Services of the US Consulate for US Citizens in Panama

The following is an article posted on the Panama News site on services that the US Consulate will do and not do for American citizens living in Panama. It is best to be informed before you take the leap to Panama, which can be very rewarding.

"What the Moving to Panama is not, after all, the same as moving to Kansas

So, if you are a US citizen and you run into some legal trouble in Panama, will the American Embassy go to bat for you? When Americans are treated unfairly or are subject to discrimination, Kellee Farmer of the US Consulate's American Citizens Services Unit explained, "it's a concern in the US-Panamanian relationship," but "we won't get involved in your individual dispute," be it civil or criminal.

If you are arrested you have a right to see a consular officer, and, except maybe if you are being held in some remote boondocks lock-up, Panamanian authorities are pretty good about allowing someone from the consulate to visit within 48 hours. She or he will help you contact your family or someone else close to you, or if you ask will refrain from informing family members or anyone else. They can provide a list of Panamanian lawyers who haven't been busted for ethical violations. They can periodically bring you vitamin pills and reading material. But they can't get you out of jail, act as your lawyer or legal interpreter, or mediate the community dispute that may have led to your incarceration.

So are you going to buy Hectare Negro, that farm where you want to spend the rest of your days? You do that at your own risk, without the assistance of the US government. "Talk to an attorney before you buy," Farmer urged.

More commonly, the Citizens Services Unit notarizes documents ($30 per document, an extra $20 for each extra signature on a single document), with notary services valid for either Panama, the USA or both.

There are a lot of US documents that the consulate will authenticate, and which the Panamanian government generally accepts but is not obligated to do so. For a $30 notary charge, they will "authenticate" but not "validate" a US driver's license. If you are applying for Panamanian residency under a pensionado status, the consulate can't certify the retirement benefits you have coming but they can notarize an affidavit about these, which Migracion usually accepts.

Birth, death and marriage records from the USA are handled through the states rather than the consulate. Criminal records checks from the United States are handled through state or local authorities there, or from the FBI, but not through the embassy or consulate."

Read the rest of the story here

Real Estate Rules for Retiring in Panama

Before you are ready to buy a home and enjoy your retirement in Panama, you should do some research and preparation about the rules for buying real estate in Panama.

One of the first things you should do before you buy is to find a good real estate agent. This agent must be a bonded, licensed member of the Panamanian Association of Real Estate Agents and Promoters. In addition to being licensed and bonded, they should also be a member of the ACOBIR (Panamanian Association of Real Estate Brokers and Developers) or UNACOBIN real estate unions. These associations monitor real estate brokers.

Not only must you use a real estate broker who is licensed and a member of one of the real estate unions, but you must find a good lawyer and establish a relationship with this lawyer. Although you don’t have to be able to speak Spanish to live here, it would be a good idea to learn to speak Spanish since you are intending on living in Panama anyway. Why not learn the language of the country you intend to live in? Not learning a foreign language in a country that speaks that language will always leave you on the outside of that culture, looking in.

As in many places, you must know the rules before you buy. It will be vital to know that in Panama, some real estate titles will prove ownership; others may be actually a long term licence. Once you have brought a property in Panama, you will receive ownership and proof of that ownership is a deed called “Titled Property” or “Propiedad Titulada”. By way of this document, it is the legal proof that you both control the property and possess ownership of the property.

A real estate deal in Panama which involves a “Derechos Posesorios” title, or “Rights of Possession” will result in you not owning what you think you are buying. The “Rights of Possession” deed allows you to use the land in ways that are specified in this deed but you will not actually “own” the land. It will be owned by a national or local government entity.
This is the reason that you should have both a good relationship with a Panamanian lawyer and a few good real estate brokers who are members of the Panamanian Association of Real Estate Agents and Promoters and either the associations of ACOBIR or UNACOBIN. It’s always best to have title insurance which is cheap, no how much you have to pay. As with any deal, it is always a “buyer beware” before you sign on any dotted line. It is best to be safe rather than sorry later.

Benefits of retiring in Panama include the fact that you will not have to pay taxes on income you earn outside of Panama. Also, you will be exempt from paying property taxes for up to 20 years if you purchase your home using the right guidance. This will help you save your retirement dollars by quite a lot.

The government of Panama encourages retirement in Panama by way of a variety of discounts for people retiring in Panama. They have a generous program of discounts, known as the “Pensionado Program” for seniors which include:

• 50% discount for regular ticket prices for entertainment such as movies, theaters, sporting events, etc.
• 50% discount for the price of mid-week hotel stays
• 50% discount for the cost of closing your home mortgage
• 30% discount for public transport costs
• 25% discount for domestic air tickets
• 25% restaurants’ discount
• 20% discount for professional and home repair fees
• 20% discount for Doctor’s care
• 5% discount for hospital bills if you are without medical insurance
• 15% discount for the cost of eye exams and dental fees
• 10% discount for prescription drugs

The reasons for these discounts is to encourage people to retire in Panama and it is always a method for the government to stimulate the economy of Panama by a variety of means. Smart move.

These are some of the basic rules of buying real estate when you want to purchase property and retire in Panama.