The Panama Report March 2024

The iconic F&F Tower, a.k.a. the "Corkscrew".

Financial District, Panama City, Panama

Dear Friends,

It is with great excitement that I welcome you to Republic of Panama and to the Panama Report.

Despite our small size, Panama is a country of immense beauty, enormous generosity, vast opportunity, deep cultural traditions, and a wide diversity of habitats and animals that exist nowhere else on earth.

We are also a country of warm, welcoming, and extremely talented people, many of whom have generously contributed their time and voices here to tell my country’s story. My hope is that everyone who reads The Panama Report will fall in love with everything Panama has to offer—our food, art, architecture, neighborhoods, nature, oceans, and aspirations. My wish is that you will come to visit us, if you have never experienced Panama for yourself. My belief is that, once you do, like so many other people from around the world, you will want to live here, invest here, and call Panama home.

With pride and gratitude,

Laurentino Cortizo Cohen President of the Republic of Panama

14

26

23 Banking

32

34 Healthcare

By Dr. Moises Zebede, MD Johns Hopkins/Pacifica Salud

39

42

46

Architecture & Design

By Eduardo Quintero Co-Founder Forza

Creativa

49

Interview:

Denise Guillen Minister of Tourism Republic of Panama

52 Hospitality

By Chris Lenz

Owner Hotel La Compania

56

Interview:

KC Hardin Co-Founder Conservatorio

60 Food & Wine

By Jose Olmedo

Carles Chef/Owner Lo Que Hay

63

67

70 Bird’s Eye View

By Jaime Fernandez Managing

Director Flytrip

elcome to the inaugural edition of THE PANAMA REPORT.

As with any endeavor, there is a backstory here. In my past life as co-founder of International Sales Group—for decades Miami’s largest real estate sales and marketing company specializing in new luxury developments—I was one of the first people to see the potential of Miami over forty years ago, long before the current “pandemic” boost brought Wall Street to the beach. ISG’s worldwide clients, as a result, realized substantial gains through multiple market cycles.

The same kinetic ingredients I saw in Miami four decades ago I now see in Panama today. I’ve

sold and marketed luxury real estate around the world and landed at a lot of airports, but I have never been so immediately awed by a first impression as I was of Panama City. The feeling that I’m now holding onto a secret—about this modern, vibrant, safe, and cultured “Oasis of the Americas” that no one else knows about—has left me speechless ever since.

Panama represents a rare blend of sophistication, stability, diversity, connectivity, and a real dollar-based economy that’s found in few other countries in the world. And as we look out at turbulent times when global crises, political divisions, and unstable markets make planning for the future uncertain, Panama offers many advantages for many reasons.

It is nearly impossible to understand what Panama represents from a real estate and investment perspective, however, without understanding the history, identity, nature, and future of Panama in the first place. And, ultimately, without experiencing this incredible country for yourself. That’s why we created The Panama Report: to tell Panama’s deeper, longer, and more exceptional story. Real estate was the inspiration. Bringing all things Panama to the world is now the goal.

The feeling that I'm holding onto a secret about Panama that no one else knows left me speechless

As such, The Panama Report offers real estate market snapshots, up-to-date sales data, and commentary on historic trends combined with articles, stories, and Q&A interviews with some of Panama’s most well-respected and needle moving moguls, ministers, chefs, CEOs, artists, and entrepreneurs.

We hope that you will find this first edition of The Panama Report inspiring, informative, and enlightening. Since that first trip here two years ago, I have visited Panama more than a half dozen times now, sometimes for weeks in a row. I have found the country and its people to be welcoming, friendly, and hospitable in the true sense of “exceptionalism”. The diversity of its many regions, provinces, and parks rivals anything in Thailand, Hawaii, or Costa Rica. Culturally, culinarily, and architecturally, there is truly something for everyone. You only need to spend a short time in Panama to see that almost everything about it is just about right.

My own journey of discovery in Panama is just beginning. I look forward to helping you find your own. Follow us at igrpanama.com

Con gusto,

Principal, IGR Panama

A Division of Six Diamond Resorts International

PANAMA BY THE NUMBERS

WORLD’S #1 WORLD’S #1 WORLD’S #1 WORLD’S #2 #1 RICHEST

Most Biodiverse Region (United Nations Convention on Biological Diversity)

Best Place To Retire (World Economic Forum, 2021 - 2022; International Living Retirement Index)

Best Place To Start A Business (Live and Invest Overseas, 2023)

#2 SAFEST #1 FASTEST

Country In Central America (Global Peace Index, 2023)

Job Growth In Central America (World Bank, 2023)

Most Popular Country To Incorporate A Business (Biz Latin Hub, 2024)

Country In Central America (Statista, 2022)

#1 IN LATAM 1 OF ONLY 3

Total Marine Protected Areas (<50%)

#2 IN LATAM

Total Protected Natural Habitat (54%)

Carbon Negative Countries (Unites Nations, 2023)

Panama Linking Two Continents

THE PANAMA ‘MOMENT’

first came to Panama two years ago, after filling three passports and twenty-five years traveling the world as a writer and photographer. On the flight in from South Florida, I thought the plane had turned around as we were landing. Panama City’s skyline looked more like Miami than Miami’s did.

When I told people about my trip upon my return, it typically elicited the same response:

“What goes on in Panama anyways?”

It’s a fair question. The reality of Panama is that many people don’t know much about it: the Canal, Noriega, the eponymous hats. That’s about the extent of it.

It would be easy to assume that this is largely due to Panama’s relatively small size—which is roughly equivalent to America’s South Carolina. Yet, Singapore, Taiwan, Qatar, and Luxembourg have long punched above their global weight. In truth, Panama’s misperceptions are in many respects its own doing. Unlike other Central American and Caribbean

countries, Panama isn’t dependent on tourism to keep the lights on. That’s the Panama Canal’s job, whose roughly US$3 billion in annual revenue directly and indirectly accounts for approximately 6% of national GDP, along with the country's well-established global financial, logistics, and legal services sectors.

So, for years, unlike Thailand or Iceland which have had to re-brand themselves to stay relevant, Panama’s never needed to redefine or reinvent itself because it never really needed a global identity in the first place. As a result, the best part about Panama’s present and future is precisely what people don’t know about it. Panama is one of the world’s last great secrets. And its “moment” has finally arrived.

Take, for instance, ecotourism and adventure travel which collectively comprise one of the fastest growing segments of hospitality globally and is dominated in the western hemisphere by Costa Rica, Panama’s neighbor to the north. Panama shares the same mountain range and coasts with Costa Rica. So, it’s home to the same wildlife,

By

Peter

Lane Taylor

Peter Lane Taylor is an award-winning American author and photographer who has written for magazines like National Geographic and Conde Nast Traveler, and is a regular contributor to Forbes. He first visited Panama in September 2022 and hasn’t stopped writing about it since

habitats, and protected areas. On the Pacific coast, Panama has some of world’s best offshore sportfishing and whale watching. The surf breaks at Santa Catalina and “Silverbacks” on the Caribbean side are still secrets just starting to leak out. Panama is also situated well south of the hurricane belt, so there’s little risk of catastrophic storms, earthquakes, forest fires, or other natural disasters, which is great for real estate and

All of which brings up another essential quality about Panama. With all the talk about “connectivity” these days, it’s ironic that Panama isn’t a part of the discussion. In reality, Panama is arguably the most connected country on the planet.

Panamanians like to say they hit the “geographic Powerball”. The country’s

textile factory in Taiwan and feel it in New York, there’s a 46% chance that it runs through the Panama Canal. Relative to its population and size, Panama is also home to more international companies than any other place on earth.

In this respect, Panama is like a chameleon—its appearance always changing depending on which way you look at it and how it wants to be seen. On the one hand, Panama is the only place in the world where you can see two oceans from one mountain. It feeds the most biodiverse region on earth and, Suriname, is one of the planet’s only three “carbon negative”

We’ve always been bullish on Panama because it's a world class destination to visit, live, work, and invest. But it’s still an undiscovered secret. With The Panama Report, we wanted to give the country’s most well respected leaders and visionary voices the chance to tell Panama’s story. We wanted to bring Panama to the world, so we can bring the world to Panama

At the same time, Panama City is one of the world’s leading international banking hubs with designed skyline that rivals anything in Miami, Dubai, or Shanghai. For visitors and locals, it’s that rare kind of place where blood pumping, mind-expanding adventure collides with Michelin cuisine and 5-star hotel sheets in the same

Richard Kiibler President, Six Diamond Resorts International

None of this, of course, is a secret to Panamanians, who contradictorily are some of the proudest and humblest people I have ever met in the world. They are also some of its most diverse, warm, and welcoming. This, in turn, has kept Panama stable, safe, and secure for decades even when periods of political and economic unrest have roiled other parts of Latin America.

Ultimately, the word that best describes Panama for me is “exceptionalism”. The root of the word to describe a nation is often attributed to French writer Alexis de Tocqueville in his characterization of the U.S. in his 1840 book, “Democracy in America”.

strategic location bridges North and South America at the meeting point of the world’s two largest oceans (the Pacific and Atlantic). This gives it outsized influence when it comes to global trade and commerce: if you pull a thread at a

These days, the word has been convincingly over-wrung. But in Panama’s case, the literal definition of the word—without exception or parallel—couldn’t be more true: there is no other place like Panama on earth.

Cable bridge suspended in the rainforest canopy. Volcan Baru National Park, Chiriqui Highlands, Panama

PANAMA REPORT

Notes From The Isthmus.

Former New York State Governor, George Pataki, traveled the world for twelve years in office as a statesman and ambassador for the Empire State. He helped steer America through 9/11. This past fall he visited Panama for the first time, and he’s never been the same since

By George Pataki

ne of the great pleasures that I have had in my post-gubernatorial life has been the opportunity to travel. Based in New York, and now part of a large global law firm, I've had the ability to experience many fascinating countries, cultures, and people. In the past year alone, I've been to Australia, New Zealand, Italy, Hungary, Ukraine, France, and London. But one place blew me away in a surprising and uplifting way.

Panama. Famous for the Canal and the evil dictator Noriega. Unjustly maligned as an offshore banking center and tax haven. Too small and constrained by two oceans to fight politically and economically above its weight.

How wrong I was. How wrong so many people still are!

Panama City is a sparkling, booming, towering urban delight rivaling any other city in the world. It reminded me most of Singapore. Brand new luxury high rises, both office and residential, outduel each other out across a magnificent skyline with the Pacific Ocean on one side and dense green jungle on the other. The recently revitalized old historic center—"Casco Antiguo”, the oldest in the Americas—presents a stark and perfect contrast to the city. Once run down, colorful luxury hotels now rise from former convents and colonial ruins. The aromas from new restaurants fill the cobblestone streets snaking through centuries old facades that now meld old with new. None of this I expected. No one does. Panama thrives on amazement and disbelief.

The Canal itself is still one of the world’s most

impressive engineering feats over a century after it was built. To watch the locks open and close and the water rise and fall assisted only by gravity, pressure, and velocity is to see human ingenuity in one of its greatest manifestations.

But the Canal represents much more for Panama: it is a massive annual source of revenue for a nation of barely 4 million people, bringing in on average nearly US$3 billion a year. Compared with oil or metals, it’s also one of the most stable forms of guaranteed passive revenue in the world and will remain so far into the foreseeable future.

More importantly, the Canal is a constant reminder that Panama’s political stability is fundamental and rock solid, backed by the United States Government for more than a century and enshrined in bi-lateral agreements and international law. No other country in the world—not even America’s closest historical allies like Great Britain and Canada—are as cojoined with the U.S more inextricably.

from Panama City. These islands teem with hotels and weekend homes for Panama City’s old families and elite—a kind of Hamptons south, but with better weather.

As much as I enjoyed this part of my first trip to Panama—the skyline, the culture, Casco, and the Canal—it only glosses over what happens once you venture beyond the nightlife and city lights. Panama is truly a tropical gem. On the Pacific side, we stayed at a new luxury Balinese inspired hotel called 4Elements in the Pearl Islands, a string of islands less than 25 minutes by plane or 2 hours by ferry

The Caribbean side of Panama is completely different: a vast under-developed frontier of pristine islands, beaches, reefs, and sand bars stretching between Costa Rica and Colombia. Bocas del Toro sits closest to the former, and is quickly becoming famous in the digital nomad, I-made-a-million-in-crypto world as the next Key West, Florida. But Bocas also feels kind of like an old west mining town, like Aspen, because of Chiquita Banana’s

history here dating back to the 1800s when 30,000 people lived in Bocas. Today, the mining in Bocas isn’t for gold however. It’s for the next best restaurant, bar, or nightclub or the incoming surf break at Silverbacks. And yet just twenty minutes from downtown you can lay in a hammock at Polo Beach where a man named Polo concocts rum-infused "coco locos", waves crash, and monkeys play in the trees above you.

A 10-minute boat ride from Bocas del Toro is another larger island called Bastimentos, a magnificent unspoiled Caribbean paradise with miles and miles of nothing. It can be hard to imagine that beautiful places like this still exist devoid of people. But they do. And where they do, life changing experiences tend to follow, like diving for lobster for lunch before cooking it over a fire in the shade. So how can I describe Panama? I can't really. Incredible would be accurate. But that doesn't even come close to conveying the depth of wonder and exhilaration I experienced there. Perhaps the best way to say it is that once you visit, Panama is hard to forget. The next time I go I hope to bring my entire family. And all of my friends, too. That way I can open up their eyes to Panama’s ‘moment’ just like someone opened mine.

Shanghai

$2,000/sq.ft. $20,000/M2

London

$4,200/sq.ft. $42,000/M2

New York

$4,000/sq.ft. $40,000/M2

Miami

$1,500/sq. ft. $15,000/M2

PANAMA

$400/sq.ft. $4,000/m2

Paris

$3,800/sq.ft. $38,000/M2

Beijing

$2,000/sq.ft.

$20,000/M2

Dubai

$2,500/sq.ft. $25,000/M2

Hong Kong

$4,000/sq.ft.

$40,000/M2

WHAT’S HAPPENING

Panama’s Top Events and Festivals in 2024

FEBRUARY

February 9 - 14

Panama Carnaval 2024

Panama City

February 16 – 18

Boquete Jazz and Blues Festival (music)

Buenaventura

February 28 - March 3, 2024

Panama Crossroads Festival (music)

Panama City

MARCH

March 13 - 14

Cybertech Latin America 2024 (tech tradeshow)

Panama Convention Center, Panama City

March 19 – 25

Pepe’s Island Boogie (skydiving)

Isla Contadora, Pearl Islands

March 27 - April 8

“Feria de Orquídeas”, Orchid Festival Boquete Fairgrounds

APRIL

April 4 – 7

Panama International Film Festival

Cinépolis Multiplaza, Panama City

April 11 – 12

Digital Media LATAM (media tradeshow)

Panama Convention Center, Panama City

April 18 – 21

Expo Vivienda Capac (real estate trade show)

Panama Convention Center, Panama City

MAY

May 21 – 23

Maritime Week Americas (canal tradeshow)

Hilton Panama City

JUNE

June 10 – 13

Fiexpo Latin America (events tradeshow)

Panama Convention Center, Panama City

JULY

July 31 – August 2

Latin Auto Parts Expo (auto show)

Panama Convention Center, Panama City

SEPTEMBER

Mid-September

“Feria Internacional del Mar”, International Festival of the Sea Bocas del Toro

September 24

Festival de la Mejorana (folk, dance)

Guararé, Los Santos Province

OCTOBER

October 7 – 10

Adventure Travel World Summit (ecotourism)

Panama City

NOVEMBER

November 2

Day of the Dead (religious)

Nationwide

November 3 - 4

Independence Day

Panama City, Nationwide

DECEMBER

Mid-December

Sobresaltos Dance Festival (dance)

Casco Antiguo, Panama City

One Country. 189 Multinational Corporations

189 Fortune 500 and multinational companies have chosen Panama as their regional headquarters in the western hemisphere. Because of its U.S. dollar-based economy, political stability, public safety, affordable real estate, sophisticated arts and culture scenes, and favorable business and tax environments, tens of thousands of other smaller to medium-sized international companies across the business spectrum have made the same decision.

These powerhouse, global brands long ago recognized the strategic importance of Panama not only as an essential place to do business, but also as the ideal location for their executives and employees to live, work, play, and raise families.

The vibrant entrepreneurial ecosystem that these businesses have created has in turn fueled a thriving real estate market for luxury rental and residential properties catering to discerning, international buyers.

The lights of Punta Pacific at night. Panama City, Panama

Panama

Paraguay

Costa Rica

Dominican

Republic

Honduras

Guatemala

Venezuela

Mexico

Brasil

Nicaragua

GROWTH PROJECTIONS IN LATIN AMERICA 2023

Based on annual GDP growth

Ecuador

Bolivia

El Salvador

Cuba

Peru

Colombia

Uruguay

Chile

Haiti

Argentina

BANKING & FINANCE

Historical stability, global connectivity, and a dollarized economy put Panama’s banks in rare company

hroughout its history, Panama has benefitted from its geographic presence in the middle of the Americas. As an essential part of the Spanish Empire for over 300 hundred years (1513-1821), it became a strategic hub where gold from South America sent up the Pacific Ocean crossed the isthmus of Panama before being sent onto its final destination in Spain. The first transcontinental railway, the Panama railway, was completed in 1855, and in 1914 the Panama Canal officially opened,

dramatically decreasing shipping times between the world’s major ports. By the early 20th century, Panama was widely considered one of the global economy’s most important transportation and logistics hubs.

At the same time, demand for financial and legal services exploded around the Canal, leading to a well-developed legal and financial services sector that is now a cornerstone of Panama’s economy. Airport connectivity is another one of

Panama’s global competitive advantages, including non-stop flights to over 80 destinations in the Americas and Europe.

Historically speaking, Panama’s financial sector was born in 1904 with the establishment of the International Bank Corporation (which later became Citibank). Since then, financial services have thrived and Panama has become one of the most respected and developed financial centers in the region with a world class regulatory framework which is among the most

advanced in Latin America in terms of implementation of Basel III and AML (anti-money laundering) standards.

Capitalization and liquidity requirements for Panama's banks are among the strictest in Latin America, underpinning the country's reputation for stability and resilience through the most challenging economic cycles, including the financial crisis of 2007, where Panama´s banking sector was one of the few in the world that did not require government support. Today, there are a total of 54 international and local banks established in Panama.

Panama’s dollarized economy and stable political system have also historically led to low and stable inflation, and the lack of foreign exchange risk and investment grade credit ratings continue to attract foreign investment. Credit availability in Panama is among the best in the region, with banks providing mortgage and consumer loans on similar terms as those

offered in the U.S. Foreign banks have also shown interest in financing large projects in Panama, including infrastructure, tourism, and energy sectors.

Panama has also developed frameworks to attract other types of investments, such as the establishment of special economic zones with targeted incentives which have led to the establishment of regional headquarters by multinational companies.

As a result of all this, Panama today is one of the largest economies in Central America with a GDP of US$76.5 billion and the highest GDP per capita in the region. According to the World Bank, before the COVID-19 Pandemic, Panama’s economy was growing 400% faster than the Latin American and Caribbean averages. One of the strictest lockdowns in the world led to a 17.7% GDP contraction in 2020. However, growth

rebounded to 15.8% and 10.8% in 2021 and 2022 respectively and Panama is expected to return to its place as one of Latin America’s fastest growing economies in the coming years.

Panama’s upcoming Presidential elections this May are not expected to change the market friendly policies the country has enjoyed for over thirty years. And the combination of infrastructure projects in-progress, such as Panama City’s Metro line 3, a strong pipeline of future projects including an expansion of the Panama Canal watershed, and continued investment in logistics, tourism and energy are all expected to drive economic growth for the foreseeable future.

By Vallarino M.

Jorge E.

Jorge E. Vallarino M. is the Chief Executive Officer of Global Bank. Prior to joining GB, Mr. Vallarino spent time in the Latin America debt capital markets and investment banking groups at Merrill Lynch & Company in New York and Mexico

Rainforest and fog envelop the "Oasis of the Americas".

Panama City, Panama

ECONOMY

Honoring The Past. Building The Future

p to the day I wrote this article, it has been approximately 40,000 days since August 15, 1914, the first day of operations of the Panama Canal, and approximately 12,600 days since that same date in 1989, when the Panama Canal celebrated its 75th Anniversary and the Panama Canal Commission was preparing its Panamanian workforce to take over the waterway´s management and operations from the United States of America.

On that 75th Anniversary, all Panama Canal Commission employees, of which I was honored to be one of at the time, received a commemorative coin that read “Honoring the Past, By Building the Future.” And that is what Panama has done: honor the effort, sacrifice, and hard work of those who came before, to build, adapt and maximize the value of the waterway—making the most in building our path.

Since December 31, 1999, approximately 8,800 days ago, the Panama Canal has not only become a significant player in world trade, moving approximately 6% of global volume, but it also has contributed to Panama´s growth, development, and consolidation of its market oriented democratic society.

For the last 23 years, Panama has outpaced most of its Latin American peers. Real economic growth went from an annual average growth of 1.2% during the 1980s, to 6.1% during the 1990s and 5.6% during the 2000-2023 period. By contrast, Latin America grew at an annual rate of 3.0% during the 1990s and 2.3% during the 2000-2023 period.

Panama´s nominal GDP went from US$30 billion in 2010 to approximately US$82 billion at the end of 2023. This significant growth was led by commercial activities and logistics, including the Panama Canal, construction, and financial services. Panama´s solid dollarized economy also includes an international banking system that is well regulated, fully integrated to the international financial system, and without any restrictions on capital flow. Tourism is also a significant activity in Panama´s economy: it represents 11% of GDP, and the number of visitors increased by approximately 40% during the January - October 2023 period relative to 2022.

In terms of human development, Panama has also improved significantly relative to its peers. The United Nations Human

Development Index (HDI) is a measure to assess long term progress in three human dimensions: Health, Knowledge, and Standard of Living. With a population of just over 4 million, Panama´s HDI went from 0.721 in 2000 to 0.805 at the end of 2021, a 12% increase and placing the country in the Very High Human Development category. During the 2000-2023 period, poverty levels dropped from 37% in 2005, to 22% in 2021. GDP per capita increased from US$4,260 in 2000, to US$18,500 at the end of 2023, one of the highest in Latin America.

Panama´s strategic position, and its economic performance, will provide the country with significant opportunities. Trade within the region, nearshoring, energy transition, information and digitalization, and political polarization are some factors affecting the world and Latin America. Panama´s medium term economic growth prospects, of approximately 4% per year, are above advanced economies (1.7%), Latin America (2.5%), and Latin America´s OECD members (2.6%).

Building the future by consolidating Panama´s solid economic performance will require not only further development of the leading economic activities, including the Panama Canal, international trade, logistics, and financial services; it will also require the development or increased participation of other economic activities with growth potential, such as tourism, renewable energy and agricultural activities. Finally, this consolidation will require significant investment in education, consolidating public finances, and continued implementation of business-friendly investment policies, the rule of law, and strong democratic and market-oriented fundamentals.

Domingo

By Latorraca M.

Domingo Latoracca is Founding Partner of ELEMÉNTE, an advisory firm that specializes in Strategy, Analytics, Corporate Governance, Financial Advisory, and Digital Transformation. Previously, he served as Vice Minister of Economy of Panama. Latoracca holds a PhD in Industrial Engineering, from Texas Tech University

TECH NOLOGY

Mayer Mizrachi is betting that Panama can become Latin America's "Silicon Valley South". There's a good shot that the current Panama City Mayoral candidate is right

t’s no secret that the tech industry is one of the most lucrative industries in the world with the best paying jobs. From software to hardware, society has an insatiable need for technology because it improves people’s lives—whether that’s self-driving cars and smartwatches or cloud apps and streaming services. These days, even the most popular toys for kids are tech-based. This is why it's critical that emerging markets bet on tech to grow their economies.

Here are the facts: in Silicon Valley, Austin, or Seattle, an entry level programmer can make US$130,000 per year. A senior level programmer can make over US$250,000, which is why so many students now opt for a career in computer science or software development. This high cost of labor creates an immense incentive for countries like Panama with lower wages to invest in high tech education and benefit from Silicon Valley’s outsourcing movement to lower operating costs.

Panama is also already known as an advanced service economy—banking, logistics, the law, and tourism are four of its principal industries. So, with competition and regulation

growing and complicating financial services, Panama has a unique opportunity to establish itself as the tech hub of Latin America. No other country in the region has a more favorable overall position to do this. Panama has a stable and dollarized economy, a strategic geographic location linking the Pacific and Atlantic oceans, a favorable tax environment, a high quality of life, excellent public safety, services, and healthcare, attractive government incentives, and most importantly, global connectivity with the inter-oceanic communications cables passing through Panama.

Despite these natural assets and advantages, however, Panama still has ground to make up if it intends to compete with Colombia, Mexico, Chile, and Brazil as a tech industry leader.

First, Panama needs to focus on the education of the qualified programmers and engineers big tech needs. Panama also needs to create start-up programs and infrastructure, like accelerators and incubators, in order to attract the best talent in the world to build new tech companies in Panama. This, in turn, will require the nurturing of a venture capital ecosystem, which would then incentivize private equity companies to set up shop in Panama in order to provide greater financial resources to the entire region.

Second, if Panama wants big tech companies like Google, Apple, Tesla, Amazon, and Meta to have a presence in Panama, such as developing a regional headquarters, it needs to create incentives to do business in Panama. This latter part has less to do with financial resources and more to do with political will.

Silicon Valley was once farmland. Austin used to raise cattle. Both are now global tech hubs. Panama can do the same thing

Panama’s government needs to focus less on growing historically stable sources of revenue like banking and the canal and more on attracting foreign direct investment that creates high-paying technology jobs in the new intelligence economy.

Most importantly, the federal and local governments need to work hand in hand to create the long-term legislation and infrastructure that open doors and say, “We’re for real and we mean business.” Creating a Google-style tech focused campus in the heart of Panama City, for example, where citizens, employees, and students could all interact is critical. Just imagine a large green open space with recreational and commercial space complimented by office buildings, a university building, and a large modern digital library with open spaces that promote collaboration and ideation.

Next, you take the President of Panama, the Mayor of Panama City, the Ambassador, and few business leaders with that plan and sit in front of Technion University in Israel, Tesla in Texas, Meta in Menlo Park, Sequoia Capital in Silicon Valley, and Stanford University in Palo Alto and convince them to partner on the project because it’s partnering on the future. With the right infrastructure, incentives, and political will this is all possible. In Panama, we have the talent, the resources, and the location to do it—and not just for Panama, but for the benefit of all Latin America.

Lastly, we can draw inspiration from other tech hubs that were once nameless and are now legendary. Silicon Valley was once farmland. Austin raised cattle. Miami was all beaches and condos until Mayor Francis Suarez helped advocate for Miami 2.0.

Mizrachi Mayer

Mayer Mizrachi is a Panamanian technology entrepreneur and advocate who has previously founded two tech-based start-ups. He is currently running for Mayor of Panama City

Panama can do the same thing. As an entrepreneur myself, I’ve had to emigrate to Silicon Valley and New York to grow and prosper in tech—precisely because Panama currently lacks the environment a tech startup needs. Now that a new generation of politicians is bringing forth a new vision for Panama’s image, economy, and global identity, it is time to embrace the future. Tech is the 21st century’s Canal.

The steady increase in foreign investment in Panama over the last 7 years, notwithstanding the pandemic, indicates strong confidence in the stability of the Oasis of the Americas

THE BUILT ENVIRONMENT

Peace Through Superior Engineering (And Carbon Negativity Too)

hen it comes to infrastructure, engineering, and technology, Panama has always been an example of modernity for the world—though, ironically, most people don’t see Panama this way.

Let’s start with the Panama Canal, whose official motto, “Pro Mundi Beneficio”, roughly translates in Latin to ''For the Benefit of the World”. On this promise, the Canal has kept its word for more than a hundred years. Yet, for Panama itself, the promise of the Canal and the global stability it confers have delivered so much more during that same period.

Despite its small size, Panama over the centuries has helped to define the balance between modern development, economic growth, and environmental preservation at home, while simultaneously contributing to the international community on a global scale abroad.

Yet, nothing symbolizes my country’s

global identity as an infrastructural powerhouse more than the breathtaking, US$5.5 billion Panama Canal Expansion, which was completed in 2016. It is a monument to our country's architectural and engineering brilliance as well as our ability to regularly punch above our weight when it comes to executing bold and unparalleled visions for the future.

Years prior to its completion—and long before current events in the Middle East began adversely affecting commercial ships transiting the Red Sea and Suez Canal—the Panama Canal Expansion had already signaled a sea change in the

dynamics of international trade. Thanks to the upgraded size of the locks and chambers, larger “Neo-Panamax” ships up to 1,200’ (427m) long and 160’ wide (49m) could now pass through the Canal, which increased its efficiency and effectiveness and nearly doubled its annual capacity. Known for decades as the "Gateway to the World," the new canal expansion in turn increased Panama's global economic relevance and gave it even more clout on the global stage than the country had before.

No less visionary and transformative in recent years has been the expansion of Terminal 2 at Panama’s largest airport, Tocumen International, home to Copa Airlines, Panama’s Flagship airline.

Spearheaded by the world-renowned British architect Sir Norman Foster—who’s firm also designed Apple’s Cupertino, CA headquarters and London’s Wembley Stadium—this ambitious project symbolizes Panama's dedication to raising its own bar and solidifying its position as the hub of the Americas. Foster's design demonstrates Panama’s ability to tap the world’s most iconic

talents to burnish its reputation and tell its story through architecturally significant infrastructure.

Not to be outdone, Panama City's revolutionary new underground subway system—the Metro—is yet another example of Panama’s commitment to make transportation, mobility, and logistics an essential part of its national identity. Since its 2014 opening, the Metro has come to not only symbolize Panama’s transportation infrastructure leadership in Latin America, but also, and perhaps more importantly, Panama’s skill at advancing progress without sacrificing sustainability. In addition to reducing traffic, the Metro is a role model for ecologically-sound and climate-friendly urban transportation, demonstrating Panama's commitment to balancing quality of life with care for the environment.

Outside of these high-profile projects, you don’t have to look much farther to find other examples of Panama’s position at the forefront of global infrastructure and smart development. Over the past decade, successive government administrations have continued to upgrade Panama’s ports (Panama City just opened a new cruise ship terminal last year), continued to expand its road and highway network, and fund renewable energy, recycling, and research conservation projects.

What many Panamanians are most proud of when it comes to the built environment, however, is what we’re specifically not doing. Panama is one of just three countries in the world that are carbon negative. Panama is building and developing at a grand scale and doing so with minimal damage to the environment. With wise investments in sustainable practices, reforestation initiatives, and renewable energy sources, our dedication to environmental sustainability across all sectors of our economy is a badge of honor for us.

It’s also a reflection of Panama's core principles and future goals. We are acutely aware through our own history that responsibility is the foundation of progress. Therefore, Panama’s capacity to balance economic prosperity with environmental sustainability is not just an achievement for our nation, but, we hope, a source of inspiration for the global community.

Henri By Mizrachi

Henri Mizrachi is a real estate developer and entrepreneur, and a former Director of the Board for the Panama Canal Authority

HEALTHCARE

Panama’s healthcare system has always been one of Latin America’s best. Johns Hopkins officially made it world class

or any hospital to be “modern” and “world class” today, it needs to possess three essential things. First, top rate doctors, surgeons, nurses, EMTs, support staff, and administrative personnel. Second, cutting-edge facilities, infrastructure, and technology; medical outcomes in many instances are only as good as the tools that doctors and nurses have at their disposal. Lastly, modern, world-class hospitals need deep and stable financial resources to stay that way.

Within Panama, it’s a well known fact that we have one of the best healthcare systems in the world

which is affiliated with The Johns Hopkins Hospital in the United States, is ranked the 7th best hospital in Latin America according to the consulting firm IntelLat. It’s also received the highest accreditation five times by the independent and non-profit Joint Commission International (JCI), which identifies and measures global best practices in healthcare quality and patient safety.

Within Panama, it’s a well-known fact that our country has one of the best healthcare systems in the world for a nation of our geographic size and population (less than 4.5 million people). The hospital where I practice immunology, Pacific Salud,

Many of our doctors and surgeons, both in public and private practice, studied and trained in the United States at prestigious universities like Stanford, Harvard, and the University of Pennsylvania. I completed my own pediatric residency in Panama and then did my Fellowship at Georgetown

By

Dr. Moises Zebede

Dr. Moisés Zebede is one of the world’s foremost experts in allergies and asthma and is the former Medical Director of Pacifica Salud hospital in Panama City. His son Salomón Zebede performed the first gynecological surgery in the world utilizing the Hugo Robot Assisted Surgery (RAS) System in Panama City

University, specializing in immunology, allergies, and asthma. I was invited to speak at international conferences and I am now regarded as one of the world’s best-known allergists. How many people outside of Panama know that Panama has world-renowned medical experts like me? Not that many, I suspect.

Panama is also a leader in medical technology and surgical innovations. We regularly perform innovative treatments with stem cells, gynecological and urological surgeries with robotics, and apply new biological therapies for illnesses like cancer and skin disease. We are one of the world’s leading experts in the field of urogynecology; my son, Salomón, personally performed the first gynecological surgery in the world with the Hugo Robot Assisted Surgery (RAS) system. We also have excellent cancer centers and our stem cell center in orthopedics treats patients from all over the world.

At a national level, the Panamanian government is also under construction on one of the most ambitious healthcare construction projects in Latin America called “Hospital City” in the western part of Panama City, which spans almost 32 hectares and, once completed, will be the largest and most modern healthcare facility in Central America capable of providing services to 1.5 million people.

Hospital City will consist of 43 different operating theatres, 284 out-patient facilities, and 1,235 beds, spanning areas

of expertise from pediatrics, cardiology, and internal medicine to maternal and infant out-patient care, surgical specialties, and rehabilitation institutes. Designed by the Spanish architectural firm TASH, Hospital City was also designed to take Panama’s environmental, weather, and climate conditions into consideration so it will be one of the most sustainable and energy-efficient healthcare developments in the world for generations to come.

Ultimately, when you consider Panama’s healthcare system wholistically—the quality of care, the advanced facilities and technology, the investments into research and development—combined with Panama’s central location, healthy lifestyle, warm tropical climate, and daily flights from more than 70 international cities, it’s no surprise that Panama is frequently ranked as one of the world’s best places to retire or start a business. Panama’s state-of-the-art healthcare system is also one of the key factors that regularly ranks Panama as one of the top destinations for the growing industry of “medical tourism”.

In a country like Panama which is full of vibrant culture, ecosystems, adventure, and experiences healthcare isn’t a topic people regularly talk about because there’s so much more to discuss. But the fact that I can tell you that we have one of the best healthcare systems in the world is what makes me most proud as a Panamanian.

Paradise found. San Blas Islands archipelago, Panama

Paradise never lost. San Blas Islands archipelago, Panama

QA &

and balancing elements of contemporary luxury with whimsical and fantastical touches that are characterized by their theatricality and storytelling qualities.

I’m not afraid to embrace the use of rich textures, luxurious materials, and dramatic lighting to create a sense of drama and enchantment. My designs often incorporate ornate detailing and accessories, such as intricate wallpapers, elaborate chandeliers, and sculptural furniture pieces, all of which add their own layers of depth and spontaneity.

Do you have signature elements or materials that define your work?

What’s the most exciting part of fusing your passion for style and design with luxury real estate?

A common element in many of my designs is the fusion of the traditional and the contemporary. I strive to seamlessly integrate modern design with old-world craftsmanship, infusing my interiors with a sense of timeless elegance. This unique blend bridges the gap between past and present, resulting in designs that both evoke a sense of legacy and are also innovative.

Marcel Wanders is one of the world’s pre eminent style icons, designers, and creative visionaries. Here, he talks with THE PANAMA REPORT about his interior design philosophy, the magic of Panama, and why he chose Panama City for his first branded residential building, Wanders & Yoo

There are some things that I consider my “absolute icons”: like my Delft Bleu, the Tree of Life, my Moooi pieces (I love these), and of course bells and flowers—endless flowers that I intertwine in “international bouquets” and speak to the nature of beauty around the world. Along with bold patterns, intricate craftsmanship, and a sense of playfulness, my goal is to create spaces that are not only luxurious but also organic, artistic, and visually stunning.

At the same time, my interior design philosophy puts a strong emphasis on creating and coziness. While they may feature grand and theatrical elements, my interiors never sacrifice livability and inviting atmospheres. To do this, I like to incorporate soft textiles, plush furnishings, and inviting seating arrangements into my designs, ensuring that spaces evoke a sense of sustained warmth and deep relaxation.

ow would you describe your design aesthetic?

My designs are best known for pushing boundaries, challenging conventions, and being “eclectic”—that is to say, combining

What was your first impression of Panama and why did you choose Panama City for your first real estate project in the world?

I was most impressed by Panama’s diverse cultural heritage, which has been influenced by indigenous peoples, Spanish colonialism, Afro-Caribbean communities, and international migration. The cultural vibrancy and richness born from this mix—reflected in the country’s customs, art, and cuisine—is Marcel Wanders

what I came to love about Panama the most.

I also discovered that Panama is blessed with perfect contradiction. I was in awe of the pristine beaches along its coasts, its lush rainforests, and its hundreds of tropical islands and marine life. At the same time, I was delighted to find that Panama City is a vibrant international metropolis with a modern skyline, ambitious infrastructure, and bold architecture that rivals any city in the world.

In addition, what struck me was the warm and welcoming nature of the Panamanian people. From the moment I arrived, I experienced open smiles, a rare authenticity, and a genuine eagerness to help. In Panama City, I could also immediately feel how its business environment and strategic location as a global hub of trade and finance has fostered a culture of innovation and entrepreneurship. The sense dynamism and the buzz of economic activity was palpable and energizing.

What inspired your design approach for Wanders&Yoo in Panama City?

For the design of Wanders&Yoo, I drew inspiration from Panama’s deep connection with the Atlantic and Pacific oceans—from the tranquil blues and serene greens of the water to the calming neutrals and sandy stones of the coast. To celebrate Panama's diverse flora and inspire a harmonious connection with

nature in my design, I evoked the lushness of the Panamanian jungle. This meant using natural materials like wood, stone, and bamboo, along with integrating indoor plants, living “garden walls”, and bold flower patterns and motifs in the wallpapers, upholstery, and fabrics.

It was also important for me to incorporate iconic symbols of Panamanian culture into Wanders&Yoo’s design. For example, handmade traditional crafts, artwork, and decorative pieces all help add a unique touch of history while also celebrating local craftsmanship.

Spatially and architecturally, I took advantage of Panama's warm climate and picturesque views to design spaces that seamlessly blend indoor and outdoor living with large windows, open terraces, and large balconies that maximize natural light and fresh air. I also embraced Panama's commitment to environmental conservation through eco-friendly design technologies like energy-efficient appliances, solar panels, rainwater harvesting systems, and using recycled or locally sourced materials whenever possible.

Ultimately, by combining all of these features and elements, I was able to create a new kind of living experience in Panama that seamlessly merges the country’s landscapes and seascapes all within a contemporary urban oasis with a lush natural aesthetic.

F o und e d i n 2007 by Edua r d o Q u i nt e r o and A nnama ri a

Z ampogna , F or za Cre a ti v a is a b o u ti qu e a r c h it ec t u re offi c e t ha t st and s o u t f or i t s t a le n te d t e am o f a r c h i t e c ts and d esi gn er s . I t s e x t en si v e p o r t f o li o i nc l ud es c o mm er c i a l and resi d e n ti a l p r oj ec ts i n

a r c h i t e c t u r e, i n terior d esi gn , and u r ban p l ann i ng a t a l oca l and i n t e r nat io na l le v el. F or za Cre at i v a is

d isti ngu is h e d by its cu sto m , s u s ta i nab le and i nn o v a ti v e de si gn s o f h i gh qua lit y and c r ea ti v it y. I t ha s m u lti p le

LEE D c e r t ifi ed p r oj ec ts and li c e n s e s i n bo t h t h e Un ite d

S tat es and Panama .

ALLEG

REAL ESTATE

Super luxury residential

developments

in partnership with brands like Fendi are booming in Panama. The rest of the real estate world should be paying attention

anama is full of surprises. But nowhere more so than when it comes to first impressions of Panama City. I’m not sure what people are expecting when they fly into Tocumen airport for the first time. But the sheer size, scale, and modern design of Panama City’s skyline leaves most of visitors speechless.

For me, as a Panamanian, this is a source of great pride. I grew up always wanting to build things. I wasn’t sure exactly what at first. So, I went to the University of Pennsylvania in America and graduated as a civil engineer. I eventually came back to Panama and, after the Great Recession, I saw a space to fill in the high end “serviced” real estate market.

Back then, Panama was starting to get very popular overseas with international real estate investors and high net worth buyers who traveled extensively and preferred tax and business friendly countries for residency. They were attracted to Panama for this reason. But they fell in love with Panama for the culture, its people, the tropical climate, and the lifestyle. In turn, that meant developers needed to start building for the market and delivering the high-end, high rise, amenity-driven residences that these buyers wanted.

At this point, branded luxury real estate developments from names like Four Seasons, Bulgari, Fendi, and Porsche were also starting to gain traction around the world in cities like Miami, New York, London, and Dubai as well as tourist hotspots like Cabo San Lucas and the Bahamas. The model made sense. Buyers liked the cache. Developers could charge a premium. Banks preferred the certainty. And elite brands could extend their international “imprint”.

So, in that moment, in Panama, we knew that if we went to the world’s most famous international designers and globally extravagant brands and built a new kind of 5-star, amenity-centric building that didn’t exist in Panama—or really anywhere else in Central or South America for that matter—we would have this market all to ourselves. We also knew that these types of projects would be very good for Panama in general because high-profile buildings would bring visibility and architectural credibility in the same way that branded developments have elevated other cities around the world.

Now fast forward a decade, we are completing our third luxury branded real estate development. The first one we opened in 2013 in the heart of Balboa Avenue on the water in downtown

We knew that if we built a 5 star, branded development that didn’t exist in Panama yet, we would have the market all to ourselves

By

Attie Budy

Panama City which was designed by the French designer Philippe Starck and is called Yoo Arts Tower. Our second branded high rise, Wanders&Yoo, just recently opened and was designed by the famous Dutch style icon Marcel Wanders, who the New York Times dubbed the “Lady Gaga of the design world”. And our newest building, La Maison, is just Fendi’s third real estate project globally, one of Panama City’s tallest high rises at 771’, and by far its most luxurious since we are trying to attract some of the wealthiest and savviest buyers in the world.

This brings up an important point about what the luxury real estate market means to Panama, its economy, and its reputation. Local buyers for us are always a constant. But at the same time Panama is a well-known safe haven for Latin America and buyers from other countries seeking political stability and financial certainty in addition to a 5-star quality of life. When conditions become unstable in countries like Colombia or Eduador or Argentina, interest in Panama real estate increases. We have a U.S. dollar-based economy, a strong banking sector, secure property rights, you feel safe when you walk around, and there are good hospitals.

So, while we don’t currently have as many new, ultra-luxury buildings as Miami or New York or Dubai (yet), the buildings we do have and are developing right now—both branded and unbranded—are just as architecturally significant as anything else in the world.

The big difference? Price. Panama might be a “small” market for world-renowned global brands or for international real estate buyers. But the same high-quality real estate comes at a fraction of the price. The other big difference? Panamanians. Panamanians are cool. We are warm, welcoming, generous, and used to mingling with people from all over the world.

Panama is full of surprises. I think I just let the secret out.

Budy Attie is Director of Durex Property Group and a real estate entrepreneur specializing in luxury development, branded properties, investing, and management. His current project, La Maison designed in partnership with Fendi, is the newest and most expensive residential development in Panama

APARTMENTS PRICED OVER US$2500/M2 AS PART OF TOTAL MARKET IN SALES VOLUME (%)

The upper end uxury market is on an upward trend line for the Panama City Market. It represents a consistent growth pattern for future appreciation

SOURCE LA GALERIA INMOBILIARIA WITH GRAPHS BY IGRPANAMA

PARTICIPATION MARKET

TOTAL MARKET % MARKET LINEAR (% MARKET)

studied at Cornell and Harvard University and worked internationally with renowned architect Cesar Pelli

ARCHITECTURE &DESIGN

Panama has become a global canvas where visionary ideas unfold

n the midst of the unprecedented challenges posed by the 2020 pandemic, the Panamanian real estate sector faced a dramatic shift. This was an unimaginable irony for many architects and designers, given that only a few years earlier we had enjoyed full unemployment and now faced global layoffs.

For me, however, challenges were not an unfamiliar terrain. From navigating the financial hurdles of graduate school at Cornell and Harvard to leaving a stable 7-year career with Cesar Pelli Architects to pursue my dream of moving to Panama to build my own studio, uncertain times had always been followed by unforeseen opportunities. Therefore, during the pandemic, I remained optimistic that Panama would come out stronger.

The post 2020-era required unwavering focus and resilience for the architecture and design community. But perseverance

paid off. In 2023 our firm, Forza Creativa, saw a wave of investors and developers from more than 15 countries and 3 continents, all knocking at Panama’s door to explore the possibility of doing new developments here. At the same time, projects we’d designed pre-pandemic that were left on hiatus in a pre-construction phase regained momentum with new sales and are now set to break ground.

The current resurgence reminds me of the dynamism we experienced during the former real estate boom years between the early 2000s and 2016. During that time, Forza Creativa designed some of Panama’s highest-profile, trend-setting buildings, like the MMG Tower and the Global Bank headquarters. We worked for sophisticated developers, savvy operators, and demanding multinationals such as Nestle and HSBC, designing their regional headquarters. We were recognized with many awards and pushed some seriously complicated new limits in energy-efficient buildings and sustainable design. We were competing at the highest levels of architecture and design—on par with any other top U.S., European, or Asian firm. Those prolific

years exceeded every expectation I had for what Panama could be for me when I first moved here empty handed in 2007.

Today, from Casco Antiguo to The Santa Maria residential complex and from Bocas del Toro to Venao Beach outside the capital, all of us—Panama’s architects, engineers, developers, and contractors—are witnessing the early signs of another real estate Renaissance. This trend goes beyond individual success stories. The groundwork Panama has laid over the past two decades in major investments such as the expansive Metro System, Norman Foster’s new International Airport terminal, and Frank Gehry’s Biodiversity Museum has set the stage for a new frontier for growth.

At the same time, Panama’s societal matrix has evolved, opening new opportunities and synergies through a diverse blend of digital nomads working on pristine beaches, to multinational companies revitalizing entire neighborhoods, to expatriate families immigrating from elsewhere enriching Panama’s cultural tapestry. This energy, in turn, has attracted renowned global brands and designers like Philippe Starck, Marcel Wanders, Armani, and Fendi, all of whom have partnered with Panamanian developers and designers on architectural masterpieces that have transformed Panama’s skyline.

Panama’s new commitment to tourism as an economic diversity strategy is also clearer and stronger than ever before.

Panama never marketed itself this way. But its breathtaking natural beauty, strategic location, and existing connectivity to the world poise Panama’s tourism for exponential new horizons. The imminent completion of vital infrastructure projects currently underway, such as new highways, tunnels, bridges, and a third metro line, connecting the city to the outskirts, will empower a new generation of tourism projects, resorts, and developments, very much akin to the success story that’s occurred in Costa Rica. This is particularly aspirational, given that Panama shares the same mountain range as our neighbor, but has an incomparably longer coastline on bot h oceans as well as a higher density of untouched islands. Today, Panama is at a pivotal moment brimming with opportunity. The real estate landscape has reached a fair value

after a decade of consolidation. This positions the country as an attractive investment proposition, as our architecture, interior design, amenities, and luxury lifestyle rival anything in cities like Miami or Madrid. Despite in many ways being misunderstood, Panama’s potential is exciting and my optimism for the future is unwavering.

I came back home in 2007 after 14 years in the US, compelled to give back. I am fortunate to live in a resilient environment and country where visionary ideas unfold and new opportunities continuously arise.

I am honored to call myself Panamanian and to play a part of my country’s vibrant and prosperous future. I invite you to come and be a part of this moment of transformation and the journey ahead.

Mangrove forests, rivers, and sandbars.

Venas Azules, Portobelo District, Colón Province, Panama

QA &

Panama’s Minister of Tourism, Denise Guillen, talks perception, the power of place, and why Panama is poised to become latin america’s next greatest tourism hotspot

opportunity for everything in Panama to be re-discovered. The Smithsonian Tropical Research Institute (STRI), for example, has been operating in Panama for over a hundred years. We also have more protected land and marine areas than almost any other country in the world. That makes Panama an epicenter for ecotourists, adventurers, “curiosity seekers”, “conscious travelers”, history buffs, anglers, surfers, boaters, divers, photographers, and digital nomads.

hat are visitors most surprised by when they first come to Panama?

Most first-time visitors are taken aback by our country’s incredibly rich biodiversity so close to Panama City and so connected to the rest of Latin America, the western hemisphere, and the world. We are blessed to live surrounded by beautiful jungles, national parks, marine reserves, and coastal areas right outside our doors. That gives visitors the opportunity to experience one of world’s most biodiverse places adjacent to one of Latin America’s most cosmopolitan cities.

For example, we have world-class bird-watching areas in the heart of Panama City. Or visitors can hike up a mountain or zipline through the rainforest and get back to their 5-star hotel in time for a gourmet dinner prepared by an award-winning chef. This combination of diversity, juxtaposition, and balance—without even mentioning our rich blend of history, tradition, and culture—are what make Panama so unique and one-of-a-kind.

With all these natural assets, why isn’t Panama already considered a world-class place to visit, live, invest, or retire?

It is! For some people. But for a long time, Panama hasn’t done a great job telling its story to the world in the way that Costa Rica has, for example. The fact that our country hasn’t been recognized as a global tourism hotspot, however, now presents an

Historically, we’ve also attracted expats, retirees, and investors. But not with the same intent and focus as we are now. The beauty of this is that these people eventually become ‘Panameños’ and ambassadors for our country around the world. And as the Panama Tourism Authority continues to invest in tourism promotion alongside the International Tourism Promotion Fund (PROMTUR), Panama’s reputation will only continue to grow globally. All of these efforts combined are positioning us to become one of the top tourism, retirement, and real estate investment destinations in the world over the next 5-10 years.

How important is Casco Antiguo to Panama’s international image and tourism?

The revival of Casco Antiguo, Panama City's historic district, has been crucial for Panama's international image and for tourism because it’s allowed us to showcase our history, diversity, cultural heritage, and national identity to the

world. It was originally built following the near-total destruction of the original Panama City by pirate attacks in the 17th century. The new ‘city’—what is now known as ‘Casco’—was subsequently designed with defensive fortifications, narrow streets, and a mix of architectural styles reflecting its Spanish, French and American influences.

Casco was designated a UNESCO World Heritage Site in 1997 because of its role in representing the fusion of European, American, and indigenous cultures in Latin America. Its historic architectural rebirth and modern economic revitalization began shortly after that. Casco is now a vibrant center for the arts, culinary gastronomy, music, and nightlife, which attracts locals, tourists, as well as international investors and business travelers. The restoration of Casco Antiguo has also highlighted Panama's commitment to restoring and preserving its historical treasures and cultural legacies.

Why is Panama’s location globally so important to its tourism industry?

Panama's central location in the Americas and the Panama Canal's strategic position in the world are vital for its economic and tourism potential.

We are also fortunate in our geography because we are out of the path of most major natural disasters that affect other countries, such as hurricanes, earthquakes, wildfires, and tsunamis.

If you had one chance to pitch Panama to a meeting of the world’s top tourism officials, what would you say?

Panama—with its long history, stunning natural beauty, rich cultural diversity, environmental sustainability, and political and economic stability—is the modern world’s next hidden gem waiting to be discovered. Panama City is a global cosmopolitan hotspot with gleaming skyscrapers, vibrant nightlife, and welcoming people, all set against the backdrop of one of the planet’s most biodiverse tropical rainforests, two oceans, and one of the seven engineering wonders of the world. Our past is our greatest asset, our location and natural environment are our greatest gifts. But the future and potential of Panama is the most exciting thing of all!

Denise By Guillen

Denise Guillen is Minister of Tourism for Panama and a lawyer and financial specialist focused on tourism planning. In her public sector roles, Guillen was part of the team that updated the Panama’s Sustainable Tourism Master Plan for 2020-2025 and helped to develop Panama’s Coastal Tourism Master Development Plan. She also served as Director of Investments for the Panama Tourism Authority from 1994 to 1999

The perfect wave. Playa Venao Los Santos Province, Panama

HOSPITALITY

Hotel La Compania is Panama's best new hotel. But that's just the start of it

ow Panama—with its Miami-“esque” skyline, perfect climate, and buzzy global business vibe — managed to stay under the world’s radar for so long as a breeding ground for great hotels, resorts, bars, and restaurants is an modern day enigma.

When I first came to Panama in 2013, I was dumbstruck by its skyline. In

retrospect, I’m not sure what I was expecting. A 2nd or 3rd tier city in Central America with mediocre, mid-rise buildings and dirt roads, I guess. What I discovered was the complete opposite: architecture that beckoned of the future rather than showing the decay of the past. The obvious desire of Panama City to lead Central America was clear. Was Panama the Hong Kong, Dubai, or

Singapore of Latin America (LATAM) became the next legitimate question.

As my wife and I settled into the city, I couldn’t stop thinking that I’d discovered one of the world’s best kept secrets. Panama was pivoting from Noriega, the Canal, and the 1989 U.S. invasion to Central America’s political and economic powerhouse. Panama City was firing on all cylinders and the country’s “coming of age” party was obvious. The economy was clocking up 10% GDP growth, euphoria was on peoples’ faces, and Panama’s restaurant’ “scene” was about to explode, transforming from mostly mom-and-pop joints to a cutting-edge international culinary frontier. And I was just in time to witness the Renaissance.

I couldn’t stop thinking that I’d discovered One of the world’s best kept secrets. And i was just in time to witness

the Renaissance

The rest of the decade saw massive change. Colombians, Venezuelans, Argentinians, Canadians, and other foreigners flocked to Panama City’s gleaming high rises, luxury developments, and the historic district,

Casco Antiguo. One of the best things about Panama is that it’s not at all xenophobic. All of the world’s great cities are cosmopolitan, because with different people come different talents, tastes, and traditions. But some cities don’t integrate and embrace them. Panama embraced this new diversity and change, and as a result the character and quality of Panamanian “gastronomy” took a lightening leap forward, cementing Panama City as the culinary capital of Central America by 2020.

Post-Covid, Panama is now experiencing a second, bigger Renaissance—this time with a stronger foundation, better publicity, longer-term vision, and the swagger and stature of proven international brands behind it, like Fendi, Hyatt, and Sofitel. A new international cruise ship terminal, a new convention center (the largest south of the U.S. border), and a nearly US$1 billion expansion of Panama City’s main Tocumen (PTY) airport are even more encouraging signs that the soundtrack to this new party isn’t about to stop anytime soon.

Panama is a small country, smaller than South Carolina, with just over 4 million people—half of which half live in Panama City proper. Given this it’s not absurd to ask if Panama is actually a country, or more of a red-hot city with a big back yard? For decades, tourism outside of Panama City was primarily limited to backpackers, bird watchers, eco-trippers, and surfers spilling over from Costa Rica to the breaks in Santa Catalina or party

towns like Bocas del Toro on the Caribbean. In the city business travelers paid for hotel rooms and big dinners, but didn’t do much else. The interior of Panama has been virtually ignored, devoid of any resorts worth staying at or food worth eating (hint: this is about to change big time very soon).

Today, luxury resorts like Islas Secas, Isla Palenque, and Nayara Bocas, to name just a few, have opened up to rave reviews and “best of” global rankings. Panama City’s food scene is better than ever. And Casco Antiguo is breaking all of its own records for everything every other night. That’s where I decided to build my own hotel, La Compania, which as part of Hyatt’s Unbound Collection, adds yet another luxury brand to the city along with the old stalwarts like the Bristol, Waldorf, and Hilton, as well as Sofitel which just opened down the street from me.

Ultimately, Panama is experiencing nothing less than the birth of the future of modern luxury adventure travel—similar to what happened in Costa Rica some thirty years ago. For Panamanians, let alone expats like myself, watching what’s happening in real time in one sense seems surreal. Yet, having spent eight years of my own life restoring a convent from 1688 into La Compania with five restaurants and 5-Stars, I know firsthand that what I’m seeing, feeling, and experiencing in Panama right now couldn’t be more real. Seeds of hospitality are being sown everywhere. The fruit will be this country’s future.

Chris By Lenz

of Hotel La Compañia, part of the Hyatt Unbound Collection, and a student of life. He previously spent two decades opening and operating hotels, restaurants, and entertainment venues in Asia before moving

Historic Casco Antiquo buzzes at night.

Old Town Panama City, Panama

QA &

How did you come to be involved in Casco Antiguo’s revitalization?

I moved into an apartment in the neighborhood and met a Panamanian who knew how to restore buildings and invited me to be his partner. We began working on a few projects at a time. Our first large-ish project was Benedetti Hermanos, a ten-unit, 40,000 square foot condo with a large retail space on the ground floor. We also opened the first hotel in Casco called Canal House which was tiny but got a huge boost from hosting Daniel Craig for a month when he

been sold to a private owner decades before and then left empty. That is where the name "Conservatorio" comes from. We did a light fix up of the building and leased it rent-free to the Danilo Perez Foundation, which gave local kids access to training by a Grammy-winning jazz musician.

What were the biggest challenges with your first projects in Casco Antiguo?

In the early days, security, both real and perceived, was the biggest problem. There were gangs operating on every

Conservatorio's KC Hardin on Casco Antiguo 2.0, how to revitalize an historic district, and calling Panama home

hen did you move to Panama City and what was the inspiration?

I moved to Casco in 2004 and fell in love with its human scale, patina, and potential. I didn't set out to move to Panama. I was a corporate lawyer in 2002 and took a short leave to travel before transferring from my firm's New York office to Tokyo. I found great surf in Panama and saw its potential so decided to buy a small hotel here and never look back. Within a year I had met my wife, Patrizia, and the rest is history.

needed and wanted. When the government shuttered the program, I set up a non-profit and brought over some of the social workers that had been laid off but knew the dynamics. We innovated from there and ended up demobilizing most of the gangs in Casco. A lot of the guys still live and work in the neighborhood.

Did you have any idea that Casco could become what it is today?

There was never a doubt in my mind that Casco would become the crown jewel of Panama City. In fact, from the beginning I felt the biggest challenge would be keeping the development from ruining what makes the place special to begin with. The key with historic districts is to revitalize them while keeping them from becoming victims of their own success. You need to balance the mix between tourists and residents, local merchants and international brands, and party and peace. Too much of anything is too much.

How important is Casco Antiguo to Panama and Panama City from a tourism, real estate, and sustainability standpoint?

Bill Gates called Panama one of the most fascinating places he's ever visited. I agree. The city has that rare blend of cosmopolitan and tropical that makes you think, "I could live here".

But Casco is the tourism heart of the city and one of the most important pillars of the

country's ambition to become a world-class destination. Visitors appreciate the Canal, and they think the high-rises are impressive. But Casco is what they fall in love with. It’s one of the few places in the world where you can have the ocean and rainforests, and a cosmopolitan city next door.

—What’s next for you and Conservatorio?

This year, we are excited to refocus our work on revitalizing the neighborhood adjacent to Casco Antiguo called Santa Ana, which is similarly walkable, but has more of a mid-century character versus Casco’s colonial style. Our first project is called Gran Central, which will be eight buildings on a one hectare walkable site, including a hotel, several hundred apartments and large market hall that will be a gathering place for both locals and visitors.

— Co-Founder, Conservatorio

Keyes Christopher "KC" Hardin is co-founder of Panama City-based Conservatorio SA, a real estate development company dedicated to sustainable urban revitalization. Hardin is also a co-founder of Esperanza San Felipe, a gang intervention and integration program that was a 2016 McNulty Prize Laureate

Rental trends in upscale markets within Panama City are strong and stable which supports both Investment return and future appreciation

FOOD &WINE

Panamanian Cuisine Is Going Global. It's About Time

2012, when I was still working in Australia, Ben Shewry, chef of the renowned restaurant, Attica, asked me a simple question: "What is Panamánian cuisine?"

At the time, it was difficult for me to give a concrete answer. So, I did what 90% of Panamánians would have done: I mentioned some iconic Panamánian dishes such as sancocho, rice with chicken, and octopus a la costeña, among others. That answer left me feeling a void. But it also left me asking the same question: What is Panamánian cuisine actually?

To understand the cuisine of any country, you first must understand its history. But what happens when you live in a place that was not only the first location the Spanish colonized on the Pacific coast, but also is one of the most important global transit and trade epicenters in history? The answer is: A LOT.

Panamá is a melting pot as vast and varied as the United States. So, depending on which ethnicity is predominant in your family and which province you are from, your perception of Panamánian food can vary greatly. That's why for me it's easier to say that my cuisine, instead of being "Panamánian", is a "cuisine that speaks of Panamá".

Always full of surprises, our culinary map has a lot to say. Just to put things in perspective, dim sum (Chinese breakfast) is as “Panamánian” as sancocho de gallina de patio (our country's most recognized soup). In Panamá you will find Chinese restaurants that will blow your mind. If you don't believe me, spend a day in El Dorado in northeast Panama City touring every restaurant and bakery. You will quickly realize that you don't even have to leave Panamá to have your fill of world-class Chinese food.

We love powerful flavors. No matter what time of the day or time of year, our food is designed to energize the body and soul no matter the inspiration For instance, I can talk about Italian, Peruvian, Argentinean, Colombian and many other types of cuisine that, little by little, have contributed to Panama’s culinary richness and diversity for this reason. We also share many ingredients with our neighboring countries: rice, corn, yucca, achiote, culantro, and many more are all staples for us. Their preparations may vary. But in one way or another they share a similar essence that transcends borders.

For me, as a chef, the most interesting thing about Panamanian cuisine is that we are such a young country. So,

That's why, for me, it's easier to say that my cuisine instead of being "Panamánian", is a cuisine that speaks of Panamá

Jose By

Olmedo Carles

who’s to say that many of these dishes that we are creating here now in Panama—today—won’t become the traditional dishes of our nation in the future. Remember that the tomato used in Italian cuisine comes from America. See what I mean?

Panamá’s culinary scene is also melting pot. Even much larger Latin American countries don’t have the diversity of flavors and restaurants that exist here. In the last ten years in particular, we have also been blessed by a new generation of chefs who not only have trained and worked abroad, but also strongly believe that we have the potential to compete at a culinary level with any country in the world. If Panama were a contestant in a competitive cable television cooking show, there’s a good chance we’d win.

From Casco Antiguo to Santa Maria—Intimo, Maito, Casa Escondida, Makoto, 5inco, La Tapa Del Coco, Riesen, Receta Michilá, Azafrán, Tomillo, Hong Kong Bakery, Anti Burger, A Mano, and Mahalo are just a few of the many restaurants that today represent Panamanian cuisine. It would fill a book to list all of the others.

Fonda Lo Que Hay, my restaurant baby, is my own ode to Panama and our “way of being”: colorful, cheerful, energetic, and full of flavor. Along with my second restaurant, Donde Jose, and my third, Si!Mon, which just opened in Los Angeles, I feel a responsibility to represent Panama through my cuisine to the world. In the end, the mission is the same: to show that Panama is much more than a Canal. We are people with a lot to give and food that is world-class.

I still don't know if I have a clear answer to what Panamanian cuisine is. I just know that the more I keep asking myself, the more beautiful ideas and dishes keep coming into my head. And that's enough. I love you Panama.

Jose Olmedo Carles is head chef and owner of three renowned restaurants specializing in Panamanian cuisine—Donde José and Fonda Lo Que Hay in Panamá City, and Si! Mon which recently opened in Los Angeles

The Frank Gehry-designed Biomuseo. Panama City, Panama

ARTS&CULTURE

At the crossroads of North and South America, Panama's unique geographic location gives rise to a captivating cultural story and arts scene

anama has always been a melting pot—a fascinating blend of indigenous and Afro-Caribbean traditions, European, North American, and Chinese influences, and various other modern expressions. Much like the multi-color artisan tapestries woven in the remote San Blas islands by Guna Yala women, known as the Mola, Panama’s cultural landscape intertwines threads of history, art, and music, creating a distinctive identity.

Not surprisingly, Panama’s arts and cultural scenes are equally diverse and quirkily omni-faceted. Imagine public buses posing as street art (they’re called Diablo Rojos, or “Red Devils”). Think old meets new, tradition meets

Annamaria

a melting pot. Not surprisingly, Panamanian art and culture are equally diverse and quirkily multi faceted

Annamaria Zampogna is Co-Founder and Principal Interior Designer at Forza Creativa in Panama City. She earned her Masters Degree in Architecture and Urbanism from the University of Miami, and is a representative of the New York City Architectural Biennial and board member of Panama’s Museum of Contemporary Art

contemporary, board room meets the creative class. Panama is a country of spice and contradiction that date back to its roots.

Panama’s original Spanish settlement, known as the Casco Viejo district in Panama City, remains Panama’s creative hive and cultural hub, as well as an extremely rare pocket of history recognized as a UNESCO World Heritage Site that showcases the architectural legacy of Spanish colonization and French influence. One captivating way to preview Casco Viejo right now is through the lens of Panamanian film director Abner Benaim latest movie, "Plaza Catedral", recently shortlisted for an Academy Award.

Multi-colored woven tapestries made by Guna Yala women. San Blas Islands, Panama

The other is to visit Panama’s National Theater. Originally opened in 1908 and designed by Italian architect Gennaro Ruggieri, this intimate theater is one of the most magnificent in Latin American and hosts a variety of performances throughout the year. Shows range from the National Ballet and the National Symphonic Orchestra to local theatrical performances, and the yearly international dance festival, PRISMA, held every October.

Also within Casco Viejo, two museums tell essential stories of Panama’s historical identity. The Museo de la Mola, or MUMO, highlights the history and importance of Guna Yala textiles with an exhibit of over 200 tapestries. The Canal Museum, as if in purposeful contrast to MUMO, tells the story of the Canal’s construction and the financial and human toll that singularity of vision extracted. The Canal Museum’s director, Ana Elizabeth Gonzalez, is also leading a Herculean effort this year to bring Panama to the Venice Art Biennale for the first time along with several top Panamanian artists.

Closer to the present and housed in a former Masonic Temple on Ancon Hill, Panama’s Museum of Contemporary Art (MAC) has been a prominent player in the country’s cultural scene since 1962. The museum currently boasts a collection of over 1,200 Latin American artists, including Julio Zachrisson, Sandra Eleta and Olga de Almaral. Currently on exhibit is the significant work of the Kadist Collection and also a solo show of the promising Panamanian artist Cisco Merel.

Panama's contemporary art scene is also thriving in a growing number of smaller galleries that showcase the work of both local and international artists, like long standing Arteconsult, and more recently Marion Gallery featuring Jesus Soto and Carlos Cruz Diez. The DiabloRosso Gallery, on the other hand, has earned a reputation for bringing lesser known artists to Panama, while also taking chances and positioning local artists such as Donna Conlon and Jonathan Harker to central collections such as the Guggenheim New York and the Tate Modern.

Panama’s other notable museums include the iconically multi-colored Biomuseo which was designed by renowned architect Frank Gehry and explores the country's biodiversity through interactive exhibits and displays. Coupled with the Smithsonian Tropical Research Institute, the Biomuseo exemplifies Panama’s long-running commitment to the arts and sciences as well as the country’s affinity for drawing cultural influence and artistic inspiration from both.

When it comes to the music scene, the most vibrant time to visit Panama is in January when the world-renowned, three-day Panama Jazz Festival takes place. Almost within the same week is Musicalion, another widely celebrated, local, open-air music festival. Over the years, both of these events have featured internationally award-winning local artists such as Ruben Blades, Danilo Perez, and Erika Ender, all long-standing ambassadors of Panama through their salsa, jazz, and pop music on the world stage.

So, why does this all matter? It matters to Panama because, despite our size, our culture scene is already world-class. It matters because if you move here coming from somewhere else, like I did, you’ll quickly learn that means sacrificing nothing in terms of your artistic sensibilities. It matters because, if past predicts

1914 - 2024

AR I A S, F A BREGA & F AB R EG A

At Arias, Fábrega & Fábrega, we have remained at the forefront of the legal profession, advising significant international financial institutions and multinational companies, as well as some of the largest enterprises in Panama, for over 110 years.

Our real estate and hospitality legal teams have participated in some of the most important real estate project in Panama across the hospitality, luxury residential, and mixed used developments sectors, including, among others, Hotel La Compañía, Multiplaza Mall, Decameron Resort, and the Tropical Suites and Bambuda Hotels in Bocas del Toro.

In 2023, ARIFA launched the 360 Legal Solutions Practice Group as an alternative for clients looking for a one-stop-shop legal services solutions. This multidisciplinary team has been highly received by clients seeking to establish their business operations in Panama or a legal assistance with their ongoing day-to-day operations.

LIVING HERE

Panama is one of the best places in the world to invest in real estate—whether as an expat, for the rental income, or to retire. Here’s how it’s done

ften described as the bridge of the Americas, Panama is a prominent business hub which links North and South America. In addition to its year-round warm weather, Panama also boasts one of the most open and welcoming economies for foreign investment in Latin America, especially in real estate. Simply put, any person, whether an individual or a legal entity, foreign or national, may hold title to real property in Panama anywhere within ten kilometers of the national borders. These factors have long made Panamanian real estate an attractive investment for both local and foreign investors.

Investment in Tourism Properties

Fernando

By Arias F.

Fernando Arias F. is a partner at Arias Fabrega & Fabrega who routinely represents diverse clients on a broad range of corporate matters, including domestic and cross-border financing transactions, mergers and acquisitions, infrastructure projects, and other corporate transactions

Mr. Arias is the Co-Head of the Hospitality Practice and Member of the ARIFA Pro Bono and CSR Committee

Beyond the glittering high-rises and stately homes of Panama City, the country also offers significant benefits for investments in hotel properties located outside the city–in what we Panamanians call the “interior”–destined for tourism-related activities. This includes the beaches of the Pacific and Caribbean coasts as well as the mountains of El Valle and the highlands of Chiriquí, all of which are popular vacation and weekend destinations for Panamanians and foreigners alike.

With an investment of US$250,000 in the construction of new projects or US$100,000 in the remodeling of existing establishments, investors in these properties qualify for a 15-year exoneration from property taxes, 15-year exoneration from income taxes, and 10-year exemption from import taxes.

For more adventurous investors, with the approval of the National Tourism Authority, these same incentives are available for the construction of hotels in remote areas that lack basic tourism infrastructure, or for the development of new tourism activities anywhere in the country, such as agrotourism, ecotourism, cultural and health tourism, private museums, and conservation activities, among others. For these activities, the authorities will determine the minimum investment amount on case-by-case basis.

Miami

Los Angeles Panama

New York London Paris

The cost of living in Panama compared with other major global cities cities that attract wealthy individuals and investors is substantially more affordable, while providing a well rounded lifestyle

Purchasing Property in Panama

Panama’s public land registry system affords investors security and certainty as to the title of properties in the country. All matters pertaining to real property are registered, including title to property and improvements, encumbrances, restrictions, and any limitations on ownership. As such, a person interested in acquiring property in Panama can review all of the current and past records related to the property in the Public Registry to ensure that there are no surprises or hidden claims.

Once an investor has decided to purchase property, a public deed containing the basic terms of the transaction is registered in the Public Registry. The property can be purchased by the investor in their own name, or in the name a legal entity, such as a Panamanian company, a foreign company, or a Panamanian private interest foundation.

Property owners, including foreign purchasers, can designate one residential property as their “primary residence”, and enjoy reduced property taxes over that property. In addition, many properties in Panama still benefit from tax-exemptions that were granted over newly built properties prior to 2019, during Panama’s first real estate boom.

Residency

With the purchase of real estate in Panama, foreign investors can also obtain residency in Panama. For example, under the Economic Solvency Visa, an investor can qualify for residency with the purchase of property anywhere in Panama with a value of at least US$300,000.

Similarly, under the Friendly Nations Visa, investors from countries designated as “friendly nations” can qualify for residency with the purchase of property anywhere in Panama with a value of at least US$200,000. To apply for these residency visas, the investor may acquire the property in their own name, or the name of a company or foundation in which the investor is the main shareholder or founder and beneficiary.

These immigration categories require the foreign investor to keep the investment for a minimum period of three years, during which period permanent residency will be granted. The quickest route for obtaining permanent residency would require the foreign investor to

maintain the real estate investment for a minimum of 5 years. In these cases, permanent residency is granted within 30 business days.

Vivian Holness y Carin Stelp, co-authors

BIRD´S EYE VIEW

Networking, bandwidth, speed, and efficiency are the keys to a connected economy. Here’s how one company is taking that mantra to Panama’s skies

Jaime By Fernández

A passionate aviator, Jaime Fernández is Managing Director of Panama City-based Flytrip, an airline company with more than 20 years of experience in Panama operating a wide range of national and international routes

onnectivity has always been the driving force behind economic expansion throughout human history. Roads, ships, runways, the post office, high-speed internet, you name it. Without connectivity there would be no trade, travel, or the movement of goods or services—to say nothing of the exchange of ideas and ideals.

In this way, Panama is a paradox. On the one hand, our Canal is one of the most important single, physical components of the global economy that keeps countries and trade interconnected. Yet, at the same time, Panama’s rugged topography, vast rainforests, thousands of islands, and two ocean coasts make the country a goldmine for ecotourism, but a challenge to interconnect in itself. It took Spanish explorer Vasco Núñez de Balboa over two months to make the first crossing of the Isthmus of

Panama back in 1513. It takes far less time today. But, constantly improving the connectivity between Panama’s major cities, business hubs, and vacation and resort destinations remains essential for the country’s economy, tourism industry, and position as a global trade and logistics hub.

Sustaining that position was one of the primary origins of Flytrip. Since I was young, I have always been passionate about aviation and operational excellence. Today, Flytrip reflects a life dedicated to those two things and a deep responsibility that I feel to Panama. During the pandemic, our company provided vital airlink services transporting vaccines and food to isolated areas. Our real turning point came in July 2021 when we decided to reposition the Flytrip brand from a charter company to a world-class aviation experience that could satisfy Panama's growing need for reliable and efficient air connectivity with internationally-recognized standards.

For one, that meant establishing regular routes to tourism and vacation home hotspots in Panama that other airlines didn’t fly, like the golden beaches of Contadora, the incomparable Caribbean side of Bocas del Toro, the Pacific Riviera, and Pedasi. It also meant being more than just an “airline” by becoming the key to exploring paradise and everything that Panama has to offer and making every corner of the country accessible.

This is where the essence of Flytrip goes

beyond connectivity. We think of ourselves more as creators of experiences. Our expansion, planned with the vision that only the sky is the limit, is intended boost tourism in Panama by opening up the places and empowering the adventures that visitors want to have and can’t get anywhere else. Flytrip is the link that connects travelers’ experiences across Panama’s most attractive and popular tourist destinations, allowing them to immerse themselves in Panama's biological and cultural diversity instead of worrying about the-getting-there.

Panama's privileged geographical position also supports excellent connectivity across the Central American region, which opens up a range of opportunities for business travelers, investors, hospitality brands, and real estate developers who are interested in visiting Panama in search of exotic destinations, lush forests, paradise beaches, and urban hotspots to begin their next entrepreneurial adventure.

For me, as Flytrip’s founder, aviation is personal. Connecting people with places and places with experiences builds networks that are both geographic and human and those are what I value and enjoy most of about flying. But Panama is also personal for me. It is a privilege to be a bridge that connects people with the wonders of my country, where with each flight we create an opportunity to facilitate discovery, for people to live a real-life adventure, and create

unforgettable moments that can change their lives forever.

Most important of all, ecotourism, sustainable development, clean energy, and conservation-based climate initiatives will increasingly become a more important part of Panama’s economy and GDP. Creating the essential aviation networks to support this new ecosystem will propel Panama even faster towards a stable, prosperous, and globally connected future.

The sales prices per M2 are well established and rising for future new product introductions

The upscale resort property market has shown strong acceptance and high quality while delivering exceptional service and amenities

Tropical paradise above and below the sea.

Bocas del Toro, Panama

IN THE KNOW

Panama Real Estate FAQs

Philip J.

By Spiegelman

— Principal, IGR PANAMA

A Division of Six Diamond Resorts International

Is a global real estate legend—and widely considered to be one of the world’s foremost experts in marketing and selling luxury condo developments to high net-worth international buyers and investors

hat are current trends are driving Panama’s real estate market?

The Panama market for real estate is a stable and growing sector of the country’s economy. For the last ten years, Panama City and its communities have experienced steady appreciation in both price and overall activity volume, particularly in upscale neighborhoods offering world class design and amenities at affordable prices.

How important is Panama's strategic location to the country’s real estate market?

Panama’s central location between the U.S and Canada and South America means that its real estate market includes the entire western hemisphere. Its status as an international aviation hub also connects it non-stop to over 80 of the world’s most important cities.

What kind of return can be expected from a real estate investment in Panama?

Foreign investors can realize returns between 6 - 8% a year when investing in a luxury property in a popular neighborhood where short- and long-term rental returns are established and occupancy rates are high.

Are properties designed for rentals delivered furnished or unfurnished?

Normally, properties in Panama are delivered unfurnished and in some cases without appliance packages. However, more developers now offer new, luxury properties fully-finished and even furnished down to the décor, homeware, and kitchen and bath products.

Does the Canal contribute to Panama’s real estate market?

The Panama Canal is a significant economic driver of Panama’s economy, and many multi-national corporations have regional headquarters in Panama City. This creates demand for real estate, especially rental homes and apartments.

Are there specific laws governing Panama City’s rental market?

There are currently short-term rental restrictions in Panama City. However, many developers are able to negotiate exemptions, grandfathered in, or have experience maneuvering within the law.

Are there property management companies and what services do they offer?

Several companies offer a wide range of turnkey property management services in Panama, including maintenance, marketing, monthly reporting, and guest management.

What are the current mortgage and financing conditions in Panama?

Panama offers residential mortgage financing terms to both locals and foreigners that are similar to the U.S. Typical loan to value ratios are 50% to 70% amortized over 25 years, and mortgage interest rates are competitive, currently in the low 7% range.

Are there international colleges and universities in Panama?

Panama has almost ninety higher education institutions, including large universities as well as smaller liberal arts and specialized colleges. For those seeking a U.S.-based education, several universities like Florida State also offer satellite campuses with the ability to transfer.

What are Panama’s income taxes?

Panama operates on what is called a “territorial” tax system, which means that both citizens and residents are taxed only

on income earned from sources within Panama.

How can I obtain residency in Panama?

There are several ways that foreign investors can apply for Panamanian residency—in some cases, depending on a person’s nationality and the amount of their real estate investment, in as little as 30 days. This process is best carried out through an experienced immigration attorney.

How is the cost of living in Panama in relation to other countries?

The cost of living in Panama is significantly lower than most other cosmopolitan global cities that are important to upper end buyers and investors. Recent statistics indicate that a person can live comfortably on US$2,500 per month all in. Panama’s healthcare system is also one of the best and most affordable in Latin America.

Is Panama safe for foreigners?

Panama is considered one of the safest countries in Latin America. Visitors can enjoy culture, cuisine, and night life throughout the country without fear of drug or gang violence, which is lower than in most large American cities.

How does Panama’s stability affect the real estate market?

Panama’s political and economic stability makes it the top location in Central and South America for foreigners living abroad or investing in a business. The income from the Panama Canal alone offers significant support for many of the country’s infrastructure, conservation, public safety, and development initiatives.

What real estate investment opportunities are there in Bocas del Toro?

Bocas del Toro has a variety of residential real estate product and investment opportunities. The upcoming introduction of 4 Elements Isla Colon, for example, represents an upper end, branded resort opportunity designed and managed for investors.

Are there eco-friendly properties in the real estate market in Panama?

There are several eco-friendly property options, reflecting the country´s commitment to sustainability and nature conservation.

Cloud forest zip line. Boquete, Panama

InterAmerican Global Realty A Division of Six Diamond Resorts International

a leading international real estate brokerage specializing in new condominium, beachfront, and branded hospitality property sales in the Republic of Panama.

For Panama’s leading real estate developers, we provide a proven sales funnel beyond traditional, local markets to identify and close buyers from the U.S., Canada, Europe, Asia, and throughout Latin America faster for higher prices per square foot.

For global buyers, investors, family offices, brokers, and real estate agents, we offer access to the most exciting new developments in Panama’s luxury real estate market, including exclusive pre-sale opportunities to world-class architecture, interior design, and 5-star branded hotel amenities.

InterAmerican Global Realty has offices in Miami, Panama City and New York City and is led by Philip Spiegelman, who has more than four decades of experience selling some of the most of iconic and expensive real estate developments in the world.

THE PANAMA

REPORT

The Panama Report is published by IGR Panama, a division of Six Diamond Resorts International (SDRI)

President

Richard Kiibler, SDRI

Executive Editor

Philip J. Spiegelman, Principal IGR Panama

Assistant Editors

Maria de Lourdes Ferrer, Marcel Grundmann, Marcela Ortiz Rubio

Graphic Design

Nelson Gustavo Galindo

Marketing and Communications Maru Lanao, Intersections PR

Copyright @ 2024 The Panama Report

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods without prior written permission of the Publisher. For permission requests, please contact The Panama Report

To contact IGR Panama or for more information on The Panama Report, please email philip@igrpanama.com For media inquiries, you can reach us at maru@intersectionspr.com

Photo Credits

p. 3, Festival Prisma: Eduard Serra (right); p. 10, The Santa Maria (top), Denys Nvozhai (bottom); p. 15, Visit Panama (bottom right); p. 23, Forza Creativa; p. 27, The Santa Maria (top), Visit Panama (bottom); p. 34, Pacific Salud; p. 35, Panama Health City (bottom); p. 40, Durex Property Group; p. 43, Durex Property Group (top right, right), Alfredo Martiz (bottom); p. 46, Forza Creativa; p. 47, Forza Creativa; p. 53, The Santa Maria; p. 54, Hotel La Compania; p. 61, Lo Que Hay; p. 64, Festival Prisma: Eduard Serra (top left); p. 69, Arifa; p. 70, Flytrip (bottom) All other photographs licensed from iStock/Getty

THE PANAMA Report