By Jisel Parilla

Contributing writer to Latinworld.com

Panama City is best known as being home to one end of the Panama Canal, but if you’re looking for adventure and fun around the city, there’s more to do than watch cargo boats transit for hours on end. Thanks to its small size, day trips from the city are plentiful and varied, so rent a car, hire a driver or take a bus; you’ll be pleasantly surprised by what you find.

If you decide to hire a taxi, my two favorite drivers are Mondi (6625-4631; ) and Hector 6686-8127 (cell); 237-6220 (home). Neither speaks English, but both are reliable and charge fair rates.

Isla Grande and Isla Taboga: On the Caribbean side, Isla Grande has a nice beach ($2 fee) as well as a few restaurants and bars to keep you busy for the day. On the Pacific side, check out Isla Taboga. There’s a good Mexican restaurant here at the Vereda Tropical Hotel, a decent beach and not much else, but it’s pleasant enough if you’re just looking to get away from the city and spend a day at the beach.

How to Get Here: Isla Grande: Rent a car or hire a taxi from Panama City. Take the Corredor Norte, turn onto the Transistmica Highway past Portobelo to the pier at La Guaira. You’ll have to take a $3 water taxi from here. To Isla Taboga: Take a 30 minute ferry from Isla Naos at the Amador Causeway. Tickets are $11 round trip. Call 314-1730 to confirm departure times – they change slightly from time to time.

Gamboa: Gamboa is great for nature-lovers and families traveling with small children. Soberania National Park is perfect for a hiking, and bird-watching opportunities abound on Pipeline Road. Those wanting to take it to the water can try a fishing excursion or a jungle cruise on Lake Gatun. If it’s too much effort to scope out wildlife in its natural habitat, the Summit Gardens Park and Zoo makes it easy, and kids will love seeing exotic animals such as tapirs and jaguars. If it’s a cultural experience you’re looking for, check out the tiny Embera Indian villages that dot the Chagres River. You can shop for crafts, learn about traditional dances and enjoy a tasty Embera lunch.

How to get here: It’s about a 45 minute ride from Panama City to Gamboa. Ancon expeditions, a very reputable Panamanian tour company, offers jungle and Embera tours for about $100 per person. Fishing excursions start at $200 for two people (Cahill’s Fishing; ), but you’re pretty much guaranteed to catch something. If you want to visit the parks, you can hire a driver (about $35-$40 roundtrip – up to $150 if they wait for you and take you to multiple destinations), or rent a car from Panama City. You can get here for cheap on bus, but if you’re not going to the Miraflor Locks at the Canal, you’ll have to take a taxi from here to wherever you’re going.

Colon: This city has a bad reputation for being dangerous and unattractive, and the truth is, unless you’re a large-scale merchant looking to do a little shopping in the duty-free zone, there’s really not much to do. Instead of spending time in Colon, I recommend taking the train on the Panama Canal Railroad. The roundtrip costs $22 and takes 1 hour each way. It’s definitely the nicest way to see the Gamboa area, and kids will enjoy its “old-time” feel. Keep in mind that the train leaves Panama City (from the Corozal Train Station) around 7am and doesn’t leave Colon until 5pm, so you’ll have to take a taxi from Colon to Gamboa, the Canal, or wherever you plan to visit for the day.

The Pacific Beaches: The Pacific beaches (Playa Bonita, Playa Gorgona, Playa Coronado, Playa el Palmar Santa Clara and Playa Blanca) are close enough to visit as part of a day trip. Playa Gorgona and Playa Coronado are the closest to the city. The beaches can get crowded on weekends but are strangely empty on weekdays. They’re definitely not as picturesque as Panama’s Caribbean beaches, but there are four golf courses, plenty of restaurants and a few excellent all-inclusive resorts – some as cheap as $60 a night — if you want to make it a weekend getaway. If you have a chance, try Restaurant Vista Mar, considered one of Panama’s best restaurants and known for their fresh, Mediterranean style seafood.

How to Get Here: You can rent a car from Panama City, hire a driver or take a bus. If you’re driving yourself, cross the Puente Centenario to get to the Interamericana Highway. Beaches are pretty well-marked by highway signs. It’s also pretty easy (and cheap) to take a bus to the beaches. Buses leave from the Albrook bus station and drop you off about 2km-5km from whatever beach you’re going to. From there, it’s a short $4-$5 taxi.

Flickr phto provided by http://flickr.com/photos/blue_traveling_fairy/

Jisel Parilla

Contributing writer to Latinworld.com

The truth is, speaking Spanish isn’t completely essential in Panama. Unless you choose to live in a remote, rural area of the country, chances are you won’t have any trouble finding English speakers. But knowing the language does make adapting to life in Latin America a little easier, and Panamanians will definitely appreciate it if you take some time to learn their language. By speaking only English, you’ll likely confine yourself to expat circles, and won’t have the opportunity to fully immerse yourself in Panamanian culture.

If you live in Panama – or you’re going to be around for a while – I’d recommend signing up for at least a basic Spanish course. And don’t be shy about using your newly acquired Spanish skills. Panamanians are friendly people and even if they laugh at your attempts, a gringo who wants to take part in the culture is much better regarded than one who can’t be bothered to learn the language.

Most programs begin on Mondays as long as there are enough students enrolled. You may want to keep in mind that even if you sign up for cheaper group lessons, there may only be one or two other students in your class. Also, programs in Bocas del Toro seem to attract a younger crowed, so if your idea of a good time doesn’t include surfing or barhopping, you may want to call ahead and inquire about adult classes.

Languages in Action (www.languagesinaction.com/spanish_courses/panama/index.php) offers language schools in Panama City and Boquete for beginner through advanced students. Four week courses in Panama City cost $875 ($1575 with home stay) and four week courses in Boquete start at $975. Class size is limited to four students. One-on-one sessions are also available.

El Paraiso Language School (www.elparaisoschool.com) takes a more adventurous approach to learning Spanish, offering courses such as “Spanish and Adventure,” “Spanish and Surf,” “Spanish and Scuba Dive” and “Spanish and Volunteer. If you just want to learn Spanish with no adventure of the side, small group classes cost $205 without lodging and $315 with lodging per week. Private classes start at $235 per week without lodging.

EPA! Español en Panamá (www.studyspanishinpanama.com) is located in the heart of Panama City’s financial district and offers semi-intensive to super-intensive programs, as well as a “general Spanish and Panamanian course” aimed at expat residents. Prices start at $600 for four weeks and go up depending on the number of sessions per week you sign up for. Accommodations with two meals a day cost $500 for a four week period.

Habla Ya Spanish Language School (www.hablayapanama.com) is probably the best known Spanish school in Panama and offers group and one-one-one courses, as well as a “Part Time Spanish Crash Course” for those already living in Panama and looking to pick up some Spanish. Located in Boquete, Habla Ya can help you find accommodations (private apartment or home stay) and they offer excursions in and around Boquete. Four week group programs start at $750 (80 hours) and the part time resident programs costs $500. Private lessons start at $295 for 20 hours.

El Instituto Latinoamerica de Idiomas (ILISA) (www.ilisa.com) Long established in Costa Rica, ILISA opened a Panama campus by the Miraflores Locks at the Panama Canal in 2005. Group lessons (max four people) cost $1,820 for a four week session and one-one-one lessons start at $2,720 per month. They also offer a less-intensive 60 hour, 10-week program for foreign residents for $695 for group lessons or $1,465 for one-on-one sessions. They offer home stays for $175 a week and furnished apartments and hotels from $30 per day.

Spanish by the Sea and Spanish by the River (www.spanishbythesea.com) is another well-regarded Spanish language school with campuses in Bocas del Toro and Boquete. They offer a number of Spanish courses, including standard, business and medical Spanish. Group lessons cost $80-$220 per week, depending on how many hours you sign up for and private lessons $150-$430 a week. They offer school stays, home stays and apartment stays for an additional fee if you don’t have your own accommodations. There are also weekly group activities.

Flickr photo by inx

Sammy Wolcovinsky, a native of Panama owns a real estate company, Flat Free Realty in Panama. Prior to founding the company, his family worked as financial advisors of Charles Schwab in Panama where they managed over 150 millions dollars and in 2006 sold the company.

This an interview I had with Sammy.

LW: How do you get real estate financing in Panama?

Most people in Panama finance properties through Panamanian private banks. Due to the increased demand of mortgage from foreigners, other Latin Americans or those from the United States some banks and private companies from the US started to come to Panama and offer mortgages, but now with the financial crisis in the states all these companies stopped giving out mortgages. Basically right now if you need to get a mortgage you will have to do it through a Panamanian bank. Usually what happens here in Panama, there are two things…if you are going to buy a resale property you will have to pay a deposit to the seller so he holds the property for you and you will then have to get a mortgage, but if you are going to buy a property that is not done yet (pre-construction) you will have to pay 30 percent to the developer and when the building is ready you will pay the remaining 70 percent. At that time is when you will need to get a mortgage and normally it is through a Panamanian bank.

LW: What kind of interest rates are we looking at?

In Panama, interest rates are not fixed by the government. They fluctuate depending on many economic factors. Over the last 20 years the rates have fallen from 12 percent and right now the market rate is between 7 to 7.5 percent.

LW: Is that a fixed rate or adjustable rate?

In Panama most of the banks do not offer fixed rate mortgages, but rather adjustable rate mortgages, usually fixed for the first year and after that they adjust every 3-6 months. Most of the mortgages are 30 year adjustable rates.

LW: What dictates the fluctuation of the rates after the fixed term?

The banks adjust the rate based on LIBOR or London Interbank Offered Rate.

LW: What kind of documentation do foreign investors need to get a loan in Panama?

Thanks to the increased demand the process of obtaining a mortgage loan for foreigners has been simplified over the years. The actual process of applying for a mortgage requires that a client provides documents proving who they are, their credit status and the total income and assets that they have. But every bank will have a specific list of requirements, but basically the more you show the banks the easier it is for them to understand the risk involved. The basic documentation that you need if you live outside of panama is:

• Legible copies of your passport
• Letter from your employer if you are not self employed
• The last two years of tax returns
• Bank reference letters
• Bank statements from all existing accounts for the last six months
• Government issued I.D.
• Business and personal reference letters
• Purchase contract
• Completed and signed application form

Banks in Panama are very conservative and they ask you for a lot of things in order to give out a mortgage. With all the things that are happening in the world, things are starting to slow down in Panama, but I don’t think that we are going to suffer like the the US because there has been more controls and regulation.

LW: Do people use title insurance in Panama?

That’s a good questions…Yes, people use title insurance, right now they do, but four years ago title insurance did not exist. Let me explain, Panama has a very sophisticated public registry with a specific department that oversees the registration of all the properties in all the 9 provinces in Panama so when you are going to buy a property everyone usually uses a lawyer to certify that the property has a clean title. However, when more Americans and people from Venezuela started investing in Panama they wanted an extra layer of security so at that time insurance brokers got together with insurance companies and now you can buy title insurance in Panama. But if you ask me if the majority of people buy title insurance I would say no, most people in Panama don’t use title insurance. Panamanian law is set up to protect foreign and local investors, however if you want to have more piece of mind title policy costs are minimal and you can buy them through any national and international insurance company in Panama.

LW: What kind of due diligence is important when buying property in Panama?

What I recommend first is that you hire a lawyer so they can go to the public registry and see if the property you are buying has a clean title, most people know that. In Panama you can buy property with title or property without title. If you buy a property that doesn’t have a title there is a process with the government where they will give you the title, but it could take 6-12 months. I always recommend that if you are going to come down to pamana that you only buy properties with title.

LW: What other tips do you have for people considering buying real estate in Panama?

Panama has a lot of advantages, it is a safe country and we operate on the dollar. Since 2005 prices has increased substantially some properties have gone up in value 40-50%. So if you are going to come down and buy real estate either you are going to buy real estate to live or buy and resell. You have to be very careful where you are buying and first you should find a well known broker in Panama. Since Panama is a hot market people are buying properties all over the country and sometimes they buy properties and they pay too much for them. For example in La Avenida Balboa four years ago you could buy a property for 900 USD per square meter now you are going to find properties in Avenida Balboa which is ocean front starting at 3,500 USD per square meter so you have to be aware of where you are buying.

By Patrick Connelly

Standing on my hotel roof in downtown Panama City last year I counted the number of skyscrapers being built within the tiny sliver of the skyline that I could see. The skeletal steel frames jetted skyward with huge cranes flanking, giving the appearance of some apocalyptic coral reef. I counted seventeen towers being constructed, an amazing number considering I could only see a fraction of the city.

Panama is booming, growing at a rate few Panamanians have ever experienced. At any given time, around four hundred construction projects are under way in the capital alone. Money is flowing in from all over the world in various sectors such as banking, energy, tourism, and, of course, real estate.

And at the center of this boom is the $5.5 billion canal expansion. Slated for completion in 2015, the project will double the canal’s ship traffic capacity as well as allow for the modern super-ships to pass through, which many are unable to do with the current depth and width of the locks. Panamanians are insanely proud of the massive project, and eagerly await an opportunity to discuss their canal expansion and the direction Panama as a whole is headed towards.

The banking industry has benefited greatly from these strong economic times. In 2007 Panamanian banks reported a 20% increase in profits from the year before; similarly, credit is expanding at record rates, between 15 and 20%. As North American and Europe face increasing budget deficits, economic growth hit a record high in Panama in 2007 (11.5%) and remained strong at 9.2% in 2008.

Even though it was started prior to the 2008 global economic crisis, analysts in Panama and abroad believe that the massive canal expansion project may just be the country’s antidote for economic stability during the worldwide recession. Experts predict that economic growth will continue to grow over the next five years, in the neighborhood of four to five percent a year.

While the U.S. is spending hundreds of billions on stimulus packages to jumpstart its economy, Panama already has one in place; the canal expansion project. The huge undertaking represents a fourth of the country’s entire GDP of $23 billion. Over 7,000 jobs will be created directly from the project, with thousands more indirect employment opportunities. “It’s as if we are increasing public sector spending by 35 to 40 percent,” Minister of Economy Hector Alexander said. “Today it works as a fiscal stimulus.”

“In Panama, the dominant topic isn’t the recession,” Alexander said. Indeed, the economic crisis seems a world away for this tiny Central American country, where steel buildings tower above the jungle, reaching towards the sky.

Thank you Scott for letting us use the picture