THE REPUBLIC OF PANAMA

Frequently Asked Questions

Q. Where is Panama located?
A. Panama is at the crossroads of the Americas; namely, at the eastern end of Central America, bordered to the west by Costa Rica and to the east by Colombia. It contains about 30,420 square miles, which makes it slightly bigger than Ireland and slightly smaller then South Carolina.

It has a peculiar shape - like the letter "S" turned on its side. The Caribbean Sea is to the north and Pacific Ocean is to the south. The oceans are just 80 kilometers apart at the Panama Canal, near the middle of the country. 30% of its land is set aside for conservation. Panama is mountainous and has at least 500 rivers. It also has some 1,500 islands.

Q. What is Panama's population?
A. The population is estimated to be about 3 million of which approximately 470,000 people live in Panama City, and of which 1 million live in the Panama City metropolitan area.

Q. What is the makeup of its population?
A. Panama is a remarkably diverse country by Central American standards. It is a veritable "melting pot." The ethnic breakdown of Panama is generally thought of as being about 65 - 70% mestizo (mixed indigenous. Amerindian and Caucasian of Spanish descent) and 8 - 10 percent Amerindian, with the bulk of the remaining population consisting of those of African and/or European descent. It is estimated 10% of the population is of Chinese ancestry.

Q. What language is spoken in Panama?
A. The official language of Panama is Spanish. English is the major second language. Most businessmen, top government officials and executive staff are bilingual.

Q. What are the religions?
A. Most Panamanians (85%) are Roman Catholic. The majority of the rest are Protestant. There are numerous. churches, temples and synagogues throughout the country.

Q. What is the capital city?
A. Panama City is the country's thriving capital which is full of historic sites and is the principal commercial center. It is situated on the Gulf of Panama in the Pacific Ocean. It has a pulsating nightlife and an abundance of great restaurants.

Q. What is another principal city in Panama?
A. Colon, the country's second largest city, is located on the Caribbean Coast. Its economy is dependent on traffic through the Panama Canal and on business activity in the Colon Free Trade Zone, the largest duty-free zone in the Americas.

Q. How would you classify the government?
A. Panama is a constitutional democracy. The chief executive is the president, assisted by two vice presidents, all of whom are elected to a single five-year term. There is also a national legislature (71 members), and a nine justice supreme court. Every election from 1994 on has been widely considered free and fair.

Q. What are the country's major industries?
A. Banking, construction, petroleum refining, brewing, tourism, cement and other construction materials, sugar milling, shipping and agriculture.

Q. Who are its major trading partners?
A. U.S.A., Europe, Central America and the Caribbean, and Japan.

Q. What is the currency?
A. Panama's currency is the balboa. The balboa's rate of exchange has always been tied to the dollar, with one dollar equal to one balboa. In fact, Panama does not print paper money, so the U.S. dollar is legal tender in Panama. Despite Panama's status as a world banking capital, it is difficult to exchange foreign currencies almost everywhere in Panama. It is best to use only dollars in Panama.

Traveler checks and credit cards are widely accepted. The international departure duty is U.S. $20, payable in the airport. The hotel tax is 10%. The added tax value to products and services, with the exception of food and medicines, is 5%.

Q. What system is used for weights and measures?
A. Panama uses the metric system, though auto fuel is sold by the gallon .Pounds, inches, and feet are still sometimes used interchangeably with their metric equivalents.

Q. What is the time zone in Panama?
A. It is the same as U.S. Eastern Standard Time.

Q. Is a visa needed to enter the country?
A. All that U.S. citizens need to enter Panama is a passport and a $5 tourist card bought at the airport on the way in. Tourists must also be able to show proof of having at least $500 (a credit card or travelers checks should do it) and a return or onward travel ticket from Panama. Those traveling on a tourist card are allowed to stay in Panama for 90 days, extendible for another 90 days, although laws change and it is best to get an update to be sure.

Q. What is the telephone code?
A. The country code is 507. Dial 011 + 507 + the number. There are no area codes. The Internet Code is .pa.

Q. What is the climate like?
A. Panama's climate s tropical, with a generally high humidity averaging 70%. Average daytime temperature is 80 degrees Fahrenheit, with cooling in the evenings. The rainy season goes from May to December, though this can vary along the Caribbean Coast. Panama is not in the hurricane belt.

Q. What are business hours in Panama?
A. Most private business offices are open from 8:00 AM until 5:00 or 6:00 PM. It is customary for offices and stores to close for the lunch period for at least one and a half hours.

Q. Tell me about the standard of living?
A. In Latin America, Panama ranks as one of the best places to live, according to a business survey of 192 cites worldwide by the Corporate Resources Group. Panama is ranked as one of the top three cities in which to live in Latin America. It follows Buenos Aires and Montevideo.

Q. What is the availability of medical services?
A. Panama has world-class medical facilities and doctors, many of whom were trained in the U.S. and speak English. Even those without medical insurance can receive good care for far less than it would cost in the U.S.. It's possible to get a checkup from, say, a specialist trained at Johns Hopkins for about $35. The best medical facilities are in Panama City.

Q. Can you drink the water?
A. Yes. In fact Panama is the only country in Latin America where you can drink water straight from the tap.

Q. What can be said about security?
A. Panama is by and large a peaceful, mellow place. You are likely to be safer in Panama City than you would in any city of comparable size back home. Violent crime against tourists and affluent Panamanians is unusual. Panama has no military. Panama and Costa Rica have similar low crime rates.

Q. What are considered the major attractions and entertainment?
A. The country's most famous attraction is, of course, the Panama Canal, the world's grandest shortcut and one of the great engineering marvels of all time. The U.S. relinquished control of the Panama Canal in late 1999.

There are several superb tourism activities that can be easily reached from Panama City. There are five golf courses in or near the city and beach areas. Dining is excellent in Panama City, and there are numerous. bars, discos and cafes. In addition, there is birding, diving/snorkeling, ecotouring, fishing, hiking, rafting/kayaking, surfing, and more.

The Parque Nacional Coiba is one of Panamas's ecological treasures, and its rich aquatic life has earned comparisons to the Galapogos Islands.

Panama boasts the largest number of bird species in Central America. Bird watchers consider Panama as one of the world's best birding sights.

Q. When is the best time to go to Panama?
A. The best time to visit Panama City and Pacific coast area is during the dry season between mid-December and April

Q. Tell me about air transportation to Panama
A. Panama has good air connections with destinations throughout the Americas and part of the Caribbean and Western Europe. International flights arrive at and depart from Tocumen International Airport, 35 km northeast of the center of Panama City.

Carriers serving Panama with nonstop or connecting flights include:
American, Continental, Delta, Iberia, Air Madrid, Copa (the national airline of Panama), TACA, LACSA, and Cuban. Another international airport is expected to open in Playa Blanca, Panama in 2008.

Panama's gateways cities in the United States are Atlanta, Houston, Los Angeles, Miami, Newark, NC and Orlando. The busiest route is Miami-Panama City. The flight takes a little less than three hours.

There are several superb tourism activities that can be easily reached from Panama City. There are five golf courses in or near the city and beach areas. Dining is excellent in Panama City, and there are numerous. bars, discos and cafes. In addition, there is birding, diving/snorkeling, ecotouring, fishing, hiking, rafting/kayaking, surfing, and more.

The Parque Nacional Coiba is one of Panamas's ecological treasures, and its rich aquatic life has earned comparisons to the Galapogos Islands.

Panama boasts the largest number of bird species in Central America. Bird watchers consider Panama as one of the world's best birding sights.

Q. Do foreigners enjoy the same property rights as Panamanian citizens?
A. Yes, except foreigners cannot acquire land within 10 kilometers of the country border and on islands that have not been declared a special development area.

Q. Is obtaining title free and clear of all encumbrances relatively safe and easy?
A. In Panama, all property titles are registered at the "Registro Publico" (Public Registry) through a bureaucratic yet straightforward process.

Q. Can property be owned by a Panama Corporation as well as an individual?
A. Yes.

Q. Can a Panama Corporation sell its shares?
A. Yes.

Q. Is title insurance recommended?
A. Yes.

Q. Is title insurance available in Panama?
A. Yes.

Q. Tell me about how title to property is held in Panama?
A. The Republic of Panama is blessed with one of the most sophisticated and reliable Public Registry systems in the region. The Public Registry Office keeps records of all titled properties in all nine (9) provinces of Panama.

Q. Why are Panama condo hotels suddenly becoming available?
A. The condo hotel concept has been rapidly gaining acceptance all over the world. Panama has joined in by planning to build several outstanding condo hotel resorts.

The vacation homes are ideal for international people because owners can use their condo hotel unit whenever they want. When they're not in residence, their condo can be placed in the hotel's rental program, and they will receive a share of the revenue it generates. Plus, the hotel takes care of cleaning and maintaining the property, operating its many amenities, and promoting it to attract hotel guests. It is hassle-free second home ownership at its best.

Q. What condo hotels are currently available in Panama?
There are two main Panama condo hotels. Both are currently selling units at pre-construction prices. The first is a prestigious Trump condo hotel called Trump Ocean Club, International Hotel & Tower (pictured right). It will be a $260 million, mixed-use development located in Panama City, Panama. Trump Panama, as it is sometimes called, will feature a 68-story condominium tower with approximately 350 hotel condominium units and an additional 600 condominium units.

The other Panama condo hotel is Playa Blanca Beach Resort. It is a popular existing resort in Playa Blanca, Panama, that will be greatly expanded and upgraded to a five-star condo hotel. The master plan for Playa Blanca calls for 1,400 condo hotel units and 600 homes, a state-of-the-art convention center and a charming town center with retail shops and boutiques.


Q. Are Panama condo hotels appropriate for retirees?
Yes, they're an excellent solution for retirees who maybe want to spend a few weeks or months a year in a warm climate and a resort atmosphere but don't want any of the typical responsibilities associated with vacation home ownership. Both Trump Ocean Club and Playa Blanca Beach Resort have sold a significant percentage of their condo hotel units to American and UK citizens, including many retirees.

Q. Is Panama attractive to retirees?
A. Panama wants relatively affluent retirees so the requirements are not nearly as onerous as in some other countries. Foreign retirees who want to make their home in Panama must get a pensioned tourist visa. This visa will include the right to import up to $10,000 worth of possessions for personal use duty-free, as well as the duty-free import of a vehicle every two years.

A huge plus for retirees, both foreign and domestic, are discounts at restaurants and hotels, for transportation and many medical services, and for some financial dealings. They can range from 10 percent to 50 percent.

Q. Can you be more specific in explaining the retirement incentives for foreign investors in Panama?
A. Retirees are eligible for many excellent incentives that include:

• Import tax exemption for household goods
• Tax exemption to import a new car every two years
• 25% discounts on utility bills
• 25% discount on airline tickets and 30% on other transportation
• 15% discount on loans made in your name
• 1% reduction of home mortgages for homes used for personal residence
• 20% discount on doctor's bills, 15% on hospital services if no insurance applies
• 15% off dental and eye exams
• 10% discount on medicines
• 20% discount on bills for professional and technical services
• 50% discount on entrance to movie theaters, cultural and sporting events
• 50% discount at hotels during Monday to Thursday, 30% on weekends
• And more

Q. Can you summarize why Panama is becoming one of the world's top retirement destinations and also a world-class tourist location, particularly for adventure and ecotourism?
A. Panama has more amenities, lower costs and lower crime rates than other traditional retirement locations. It is hard to match the advantages one finds in Panama versus other countries:

• Panama has a stable government and a growing economy.
• The U.S. dollar is the legal tender. Panama has a stable economy that has been based on the U.S. dollar since 1904.
• Residents pay no tax on foreign earned income.
• Foreigners can buy and own property in Panama with the same rights and protections of Panamanian citizens.
• The retiree incentive program is the best in the world. The benefits are considerable.
• Tourism investments have exemptions from import duties, construction materials and equipment, income, real estate taxes, etc.
• Property tax exemptions apply to all new construction on a sliding scale according to value.
• English is widely spoken.
• The U.S. presence in the country for many years has lead to a U.S. style infrastructure with a number of familiar names and businesses.
• Panama has a number of U.S. standard health care facilities and services with many U.S.-trained English speaking doctors available.
• Panama has a reliable communications system with fiber optic telephone lines and much of the country has ADSL internet.
• Panama is one of the best offshore havens in the world.

To return to the information on Trump Ocean Club, Panama, click here.

To return to the information on Playa Blanca Beach Resort, Spa & Residences, Panama, click here.