More and more Brits buying property in Panama

The Centre for Future Studies recently found that one in eight Britons over the age of 55 still intend to settle abroad by 2012.

However, it is not just the ‘traditional’ overseas destinations that are attracting British retirees.  Destinations such as Cyprus, Malaysia and Costa Rica have all become more popular in recent years, and the Daily Telegraph also recently highlighted the increase in the number of Brits buying property in Panama.

More and more Brits buying Panama property

The Central American country’s relaxed banking laws, excellent climate and picturesque coastline are just three of the reasons why increasing numbers of Brits are buying property in Panama.

Since the military dictator Manuel Noriega was ousted in 1989, the country has been transformed.  American expats account for almost a third of the 190,000 overseas population although more and more Brits are heading to Panama

The Daily Telegraph reports that ‘the majority settle along the Pacific Coast near the capital, Panama City, in Coronado, Punta Chame, Gorgona and Rio Mar, where new-build apartments with sea views are as little as £80,000. The exclusive Punta Pacifica district has architect-designed condos with concierge services. Two-bed new-build units sell for £225,000.’

Panama a great place to buy property

The newspaper highlights a number of attractive reasons why Brits are choosing to buy property in Panama.  Firstly, the country has generous tax legislation, such as no tax on income derived overseas (such as from UK investments or pensions), no capital gains tax and no inheritance tax.

In addition, Brits who own new build property in Panama are exempt from paying any property taxes on a sliding scale of five to fifteen years depending on the market value of the property.

The Daily Telegraph also reports that ‘income tax on a sliding scale of 20.5 per cent to 27 per cent is payable on Panamanian earnings (with the first £5,500 exempt).’