The Panama Property Advantage: A “Plan B” + Tax-Efficient Residency

Over the last decade or so, Panama has become increasingly popular for Americans looking to buy foreign real estate – and sometimes even move themselves – overseas.

The reasons are straightforward:

• There are vibrant expat communities across the country, especially around Panama City and into the northern highlands (David and Boquete specifically).
• Investors who bought well early have seen exceptional capital appreciation. That’s even true for more recent purchases – within the last two years.
• Excellent medical care in the private system, at a fraction of the cost in the US.
• It’s easy to get to from the US.
• The business environment is very friendly to foreigners. You have the same rights as locals when it comes to owning property in the vast majority of cases.

… I could go on.

And when paired with the fact that Panama still allows real estate purchase (for as little as $200,000) to qualify for residency, it’s quite the attractive jurisdiction.

Of course, not everything is rosy. Things can be slow – especially when it comes to banking and anything to do with the court system (including probate). You’re buying in a foreign country and there are pitfalls to avoid. And there are important US planning considerations as well.

This Alert walks you through these issues – the good and the not so good. From property structuring and tax rules to how residency works – and how to avoid the headaches many Americans run into when trying to manage it on their own.