The Republic of Panama has recently emerged as a real estate hot spot in Central America. But what makes investing, living, and doing business here so attractive? First, the benefits...

- Low inflation and currency volatility due to its US dollar economy
- Strong and proven international banking sector
- Impressive infrastructure: roads, utilities, telephone, and internet
- Great loans and interest rates
- Retiree benefits
- Low taxes
- Rich culture and historical past
- Free of most natural disasters such as hurricanes and earthquakes
- Beautiful tropical climate
- Proximity to the USA and centricity as the “hub of the Americas”
- Low cost of living
- Relatively undervalued land prices
- Global Immigration from all corners of the globe with investors from China,
Spain, Canada, USA, Columbia, Argentina and the Middle East.
- Excellent ports and railroads
- Relative political stability with Democratic elections and a multi-party system
for nearly two decades
- Security (investment promotion and protection treaties, investment stability
law)
- Top-of-the-line medical facilities including the first Johns Hopkins Hospital
affiliate outside of the USA (located in Punta Pacifica, Panama City)
- Over 1,500 picturesque outlying islands and 4 archipelagos
- Nearly 3,000 kilometers of coastline on Caribbean and Pacific coasts
combined
- Newly-acquired seat on UN Security Council
- Newly-confirmed expansion of the Panama Canal

Here are some of the drawbacks to buying real estate in Panama that you won’t see on
any shiny real estate brochures or on the walls of any city agencies.

- Protectionist laws can be unwelcoming to foreigners (see tight immigration)
- Heat in the city can be unbearable at times
- Traffic in Panama City can be dreadful
- Poor public transportation
- Smells and odors in the Panama City resemble rotting cat carcasses
- Corruption in the government
- The “mañana” mindset, that everything will be sluggishly done ‘tomorrow’
- Large income gap and rampant poverty in some parts
- Prostitution and drug use in Panama City tied to border with Columbia
- Tight freedom of press laws
- Heavy deforestation in certain regions
- Safe-haven for criminals on the run
- Undeveloped service sector in hotels and restaurants
- English is not the primary language
- The left over stigma of Noriega’s rule
- Sometimes dangerous and always-dirty Colon
- Mosquitoes can be bad in certain areas outside the city

Choosing a real estate agent:

But to pick a good one, there are a few things you want to look at. First, how many istings do they have? Chances are, if an agency only has a small handful of listings, it’s because no one wants to work with them. Second, how long have they been in business? If it’s more than a year, ask for sufficient references and make sure they don’t give you the name of their mother.

UH, HELLO MRS. GONZALEZ? I’M CALLING ABOUT YOUR SON ENRIQUE. HE SUGGESTED I
CALL YOU AS A REFERENCE.

Third, do they specialize in any specific area? Are they “the beach people” or are they the “mountain experts”? A real estate agency that is specialized in an area is prone to offer you better and more precise information. Fourth, how many offices do they have and where is each located? It's best to have an agency that maybe has several offices strategically located throughout the country. Fifth, do their brokers work full time? Lots of agents in Panama sell "real estate on the side" so, to ensure full commitment, verify that they do indeed work the hours you expect.

The sixth, and most important question to ask your Panama real estate agency is how they work with sellers. There are two types of policies common in Panama today, one more ethical than the other. The first would be the agencies who have no problem selling property at overvalued prices, paying the seller his cut, then keeping the profit for themselves—essentially screwing you into paying more than the property is actually valued at by the owner. The second, and more honorable kind of agency deals fairly and ethically with sellers, especially because many of them will be rural farmers and completely new to real estate. They agree on a price, add in the commission that they need to promote the property, and then sign an agreement contract. None of this behind the back fancy business.