According to the Global Property Guide Panama City is now ranked as the 4th best Buy-to-Let destination in the world with a spectacular average return of 10.88%.
The real estate frenzy in Panama continues. More condominiums are being built and planned, and major developments are underway. The country is busy re-inventing itself as Latin America’s regional logistics and services hub.
Panama’s GDP growth rate has been rising rapidly. In 2007 GDP growth was 9.2%. This followed four other good years, with 8.7% growth in 2006, 7.2% growth in 2005, and 7.5% growth in 2004.
Surprisingly, Panama’s growth has been achieved with relatively low inflation, which in 2007 was only at 2.6%. Panamanian inflation is usually between 1 and 3 points lower than US inflation; the country has a Hong Kong-like system without a central bank.
Foreigners can buy properties in Panama with the same rights as nationals except for islands and properties located 10 km from the frontiers. It is advisable to buy titled properties instead of properties with possession rights (derecho possessorio) only.
Panama has used the US Dollar as its official currency since 1903 which is locally referred to as the Balboa (B).
