The breathtaking view could be somewhere in Florida, or in California, or on any number of tropical islands: pristine white sand, sparkling turquoise waters, coconut palms swaying in the breeze. The sun-drenched landscape is dotted with Spanish-style homes. But this isn't Sarasota or the Bahamas. It's Panama, the S-shaped nation on the Central American isthmus sandwiched between the Caribbean Sea and Pacific Ocean. Much has changed in Panama since Manuel Noriega was deposed in 1989. It's well on its way to becoming another Florida. You see, Panama has attracted plenty of attention over the last several years, not only in the American media praising its virtues but by second-home buyers, retirees and adventurous types seeking opportunities. Drawn by dirt-cheap prices, an attractive package of government incentives and the romance of life in an exotic locale that is both far-flung and a relatively quick flight to Miami, Americans are arriving in large numbers. (By some estimates, as many as 50,000 have settled here.)
"I don't suggest that everyone be so impulsive, but one vacation is all I needed before deciding this is where I wanted to own a second home," said David Johnson, who in 1999 spent $200,000 on a three-bedroom villa on 4 acres of Pacific beachfront. "When I first arrived, I knew right then and there, this was the place for me. I fell in love with Panama's frontier-town feel."
Johnson, a retired insurance executive and self-described libertarian who lives in Manhattan, wasn't looking for a vacation home when he found himself smitten by Panama's natural beauty and the government's commitment to financial privacy and laissez-faire stance on entrepreneurial activities. "There is far less regulation, red tape and government interference here than back home."
But Panama is more than the sum of its free-thinking trailblazers. It is also home to one of the most impressive and cosmopolitan capitals in Latin America: Panama City, the financial and political hub, shatters Third World stereotypes, boasting First World infrastructure, state-of-the-art telecommunications and as many arts, entertainment, shopping and culinary offerings as found in any major American metro area. And the country, which has attracted high-profile property buyers like Tommy Lee Jones and Mick Jagger, has more than 1,200 miles of coastline, immense forests and lush mountain ranges.
To lure expatriates, the Panamanian government has rolled out the welcome wagon: Simply documenting at least $500 a month in fixed income entitles you to a resident visa, generous discounts on everything entertainment to doctor's visits and unbelievable tax breaks. (Including a 20-year exemption on property taxes for anyone who builds a home and tax-free importation of cars and $10,000 of household items.)
Agents point out that there is real estate for every budget in Panama. Prices are rising as foreign developers set up shop to cash in on the boom, but costs are still a fraction of what one would pay for similar property in the United States. And private builders charge about $50 per square foot of living space.
"Forget overpriced Florida, Mexico, Costa Rica or the Dominican Republic," says Richard Rogers, a Connecticut native who has vacationed in Panama for more than 25 years. "The new Panama is the best thing since money markets yielded 10 percent."
Living abroad full or part time may not be for everyone, but for the select few contemplating the possibility, Panama should be at the top of your list.
Perks
- English is widely spoken (though learning Spanish would be a plus). The climate is temperate. The U.S. dollar is the official currency, and Panama is known as the "Switzerland of Latin America" for its banking secrecy. The legal age to qualify for retirement perks: 18. (This is not a typo!)
Drawbacks
- As in many parts of the world, corruption is a part of life. (Slipping a local official a twenty still works like a charm to grease the wheels of bureaucracy.) Getting things done -- a phone installed, a bill paid or a home built -- can take more time than in your hometown.
Overall, Panama is a relatively safe country with only moderate crime, but Panama City, like most urban centers, has higher incidences of crime than less populated areas. The city of Colon has a high crime rate. Violent crime is virtually unknown in small towns and rural areas, but petty theft can be a problem. Avoid travel to regions near the Panama-Colombia border area, where Colombian terrorist groups, drug traffickers and other violent criminals frequently target visitors.
The Costs
- Housing costs vary widely, depending on location and the type of real estate in question. Property taxes are an afterthought.
Getting There
- Only 2½ hours to Miami, Panama is accessible via any number of connecting flights.
Where to Stay
- There are accommodations to suit any budget. Conduct a search at hotels.com.
Must See
- The Pearl Islands, a 15-minute plane trip or two-hour ferry ride Panama City, have an intriguing outlaw history. Bold pirates landed on many of the more than 200 specks of land to escape the law. Contadora, the most famous island in the archipelago, was once owned by John Wayne, served as a retreat for the Shah of Iran while he was in exile, and most recently hosted the "Survivor" realty series. See isla-contadora.com.
