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New Tax Incentives for Real Estate Investments in Panama. Presented By Jaime Ricardo Arias Mendoza Arias Valle & Castillo Partner Stewart Title Latin America STAR Conference 2005 Inter-Continental Hotel, Houston 30th November 2005. Panama A New Tourism Destination.
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New Tax Incentives for Real Estate Investments in Panama Presented By Jaime Ricardo Arias Mendoza Arias Valle & Castillo Partner Stewart Title Latin America STAR Conference 2005 Inter-Continental Hotel, Houston 30th November 2005
Panama. An Emerging Market • Low Cost of Living • Safety • Modern City • No Currency Restrictions. US Dollar • Adecuate Legislation
Panama. An Emerging Market Tax Incentives Laws • 20 years Property Tax Exemption for New Constructions. - Law 34 of November 2005 • 30 years Property Tax Exemptions and others for Real Estate investments in the Old Quarters (Casco Viejo) of Panama. – Decree Law 9 of 1997. • !5 years Income Tax Exemption for Tourism Investments in Designated Zones and others. – Law 8 of 1994 . • Draft Bill 132 – Residencial Tourism and Properties with land title in Islands
Law 8 of 1994 • Promotes Investment in Tourism by granting tax exemptions in following tourism activities. • Public Tourism Lodging • Historical Landmarks • Operators of Incoming Tpurism • Tourism Transportation • Restaurant, Discotheques or Night Clubs of Tourism Interest • Convention Centres, Recreational Parks, Zoos. • Resorts and Marinas
Law 8 of 1994 Tax Incentives Requirements: • Registration of the Developer in the National Registry of Tourism • Public Lodgings • USD300,000.00 – Metropolitan area • USD50,000.00 – Any other areas of the country
Draft of Bill 132 • Enhances Law 8 of 1994 • Permits the purchase of Government Land in Islands
Draft of Bill 132 • Enhances Law 8 of 1994 • 70 to 90 years concessions • Provides for enviromental protection and economic and social regional development • 60 meters beach easment. • Secured land holders or concessionaires. • Permits the use of concession rights as collateral for loans • Residential Tourism. Vacation Homes Resorts
Developments - Land Titlein Islands Requirements - Purchase of Government Land in Islands: • Designated Areas for Tourism Development • Economic Impact in the Region • Generation of Employment • Public bidding
Developments - Land Title in Islands Limitations: • Not Located Within 10Km From The Borders • Not Declared National or Humanity Historical Patrimony • Not Declared an Environmental, Scientific or Forestry Conservation Site. • Area Must not be Developed • 50% of the Island Could be Bought. • 30% of the Acquired Land Could be Developed