatic hole overlooking the Pacific ocean. Of course if you rbudget is a little smaller, there are homes ranging in price from $250,000.00. For all owners there is a Beach Club right out at the edge of the ocean and you can eat there or in the comfort of your own home. DeliGourmet is already on site so your fresh healthy bread, the finest steaks you can find and wonderful deli food of all sorts are just a short golf cart ride away from your front door. Cappuccinos are fantastic and under $2

So make your reservations at the Bristol at Buena Ventura and you may never leave.

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