This summary is to give a generally idea regarding the real estate scenario in Panama. Trying to find a bargain and reputable real estate service in a foreign land can be challenging. This is relatively simple and a secure process if done through the Hemingway Hideaway team and we cannot vouch for any other business or agency offering similar services.

The process of buying property can be as painless or as tragic as you want it to be and probably is the most worrisome hurdle in your retirement agenda. Our goal is go help you understand this process and to assist in the location and purchase of properties in the most expeditious and legal manner.

First let us start by explaining the supposedly high cost of land. The Chiriqui highlands are located in one of the most desirable areas of the world. Think about it! Perfect climate, pollution free, great retirement benefits, very low or no property taxes, few government regulations etc. To get this cool climate one must go up to 3500-6000'. This is especially important with global warming! Now, take a look at a map of Panama and you can see that the highland area is very small. Although the Talamanca mountain range extends almost to the canal, most of it is not available for development, had no infrastructure or Indian reservations.

This leaves just a small area surrounding the Baru Volcano. Of course there are those that prefer the warmer lowland properties and the Hemingway Hideaway have several to offer. One must remember that the Chiriqui highlands are not only on the inter-national retirement hit list but a popular playground for Panamanians as well. Another important factor driving the cost up is many foreign investors and developers are swarming in and buying up everything in site with a "fist full of bucks". Bottom line is, "supply and demand" vs. "first come, first served".

For commercial and large scale investors, the Hemingway Hideaway offers several 200-300 acre parcels in choice locations that could support 90-100 homes, hotel and golf course.

Any one can own property and do not have to be a resident. Property can be left to the next of kin. Once initial purchase is made through the Hemingway Hideaway team, it is all down hill from there. Remember, what ever you buy, is like money in the bank. There are those who think because we may be in a 3rd world, this is a chance to pick up cheap land, Sorry, those days are long gone (accept in less desirable areas).

Nevertheless, prices in the Volcan region remain lower than most other popular locations. We are sure that this will not last as choice sites are rapidly being gobbled up. Since 1995, prices have quadruped and based on that curve, it is logical to think that it will double in the next five but due to rapid influx of investors jumping on the band wagon, we expect prices double in 2-3 years. Although most of these investment companies are seeking large parcels for development, the Hemingway Hideaway has many small lots and farms for personal investment and retirement homes.

One might ask them self, how much property do I actually need? The two things to consider are, cost and maintenance. Because many have lived most of their lives in congested neighborhoods, many would like a little "elbow room" or semi-isolation. The Hemingway Hideaway offers these properties as well. Prices vary depending on the size, location, view, flora, access and utilities. Besides both small and large farms, we offer parcels ranging from one quarter to and acre or more.

Although we have a few hill top properties, the usually flat topography of Volcan makes overlooking views limited. Instead, the dominant volcano Baru can be seen from most every location and many homes are orientated to have this picturesque panorama centered in their living room window.

There are folks who's sole dream is to own a large chunk of wilderness just so they are able to view their kingdom from "horizon to horizon" or for investment purposes. For those, we have a fine selection of larger properties. Even though we may not have a listing posted that meets your taste, please let us know what you may be looking for and we will try to find your land.

Some say, "Gee, I can buy 20 acres in Arkansas for that". All I can say is "buy in Arkansas". That is like trying to compare grapefruit to strawberries. Just remember, the more you want, the more it costs. However, you can still buy a small lot and build a nice home for under $100,000 but don't hold your breath. If you're on a limited budget or just trying to conserve you nest egg, you can still purchase a lot and finance construction through the Hemingway Hideaway team.

In most parts of the U.S. and Canada, it is not uncommon that homes range in the 350 to 500 thousand or more. Cashing in and coming to Panama would provide enough capital to purchase a niece piece of land, build a very nice home and leave a substantial balance. If they retired to an Arizona or Florida "Sun City", they would have to spend most of their equity in establishing a new home.

Even though rentals are available, it is not a wise decision if you budget is limited unless that is your only option. Quality rentals are few and would not leave much for monthly bills unless you're financially sound or just want to lease. Sure, it is nice to save as much dinero as you can but as we look at it, these are our last years on this planet and we have decided long ago that we are not going to pass them in a hovel.

As we are located in a "rural area" tax is lenient, does not exist or is not estimated or collected. Even if you declare and pay tax, they are very low. If you decide to build, you can apply for a new home exemption for the first 15 years (as of Aug 31, 2005). Not only are you exempt from properties valued under $30,000, as a retiree, any such taxes levied, is frozen until you resell and not like other countries where they force you out because of ramped tax increases as the surrounding vicinity develops. For more information, please contact our referrals in the Off Shore/legal and review the tax section.

Lakes, rivers and beaches are considered "public lands" and cannot be owned nor there access blocked. Beach properties have to be a certain distance from the high tide line.

There are three types of land:

Titled:	Registered in the National record and legally owned.
Un-titled:	(possession rights). Claimed, worked and inscribed as such.
Public:	Government free range and cannot be owned.

Of course, titled land is preferable but untitled property; if it meets specific criteria can be securely acquired through the Hemingway Hideaway team. Unlike Costa Rica, short term squatters have no rights and may be legally removed. There are many concerned about squatters but this in not a serious problem once the property is titled with a sign posted and maintains the property.

Possession rights are some one who has claimed a piece of property by living, maintain or farming it for many years and registering it with the appropriate agency. Because most of these owners are underprivileged, they never had enough money to have it properly registered. The Hemingway Hideaway or its referrals can include title fees and the payment of outstanding loans within the frame work of a contract so that the untitled land will be "clear and free" and fully titled in the name of the new owner. This cost, (if applicable) would be included in the price of the property.

All Hemingway Hideaway properties (titled or untitled) offered are first checked before being listed. Foreigners can own land right up to the Costa Rica boarder.

Caution

Most untitled lands cannot be titled accept those that are registered with the appropriate agency and meet specific requirements. In some popular areas of Panama, different parties have claimed rights of possession of the same land in hopes of selling it to the unsuspecting. Many naive buyers have put out thousands of dollars only to discover that it was registered to some one else. We know of another case where one person was duped out of $50,000 by a corrupt lawyer.

Even reputable legal firms have this tendency to "stretch" out simple transactions in order to charge more fees. Documents and contracts are made un-needlessly bulky so there is more "per page" charge for both writing a lengthy contract and it's translation. Letters of credit payments delayed until the last possible moment so the bank can collect more interest on the funds their holding. This is not common practice but it only takes a few to make one wary about this process. Both Hemingway Hideaway legal services referrals have an outstanding track record for their honesty and expeditious service.

In the U.S., properties in "Escrow" are inspected before it can be sold. In Panama, most homes are sold "As Is" or in other words, you do or do not accept it and if you do, it is up to the new buyer to make repairs or changes unless otherwise stipulated in the contract.

Previously, in Panama, the way of handling a buy/sell has been directly between the owner and buyer making their agreement with or without legal representation. This is where the folly may occur and many end in heartbreak. Escrow is something new in Panama and it protects all parties. It is now offered by a limited few including our referrals.

This all may sound confusing but in reality is simple and straight forward if one deals through the Hemingway Hideaway team. Many feel that they will save money by going direct. This can be hazardous to you pocket book, loss of property, or worse yet, the proverbial "snake in the grass" (future unknown claims, improper title etc.)

Regardless of what you may have seen, heard or from any one using pressure tactics, you do not have to establish an off shore company or foundation to own property. This is erroneous information and pure malarkey. They say it gives you libel protection but the facts are fees, fees and more fees. Starting up, assigning officers you do no know, annual tax and maintenance etc.

If protection from liable is the only thing your looking for, simply register the property in your own name and carry property insurance costing a mere $100-150 per year. The only advantage of having a S.A. is that you can sell the company shares which include the property and pay no sales tax. But property sales tax is very low anyway. (Refer to Taxation section) If you're looking for an off shore, for banking, business and asset protection this would definitely be the way to go and if so, please review the Off Shore/legal section.

Panamanian Sociedad Anomina (limited company) is based on the Delaware, U.S. structure of law. Foundation law was imported from a European system and has not been tested in Panamanian courts. For further information, please review the Off Shore section.

For those who are not familiar with the metric system, 1,000 meters equals about a quarter acre and 4,040 meters is an acre. A hectare is 10,000 square meters or about two and a half acres. Most of the properties available are 1,000-2,000 meters. Some range from 3,000-4,000 meters or more. A 1,000 meter (1/4 acre) lot is than adequate to build a small home.

We have received many inquiries for parcels of 2-5 acres. Although more difficult to find, we have several listings. For those interested, we offer small and large producing cattle and coffee farms and Hemingway Hideaway can help in locating qualified managers.

Generally, large land owners are unwilling to sell small pieces and are actually looking for more to expand there production. If they do sell, they offer it in meters instead of hectares, making it more costly. Although many hear of parcels selling for $8,000-9,000 or so per hectare, you can only get that price if you buy the entire farm.

A hectare (10,000 meters) if it has any infrastructure and near a town would go for around $100,000+. Our listings are very dynamic; They may change daily and many have not been posted yet. Please e-mail us for the latest information. All properties listed are for sale.

We receive many requests from clients wishing to lease weekly and monthly as staying in a hotel can be a budget breaker. This provides an excellent opportunity for those who would like to rent their home during their absence (especially vacation or 2^nd homes) and Hemingway Hideaway S.A. can manage and maintain them on your behalf. This includes assistance in the promotion through our web site, building and ground maintenance, utility payments, leasing schedule, cash accountability and status reports to investor.

As previously mentioned, there are very few rentals available that meet western standards. Although there are several hotels and cabins, they have no long term pricing schedule and their market is the seasonal local tourist. Due to the expected growth of this community and the ever increasing demand for quality rentals, it provides a tremendous opportunity for investment directed towards international clientele. Hemingway Hideaway sponsor many visitors every month which is a "captive market" and most follow our recommendations and would be an excellent source of customers for those wishing to establish rentals. This combined with their own Internet marketing directed toward the international retiree and ecotourism, would assure a substantial source of clients.

The Hemingway Hideaway team has the capacity to oversee every aspect of such a project to include, site purchase, legalities, construction and leasing.

We offer properties in for categories.

1. Residential lots
2. Homes
3. Farms. Both small and large.
4. Rentals
5. Managing unoccupied property (cleaning).

Taxation
Annual Property Tax:

An annual property tax is levied on all real estate properties in Panama (both land and improvements), under the following system:

Properties with a registered value of $30,000 or lower do not pay property tax.
Properties of higher value pay as follows:

$30,000 to $50,000	1.75%
$50,000 to $75,000	1.95%
$75,000 and above	2.10%

This is a combined scale. For example, a property valued at $100,000 would pay the following annual tax:

$30,000 to $50,000:	$   350.00
$50,000 to $75,000:	$   487.50
$75,000 to $100,000:	$   525.00

However, houses or apartments for residential use which construction permit is issued before 1^st September 2005 and which completed construction is registered before 31^st August 2006 get a 20-year property tax exemption from the date of their completion. This exemption is transferable during the exemption period to any new buyer.

Houses or apartments where construction permit is issued after 1st September 2005 will have the following exemption on property tax with value of:

$100,000		15 years exemption
$100,000 to $250,000		10 years exemption
$250,000		5 years exemption

The land itself is not exempted and would continue to pay property tax if its value is above $30,000.

The registered value of a property is normally the price at which it was last purchased, unless there has been a re-assessment of the value of the property. The re-assessment of property made by the government is very sporadic at best.

Off shore S.A. tax

The passed tax reforms were designed to make local taxes more strictly enforced; however, the laws have not changed the "territorial" tax system that Panama has enjoyed for so many years. Therefore, any news you have read on the net are obviously mistaken because there are no taxes on foreign earned income, including foreign earned pensions, even if you are a resident in Panama. In fact, the minister of economics and finance recently made a public announcement confirming that the new tax law does not affect the territorial tax regime of Panama, and does not tax foreign pension income.

Financing
We can not understand why someone would like to acquire a second mortgage at our age as the whole idea of this retirement is to have true financial freedom and keep the expenses down. However, for those that have no other alternative, financing is now being offered by several leading Panama Banks for home construction if you already have purchased the land and provide a 20-25% down payment.

Buying
Hemingway Hideaway S.A is bonded and licensed by the Conjunto de Vienes Raices (Joint Committee of Realtors) of the Panamanian Ministry of Commerce & Industry and may act as a "lawyer-in-fact" authorized to write buy/sales contracts and inscription of properties as permitted under statue law #6, July 8, 1999, . The bond posted by Hemingway Hideaway protects your investment. For those who would feel more comfortable with a 3^rd party handling the transaction, we can recommend qualified bilingual legal firms. (See Off shore and Legal services section).

Real estate transactions in Panama are normally done in two steps:
1^st   The prospective buyer signs a Promissory Purchase and Sale Agreement with a mutually agreed upon down payment. This is given to the Seller through its representative as evidence of your commitment. If you later decide not to proceed, this down payment is relinquished to the seller. Full payment can also be made to bypass the down payment. In this case, 10% of the sale price will be withheld in case of default by the buyer.
2^nd   After the agreed time for payment, the final Purchase and Sale Contract is made in the form of a public deed and registered at the Public Registry of Panama. You become the full owner once the property has been duly registered in the National Registration which takes about 2-3 weeks.

If escrow service (or independent legal services) are not used, the safest way to pay the remainder of the purchase is by an irrevocable letter of credit issued by a Panama bank The bank holding the irrevocable letter of credit only releases the funds to the seller when it is presented with a clear registered public deed indicating that said property has been transferred to the buyer.

All persons whishing to purchase property through Hemingway Hideaway, have the right to seek independent legal consul. If so, they should inform us of the name, address and all pertinent information of such and absorb cost of same.

Hemingway Hideaway can recommend bilingual and unbiased legal consul as per the Off Shore legal section.

Hemingway Hideaway has the right to maintain under its own privacy and reserve all information that refers to subject property such as the name of the owner (unless it is otherwise given by us) thus protecting private information of the company.

Hemingway Hideaway does not compromise nor assumes obligation to give any detailed information about the owner or direct contact until a prospective buyer signs the promissory buy/sales contract. Upon agreement and signing of the buy/sales contract, Hemingway Hideaway will provide to the prospective buyer and his legal representative all information that is considered, convenient and necessary to complete the buy contract.

Before any listing is posted on our site, we first obtain an exclusive sales contract and it is checked for availability or any legality. In cases where there may be existing leans, the buyer is informed and these obligations are cleared and included in the cost of the land.

If the buyer wishes to have a survey done as part of the Buy/Sales contract, such cost will be paid by the buyer.

Listings with Key
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