| Financing in Panama is relatively easy to understand | | | | mortgage financing in Panama are 60 to 70 percent of |
| considering that Panama is an international finance | | | | the fair market value or the purchase price, whichever |
| center, a development fueled by its banking system | | | | is lowest, or in the cases of those with two years' |
| that has come to be known as the "Switzerland of | | | | residency, as much as 89.99 percent financing. Loan |
| Latin America" for its modernity and stability. Moreover, | | | | rates range between 5 to 7 percent, with FECI of 1 |
| financing in Panama is convenient for foreigners as it is | | | | percent per annum. Borrowing period can be up to 30 |
| a dollarized economy (the only country authorized to | | | | years depending on borrowers' age and net worth for |
| use the US dollar at its par value), thus eliminating | | | | residential purchase, with only 1½ years for |
| conversion and valuation risks. Many international banks | | | | construction. As to chattel security, there should be |
| have set up regional headquarters, as well as offshore | | | | first mortgage over the property. The insurance, which |
| centers in Panama City, due to a growing demand by | | | | must be issued by a Panamanian insurance company |
| international investors to move their asset portfolios | | | | is generally paid for by the borrower, and endorsed to |
| under Panama's jurisdiction, which offers many tax and | | | | the bank that gets a 1 percent bank commission. As |
| asset protection benefits. | | | | with opening a bank account, financing in Panama |
| Financing in Panama most often means going to the | | | | requires numerous identification documents such as |
| extensive international banking network, which makes it | | | | passport, financial documents like trade reference |
| a matter of finding the right bank to suit your needs. | | | | letters, employment information like salary slips, and |
| However, banks in Panama require that an account be | | | | property information like deed title; the borrower meets |
| opened or is existing before bank financing can begin. | | | | with a bank officer at least once. These requirements |
| Be warned that Panama banks are very vigilant about | | | | might seem at complete odds with the strict bank |
| opening an account, with a stringent process requiring | | | | secrecy laws, but they are meant to assure client |
| numerous documents, a face-to-face personal | | | | transparency with the bank while ensuring the |
| interview, and a sizable initial deposit (as much as | | | | protection of the bank's interest. |
| $5,000), Documents requirements to complete among | | | | Panama is an international finance center because of |
| many others. The best reasons accepted in opening a | | | | many reasons such as bank secrecy laws, investment |
| bank account in Panama include purchase of real | | | | stability, equal rights and protection among foreigners |
| estate, business establishment, and a legitimate project. | | | | and Panamanians alike, relative tax freedom, dollarized |
| As can be expected, financing in Panama differs from | | | | economy, and a democratic government, among |
| bank to bank depending on specific policies being | | | | others. These are factors that make financing in |
| implemented by the bank. Here is a Panama financing | | | | Panama a convenient and a wise decision, a second |
| 101 for you. The average terms and conditions for | | | | best alternative to actually living there. |