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.

FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. He offers advice on all aspects of living in Panama.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

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Investments in Panama