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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Wednesday, October 13, 2004 - Vol. 6 No. 196
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In This Issue:
* COMMENT: Panama: A Promise Kept.
* OFFSHORE: OECD Funds Curb? Virgin Islands Quandary. Swiss Duals.
Spanish-Rock Harmony? Andorra - More Than a Tax Haven.
* WEALTH: Belgian Bank Scandal. Jebel Ali Corps. Hong Kong Boom.
* PRIVACY & RIGHTS: Secret ID Rules. Biometric Passport Bummer.
PATRIOT Act: Parts Thrown Out. Terrorists in Net Chat Rooms?
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Guest Comment is by Rainelda Mata-Kelly, a member of the Sovereign
Society Council of Experts, veteran Panamanian attorney with a Master
of Laws from Cornell U., who practices corporate, immigration, real
property and administrative law.
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COMMENT: Panama: A Promise Kept.
Dear A-Letter Reader:
World-wide, campaign promises are often disregarded after elections.
But Panama proved to be an exception to the rule after the recent
election of Martin Torrijos as our nation's new president.
As promised, the new Torrijos government extended a tax exemption, due
to expire this December, that allows new construction of a house or
condo free of property taxes for a period of 20 years.
Law No. 50 (30 Sept. 2004) took effect on October 4th and exempts
from property taxes all new residential construction for which building
permits are issued before Sept. 1, 2005 and or for which occupancy
permits are issued by August 31, 2006.
To comply fully with this tax exemption, after a house or condo is
completed, the occupancy permit and owners declaration of improvements
must be registered at the Property Section of the Panama Public
Registry. This official central registry includes property titles nation
wide and assures foreign investors' validity of title to their property.
Before you buy, play it smart and have an attorney review all title and
conveyancing documents. In Panama, normally the seller pays the transfer
tax and the buyer pays for title documentation and registration.
Panama City and other hot spots are in the middle of a building boom,
and in this buyer's market bargains are still available. You can find
93 sq.mt. (1000 sq ft) condos from $61,950 with ocean view in good,
quiet neighborhoods, to 900 sq.mt. (9700 sq ft) luxury penthouses from
$1 million with spectacular sea views in most upscale neighborhoods.
The 20 year new construction tax exemption is a wonderful added value
to your investment. The exemption is transferable, so if you sell the
property before the 20 years end, the new owner still enjoys the tax
freedom for the remaining years.
The Torrijos government's decision likely will bolster the construction
boom, meaning new opportunities for foreign investors and those
considering retirement or a second home in Panama.
Add this to Panama's territorial tax system (no income tax on foreign
earned income), attractive pensionado program, secure international
banking system and good infrastructure and all this places Panama at
the top of the world's index of best places to invest and retire.
Rainelda Mata-Kelly, LL.M.
E-mail:
rmk@mata-kelly.com
Web site: http://www.mata-kelly.com