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