An example of Investment Real Estate Success in Panama!
An example of investment real estate success in Panama!
First, Panama is a young and modern country with freedom worship, politics, and economics. Only 4,202,572 residents on 77,517 km2, and Panama’s Gross Domestic Product (GDP) in 2022 was 76.523 billion. Panamanians speak English because the law includes the English idiom obligatory learning in Panama schools.
Second, Panama consolidated its separation from Colombia with the United States of America’s support at the end of 1903. That year, Panama began life as an independent country because before, the country was attached to Gran Colombia after Spain’s independence. In 1914, the ship Vapor Ancon crossed America by the Panama Canal from North to South.
Third, Old Quartier, or Casco Viejo o Antiguo, in Panama, was recognized as a Human Heritage in 1997. With the UNESCO Casco Viejo or Antiguo recognized, the Panamanian government developed by law special incentives for the purchase, investment, and restoration of properties in these areas.
With good realty advice, an investor group buys the old Hotel Central in Casco Viejo.
The Hotel Central has a history of over 150 years. When the Company of the French Canal started construction in Panama, the engineers were living there. Very famous people like Count Ferdinand D. Lesseps and the USA President Franklin D. Roosevelt when traveling by the country hosted in the Hotel Central.
The Hotel Central rebuilt open doors in 2016. A strategic location in front of Plaza Catedral, officially named Plaza de la Independencia, and Central Avenue, the corner is the Hotel Central. Only 135 bedrooms are enough for the high and low seasons in smaller countries like Panama.
Inside the Casco Viejo, found buildings, monuments, statues, and Panamanian history like an independent country.
Amador Home Port
Now, a new stage begins in Casco Viejo. Panama is the Norwegian Cruiseships Home Port. The Amador cruise ship port is only 11.7km from Casco Viejo, driving 18 minutes. Only the second weekend of March 2023, 4,856 tourists from the cruise ship Norwegian Jewell arrived in Panama City.
Hotel Central is an example of a real estate investment following the right way to do good business for all.
What other special incentives are available for real estate investment in Panama besides those in the Casco Viejo area?
The Casco Viejo has tax exemption for all the parts involved in a property transaction in the area.
Tenants, landlords, proprietaries, and investors benefit when they do the activities inside the Conjunto Monumental Historico del Casco Antiguo area.
Banks Interest Rates!
Mortgage loans destined for restoration, reconstruction, construction, or purchase have a preferred interest rate. Panamanian banks with a branch operating in Panama can benefit by offering a preference interest rate.
The difference between the market rate and the rates for financing, purchasing, and restoration reconstruction projects are deductible from the tax income.
The interest rate offered to properties inside the Conjunto Monumental Historico del Casco Antiguo never will be increased by more than a 3% discount.
All the banks that finance properties in the Conjunto Monumental Historico del Casco Antiguo will receive tax credits. The fiscal credit will be deductible over the tax income. If fiscal credit is more than the income tax payment, the credit owner could use it in the following three fiscal periods.
Expenses deductible over the income tax the donation by any natural person or corporation of the construction. Also, reconstruction, restoration, maintenance, lighting, or improvements of parks, walls, green areas, churches, or public areas inside the Conjunto Monumental Historico del Casco Antiguo.
Tax exceptions are another advantage because of investment real estate success in Casco Viejo!
Conjunto Monumental Historico del Casco Antiguo property owners have tax exceptions over the income tax in commercial activities like sales, total or part transfer of real estate for ten years. These benefits are until ten years after receiving the completed or partial property occupation permit.
Properties built, restored, and reconstructed that receive the occupation permit from the entry into force of this law have 30 years of tax exception over land and declared improvement.
The first partial or total property transfer from the entry into force of this law with construction, restoration, or rebuild has a tax exception if over USD 50,000 was the minimum investment. For this reason, real estate investment success in Casco Viejo, Panama.
Material and Equipment Import
All the materials and equipment used in the construction, reconstruction, or restoration, if the quantity and quality of equipment or materials aren’t enough inside the country and don’t public sales have import tax exemption.
For tenants of property built, rebuilt, and restored located in Casco Viejo, destinated for housing rental fee for the first five years after the occupation permit is tax income deductible.
Corporations and persons like owners, developers, landlords, or tenants of third or fourth-order properties for parking lot uses have ten years of profits tax exception.
For this reason, investment real estate success in Panama is buying Casco Viejo properties is a good deal, but first, ask your support team about the benefits and make your investment with security.
For questions, please don’t hesitate to contact us!