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William Hemingway originally came to Panama in 1964 working with a company involved with off shore oil exploration in Central America. He elected to stay. For the first 14 years, he worked on electronics communication and navigation equipment of the vessels transiting the Canal.  He also  traveled extensively  thoughout both Central and South America maintaining communication equipment for various U.S. government and military installations. In 1979 he and his wife returned to California and worked as a Latin American Regional Sales manager. In 1988, they returned to Panama and bought property in the Province of Chiriqui. They now provide a number of retirement related services. Such as land exploration, lodging, relocation assistance and visa information. On the subject of Panama, Hemingway says, " Panama has a lot to offer those seeking beauty and tranquillity at a reasonable cost. After all, that is one of the principal reasons why I have lived here over half of my life. In our over crowded world, inexpensive prime locations are disappearing fast. Wouldn’t it be nice to have your own little piece of paradise?" Additional Resources Real Estate Quarterly  Articles on Panama  Another Hemingway Article  Hemingway Website Contact Hemingway  .

Many of you may have read my article “Hemingway Hideaway” that I submitted to Escape from America Magazine about two years ago. I did retire to those same  beautiful Chiriqui highlands a year and a half ago and love every minute. I have never been happier in my life, and I enjoy helping others find “their piece of paradise”.  Since then, I have learned a lot about many aspects of retiring here that are essential to those of you who are contemplating doing the same.  The intention of this article is to help explain how buying property in Panama can be done simply and expeditiously. The information provided applies to most of the Central American region, too. First of all, the Chiriqui Provence has one of the most beautiful and ideal highland climates in the world. And, the Provence of Bocas del Toro is the idealic, yet still undiscovered tropical paradise of the Caribbean.

Click on the map to use a larger image as a reference source for this article

Click on the map at the top of this page to get a spacial perspective of this part of Panama. The map is asthetically pleasing to view and easy to read. For many years, now, there exists a wonderful two-lane highway connecting David with Chiriqui Grande, Almirante, Sixaola, and points west into Costa Rica all the way to the capitol of San Jose. The map will serve you as a reference source for the rest of this article.

In Chiriqui, the towns of Boquete and Volcan are quaint, provincial settlements founded on coffee. Both towns are American friendly and just an hour's drive from the Costa Rican border, making the possibility of short or extended side trips into the natural environs of two isthmian countries a reality.

The islands of Bocas del Toro are also next to the Costa Rican border. US citizens living and working in Costa Rica have made Bocas a favored destination for weekend jaunts, crossing the border at Sixaola. There's no place like Bocas in Costa Rica. Back in the 60s, Aldous Huxley used to call Belize one of the far corners of the Earth. Today, he'd say that of Bocas del Toro.

Second, anyone can buy and fully own property without being a resident or a citizen of Panama. All you have to do is show your passport upon purchase. You can also sell it whenever you want or leave it as an inheritance.

And, Panama is American friendly. From cab drivers to store owners to government officials to banking empires, Panamanians miss the US presence of decades past. The legacy of 96 years of US efficiency, ethics, and morals in business and everyday life in Panama abounds.

And, there's something else. Americans aren't as noticed in Panama as they are in other countries. I've traveled to over 40 countries in my life, and many of my American friends here have also lived and worked abroad. An American in many countries abroad will get second glances from host citizens. Not so in Panama. I notice it and so do my friends. Americans were a part of the daily life of Panama throughout the last century. Many years of American presence in Panama has made them a part of the cultural make-up of this wonderful nation that reflects US culture at every turn. Americans feel at home in Panama.

As for property, purchasing power for Americans is greater in Panama. Prices are lower than in most of the rural areas of the US. The Panamanian economy is also the most stable in the region principally because the economy is not only tied to US currency, it's the only currency that's used. The official name for Panamanian currency is the Balboa. However, the name Balboa is nothing more than a name. The  Balboa is the US Dollar. I have US Dollars in my pocket, I buy my milk, bread, vegetables, gasoline with US Dollars. I pay my maid with US Dollars. I have US Dollars in my Panamanian bank account. I write my checks in US Dollars. I bought my property with US Dollars. I never deal with any other currency, because there isn't any other paper currency in Panama. Because of that, low consumer prices haven't changed much since I moved to Panama, and it will be cheaper for me to live in Panama for many years to come. Furthermore, when I travel to another country, there is no limit on the amount of US Dollars I can take out of a bank in Panama simply because there is no currency exchange as in other counties. 

And the wire transferring of US Dollars from the US or elsewhere for deposit into a Panamanian bank is as simple as ABC. Your bank in Panama will direct you on how to do it. A wire transfer usually takes about three days.

Now that the money you need to purchase your property in Panama is in your pocket (so to speak), let me get on to the shopping around and buying end of the purchase.

There are three types of properties available for ownership in Panama:
 

Government Property  This land cannot be purchased by a foreigner. These public lands are mostly in remote jungle or  inaccessible areas. Squatters often move onto government lands and acquire ownership after a number of years.

Squatter Property Squatters are poor families who inhabit an area that is unoccupied. Rights to the property are granted after a number of years of occupancy. This kind of property is very hard to purchase because it may not be titled.

Titled Property Most Preferred This land is titled in the owner's name. When you buy the property, the title is transferred to your name and recorded in the National Registry. From that point on the property is yours. Titled Property is the only kind of property you should buy and sell. You will know a property is titled if an Escrituras exists in the National Registry.

The first thing one might ask oneself  is, “how much property do I actually need, how am I going to maintain it, and where do I want to locate. Prices vary depending on the size and location of the property. When speaking of location, there are three areas in Chiriqui that are attractive and have an abundance of titled properties. These areas are, in order of tourist development and resulting purchase price, Volcan, Bocas del Toro, and Boquete with Boquete being the most highly developed.  Bocas del Toro is just being discovered, and Volcan is right on the edge of it.
 

These three areas allow you to pick your climate, depending on elevation. Bocas del Toro is right on the Caribbean, so the weather there will be warm and tropical, with sea breezes and a light rainy season during August through January, usually. When I say rainy season, I don't mean weeks and months of rain. Nowhere in Panama does it rain endlessly on end. During the rainy season in Panama, there will be a morning or an afternoon shower (or deluge) followed by sunny weather. Although we sometimes, but rarely, get the the tail end of a frontal zona originationg in

the US and Canada that gets this far south, or the traces of a distant tropical storm, Panama's rain is primarily generated by heat convection. This is entirely true of Bocas del Toro.
 

Volcan is in the area of highest elevation, so the weather will be very cool with a pronounced rainy season. Rainfall in this area will also have orographic origins. As air laidened with water vapor from the Caribbean gets pushed up over the mountains by the Trade Winds. When this happens, the air is cooled and the vapor is precipitated out as rainfall. In Volcan, on windward mountain slopes, rainfall can be less sporadic in the rainy season bringing a cool freshness to already great weather.

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Boquete is in Panama's highlands, too, and also has refreshing highland sweater weather. Parts of Boquete, though, are much like California's High Chaparral. This is especially so on the rainshadow side of the mountains. On most days, the air in Boquete is dry and crisp. It can remind you of Aspen without the snowy peaks and pines. Both Volcan and Boquete boast of the abundance of colorful flora that grows year-round. There are even tall standing pine tree forests surrounding coffee plantations. The smell of vitality fills the air. Actually, wearing a sweater is a matter of choice. Viva highland climates.

As we are located in a “rural area”  tax laws are lenient, do not exist or not collected. If you decide to build, you can apply for a new home exemption of taxes for the first 20 years. On top of that, not only are you tax exempt for properties valued under $20,000 but any such taxes above that (if declared), are frozen at that amount until you resell. 

Okay, so I have roused your interest, you came and made you exploratory trip, found something you like and want to buy. What next?

First of all, you do not need a lawyer to make the transaction if you have proper and reliable guidance. If you feel safer with a lawyer, no problem but it is an extra cost (about $500) for some thing you don’t need, but might feel better with. There is no such thing as an Escrow. The government operated public Notary is the acting agency, and they are the final authority. It is their job to see that the transaction meets all legal criteria pertaining to land transfers. 

Here are the steps to purchasing property. You'll see that much of the purchasing process is identical in nature to in the US. The bottom line is Panamanians, just like citizens of other nations including the US, have been buying, selling, and transferring property for centuries. Safeguards against fraudulent activities have been set in place to protect your purchase long before your arrival. Before, during, and after the purchase of your property, you can rest assured that your interests, and those of the seller, are protected by legislated law.

Step 1: Agreement and Research

You've found your property and have agreed on a price with the owner. Next, you inspect the title (Escrituras). This document states the owner and description of the property. The seller has to also provide a map describing the size and its location. You also request a recent “Certificado de Registracion” which is similar to a title search in the US. This document will indicate if there are any leans or other legal complications against the property. All documents must be originals and have the signatures and stamps from the registration office. At the end of this step, you've confirmed the owner of the property and its location, and you've determined there are no existing leans or other legal complications against the property.

Step 2: Bill of sale & Taxes

The seller and the purchaser, or representative agent, go to the nearest city and obtain a form for a “bill of sale”. This document lists the seller and buyer and is basically used for sales tax purposes. It is a common practice to declare the sale price of the property at a lesser price than the amount paid. This is for two purposes, first, keeping the sales tax low and second, trying to keep it less than the $20,000 for tax exempt status (There are never property taxes on property valued under this amount, Never!). You will receive a receipt and a copy of the form. Then you're off to the nearest Notary Public with your representative agent and the seller to transfer the title of the property.

Step 3: Title Transfer 

First, a note about Notary Publics in Panama and elsewhere in the region. A Notary Public in Panama does a lot more, is granted far more responsibility than a Notary Public in the US. A Notary Public in Panama, and also in other countries, is a high ranking official. In Costa Rica, for example, only lawyers can be Notary Publics. Government run Notary Publics have the final authority in regards to any legal transactions. Whether it be buying property or making a legal contract, they do it all. 

The old title, all previous land documents, and the new tax form are presented to the Notary with a minimal fee. The Notary in turn takes all the appropriate data, including that of the new owner, and types up the new title with the new owner's name, the seller, a description of the property, the location of the property, any special terms that may apply, etc. These documents then go into the Chief Notary’s office for final approval.

Step 4: Transfer of Funds for Purchase

Once the Chief Notary has signed these documents, it is then and only then that funds transfer hands. Payment is preferable by a certified check on a bank in Panama, the one you've wire transferred money to. If a third party is involved then any commission or service charge in the form of a certified check are also to be made. Same as in the US.

I've also known buyers to complete steps 1, 2, and 3 before wire transferring the funds for purchase. That involves putting up a deposit, usually about 3% of the sale price, and the buyer and seller signing a document stating that the balance is due once steps 1, 2, and 3 have been completed. In many cases, the buyer can authorize the bank that receives the wire transfer to disperse the balance once these steps have been satisfactorily met. You can bet the bank will help you double check all is in order before turning over the balance in Step 4. 

Step 5: The National Registry

Nothing gets done or completed in Panama until it is submitted to the National Registry and duly recorded. This is true whether it be a birth, death, marriage, divorce or buying property. This process normally takes several weeks but can be speeded up by having the documents hand delivered and presented to the main office of National Registry in Panama City. Once you have the title in your hands with all the appropriate signatures and stamps,  it is yours!

Congratulations! You now own a piece of paradise at an affordable price in a place where it costs very little to live like a King. Don't sell it to the first gringo who offers you twice what you paid. Keep it for at least a few years, until prices go through the roof. 

May I say in closing, that Panama is an excellent place to retire. Panama's government has not only passed special visa legislation but generous benefits as incentive to potential retirees. The government realizes that the economic trickle down effect of retirees from North America out weighs that of only the potential tourism.  All these great incentives are perhaps the best in the 40 countries I have traveled.  Please feel free to contact me directly if you require more information and assistance.