In addition to the above, Panama was the winner, for six years in a row, of International Living magazine’s Annual Global Retirement Index and Modern Maturity, Conde Nast Traveler,  ARP Magazine and MSN.com, all praising Panama as the best place to retire to:  pretty impressive stuff for a start. 

When I actually started to look more deeply into Panama and what it offers the investor, I kept finding more and more positives; for example, it´s also listed as the location offering the 4th best rental returns in the world (Global Property Guide).

I then started to look into why Panama is considered so highly as an investment and retirement location.  Firstly, I found that the climate in Panama is very varied, appealing to a wide range of people seeking anything from hot, sunny beaches to cool, beautiful mountains. 

Then there is the fact that the cost of living is very low and quality of life in Panama is very high, largely thanks to the huge volumes of trade passing through the canal, making almost everything from around the world easily available at a low cost.  The canal is also responsible for the solid Panamanian economy, supported strongly from the constant trade created by the canal. With the canal being widened, it can only help further boost the economy for Panama.

Panama boasts an ultra-modern infrastructure with advanced roads, telephone systems, hospitals, banks, shops etc.  Furthermore, the locals are very accustomed to foreigners and apparently very friendly.  Another huge advantage Panama property has in the eyes of many investors is the fact that English is the primary language, making it far more comfortable for UK and US citizens to live and work effectively.

All the above factors are of course important for property investors, but it’s the numbers that really make up an investor´s mind about whether or not to invest.  Once more, Panama has all the answers, according to many reports such as the one i read at businesspanama.com.

Panama now offers freehold property ownership with 15-20% per annum capital appreciation, in conjunction with exceptional rental yields of 11%+ per annum, along with a swift, safe and painless buying process and no restrictions on foreign ownership.

Ok, so Panama is starting to shape up as an investment, but of course there is always a downside so I took a quick look into closing costs and taxes.  I couldn’t believe it.  Again exceptional: transaction costs are typically just 7-9% including agents´ fees and there is a very favorable Capital Gains Tax regime in place. 

My first look into Panama has left a very strong impression on me.  I can’t wait for IPIN to launch its first investment product in Panama  Feb 2008 – I´m sure it will be very popular.