Investment Incentives in Panama`s UNESCO Old Town

Panama`s parliament has approved a new tax relief law on investments in the beautiful old town which will come into effect immediately and last for ten years. This, of course, is extremely good news for our UNESCO old town project in which a building will be restored in order to generate a lasting rental income. In all, it means (according to our liability, we offer no tax advice):

  • 30 years no property tax on buildings and grounds
  • 10 years no income tax on rental yields
  • 5 years no sales tax

Such an investment is very sustainable since the number of buildings on the peninsula is limited to about 850 and is not extendable. In cooperation with a German developer who has a great deal of experience in old town restoration work, we plan to reconstruct a unique building with a view of both the ocean and skyline. We would similarly like to rent out the resulting shop premises and apartments, thus achieving a long-term rental income in addition to the increased value of the property.

This video gives you a small impression of the UNESCO old town: Casco-Video
Investors and the government have been reconstructing the historic colonial buildings for some years now. Although there is still much to be done, restoration has led to desirable hotels, bars and restaurants being situated close to the presidential palace, museums and galleries. The trendy district of Panama has thus arisen. The old town (originally formed in 1673) is now the second most popular tourist destination after the Canal. At the same time, many expats from international companies and young people from the upper-middle class are looking for rental accommodation here, in order to experience Latinamerican flair at first hand.

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