Category: Life in Panama

Beach for Panama City

In recent days, the new mayor of Panama City has presented the 120 million USD plan for Panama City to have its own city beach. Following the example of Rio de Janeiro and Barcelona, a large beach with various other leisure attractions is to be built directly on the city's promenade over the next few years.

Until the 1960s, the citizens of Panama City had their city beach, which was lost in the following years in the city and population development.

According to the Smithsonian Institute, the plan is feasible since there have been major efforts and projects since 2006 to improve water quality in the Bay of Panama City. The greatest challenge is to continue improving the city's sanitation situation. Such a prestigious project naturally also offers many opportunities for international companies interested in participating in this project.

On the title photo you can see a visionary picture, how such a city beach could look like and on the following photo how attractive Panama City looks already now.

Photo Panama City today

If this project really is successful, it would significantly upgrade the attractiveness of Panama City as a real estate location.

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate Investments in Panama

Ban of plastic bags in Panama

With the immediate ban of plastic bags Panama makes a big step forward in the protection of the environment. This makes Panama the first country in Central America to ban plastic bags.

In Panama there is currently no functioning recycling system in place, which unfortunately means that household waste ends up in large landfills. Here you can see waste children commissioned by companies who try to select "valuable" garbage and then hand it over to creative companies for pocket money. The recyclables are then cleaned, sorted and shipped to industrialized countries in order to be sold there for a lucrative fee. In the middle of last year I was in Panama City talking to the recycling and environmental representatives. These have set themselves the goal of introducing a sustainable recycling and waste management system and, in doing so, also relying on the support of internationally experienced waste companies.

A first major step by the Panamanian government was taken on 20 July 2019 by banning the distribution of plastic bags with immediate effect. Supermarkets and retailers must comply with the ban from now on. Smaller suppliers still have time until 2020.

There is still a lot of work to be done, but at least we are beginning to make progress on the important issue of environmental protection. Perhaps we will succeed in convincing international "environmental companies" of the possibilities in Panama as a "Hub of the Americas" and in helping them.

Klaus Happ advises and supports companies that want to become commercially active in Panama (Business Consulting for Panama).

Business Consulting Panama: We support you as a professional and experienced partner

Panama-Global City of the Future

Panama City has been chosen as one of the global cities of the future. It is the location for over 250 multinational companies which have decided to establish head offices there. Such companies include Adidas, Nestle, Roche, Bayer and Huawei & Co. Panama`s legal security, growth and US dollar currency are some of the many advantages. Additional characteristics, including a young population (0-24 years: 45% of people/ 23% in Germany), make Panama City one of the global cities of the future alongside Shenzhen (Link). The real estate market in Panama counts internationally as one of the most interesting locations for property investment. We would like to be your local trusted adviser and to take care of your investments in Panama.

Profitable, secure and beautiful:
Real estate investments in Panama


Panama`s currency is the US dollar

One of Panama`s advantages as an investment location is the US dollar.

The dollar has been Panama`s official currency since 1904, meaning that the nation cannot simply switch on a money printing machine like most other countries. Soaring inflation cannot affect Panama as it has done in so many other places in the past. Even the International Monetary Fund has praised Panama for the stability of its banking system. The country`s markets were spared from the 2008 financial crisis. Panama does not possess a national bank in itself, as the banks are all self-responsible and an “emergency central bank” is not required.

Following the rise of the dollar in the last years, I am often asked why real estate investments in Panama are not that expensive. In principle, the development of a currency does of course have an important influence on the profitability of an investment. In terms of real estate in Panama, one should bear in mind that a powerful dollar simultaneously brings cheaper properties. This is because investors are always somewhat more reserved when purchasing dollar-based real estate if the currency is strong. A weaker dollar, on the other hand, brings about a greater demand for property and rising prices as a result. The connection is similar to acquiring gold in US dollars. Ultimately, no one can predict the future development of currencies. The dollar, however, certainly makes for a broader diversification to your portfolio and contributes to a reduction in risk.

What can Panama do better?

  • Panama, like so many other emerging nations, has no lasting rubbish and recycling system. There is no garbage separation and trash finds its way to unfiltered tips.
  • The education system for the population at large needs to be improved. There are of course great numbers of state schools in Panama, but the quality of these compares badly to the private, international schools which are also found here.
  • The difference between Panama City as a modern metropolis and the rest of the country is significant in terms of income, education and infrastructure
  • While corruption is being fought on a broad scale, the country hasn`t yet reached the standards of industrial nations. The Varelas government, which has been in power since 2014, is striving to improve the situation. It still has a lot of work to do however.
  • After the Panama Papers, the government signed an OECD agreement in October 2016. This allows for the future exchange of international financial data. Further steps leading to more transparency should also ensue.
  • Despite Panama City`s first metro links, there are still a lot of traffic jams on the roads. Car ownership is part of the general culture and often leads to far too many vehicles placing a burden on the transport network. This will hopefully soon improve through additional metro links, the introduction of modern buses and the construction of bus lanes.


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