Now it is triple that number.
I am only talking about restaurants that serve dinner.
Puerto has never lacked for places to eat for breakfast and lunch.
That is changing fast.
If you are a long time Puerto Armuelles resident like us, that is music to your ears.
We don't go out to eat often, but it refreshing to have options when you do.
It seems like it going hand in hand with the dramatic increase in new foreigners that we have been seeing in town.
And if that means more good restaurants I am all for it!
Construction is Underway
February 15, 2015
As you drive around town, you will notice parallel cuts in the road surface.
These cuts represent the location of the new, high volume sewer line that will be installed beneath the roadway. It will send effluent that is clogging the old system, out to a new treatment plant about a mile south of town, between Rio Corotu and Rio Guanabano.
There are also half a dozen pumping stations in deep bunkers at various locations along the roadways. Large scale motors will pump sewage originating in town, out to the new treatment plant.
The original sewer system was built by Chiquita Banana. Some sections of the old cast iron sewer/galvanized steel water system are 50 - 70 years old, or more. The Chiquita system was of excellent quality and it has held up years longer than its design lifespan.
However, complete lack of maintenance by the local municipality, coupled with damage by several earthquakes, have taken its toll on the system.
Right now there must be about a dozen places where raw residential sewage flows freely from “last resort” pvc tubes onto the beaches, instead of out to the treatment plant.
To an equal, but less stinky degree, broken water mains gush freely, or spray, where they have been wrapped in a “bandage” of cut bicycle tire tube.
The work on the Puerto Armuelles water/sewer system should take the better part of 18 months to complete. The Puerto Armuelles Project is part of a national project to upgrade sanitary services. The system is being constructed by IDAAN (Instituto de Acueductos y Acantarillados).
A $100 million dollar loan from the CAF (Inter-American Development Bank) will help to fund projects in Chiriqui, Veraguas, Bocas del Toro, and Panama provinces. Total cost of the projects is estimated at $126 million.
This project is good news will be a relief to many residents. Although local residents have been amazingly patient about these repairs, I'm sure they will be happy not to have the smell of sewage filling the air.
Things are moving on all levels in Puerto Armuelles these days.
If you will be in Panama, I highly recommend you go to the Boquete Jazz & Blues festival next February.
The 2 main days are always Saturday and Sunday, but the festival actually goes on for days.
This year it started on Tuesday night with a party. Wednesday featured a street parade and jam sessions. On Thursday there was a free concert at Boquete's central park followed by a performance and then another jam session. Friday afternoon and evening was one big jam session. On Saturday, the venue moved to the amphitheater at Valle Escondido in Boquete. Music started at noon and went into the evening. Then everyone reconvened at a restaurant for a big jam session at 8pm. On Sunday, they did the whole thing over again, but with all new musical acts.
100% of the festival profit goes to buy musical instruments and improve musical education in Boquete area schools.
Tickets are a bit steep at $35. Kids 12 and younger are free, which means one of mine got to go for free.
The high cost of the tickets means that most of the folks there were expats.
Which is also why it felt abit like I was back in the States. Everyone was speaking English.
Even people who aren't native English speakers, were speaking English.
I met a people from Holland, Germany, Italy, and Panama. All spoke excellent English. Then, of course, there were the many Americans and Canadians who filled the stands. We were surrounded by English.
On our way out, I saw one of the children who had put on a performance. (As part of Sunday's performances, a group of school children also put on a few brief numbers. These kids are part of the music programs that the festival helps to fund. ) I told him, in Spanish, what a good job he did. Turns out he is an American. No need to speak Spanish. However, I would say the vast majority of the kids on stage were obviously Panamanian.
I hear that hotels in Boquete fill up quickly for the festival dates I didn't even try to get a hotel there. We stayed in David at the Hotel Ciudad de David. David is about 30 minutes from Boquete. We had errands to run in David anyway so it worked out for us. Plus, we have an 8 year old, so any late night jam sessions were not in the cards for us.
We normally stay at the Gran National in David, but decided to try something new, and we are glad we did.
We were impressed by the excellent customer service at Hotel Ciudad de David. We had a very pleasant time there.
We'll be going, or at least I will, every year from now on.
I ran into Joan, of the Careening Cay Resort & Cosmic Crab Cafe in Bocas del Toro, there too. We like staying at their hotel when we visit Bocas.
Like me, she has lived in Panama for years but it is the first time she's made it to the Festival. She and her husband are very busy running their a hotel/restaurant along with being parents of 2 young children. She was enjoying a well-deserved break, and without kids! Maybe next year...
Group 1 is the easiest, Group 3 is the most difficult.
Let me say upfront that Americans can get bank accounts in Panama.
But not at all Panama banks.
Regardless of which of the 3 groups you are in, getting a bank account in Panama won't be fast.
Unless someone "in the know" connects you, it can take anywhere from 2 weeks to 2 months to get a bank account set up.
You will also need alot of paperwork and documents.
Every bank is different, but typically you will need to provide
Some banks also require
Some proof that you have a link to Panama, for instance:
You will also have to fill out a bunch of paperwork in which you describe who you are, your family, how and where you get your money, and more.
In the future, if you withdraw a large amount out, say $5,000 in a money order, you will have to report what you are spending it on. Or at least you do if you are an American, like we are.
This is their way to try to prevent money laundering and criminal activity.
When you are filling out all that paperwork, make sure you set up your account right.
If you are opening a joint account, make sure the names on the account are listed as:
If one of you dies (god-forbid!), it can be a time consuming nightmare to access the money unless you have that critical, "or".
You should also fill out a beneficiary form for your account. This will further ensure there are no issues in case one of you dies, or divorces, etc...
And while we are on the topic, it is recommended that you create a will in Panama as well. This can greatly ease future headaches, expenses, and bureaucratic hurdles for family members.
Many Panama banks charge fees on checking accounts, but not on saving accounts.
What I described above is the process for foreigners, whether you have resident status or not.
If you do have a cedula, or are in process of getting one, it speeds up the process.
Plus some banks require that you have a cedula (or are in process of getting one) in order to get a bank account.
In general, having a cedula simplifies and shortens many bureaucratic tasks in Panama. Officials here are used to dealing with people who have cedulas. When you don't, officials get more cautious and unsure, which slows the whole process down.
Yes, it can be problem opening a bank account if you are an American citizen.
But, no worries. Americans can open bank accounts in Panama - but not at every bank.
It is not Panama's fault. It is the fault of the US.
It is not news that the US is preoccupied by money.
It is one of the big culture shock eye-openers for westerners coming to Panama.
Most Panamanians are not motivated by money.
You cannot get most Panamanians to do a better job by dangling the carrot of more money. This is especially true if they are earning what they consider to be enough.
This is very baffling for Americans at first. My husband still has a hard time grasping it.
In my opinion, because of our money obsession, the US is the only country that
- Requires its citizens to pay taxes on all money earned - even if it is earned overseas
- Requires overseas banks to report on all its citizens with bank accounts with over $10K - this is laid out in FATCA
FATCA is the Act that requires that all foreign banks report on specific American-held accounts.
It is this reporting requirement that makes Panama banks hesitant to deal with Americans.
(For those of you who like to research the whys and wherefores, the FATCA requirement is laid out in Chapter 4 of the US Internal Revenue Code.)
FATCA is all about finding US citizens who are not paying their taxes back home. The US government is convinced that its overseas citizens are not paying US taxes to a tune of $100 billion - each year. I find that hard to believe, but that is why Americans are now the pariahs of the overseas banking industry.
The days of Panama being a tax haven are over, ever since Panama signed the tax treaty with the US.
The Panama government requires its banks to comply with FATCA.
What this means is Panama banks are required to file paperwork every year with the U.S. government telling them your name and your balances (if they are above $10k or $50k, depending on the required form) to stay in the good graces of the IRS and Department of Treasury.
So for bank accounts held by Americans, banks must figure out which ones they need to report, then fill out, and send in the correct forms - each year. If the banks don't report properly, the US can impose big fines on the bank.
Who needs that headache, right?
There are alot of Americans in Panama. So many banks do accept Americans.
When the FATCA regulations first came out many banks put up a "no Americans" wall. That is when the rumors of Americans not being able to get bank accounts started.
My husband and I tried to open up a 2nd Panama bank account about that time and we were told "no" at a number of banks. This included Banco Azteca, which is currently known as a pretty easy bank for Americans to get bank accounts.
Now that banks understand the regulations better, many accept American account holders. Although some banks now have a residency requirement. Their residency requirement applies to all foreigners, not just Americans.
At this time, the following banks allow Americans to open a bank account:
Some other Panama banks accept Americans too. I mention the banks above because I know of Americans, and others, who are happy at those banks.
For convenience, you many want to join a bank that has a branch in your town in Panama.
For a list of all banks in Panama, go here.
Keep in mind that individual bank branches may not be thrilled to have American account holders.
A bank may officially state that it accepts Americans. However, the person at the branch you go to may really hate all that paperwork and the stress of maybe making a reporting mistake.
While he or she may tell you, "Yes, please submit your paperwork", it may never be enough.
If a bank keeps asking you for one more thing in order to finalize your application, what he or she is really saying is, "No, you cannot open an account here".
Panamanians tend to be big-time conflict avoiders. Your banker simply doesn't want to tell you the bad news and deal with the fall out.
Don't keep hitting your head against the wall.
Start the process over at another bank or another branch of the same bank.
If you know someone who knows someone at the bank, it can make the process go alot faster and smoother.
I am not suggesting paying money to grease the wheels. That is a bad idea. However, having a connection can smooth the road.
I hope this information helps you out.
Please comment on your Panama banking experiences below.
Thanks.
Sources:
I wanted the .com address from the beginning of this website.
But someone had already bought it, although they weren't using it.
It took awhile (years) for the person who was sitting on LivingInPanama.com to sell it to me at a reasonable price.
He was always willing to sell it, but his price started at a ridiculous level.
Now, with some help from a gentleman in India the transfer is almost complete.
It should be fully synced and functional on Tuesday, February 3.
The day after Ground Hog Day
You will still be able to use your .org addresses and links.
They will forward to that same page on the .com site.
On Tuesday evening I will lift my glass in celebration.
I will give a toast to all of you, my readers.
So many of you have emailed telling me that they appreciate this site and the work I do.
Thank you!
It definitely makes the whole process more fun to hear that others enjoy the site and find it useful.
Feb. 1, 2015
We talked with the Museum's Curator, George Angehr (seen at right)Just before we went in, we were lucky enough to meet the curator of the museum, George Angehr.
When I asked the curator about the museum, he said:
It is the best museum in the world.
The BioMuseo is more than the usual museum since it isn't just a building that displays artifacts. But the museum is designed to reflect and incorporate aspects of the natural environment that the artifacts' display."
I thought it was hyperbole at the time. Then I went in.
Photos. You can get a peek at our visit with the photos below. Click on any photo to start slideshow.
It really is an excellent museum. Very well done.
You could touch and interact with many of the displays about the rock, fauna, and flora of Panama.
I enjoyed the integral role that Panama's land mass played in worldwide climate and other changes such as the creation of the gulf stream.
Because, at one time, Panama did not connect to South America as it does now.
My younger daughter who normally groans her way through museums loved it.
The audio handsets were especially well done. They come in 5 different languages.
I don't usually like audio narration handsets. But these were very interesting, especially when paired with some of the video displays.
The highlight was the sound and visual display room. It very effectively immerses you in the sounds and sights of Panama.
Landscapes and sounds of animals, rain, wind, and more surround you - overhead, under your feet, and 180 degrees in front of you.
It is very well done. My photo does nothing to convey what it was like.
All but 3 of the 8 of galleries are complete.
We went on a day with good weather, as my photos attest.
I have friends who recently visited the museum when it was raining. They say it leaks - badly.
When they visited there was a crew of 10 people mopping up all the water.
Our friends were not as enthusiastic about their visit.
They told us that the staff tried to say it was part of the museum's desire to reflect the environment into the architecture. Our friends didn't buy that explanation.
Regardless, it is a good museum, especially when it isn't raining.
I just hope they generate enough money to both finish and maintain it.
Updated - August 2017
God forbid you forget to include a document, that can bring the whole process to a crawl.
The exception is if you are buying a property from a developer that already has a relationship with a bank.
These are usually the large developments, especially those who sell property in the pre-construction phase.
Then your loan can be granted in a matter of days.
But most property in Panama is not is those kind of developments.
UPDATE: It is now somewhat easier for foreigners to get a mortgage in Panama.
You still need alot of paperwork done. And they will check your credit report back home. But expats have had good luck going through Scotiabank for a mortgage loan. Scotiabank has loans for Panama resident and non-residents. Check out this link for more.
Some expats have had good experiences going through bestmortages to find a good mortgage loan.
But you do need to be under 75 years of age (see below for more).
In North America, qualifying for a loan is all about your credit history.
However in Panama, the banks focus on your ability to pay and the the property’s loan to value ratio.
What this means is that Panamanian banks require massive amounts of documentation.
Documents that:
Generally, Panama banks will only give loans on land that is
Note, All non- residents qualify for the same interest rate if approved, rates are not credit score driven.
If you think you will be applying for a loan, you should bring these documents with you to Panama.
Some banks require that you have a Panama bank account for at least 6 months before you can be given a mortgage.
Of course, every bank has slightly different requirements.
Once all the required documentation is in the bank's hands, it goes to the bank's credit committee.
They have 14 days to analyze your loan application. Once approved, the buyer gets to review the terms.
If the buyer agrees to the loan, he signs it and returns it to the bank.
In return the bank issues an irrevocable promissory letter for the approved loan amount.
If this seems daunting to you, you should read my "18 Ways To Finance Real Estate In Panama" post.
Also, if you are interested in one of our properties, we offer financing.
Find out more about our financing offer here.
When I was a poor college student, I wanted to go traveling. I was sad that I would never be able to afford it.
One of my professors, who had spent years sailing around the world, told me I was wrong.
He insisted you didn't need much money to do it, just the will to do it.
My reaction was anger. He just didn't understand my situation, etc.
Then a year later, without much money, I traveled for one year all around the world.
It was one of the greatest experiences of my life.
While I was angry with my professor at the time, he did plant the idea that maybe I could afford it.
I have traveled extensively since as well as bought and sold overseas property.
Two things, that at one time, I thought I would never be able to do.
One that will lead you to become an international real estate investor.
You never know.
This means that you refinance an existing house loan for a larger amount than the existing mortgage loan. Then you (the borrower) will get the difference between the original amount of the loan and the higher refinanced amount in cash.
You can do anything you like with that cash.
For instance, you could refinance your house in Houston, Texas. Take out the extra cash and use it to buy some property in Panama.
Investing that cash in something with a higher return than the new and higher refinanced amount of the loan is your smartest option.
We did used this type of refinancing to buy a rental property in the US. It turned out to be an excellent investment for us.
I don't know who else can do this, but Canadians can borrow up to an amazing 80% of the value of any Canadian real estate to take out ‘cash’ to purchase your overseas property. And it is at a very low interest rate.
For this loan a maximum amount of money is lent for an agreed upon period (term). The collateral is the borrower’s equity in their house.
It is smart to set up an Home Equity Line of Credit, even if you don't think you will ever use it. You won't be charged any interest unless you use it.
We always have an equity line of credit. It gives you the flexibility to quickly get cash.
Something you sometimes need to do to quickly capitalize on an amazing property bargain.
This is a loan in which the borrower uses the equity of his home as collateral.
A reverse mortgage is another way to use the equity you have built up in your home.
It is available to homeowners who have equity in their home and who are 62 years or older . It allows them to convert part of their equity in their home to cash.
The great thing about reverse mortgages is that there are no monthly payments. The loan is paid off when you sell the house.
If you qualify, you can tap into your home's equity to buy your dream property in Panama.
This is a specific type of asset-based loan financing. THe borrower receives funds that are secured by the value of a parcel of real estate that he or she is purchasing. These "hard money" loans are typically issued by private investors or companies.
Generally speaking, this type of loan is easier to qualify for, but the loan also comes with higher fees and interest rates.
This can be either an unsecured or secured loan.
This is one of our favorite types of loans. We have been both lenders and borrowers of personal loans.
Especially if you are self-employed, as we are, it can be next to impossible to get a loan from a bank these days.
Of course, you have to know people who not only have "extra" money, but with whom you feel comfortable asking to borrow it. Depending upon the type of property you are investing the money in, you will have to figure out if you will make payments with interest over time, give them a portion of the deal, or some other renumeration.
We have had great success with this method. Of course, you must have a clean financial track record with the person who you ask to borrow money from. In general, it is a win-win situation.
Self directed or self managed IRAs give you complete control over selecting and directing where to invest your IRA - including real estate.
If you have an IRA at a traditional brokerage, you can roll it into a self directed IRA. Then you can use your IRA to invest in overseas real estate.
However, this option is not for everyone. You need to be actively involved in managing your IRA and to learn the rules of the self-directed IRA. Also, depending upon how it is used, it may generate taxable income.
For a summary of the issues, visit fox business news here.
Explore Our Puerto Armuelles Property Listings.
Our properties are both affordable & beautiful.
Most credit cards allow you to withdraw cash either from an ATM or over the counter at a bank or other financial institution.
This allows you access to quick cash if you stumble upon a great real estate bargain.
You take your credit card, head on over to an ATM, and withdraw cash. Or you might be able to do a balance transfer straight into your checking account.
This is especially appealing if you have a card that offers 0% interest for cash advances for say 6 to 12 months.
That way you can buy that great piece of property and then pay back the original amounts before you ever get charged interest. Nothing better than an interest-free loan for a good investment.
This is like the Cash Out Refinance on your home. It is a refinancing of an existing auto loan, where the new auto loan is for a larger amount than the existing auto loan, and you get the difference between the two loans in cash.
You can do this if you have a paid off car. You can then secure a new auto loan, and use that cash. If the interest on the car loan is less than you will think you will make on the investment, especially if its a short-term investment, it is a sound option.
You have money invested in the stock market that you instead use for overseas real estate
Cash out some of your stocks or bonds and invest the proceeds in real estate.
Make sure you factor in the capital gains tax you will have to pay on the sale of those stocks and bonds
This is another option for getting around the more traditional loan route.
Some sellers offer to finance your purchase of their property. This way you can avoid dealing with a bank or mortgage company.
Seller financing is a good option for buyers who want to buy a home in Panama, but need to sell their current home to pay for it.
You will need to negotiate the financing terms directly with a property owner for all or part of the purchase price.
You can also get a loan directly with the developer of a property rather than the bank or mortgage company.
This is very common with pre-construction and during-construction developments.
It usually consists of small down payments, small monthly payments, and then a balloon payment once your property is complete.
This is when you apply for a mortgage loan from a local bank.
Two banks, of many, that offer mortgages in Panama are MultiBank and Global Bank.
Most banks in Panama will give you a mortgage on a property in Panama.
The banks are mostly interested in your ability to pay back the loan given your assets and income.
Your credit record is of secondary importance to getting a mortgage in Panama.
Click here to read my post on how to get a mortgage loan in Panama
In Central America there are international banks that will provide mortgage financing in 2 or more central american countries.
Toward the bottom of this banks of Panama link, the international banks of Panama are listed.
If you are planning on investing in Panama and another Central American country, you may want to develop a relationship with one of those types of banks.
International banks such as Lloyds TSB International will often finance overseas properties in a range of countries. These larger banks will sometimes finance up to 70% of the value of the property.
Sometimes when you cannot get financing for a specific type of property from one sector of the banking community, another will find it more attractive.
When you have an investor provide the capital, but who is not involved in the day to day decision making of the investment property.
This works well when you have time and know-how, but no money. And you know someone who has money, wants a good investment, but has no time.
In a nutshell, you provide that on-the-ground labor of finding the property and making it look good for resale. Your silent partner provides the money.
This arrangement is unique to each partnership. You will have to hammer out the details, it might be investment specific, or you might have an open line of funds to access.
If you make your first investment a cash-flow property, you can use the proceeds to buy or finance future properties.
The CAP rate can be excellent. We know some people in Puerto Armuelles who paid rent of $500/month to an expat who had just bought the rental house for $50,000. You do the math.
Even without looking at the CAP rate, the investor is making 12% a year plus appreciation. Right now in Puerto Armuelles, property is appreciating at 10% or more a year.
Crowdfunding is increasingly popular for a wide range of projects, including real estate.
Typically crowdfunding is done via the Internet. It allows you to get a large number of people to pool their funds together.
There are more and more online resources where you can invest a little bit of money, with other investors, to buy real estate.
Here is a link citing the Top 10 sites for real estate crowdfunding.
Taylor White's post on the "17 Ways To Finance International Real Estate" both inspired and greatly contributed this post. Thank you Taylor.
It is on the beach, next to Las Juanas Restaurant, in the San Vicente neighborhood
The bar & grill's menu is very meat oriented. They have a full bar as well.
It is part of Puerto Armuelles' new hotel, Heavenly's Hotel.
As most people know, the Superbowl will be between the New England Patriots and the Seattle SeaHawks.
We Promise Not To Paint Our Faces GreenWhen we are in the States, we live in Seattle.
I was in Seattle last year when the Seahawks won the Superbowl. There was alot of excitement on the streets afterwards.
Seattleites have since become a bit Seahawk crazed.
Although we may not be as ardent Seahawk fans as other Seattleites, we will show up with at least one number 12 placards.
Hope to see you there.
