Jisel Parilla

Contributing writer to Latinworld.com

Due to its pleasant, spring-like weather and healthy real estate scene, Boquete is becoming one of Panama’s most popular retirement spots among foreigners. I spoke to Boquete real estate agent Maky Cedeño, who runs the Boquete office of Panama Real Estate Pros (www.panamarealestatepros.com/) about the ins and outs of buying property in Boquete.

LW: What’s the average cost of a home in Boquete, from budget to luxury accomodations?

The variety of housing options in Boquete are infinite, ranging from a modest home starting at $150,000 to $1 million homes. So there are options for every budget.

Obviously, if you want to live in a gated community, you’re going to spend at least $250k, because of the existing infrastructure and amenities. You also have to consider the monthly maintenance fees that exist in planned communities.

My advice is to evaluate all the different options, but most of all, decide what kind of investment you’re looking to make. Do you want to buy a house as an investment to rent, as a vacation home, or are you seriously considering moving to Panama permanently? If the person can make this decision before buying, they are guaranteed to make the best decision about what to buy.

Another piece of advice we give future buyers is for them to seriously consider [the implications of] building their own home. They need to seriously consider that they are in another country where Spanish is spoken (although English is widely spoken) and where different building materials are used than in their country of origin. We recommend you remain in the country while your home is being built. That’s why planned communities are so popular: because there is generally someone directly supervising the construction of the project.

LW: If someone is interested in buying property in Boquete, what is the first step they should take?

Establish communication with a licensed real estate agent. That way, you’ll be talking with a qualified person certified with the Asociacion de Bienes Raices (Real estate agency). This way, he or she will show you properties that have already been appropriately evaluated [and inspected].

LW: What should you ask your realtor when buying Boquete property?

The first thing you want to ask is if the property is “titled property,” since this assures the future buyer that he’ll have a title over his future property. Next, ask if the property (house or condo) meets the criteria for the 20-year [property tax] break. This is one of the biggest confusions right now. Not all homes necesasarily meet the [criteria] for the 20-year tax break. You’ll need to submit the documents and permits to the pertinent entity for approval.

Another important aspect is the financing [available to] foreigners in Panama. Due to the global economic crisis, Panamanian banks are being more cautious when evaluating home mortgage [loans]. The individual should bring a series of requirements from his country of origin, such as an income tax report for the last two years, among others. These documents are then evaluated by the bank board.

LW: How many foreigners live in Boquete?

It’s difficult to know exactly how many foreigners live in Boquete. Some of them only come for part of the year, others for longer periods of time and others year round. Many of them are no longer considered foreigners; you find them at banks and local restaurants and they become just another local. The statistics are not exact, but I can tell you that the foreign population has doubled in the last few years, and more foreigners are visiting Boquete.

LW: What are some of the perks and benefits available to foreigners living in Boquete?

Boquete is cosidered one of the best places in the world for foreigners to retire and visit. The main reason is Panama’s security and economic growth, despite the [economic] crisis.

There are also other important factors, such as the fact that there’s an airport only one hour away [in David]. Also, there are hospitals and malls located in David, the second largest city in the country. The beach is just a few hours away, and there’s the possibility of open water fishing. And I haven’t yet mentioned the lower cost of life or the different visa options that allow foreigners to enjoy substantial benefits such as discounts on medications, air flights, restaurants and hotels, among others.