Investment Strategies For Panama

General Factors

Panama offers a wide range of investment and lifestyle features that make it an appealing choice for a broad spectrum of property buyers:

• As a retirement haven, Panama not only boasts a stunning Caribbean location and a low cost of living, but it also offers a full range of tax exemptions and benefits for retirees under its Pensionado Programme. AARP’s Modern Maturity magazine has named towns like Boquete as amongst the world’s best places to retire to, where real estate prices have increased five-fold since 2001.
  
• Prices have also seen phenomenal growth in some other areas such as the popular coastal resort of Bocas del Torro on the Caribbean Sea. In addition, golf courses and related gated residential complexes situated slightly inland, have transformed farmland into high-end developments with strong growth potential.
• Today’s major hotspots can be found in Panama City’s banking district as well as the Casco Viejo neighbourhood that is being restored to reflect its 330 year old history. The City is expanding, partly due to a huge influx of multinational corporations, eager to take advantage of the tax incentives Panama offers to foreign investors. Major firms such as Dell and DHL have already established regional hubs in Panama, while Hewlett Packard and Caterpillar, amongst others, have announced new offices are to be built there. This business activity gives rise to a high demand for office and commercial space, along with quality accommodation to house the ever-increasing presence of foreign employees in the City.
• Enticements like a 20 year suspension of property taxes for those who build property or renovate in the historical district of town and income tax benefits for those starting small businesses. Furthermore, the fact that corporations or private businesses are legally guaranteed complete anonymity and privacy, both in terms of business practice and banking make Panama a highly appealing arena in which to invest.

Economic Factors

Panama breaks records in Latin America, for example: fastest growing tourism market by the World Tourism Organisation; fastest growing economy by the International Monetary Fund; third (after Chile and Mexico) for economic competitiveness; largest number of international bank offices; largest shipping registry and second largest free-trade zone in the world, after Hong Kong.

GDP growth in the first three months of 2007 was an astounding 9.4%, surpassing most private and government projections and the robust growth seen in 2006 and 2005, which was 8.1% and 6.9%, respectively. This growth has been fuelled by the construction sector, transportation, port of Panama Canal-related activities and tourism.

Panama is the second largest banking centre in the world, boasting more than 150 different banks from no less than 35 countries. In addition, the nation ranks second only to Hong Kong both as a Freeport and as a provider of foreign registration for corporations.

The hand-over of the Canal and military installations by the US has given rise to new construction projects, precipitating increased activity in the real estate sector. One such project is the USD 5.25 billion Canal expansion, currently underway to construct a third set of locks, which is expected to near completion within eight to ten years. This will provide 7,000-9,000 new jobs during peak construction time (2009-2011) and is expected to set a positive economic tone for years to come.

Located at the Caribbean entrance of the Panama Canal, the Colon Free Trade Zone (CFZ) is the largest free zone in the Americas and the second largest in the world. It houses 1,751 merchants and annually receives over 250,000 international visitors, mainly from Haiti, Jamaica, Costa Rica, Venezuela, Colombia, United States and Ecuador. With Panama’s large banking centre, a well developed insurance industry and several state-of-the-art container ports on its doorstep, the Free Zone provides an ideal centre for the transhipment of merchandise to other parts of the Western Hemisphere. Furthermore, companies located in the CFZ are exempt from import duties as well as guarantees, licensing, and several other requirements and limitations on imports.

Panama’s Law 41 is set to boost an already strong real estate market, encouraging the establishment of more multinational companies with the incentive of income tax exemption in Panama for all services provided to any entity domiciled outside Panama. In addition, it allows licensed corporations to hire trusted foreign employees to fill management positions, bringing an influx of international professionals moving to Panama to live and work.

As the fastest growing tourism market in Latin America, Panama’s economic growth has been greatly assisted in recent years. The government continues to pour money into tourism investment programmes, largely for the construction of new hotels in the City, while other important projects include the promotion of Panama as an exquisite eco-tourism destination.

Political Factors

On 1st January 2000, the last American soldier left Panama and the Canal now belongs to Panama. After invasion in 1989, followed by the capture of President Noriega, Panama went through a further period of political instability under Guillermo Endara. However in 1994 Ernesto Perez Balladares took over and began the process of economic reform and growth.

Panama is non-military (without an army) and over the past ten years, the country’s political situation has been very stable.

Political Risk Services (PRS) placed Panama in the top three countries of its hemisphere with the best risk-investment qualifications. Moody's and Standard & Poors have both granted high ranking to Panamanian bonds.

Today Panama’s politics runs along a framework of representative democracy, with three branches of government: The executive branch includes a president and two vice presidents. The legislative branch consists of a 72-member unicameral Legislative Assembly. The judicial branch is organized under a nine-member Supreme Court and includes all tribunals and municipal courts.

The Panamanian government has introduced a great number of fiscal reforms under the current Martin Torrijos administration, making Panama even more attractive for private and corporate foreign investors seeking a highly tax efficient environment in which to operate.

Natural Factors

Caribbean beaches, a tropical climate and a relaxed, affordable lifestyle are all factors that attract foreign investors, holidaymakers and retirees to Panama. As Panama’s fastest growing industry, tourism is of utmost importance and with top-class golf courses and resorts going up, Panama offers a modern tourism infrastructure, ideal to supply the ever-growing international demand for high quality holiday and residential accommodation.

Panama also has enormous potential as an eco-tourism destination due to a large expanse of diverse countryside, a unique geographical location as a land bridge between two continents and low density tourism.

The country offers one of the most complex ecosystems in the world and the authorities are wasting no time in recognising this fact. Rainforests, mountain retreats, beaches and island, as well as seven thriving indigenous Indian cultures create great opportunities for eco-tourism. Projects are underway to complement the environment, one such example being the “recycling” of a former radar installation within Soberania National Park. This has now been transformed into an eco-lodge of worldwide repute, specialising in birding.

Efforts are being made to protect its natural environment while 30% of land is set aside for conservation, 25% of which is designated as national parks, i.e. approximately 5 million acres. Boasting a total of 29 national parks, forest reserves and wildlife refuges, Panama has five parks within two hours drive of the City, and one actually within the metropolitan area itself.

The weather in Panama is tropical and temperatures will vary slightly according to location and altitude. Normally it is quite hot and humid, abated by sea breezes and/or air conditioning in most places.

During Panama’s high tourist season running from mid December to mid April, the climate is dry. Rainfall for the rest of the year could fall daily at an average of one inch a day, while the variance in average temperature remains small, with temperatures reaching approx 29°C in the dry season and approximately 26°C in the wet season.

Logistical Factors

Air - Tocumen Airport is located along a modern highway (Southern Corridor) only 15 minutes drive from Panama City centre. Marcos A. Gelabert is an alternative airport, also located near the capital city and offers national and international flights.

With airport expansion work underway at Tocumen Airport, operation capacity is set to increase by 38%, allowing it to handle 44 aircraft simultaneously. Once work is complete, Tocumen Airport expects to see a passenger growth of 15% per annum.

At present direct flights are not yet available to Tocumen Airport from Europe and the USA, but from 30th March 2008, KLM Royal Dutch Airlines launched direct flights from Amsterdam Airport (Schipol) to Tocumen Airport, with three weekly non-stop flights.

Airlines with connections to Panama:

American Airlines –direct flights from Miami with connections from Italy, UK, Germany, France, Belgium, Spain and Japan

Delta Airlines –direct flights from various North American cities and connections from Italy, UK, Germany, France, Belgium, Spain

Iberia Airlines –direct flights from New York and Miami with connections from Italy, Switzerland, Sweden, Holland, UK and France

KLM, Iberia and American Airlines – connections from London Heathrow

Continental Airlines – from Gatwick via Newark, New Jersey

Delta Airlines - via Cincinnati

Virgin Atlantic - via JFK Airport

British Airways - via Atlanta Airport

Rail - The 143 year-old Kansas City Railroad and Mi-Jan runs 47 miles, parallel to the Panama Canal. It was the first transcontinental railroad and today it is still a very important means of transport. Recently restored and fully modernised, it will provide an efficient means of transport for the purposes of enhancing world trade and transportation.

USD 90 million worth of rail improvements on the Transisthmus Line by concessionaires, Kansas City Southern Industries and Mi-Jack Products, will enable inter-modal transporters to move a container from one ocean to the other in just 45 minutes.

Road - With a modern highway network of some 11,300 km, Panama is an easy country to get around. Major highways include the Panamerican Highway, the Northern and Southern Corridor and the Madden Colon Freeway.

Bus - The highway bus system is advanced and highly efficient in Panama. Modern, air-conditioned buses will link you to just about any destination, often avoiding the need to hire a car. The large Albrook Mall terminal in Panama City is an impressive sight, also taking the form of a shopping mall. Fares are low (approx USD 1 per hour travelled), however from Tocumen Airport, expect to pay a good deal more (minimum USD 20).

City buses are colourful, crowded and decoratively painted school buses, often without air-conditioning, costing a flat rate of 25 cents to any location.

Sea - The expansion of the Panama Canal began on 3rd September 2007 and will, when completed, double the capacity of this increasingly congested waterway to 600 million tones per year as well as allow it to handle much larger vessels. The expansion will involve the incorporation of new locks to create a new lane of traffic along the Canal. Panama's president Martín Torrijos stated that the Canal will generate enough wealth to transform Panama into a First World country.

Short Term Investment Strategy

Key Opportunity

Strategically situated in the heart of the Americas, Panama is of major worldwide importance. In the light of recent performance and strong economic indications for the future, worldwide investors are continuing to put billions of dollars into this country. Its outstanding economic growth is often likened to the outlandish success of Dubai.

For a decade, Panama has been offering investors many of the same features it does today: a low cost of living and high quality of life, together with a solid and growing economy to make it a high-demand real estate location. This success can partly be attributed to the huge volumes of trade passing through the Panama Canal. With the Canal now being widened, future prospects remain ever bright for Panama’s economy.

In 2006, a total tourist figure of 1,215,083 compared very favourably with the year 2000 when visitor arrivals were only about half that number (600,169). With the Panamanian government ranking tourism as a priority sector, the tourism industry is expected to continue climbing for the foreseeable future. Airport expansion at Tocumen is set to bring millions of dollars worth of improvements to the airport, increasing passenger and aircraft handling facilities to cope with ongoing growth. Short term investors regard such tourist industry factors as strong incentives to investment in Panama’s buy-to-let market.

Many exciting off-plan projects are now underway and investors are keen to snap up units while prices are a good deal lower than on completed projects. This allows power for “flip” investments in which short term capital investors sell on their units prior to project completion. In this way they take advantage of capital appreciation over the construction period, which is expected to be quite considerable (approx. 20% per annum), particularly in current hotspot locations.

Investors are normally free to re-assign contracts, but prior notification may need to be made to the developer (often around 30 days in advance). It is important to check out the procedure for re-assignment of contract with the developer prior to making a reservation. Sometimes a percentage-related fee is charged in order to do so.

Timescale

Average construction time for Panamanian off-plan developments is between 18 months and three years. Short term investors normally look to profit from a promising market, selling on their unit to mid or long term investors approximately 14 to18 months after making their initial reservation, regardless of whether or not the project is yet completed.

Payment terms vary: good projects will often offer terms of as little as 10% deposit with two stage payments amounting to 20% one year later, and 70% upon completion. This allows short term investors to operate their strategy with minimum capital outlay. It is important to remember that the earlier the investment is made, the greater the eventual returns. Additionally, by entering the project early, the investor gains first choice of the best units which will always be the ones to attract more buyers in the future.

Level of Complexity

Short term strategies offer the lowest level of complexity as the purchase has not yet been officially made; therefore, no property taxes, maintenance or management charges are due. This is a simple capital investment, often with no need to proceed to purchase contract or make any finance arrangements. Remember to check with the developer if there are any charges made to “flip”, or reassign your contract, and at what stage you are permitted to do so, before you proceed.

Risk Assessment

All investors must carefully assess the particular project and units they wish to invest in. In many cases a wide range of other projects will be under construction and a choice will need to be made. This will be need to be based of how a particular development or project will outshine its competitors in terms of appearance, location, on-site facilities and the unit itself. Investors will also need to consider issues such as the number of other units available within the particular development, predicted demand as well as competition for the type of property in they propose to invest.

To curb risk, a short-term investor normally seeks to buy the best possible unit, ie. a corner unit, a penthouse or ground floor unit with a private garden, which will always sell in preference to a standard first floor unit.

Investors need to be clear how their exit strategy is to run. How will the unit be marketed and by whom? How much will the selling agents charge in commission? IPIN offers a substantial Investor Care package, which adds significantly to investors’ chances of a successful exit.

Should a buyer not be found prior to completion of the property, investors must be confident they can cover payment to completion of the unit and adapt their strategy if necessary.

Short term “flip” investments are undoubtedly more risky than longer term strategies, but, with sound research and careful planning in place, off-plan purchase of well located Panama properties currently offers a sound investment with lucrative returns on investment.

Return

At an estimated 15-20% per annum, capital growth is high in key investment locations of Panama, such as the City and the Casco Viejo, or old town where many regeneration projects are underway. Land prices have tripled in recent years and sudden, rapid expansion in the economy is triggering price rises in many sectors and shrewd investors are moving in to reap the rewards of early investment in Panama’s ongoing growth.

Many investors maximise their returns by selecting well-located properties at pre-release pricing levels. By reserving at pre-release stage, investors profit from discounted prices and, in many cases, these are subject to successful planning applications, allowing for additional pricing uplift. Reservations on this type of IPIN recommended project allow for full refunds if necessary and secure escrow accounts in place to protect investors’ funds. An earlier than normal reservation, affords the maximum possible returns on investment on any given project.

See the example below:

This example uses a payment schedule of 30% with private purchase contract and 70% upon completion, over a period of 2 years.

• The investor purchases a 2 bedroom unit for 168,000USD
• A deposit (30%) is paid upon the private purchase contract (50,400 USD)
• Half of the 1% legal fees are also paid at this moment (840 USD)
• The total capital invested to this point is 50,400 USD
• After one year, 18% capital appreciation has potentially been achieved, now valuing the property at 198,240 USD
• The investor begins the exit strategy at 18 months (6 months prior to completion), with capital appreciation continuing to perform at 18% p.a, raising the value of the property to 216,080 USD.
• To encourage a quick sale, and taking into consideration the excellent capital growth already achieved on the unit, the investor decides to sell the unit at 209,000 USD
• The total capital invested at the time of re-sale is 50,400 USD
• The remainder of the legal fees are paid (840 USD)
• 2% transfer tax is also paid. As the unit is being sold at 209,000 USD, the transfer tax will be 4,180 USD
• The unit has seen a 48,000USD growth on the unit at the time of sale
• The investor recoups the original 50,400 USD invested, along with the 5,860 USD in fees and taxes. The total profit realised using this short term strategy is 152,740 USD in only 18 months.

*This is a simple example without taking any potential capital loan arrangement costs, capital gains tax, notary or registry fees into consideration. It also assuming that growth of 18% per annum remains constant, although this figure is used for example purposes only. Subject to choice of investment, tax may be payable at various stages of the transaction.

Financing

As off-plan units do not yet physically exist, it is impossible to raise finance until they are complete, so a short term investment strategy is purely based on capital outlay. In order to cover all eventualities, investors MUST be confident they can complete the purchase if necessary, even if using a buy to flip strategy. This covers all eventualities.

If necessary, consultations IPIN can help its investors arrange equity release from their existing property to fund the initial capital payments.

Taxation

Short term investors in off-plan property are obliged to pay capital gains tax on the total profit of the sale at a rate of 10% on the profit in most cases.

IPIN always recommends research into any double taxation treaties in place between Italy and the investor’s country of residence.

Medium to Long Term Investment Strategy

Key Opportunity

The real estate sector in Panama keeps growing in tandem with phenomenal economic growth. With GDP figures surpassing those in the rest of Latin America, investors researching Panama’s potential cannot fail to be impressed by the country’s ongoing activity in construction, transportation, Canal-related business and, of course, tourism.

Panama offers a plethora of tax incentives and discounts, not only to international businesses, but also to retirees who wish to establish themselves in Panama. By virtue of this fact, Panama ranks second only to Hong Kong both as a Freeport and as a provider of foreign company registrations. Panama City is also the second largest banking centre in the world. Related financial institutions, along with an ever-growing presence of multinational corporations in the City all require top notch real estate, fuelling a surging demand for residential and commercial real estate in Panama.

Timescale

Average construction time on International Property Investment Network (IPIN) recommended Panamanian projects, from project sales release to completion of construction, is just under three years.

Mid to long term investors look to hold onto their units after construction, normally for at least 18 months from initial reservation, either to rent it out and/or benefit from capital appreciation upon eventual resale. Many long term investors wish to generate significant and reliable rental income over a period of time as sustained rental returns are their main focus, followed by capital appreciation over time.

Capital appreciation is expected to continue to perform exceptionally well over the next 5 years, notably in the golf resort projects and City centre investments both in the Casco Viejo and in and around the Banking District. The longer investors are able to leave capital in their purchase, the higher their potential returns will be. Demand for residential and tourist accommodation is high in Panama and the resulting strength in the buy-to-let market allows investors to reap in solid capital growth from their properties, all the while supplementing this income with high rental yields in key locations.

IPIN strongly recommends consulting with an IPIN advisor to discuss your particular mid to long-term investment strategy in Panama, to ensure your chosen location best suits your needs.

Level of Complexity

In the case of off-plan purchase, full payment for the property needs to be completed at various stages of construction, prior to final completion of the purchase.

For mid to long term investors, all costs will be applicable, of around 2.5% of the purchase price plus 1% legal fees, while ongoing costs such as maintenance, community fees and utility bills will also need to be factored into the strategy finance plan. Bear in mind it’s advisable to open a bank account in Panama in order to pay for the property’s utilities and other ongoing expenses.

Good arrangements are often to be made with property management and rental companies that are usually conveniently based on or near the site. These ensure that such ongoing costs are covered and that your unit is rented out regularly. Maintaining a property abroad can therefore become no more complex than an investment closer to home.

Key Risks

A medium to long term investment strategy entails much lower financial risk than a short term plan which relies on finding a buyer within a very short time frame. Provided the right investment is made on a quality, well located project with multiple facilities, establishing a rental market and eventually a buyer for your investment should not be difficult. However, as with any investment, patience and money is sometimes required until the end user is found.

In 2006, a total tourist figure of 1,215,083 compared highly favourably with the year 2000 when visitor arrivals were just about half that number (600,169). According to the Instituto Panameño de Turismo (IPAT) Statistics Report 1997-2006, "Incoming tourism to Panama has maintained a sustained growth due to efforts made to strengthen strategies to promote Panama internationally in US, Latin-American, European and Canadian markets, as well as efforts to consolidate the cruise ship industry." Such increased activity of course translates to an increase in buyers and renters on the one hand, but brings with it intensified competition on the other. However, it is important to remember that 30% of Panamanian land is reserved for conservation, 25% of which is national parkland. The low-density nature of development in many of Panama’s ecologically protected areas ensures the property market should not become saturated.

Bank Guarantees are commonly given by developers in Panama and, as with all IPIN approved projects, investors are always be protected by local or overseas bank guarantees.

By appointing independent legal representation, the client can be sure that all the necessary paperwork is in place before signing the purchase contract. IPIN ensures recommended legal services are always offered independently from project developers, therefore exclusively representing the client’s interest at all times.

Property ownership in Panama is 100% freehold, leaving no room for ownership disputes.

Return

Panama’s growing popularity is a result of affordable property prices and low cost of living, along with the influx of American retirees buying property, and the fact that it is attracting global corporations like Hilton and Donald Trump to build sky-scraper hotel complexes. It is therefore safe to assume that investors will continue to receive the same capital appreciation of 15 – 20% per annum as has been achieved in recent years.

Tourism, the fastest growing industry in Panama, offers buy-to-let investors the opportunity to profit from strong mid to long term opportunities in high demand tourist resort areas. Not only are investors looking forward to high capital appreciation, but they seek to supplement their returns with significant rental incomes prior to eventually selling: a two-bedroom villa in Boquete should achieve £350 per week, a luxury villa in Bocas del Toro around £400 per week, and a good quality two-bedroom apartment in Panama City between £300 and £400 per week. While demand is also high for accommodation both in and around the City, Panama provides a profitable market for mid to long term investors.

Please see the example below:

This example uses a payment schedule of 30% with private purchase contract and 70% upon completion, over a period of 2 years.*

• The investor purchases a 2 bedroom unit for 168,000 USD
• A 30% deposit is paid upon the private purchase contract (50,400 USD)
• Half of the 1% legal fees are also paid at this moment (840 USD)
• The total capital invested to this point is 50,400USD. There is now nothing more to be paid until completion in two years time
• After one year, 18% capital appreciation has potentially been achieved, now valuing the property at 198,240 USD.
• Two years after the property is reserved, the unit is due for completion. The remaining 70% of the purchase price is due to be paid (117,600 USD)
• At the time of completion, the remainder of the legal fees are due to be paid (840 USD)
• The property will have a further 18% capital growth in the second year, giving the unit a value at the time of completion of 216,080 USD
• The owner decides to keep the property for another year, earning a further 18% capital appreciation before selling. At the time of selling the unit in the 3rd year, the property is now valued at 254,974 USD.
• The unit has seen approximately 87,000USD growth at the time of sale.
• If the property is sold at 250,000USD, the 2% transfer tax will be 5,000USD.
• The investor recoups the original 168,000USD invested, along with the 6,680USD in fees and taxes. The total profit realised using this mid-long term strategy is 75,320USD in three years.

*This is a simple example without taking any potential capital loan arrangement costs, capital gains tax, notary or registry fees into consideration. It also assuming that growth of 18% per annum remains constant, although this figure is used for example purposes only. Subject to choice of investment, tax may be payable at various stages of the transaction.

Financing

Finance is widely available for foreign citizens from Panamanian banks. A bank mortgage loan is one of the most widely used forms of finance for property purchase in Panama and banks will lend up to 80% of the property value normally for periods of 15 to 20 years. Principal home purchasers or home improvers can borrow up to a maximum of USD 500,000, while holiday homebuyers can obtain a maximum of USD 300,000.

Most mortgages in Panama are repayment mortgages where the borrower pays back a combination of capital and interest each month. Borrowers need to supply proof of life insurance to cover the loan amount, issued by a Panamanian company. Cancellation penalties typically amount to 2% during the first two years of the loan, and 1.5% during the 3rd to fifth years.

Along with many other discounts and tax benefits, under the government’s Pensionado Programme, retirees receive a 1% reduction on home mortgages for homes used as personal residences.

Land purchase for the construction of property can be financed up to 50% or a maximum of USD 150,000 over a repayment period of 15 years

Release of equity from investors’ other properties, be it in their country of origin or in other investment locations, can also be an easy option to raise finance for a purchase in Panama.

Taxation

All real estate in Panama is subject to property taxes; however, the country boasts the lowest tax rates in the whole of Latin America and the Caribbean and comes complete with a good number of tax exemptions, according to circumstance.

Due to Panama’s popularity as a tax efficient real estate destination for foreign purchasers, buying property is a familiar and straightforward process. 2% transfer tax must be paid by the vendor at the time of transferring the property.

Property tax is dependant upon the total value of the land, plus improvements, as appraised by the Land Commission (Oficina de Catastro). Maximum annual charges will not exceed 2.1% of the property value.

Leasing property in Panama is subject to VAT (Impuesto a la transferencia de bienes corporales muebles con crédito fiscal) at a flat rate of 5% on any gross rent exceeding USD 3,000. However, entities with an average monthly income of less than US$3,000 are exempt from paying VAT.

Reduced mortgage interest rates: until May 2009, reduced mortgage interest rates up to 6.5% below regular rates are also offered if the home is to become the purchaser's principal dwelling, and is valued below USD 62,500. This is yet another incentive for those wishing to move or retire to Panama.

Exemptions

Any new residential property bought to use as a personal residence is exempt from paying VAT (Impuesto de Transferencia de Bienes Inmuebles).

Profits on real estate sales that are reinvested in new constructions can be exempt from income tax. In order to qualify, re-investment must be made in residential property valued at USD 62,500 or less.

Tourist zones are granted a 20-year exemption on real estate taxes, as well as import duties and VAT for the import of furniture, materials, equipment used for the construction, as well as vehicles for at least eight passengers.

Further exemptions can be achieved by owners of real estate in Panama: in September 2006, new rules came into effect offering tax exemptions of up to 15 years on the construction of residential homes.

Commercial Buildings: 10 year tax exemption
Other Construction Use: 10 year tax exemption
Houses:
Up to US$100,000 - 15 year tax exemption
US$100,000 - US$250,000 - 10 year tax exemption
More than US$250,000 - 5 year exemption

The above exemptions are transferable when the property is sold.

Pensionado Visa is lifetime Panama visa offered to retirees and comes with numerous benefits and discounts, such as:

• 50% off entertainment anywhere in the country (movies, theatres, concerts, sporting events, etc.)
• 30% off bus, boat and train fares
• 25% off airline tickets
• 50% off hotel stays Monday to Thursday, 30% off Friday to Sunday
• 25% off restaurant meals
• 15% off fast-food
• 15% off hospital bills (if no insurance applies)
• 10% off prescription medicines
• 20% off doctors’ consultations
• 15% off dental and eye examinations
• 20% off professional and technical services
• 50% off closing costs for home loans

For more detailed information regarding tax questions, please contact IPIN who will help put you in touch with a tax advisor to discuss your particular circumstances.

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