Casco Antiguo Panama: Benefits of Investing
Casco Antiguo (Old Quarter), also known as Casco Viejo or San Felipe, is the historic district of Panama City. Completed and settled in 1673, it was built following the near-total destruction of the original Panamá City, Panamá Viejo in 1671, when it was attacked by pirates.
In 1672, Antonio Fernandez de Cordoba initiated the construction of a new city, which was then founded on January 21, 1673. This city was built on a peninsula completely isolated by the sea and a defensive system of walls. Today this place preserves the first institutions and buildings of the modern city of Panama. Casco Antiguo was designated a World Heritage Site in 1997
In more recent times, Casco Antiguo has undergone a great transformation and restoration, becoming one of the top places to visit in the city. For this reason and the beauty that lies within its streets it has attracted a lot of investment, real state, restaurants, hotel and stores, couple with the incentives that the Panamanian government offers for investing in this area, has made investors from all over the world have their eyes in Casco Antiguo. Having said that, the incentives for Casco Antiguo were issue by Decree Law 9 of the 27th of August, 1997, amended by Law Nº 136 of the 31st of December, 2013, amended by Law Nº 53 of the 4th of July, 2017
Benefits of Investing
in Casco Viejo
Lower Loan Interest rates
Banks have incentives to offer lower inters rates in loans issued to restore, construct, rebuild, or purchase real estate assets in Casco Antiguo and adjacent areas.
Property Transfer
Tax Transportation
The transfer tax for buildings or plots of land that have no investments, restoration of any type, that are located in Casco Antiguo and adjacent areas, will be exempt from the property transfer tax (note that the property transfer tax equates to 2% of the purchase price or the property value, whichever is higher).
In addition, the first transfer of a property that has undergone construction, restoration or rebuilding, will be exonerated as well from the Property Transfer Tax. To apply to this exemption, the investment in the restorations, constructions or rebuilding must be higher than US$50,000.00.
Income Tax Redemption
The owner of a property that has been constructed, restored or rebuild, completely or in part, will be exonerated from Income tax, regarding the income received from commercial activities, sale, or transfer of part or all of the property, for a period of 10 years.
Any person, (owner or tenant) that operates areas for public parking will be also exonerated from Income tax, regarding the income received from said commercial activity, for a period of 10 years.Tenants of a building that was constructed, restored or rebuild, strictly for living purposes, will be able to deduct from their income declaration the rent expenses for a period of 5 years, from the issue of the occupation permit.
Property Tax Foundation
A property that has been constructed, restored or rebuild, that has its occupation permit issued after the law came into force (Law 136, 2013), will be exempt from property taxes for a period of 30 years
Import Tax Exemption on Construction Material and Equipment
All the construction and equipment needed or use for the construction, restoration or rebuilding of any edifications located in Casco Antiguo and adjacent areas, that are not manufactured in Panama, or are not produce in the amounts needed, will be exempt from the Import Tax.
If you have any questions,
please feel free to contact
me at mario@gdeplaw.com.
