SAN EXPEDITO CASCO VIEJO BUILDING

SAN EXPEDITO CASCO VIEJO CHARACTERISTICS

The San Expedito Casco Viejo building has a rectangular floor plan of approximately 150 m2 and has 5 levels. Commercial ground floor and 4 residential levels, culminating with a rooftop ideal for commerce.

San Expedito Casco Viejobuilding has an RMH2-C2 zoning that allows residential, commercial, office, educational, and cultural uses, that is, a very wide variety.

San Expedito Casco Viejo Building Land use

RMH2 – C2 Zoning

East-to-West orientation

Level 000 106.27 m2

Level 100@500 157.70 m2

Total Area 894.77 m2

Characteristics:

Ready to remodel.

900m2 of useful area

Spectacular rooftop with views of Cerro Ancón and the Bay

San Expedito Casco Viejo Business Plan

We plan to invest the amount of $600,000 in remodeling the entire building and being able to rent it to generate long-term income.

Casco Viejo is the most tourist area of Panama City with rising demand and an exceptional future projection. For this reason, we consider that dedicating the building to commercial use would be the most appropriate.

Firstly, we plan to rent the ground floor for commerce at street level. Secondly, levels PB+1, PB+2, and PB+3 will be remodeled with high-quality finishes to create one- and two-bedroom apartments and rent them for short stays through platforms such as Airbnb or Booking.

Finally, the PB+4 and the rooftop will be used as a commercial space, ideal for a restaurant that has a drinks area on the top floor with spectacular views of Cerro Ancón, the Bay of Panama, and Casco Viejo.

The investments located in the Historical Monumental Complexes, which the National Historic Heritage Directorate authorizes over the Old Quartier, with a minimum amount investment of USD$50,000 excluding the land, will receive the following incentives:

The Casco Viejo or Casco Antiguo

The Casco Antiguo (Old Quarter), or Casco Viejo in San Felipe, Panama City, is the right decision to make investments and receive incentives and tax exceptions. The new Panama City was constructed in 1673 after the pirate Henry Morgan destroyed the first, located 13 kilometers from the first Panama City.

After the Casco Antiguo was designated a World Heritage Site in 1997, the Panamanian government created a law to encourage the development of the Old Quartier. The Casco Antiguo law incentivizes the construction, reconstruction, purchase, and restoration of the Old Quartier estate and commercial activities.

Casco Viejo Investment Incentives

• Banks have incentives to offer preference interest rates in loans issued to restore, construct, rebuild, or purchase real estate assets in Casco Antiguo and adjacent areas until 3% under market interest rate.
• Commercial or Residential mortgages have preference interest rates until 3% under the market interest rate.
• (10) Ten years tax exemption from the property tax on the land and, for thirty (30) years, on the property improvements.
• Tax exemption from income tax on company profits during the first five (5) years of commercial activity.
• After the period of the point before, during the following five (5) years, you may deduct as an expense the losses suffered during the three (3) fiscal years following the fiscal period in which such losses occurred.

Casco Viejo Investment Incentives for Tenants and Owners

• The tenants of a building constructed, restored, or rebuilt strictly for living purposes will be able to deduct from their income declaration the rent expenses for (5) years from the issue of the occupation permit.

The property owner that constructs, restored, or rebuilt properties in El Casco, partial or total, will be exonerated from Income tax regarding the income received from commercial activities, sale, or transfer of part or all of the property for (10) years.

A person (owner or tenant) who operates public areas like parking lots will be exonerated from tax income regarding the income received from said commercial activity for (10) years.

Incentives for Particular Persons and Corporations

• Natural or legal persons who, as owners, promoters, or tenants, allocate fourth-order buildings or vacant land and buildings that comply with the regulation’s manual of the Old Town of Panama City in whole or in part to serve as parking areas for vehicles. Will be exempt from the income tax generated by this activity for (10) years, counted from the occupancy permit or the land in question.

If you want more information on the law and incentives, contact us!