ATTENTION: Citizens of the USA

Living Standards of the 21st Century!
 

Our communication	-	Wireless
Our phones	-	Cordless
Our cooking	-	Fireless
Our food	-	Fatless
Our Sweets	-	Sugarless
Our labor	-	Effortless
Our relations	-	Fruitless
Our attitude	-	Careless
Our feelings	-	Heartless
Our politics	-	Shameless
Our education	-	Worthless
Our Mistakes	-	Countless
Our arguments	-	Baseless
Our  youth	-	Jobless
Our Ladies	-	Topless
Our Boss	-	Brainless
Our Jobs	-	Thankless
Our Needs	-	Endless
Our situation	-	Hopeless
Our Income	-	Less & less

This is why we say When You Come To Panama, You Can Turn Your Frown Upside Down!

Real Estate Acquisition in Panama

Purchasing property in Panama is usually done in two different stages.

Stage 1: The Promise of Sale and Purchase
This contract is performed preliminary to the sale and purchase contract. In this particular contract the seller agrees to sell to the buyer at an established price the property. It is common that the buyer consigns a down payment to the seller to ratify his commitment to the sale. If the buyer decides not to proceed with the acquisition of the property, he will usually lose the money that was given beforehand to guarantee the sale. On the other hand, the seller is bound to sell the property object of the contract.

Stage 2: The Final Contract
This contract is done in the form of a public deed and has to be registered at the Public Registry of Panama. Prices for registration will depend on the value of the property or on the price of the sale. When the contract is registered, the change in the ownership of the property is done.
As of the time of the registration, you become the owner. By far the safest possible way to pay the remainder of the purchase price to the seller is by an irrevocable letter of payment issued by a bank. The bank holding the funds issues the irrevocable letter of payment to the seller and pays it as soon as it is presented with the registered public deed transferring title to the buyer.
Please be advised that the law establishes that the seller pays the transfer tax and the buyer pays for the legal and registration costs.  For more information please visit www.beachesandcity.com.

Real Estate Choices Abound in Panama

Panama City condos with ocean views, homes in resort communities in the coffee growing highlands, the Caribbean and Pacific islands and beaches, and homes in golf resort communities are Panama's most popular real estate buys for foreigners seeking a second home or to retire. In all the same places, there are also real estate investment opportunities.  Have a question?  Need an answer?  visit the Panama Real Estate experts at www.beachesandcity.com.

Things you may not know about Panama

Things you may not know about Panama:

80 miles coast to coast, about 135 Km, is a mixed environment that has city life with vibrant shopping, jungle life to pump your adrenaline, and for those that like to relax at the beach, there are mountains, 14 national parks with exuberant,endemic and precious wildlife.

Would you like to Scuba dive in the morning on the Atlantic side of Panama (TheNorth or Atlantic side), have lunch, and then go surfing on the Pacific (theSouth part of the country) in the afternoon?? in Panama,you can!! In Panama, it's possible! Would you like to have breakfast and then go explore right into the deep rain forest in less than 1 hour?  Did you know that you could use your US coins in Panama? Do you know if you are able to use your ATM card in Panama?

How does civilization lives along with Nature? Come and find out in Panama!!

Linking South and North America, Panama is bordered by oceanon the north and south,and neighbored by Colombia and Costa Rica.Panama has two seasons: Wet and Dry.

The dry season lasts from January through April. The temperature is generally 80 to 90 (F) degrees, and it rarely rains all day.  Did you know that the word"Panama" has different meaning to different people, but the vast majority define Panama as an old indian word meaning "lots of fish and butterflies". There is also a meaning as "Panama" as the "Panama Hat", that interestingly enough, is not made in Panama, but in Ecuador.

The Panama Audubon Society has several world records for most species seen on one day (over 400 species seen on 1 day)

You can see the white-tipped sickle bill, Rufous-crestedcoquette, and the Brown-billed scythe bill, the Brown-backed Dove and manymore.

Looking for a place to stay?  Contact us at www.beachesandcity.com and we will help

Paradise Found in Panama!

RE/MAX Beaches & City! Wants to be your "Boots on the Ground" in the Republic of Panama!. We are constantly doing the hard work, the time consuming legwork of researching the vast, ever-changing Panama Real Estate Market – be it the beaches, the city, the islands and/or the mountains.

Sit back, relax and let your fingers do the walking. Journey through our website that was created with YOU in mind! Remember the RE/MAX Beaches & City! TEAM has already put our "Boots on the Ground" here, there and eventually, maybe just about everywhere on this wonderful golden isthmus that we call our home.

We can save you a big bunch of your time, a whopping bundle of your money and provide you with proven Panama Real Estate Investment Expertise when you are ready to put your "Boots on the Ground" here in the Republic of Panama. Come join us here in Panama right now! We are waiting for You! PARADISO!

Visit us at www.beachesandcity.com.

If you want to retire, Panama wants you!

Greetings, Panama an excellent choice for retirement, but here are some very direct incentives. As a pensionado [retiree] in Panama, you receive: 50% discount at most recreational, movie, and sporting events; 30% discount off public transportation (including buses and ships); 25% discount off Copa airline flights; 50% discount off hotel stays on weekdays (30% on weekends); 25% discount at selected restaurants; 15% discount at fast food restaurants; 10% discount off prescription drugs; 20% discount on doctor's visits; 15% discount on dental work; 25% discount on your electric bill (if less than $50); 25% discount on your telephone and water bills. In addition, you can bring in all your household goods free of taxes and import a new car every two years for private use.

All that is required to qualify as a pensionado is that you must be in good health, AIDS-free, have an up-to-date passport from your country of citizenship and a verifiable monthly pension income of at least $1000 per month for an individual, $1250 for a couple, plus $250 for each additional dependent, if any. Foreigners who become pensionados can buy and own Panama property and enjoy exactly the same rights and protections as Panamanians, not always the case in many nations and an important point people often forget to consider. As for income taxes, you will be pleased to know that in Panama you pay no taxes on income earned outside of Panama.

Panama is not paradise, no nation is. Panama is still a relatively young nation and has its growing pains, but it's made a great deal of progress already and it's headed in the right direction. For the rest of us who are not Panamanians, it is a nation where we can live comfortably for much less money and far less stress than we have come to expect in our own societies. Best of all, we are "good" immigrants. We save money living in Panama, but we also bring with us the money that creates jobs and opens possibilities for Panamanians they would not have otherwise. They know that and so we are genuinely welcome.

Panama Pacifico

I would like to share this video of Panama Pacifico that I came across. Panama Pacifico Video

Panama Pacifico is a mixed use area in Panama. For more information please contact us at www.beachesandcity.com

Some information you can use if you bank offshore

FAQs Regarding Report of Foreign Bank and Financial Accounts (FBAR) - Filing Requirements

Q. What is an FBAR?

A. An FBAR is a Report of Foreign Bank and Financial Accounts. The form number is TD F 90-22.1 (PDF).

Q. Who must file an FBAR?

A. Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. See also Notice 2010-23.

Q. What is a foreign country?

A. A “foreign country” includes all geographical areas outside the United States, the commonwealth of Puerto Rico, the commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands).

Q. What is a United States person?

A. “United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, and a domestic estate or trust. See Announcement 2010-16.

Q. Is a single-member LLC, which is a disregarded entity for U.S. tax purposes, a United States person for FBAR purposes?

A. Yes, the tax rules concerning disregarded entities do not apply with respect to the FBAR reporting requirement. FBARs are required under Title 31, not under any provisions of the Internal Revenue Code.

Q. What constitutes signature or other authority over an account?

A. A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.

Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.

Q. Is a U.S. resident with power of attorney on his elderly parents’ accounts in Canada required to file an FBAR, even if the resident never exercised the power of attorney?

A. Yes, if the power of attorney gives the U.S. resident signature authority, or other authority comparable to signature authority, over the financial accounts. Whether or not such authority is ever exercised is irrelevant to the FBAR filing requirement. See Notice 2010-23 for information regarding an extended due date to report signature authority over a foreign financial account.

Q. How do filers report their accounts to the IRS?

A. Filers report their foreign accounts by (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF).

Q. When is the FBAR due?

A. The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold. The granting, by IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR. Filers cannot request an extension of the FBAR due date. See also Notice 2010-23.

If a filer does not have all the available information to file the return by June 30, they should file as complete a return as they can and amend the document when the additional or new information becomes available.

Q. Where are FBAR forms available?

A. FBAR forms are available:

*
Online via IRS.gov in PDF.
*
Online via Department of the Treasury’s Financial Crimes Enforcement Network Web site in PDF.
*
By calling the IRS at 800-829-3676.

Q. Is there a help line for questions about completing the form?

A. You can get answers to questions concerning the FBAR form by calling 800-800-2877 and selecting option 2.

Q. Does the IRS have an email address to send questions regarding the FBAR?

A. You can send questions concerning the FBAR to FBARquestions@irs.gov. The email system does not accept actual FBAR reports.

Q. Where do I file the FBAR?

A. Send completed forms to:

U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621

If an express delivery service is used, send completed forms to:

IRS Enterprise Computing Center
ATTN: CTR Operations Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226

The contact phone number for the delivery messenger service is 313-234-1062. The number cannot be used to confirm that your FBAR was received.

The FBAR is not to be filed with the filer’s Federal tax return.

Q. How do I verify that my FBAR was filed?

A. Ninety days after the date of filing, the filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 800-800-2877 and selecting option 2. Up to five documents may be verified over the phone. There is no fee for this verification.

Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period. There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page. Check or money order should be made payable to the United States Treasury.

The request and payment should be mailed to:

IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Detroit, MI 48232

Q. How does an FBAR filer amend a previously filed FBAR?

A. FBAR filers can amend a previously filed FBAR by:

* Checking the Amended box in the upper right-hand corner of the first page of the form;
* Making the needed additions or corrections;
* Stapling it to a copy of the original FBAR; and
* Attaching a statement explaining the additions or corrections.

Q. What happens if an account holder is required to file an FBAR and fails to do so?

A. Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late. No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause. Keep copies of what you send for your records.

Q. Can cumulative FBAR penalties exceed the amount in a taxpayer's foreign accounts?

A. Yes, under the penalty provisions found in 31 U.S.C. 5314(a)(5), it is possible to assert civil penalties for FBAR violations in amounts that exceed the balance in the foreign financial account.

Q. How long should account holders retain records of the foreign accounts?

A. Records of accounts required to be reported on an FBAR must be retained for a period of five years. Failure to maintain required records may result in civil penalties, criminal penalties or both.

Q. For filing FBARs for prior years, should the current FBAR form be used or should the previous version of the form be used?

A. The current FBAR form (revised in October 2008) may be used to report a financial interest in, or signature or other authority over, financial accounts that were maintained in years prior to 2008. However, since the changes to the current FBAR form reflect a change in the reporting requirements, the instructions for the prior version of the FBAR form (revised in July 2000) may be relied upon for the purpose of determining the filing requirements for properly reporting financial accounts maintained in calendar years prior to 2008.

Q. Does more than one form need to be filed for a husband and wife owning a joint account?

A. No, provided that the names and Social Security numbers of the joint owners are fully disclosed on the filed FBAR. A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR. The filer should write “(spouse)” on line 26 after the last name of the joint spousal owner. If the only reportable accounts of the filer's spouse are those reported as joint owners, the filer's spouse need not file a separate report. If the accounts are owned jointly by both spouses, the filer's spouse should also sign the report. It should be noted that if the filer's spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer's spouse should file a separate report for all accounts including those owned jointly with the other spouse.

Q. Are UBS account holders still eligible for the Voluntary Disclosure Practice? The income earned on my client’s foreign account has not been reported on his Form 1040, nor have FBARs been filed.

A. The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation of taking timely, accurate, and complete voluntary disclosures into account in deciding whether to recommend to the Department of Justice that a taxpayer be criminally prosecuted. It enables noncompliant taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution. When a taxpayer truthfully, timely and completely complies with all provisions of the Voluntary Disclosure Practice, the IRS will not recommend criminal prosecution to the Department of Justice.

Although the use of special voluntary disclosures by taxpayers with unreported income from offshore accounts expired on Oct. 15, 2009, noncompliant taxpayers can still use the VDP to resolve their tax liabilities. A voluntary disclosure is made by following the procedures described in I.R.M. 9.5.11.9. Tax professionals or individuals who want to initiate a voluntary disclosure should call their local CI office. Taxpayers with questions may call the IRS Voluntary Disclosure Hotline at 215-516-4777, visit www.irs.gov or contact their nearest CI office.

Panama the Beautiful

Panama is basically a mountain range bordered by beautiful Panama beaches. However, these are not cold, barren mountains. They are "soft", rounded volcanic Panamanian mountains and the volcanic soil provides an excellent base for lush vegetation. If you prefer a tropical climate, you won't be disappointed on either the Atlantic or Pacific coasts. If, like me, you prefer a more temperate climate with easy access to the Panama beaches (it's almost impossible to be more than an hour's drive from a Panama beach; 30 minutes is more common), move up the mountainside and you'll find it. The flowers, trees, birds and other animal life are varied and many are strikingly beautiful. It's what you would expect in that part of the world and Panamanians are doing a decent job of protecting their environment, far more so than many nearby nations. Eco-tourism is a growing industry in Panama and for good reason. One of the most active groups defending Panama's environment is its very own Audobon Society. It's rare to find such a organization with a strong local chapter in a nation this small, but this is one more difference between Panama and its neighbors. To get an idea of the amazing variety of birds found in Panama, you can download a copy of Audobon's list of the Birds of Panama or visit its website.

International Living Article on Panama

Not sure if you saw the article on the Pacific beaches of Panama yesterday in the International Living email blasts but they were down on Coronado and up on Gorgona. Sure Gorgona is cheaper as they stated but it is also rougher surf on the beach, not as clean driving through the roads (trash everywhere), and certainly not the safest place at this time. In comparison, Coronado Beach area is a gated community area that also hosts the Coronado Beach and Golf Club, sure it will cost you more to live in this area as the Real Estate is climbing but you need to weigh ALL factors not just price. As they say you get what you pay for. Besides I just bought a nice little Townhouse Condo behind 3 guard gates in the Coronado Beach area for $55,000. Wanted to set the record straight

over

This just in!!!!

A friend of mine - Richard Novak, who lives in Panama has the following offer - WOW.

This just in!!!!

FREE – Real Estate Property Acquisition Tours

For the FREE Info – Please see what is posted below –

Prices Quoted are Per Person

MENU - PANAMA REAL ESTATE PROPERTY ACQUISITION TOURS

TOUR NUMERO #1 – THE PANAMA – MARTINELLI - PRESIDENTIAL TOUR:
   - Warm Executive Type ExPat Welcome & Greeting upon your arrival at the Tocumen

  International Airport with ROUND TRIP (Panama City – PTY) transportation

     (To & from) the Airport to your accommodations in the Greater Panama City area -   

- FANTASTICO PANAMA CITY, PANAMA TOUR – Four (4) hours to five   

  (5) hours tour of: THE Canal, Amador Causeway, Casco Antigua, Costa Del Este,

   Former ZONE & Reverted Areas, Punta Pacifica, Cinta Costera & You Pick - PLUS

- PANAMA PACIFIC OCEAN BEACHES & COOL MOUNTAIN BREEZES–

  Comfortably & safely travel out to just near Kilometer Marker #123 & also tour

  Additional undisclosed and perhaps yet to be discovered locations of this Tropical

  Wonderland of Panama – Visit places only known to the fortunate chosen few –

  Depart from Panama City at about 8 AM and returns before dark – 6PM - PLUS

- PLUS during the Tours & when you ask – then you shall receive, an absolutely  

  incredible amount of vital & factual information about Panama Real Estate –

  Should you buy?  Should you rent?  Should you even consider Panama at all???

    - Complimentary Bottled Water & Tasty Snacks provided, but you may also want to

 bring along some additional provisions –

$149.00 Per Person

PANAMA PACIFIC OCEAN BEACHES & COOL MOUNTAIN BREEZES -ONLY - $89.00 Per Person

FANTASTICO PANAMA CITY, PANAMA TOUR –

 ONLY - $49.00 Per Person

ROUNDTRIP AIRPORT TRANSPORTATION -

 ONLY - $12.50 Per Person – Each Way

Yes! We have saved the very best part until the very end –

When you EVER, repeat EVER purchase any Panama real estate property

With the help of:

RE/MAX Beaches & City! INC.

www.beachesandcity.com

Any and all amounts that you may have paid for any and/or all of your Tours

Will be refunded to you in FULL – so your Tours are

Totally & Absolutely - FREE!!!

How about little History

Casco Antiguo was the place where Panama, the first Spanish city in the coast of Pacific Ocean was moved, after being attacked in 1671 by Henry Morgan's minions, being later on granted the title of Sir for such infamous achievement.

The Spanish Empire could not disregard such important commercial and strategical base, located in the narrowest part of the continent, from where other Indian empires had been conquered, developing the colonial process successfully. This is the reason why the city was moved to a sheltered peninsula and then building a wall complex in order to improve protection. No other pirate would dare to attack again.

In that place, named San Felipe, through the century's the buildings were melting with the cityscape, as a writer records the facts of history in white pages. The Spaniard's left a great Cathedral, the tallest building of all Central America and other churches and monastery's, at that time. They also left behind an urban layout that takes the main plaza (Plaza Mayor) as the center from where the rest of the streets expand through the four cardinal points, following some sort of a big chess board.

The importance of the city was growing through time and after the Independence of Panama from Spain, in 1821, the Isthmus joined Columbia, accomplishing the ideals of Simon Bolivar, the Liberator. The later arrival of the American People after the French, with the goal to dig an inter oceanic canal, contributed with new architectonic tendencies, as well as new migratory currents from all parts of the world, giving this place a particular flavour, giving birth to a country, and the folklore of the city and the old neighborhood.

The balconies on the buildings are truly works of art, because of the handcraft of their handrails. They were at a time, a very important place of this buildings because their inhabitants used them as places to have social activities, like evening chat, waving to transient people and using them to hang flowers like bougainvilleas, a custom that is seen nowadays.

The San Felipe neighborhood becomes the Capitol of Panama Republic, when in 1903, Panama separates from Columbia and arrangements are made with the United State's Government in order to finish and fulfill the excavation of The Panama Canal, the 8^th wonder of the world. Reasserting the historical good choice of the location of this city. At that time, public buildings with beautiful neoclassical structures add prestige and charm to this place.

Taking a Taxi in Panama City

Who ever knew that taking a taxi in Panama could be a sport? I live at the beaches and do not like driving in the city or to the city. I will do it but I would much rather hop on the bus which is $2.75 to Albrook from Coronado and then hop into a cab who will take me where I need to go. The benefits being they will usually take short cuts and I can practice my Spanish while the driver battles the traffic through the city. Taxis in Panama do not have meters. Instead they have a Taxi Zone Chart divided up in zones and subzones. Your fare depends on how many zones you travel through to get to your destination. If you travel within the same zone, e.g from one end of the Amador to the other you should not pay more than $1-$1.50. In reality however there are two ways of sorting out what the fare will be from point A to point B. As the drivers will not be resorting to the fare chart unless you ask. One way is to decide how much you will pay the driver at the end of the trip. The other option is to ask the driver before getting in how much the fare will be. This can prove to be very time consuming as they will always give you an inflated rate while you are standing on the street. I have included a quick guide on the areas that I travel to and from and what I pay and have been ask to pay by the honest taxi drivers. Some will always try and take you for more if you look like a tourist or come across as a ‘newbie’ to the system. Here is how I take a taxi always works for me and I get to my destination in one piece with money left in my wallet.

Panama Pacifico

Who Does Business in Panama?  Four of the Fortune 500 Companies Are Already Here

Panama Pacifico currently hosts 3M, BASF, Dell and Caterpillar and more popular companies are heading this way.

3M

3M is establishing a new distribution and manufacturing technologies center at Panama Pacifico.

BASF

BASF has expanded its global service and production network with the establishment of a new manufacturing plant in Panama. This new facility will help the Construction Chemicals business of BASF meet the demands of the construction market in Panama.

DELL Panama

DELL established operations in Panama Pacifico in 2003, to serve U.S., Canada and Latin America customers as part of its global customer contact center network, delivering great customer experiences and employee career development opportunities. Today, Dell Panama has evolved to become the operational hub for Latin America Sales, Technical Support and staff functions, producing best-of-breed business practices for Dell worldwide.

Caterpillar

Caterpillar will establish a major operational presence close to its Latin America customers and network of independent dealers at Panama Pacifico. The company projects to employ approximately 300-400 people at the new Howard Demonstration and Learning Center.

This is Just the Beginning of a Vibrant Business Community

The companies above represent just the beginning of the developing business community at Panama Pacifico. The opportunity to customize a new company location in a variety of newly built business centers is a rare opportunity in this region, and another aspect that sets Panama Pacifico apart. In addition, many businesses are able to locate onsite immediately to an existing building to take advantage of the special economic zone benefits.  Companies have the unusual opportunity to plan for their future success in an area that accommodates growth and expansion in a thriving, master-planned community.

Let's Discuss Asset Protection in Panama

Panama Private Interest Foundations

The Panama Foundation is more than just a tool to fund a philanthropy organization or center.

“Foundations are the favored asset protection tools
of the Super Rich such as the Rockefellers and Rothschilds”

A Panama Private Interest Foundation is sort of a combination of a will, a trust and a corporation best of all, in a sense. Panama Foundations are more versatile and can accomplish more than Trusts plus they are anonymous. It only takes 2-3 business days to form a Panama Foundation. Panama Corporations can be formed in the same 2-3 days even if the Corporation is to be owned by the Foundation. No one owns a Panama private Interest Foundation, so you are not the owner of the Foundation, no one is according to the statutory laws of Panama. A Panama Foundation can own the shares of a Panama Anonymous Bearer Share Corporation, thus removing you from being any sort of owner of the Corporation. Now since the Corporation is owned by the Foundation and you own neither it creates a most beneficial scenario for some people. Add to this you are not the founder of record of the Foundation (we supply a founder), you appear in no public registry or database in regards to the Foundation and the Foundation can even be so created that you are not even a beneficiary, you can just be the protector which is a private position never appearing in any database or public registry. You are not a beneficiary of the Foundation which some governments could view in a similar way to the beneficiary of a trust, not an owner of the Foundation and not really a true person of control, just a protector who protects things to make sure the wishes of the foundation are fulfilled. Foundation protectors do not initiate transactions just oversee them to make sure they are consistent with the wishes of the Foundation thus they are not persons with true control over the Foundation, they just have veto power. Read below to learn more and questions are always welcome. This is serious material that needs to be studied before one can truly appreciate all the thought that went into the legislation creating the Panama Private Interest Foundation with all its subtle and not so subtle advantages that make this the most outstanding asset protection tool in the world today.
Summary of Panama Foundation Benefits:

• Protects assets (real estate, bank accounts, stocks, bonds, art and collectibles, corporations, boats planes, cars) from financial enemies and potential financial enemies. A Panama Foundation can own one or more Panama Corporations. This means you can operate an anonymous Panama Corporation which is not owned by you, it is owned by the Foundation. Foundations have no owners. A Panama Private Interest Foundation is a court tested method to keep assets immune from the personal debts of the person starting the Foundation. It prevents forced heir ship. The Panama statues relating to Foundations are based on the Lichtenstein model – “Stiftung”.
• According to Panama law, the assets of a Panama Private Interest Foundation are not considered to be subject to sequestration or embargos. This means that the assets can not be frozen as a protective measure before a full trial is gone through. The meaning of sequester is as follows from the legal dictionary: a legal writ authorizing a sheriff or commissioner to take into custody the property of a defendant who is in contempt until the orders of a court are complied with, or a deposit whereby a neutral depositary agrees to hold property in litigation and to restore it to the party to whom it is adjudicated to belong to. The exception to this rule would be if the Foundation itself (not the founder, not the protector, not the council members, not the beneficiaries) did something illegal like for example it illegally broke a lease on a real estate transaction and refused to pay the rent owed, then the Foundation assets could be frozen to the extent of the amount owed under the contract if a judge so ordered and a bond was posted. If the Foundation itself does not directly commit the illegal action then the assets of the Foundation are not subject to freezing or seizure. This gives one great peace of mind when funding their foundation and we suggest to our clients that the Foundation never do anything that could lead to any litigation, think of it as a holding entity. Welcome to Panama.
• The foundation can have instructions to dispose of assets in a certain way in the event of you encountering serious legal or other difficulties like being sued, being forced into bankruptcy, being kidnapped and held for ransom, being blackmailed or the victim of extortion, or if in any way you are incapacitated or your ability to function freely is inhibited in whole or in part, etc. There can be secret instructions for a specific person to deal with assets in such an event as the founder sees fit. These secret instructions can appoint a temporary protector in the event you are under such duress with specific instructions as to how he should proceed with the foundation and its assets. This would remove the ability for you to move the foundation assets around, period. This is now something you can not do until you can demonstrate to the person inserted as the temporary protector that the conditions acting as the trigger for the empowerment of the new protector are no longer in place or no longer operative and you are no longer under duress and then as per your instructions you will be the Protector again with all the power returned to you.
• Panama Foundations have no owner thus there is no registry in existence that records Foundation ownership in Panama. The Foundation can be a shareholder or owner of a corporation. Thus your Foundation could be the owner of an anonymous Panama bearer share corporation which you use to conduct business. Then you could say you are not the owner of the corporation. Since a Panama Foundation really has no owner you would be telling the truth and in the unlikely event the Foundation came up you could also say you do not own that as well.
• Foundations can be used to provide for the financial well being of family members according to your explicit instructions. Once could say my foundation income will go to my surviving spouse but in the event the spouse remarries then the foundation proceeds will go to my eldest child. This would be enforceable in Panama. The Foundation can protect closely held businesses, providing for continuity into second and third generations by preventing property-splitting; to protect and provide for minors or disabled persons or those incapable of managing their own assets; to manage payments of income or distribution of assets to family members or to provide for their education, housing, or maintenance.
• The Foundation can manage profit sharing or pension plans for employees, to hold shares, participate in or have an interest in private or public companies; it is a vehicle for the collection of royalties. It can engage in commercial transactions where the proceeds of such are dedicated exclusively to the non-commercial purpose or objectives of the Foundation. Very useful point.
• You could have a formal written agreement appointing you as the investment manager or business manager for the Foundation. This agreement would be signed by the Nominee Council members and would be notarized and apostilled if needed. The agreement could spell out your compensation including benefits like use of foundation auto, travel expenses, general expense account, use of foundation apartment or house, use of foundation boat, medical benefits to be paid directly by the foundation to the health care provider or doctor including elective surgery like plastic surgery, paid legal expenses direct from foundation to law firm, etc.
• According to Panama law, the assets of a Panama Private Interest Foundation are considered to be "non-embargable", and "non-sequesterable", which means that the assets can not be frozen under any circumstances.
• The Panama Foundation needs no business license.
• The annual tax for the Foundation is fixed at $300.
• The Foundation can serve as a last will and testament.
• The Foundation can effectively guard against disputes amongst heirs.
• The Foundation can carry on scientific, philanthropic, religious, humanitarian or educational purposes.
• The Foundation can have bank accounts.
• The Foundation income is tax free under Panama law.
• Royalties, copyrights, trademarks can be assigned to the Foundation.
• You can assign assets to a Panama Foundation in return for an annuity.
• The Foundation can be an investment vehicle for real estate, stocks and bonds. It can hold bank accounts, boats, planes, artwork, collectibles or other assets with highly specific instructions as to how such assets should be dealt with under varying circumstances, all custom designed to meet your specific needs.

Restrictions - In general, Private Interest Foundations may not engage in commercial activities like a corporation but they may carry out commercial activities like owning corporations that are actively engaged in commercial business activities, as long as the profits of those activities are used for the purposes for which the Foundation exists. The Foundation can of course engage in passive investments like stock market investments, mutual funds, bank deposits bearing interest, Forex, bonds etc as long as the proceeds are used for the purposes for which the Foundation exists – for the benefit of the beneficiaries and you can of course be a beneficiary of the Foundation. You could also have an investment manager agreement with the foundation signed by the nominee council members, notarized and apostilled stating your compensation and benefits for managing the investments of the foundation. This agreement would be private and would document your role as an employee with the foundation.
Cast of Characters in a Panama Private Interest Foundation - The Foundation has a Founder, a Council, a Protector, and Beneficiaries.

• Founder: The Founder is the person or entity that establishes the Foundation in the Public Registry of Panama. Our law firm provides a Founder for you since the Founder appears in the Public Registry. We provide a Founder who does not know you for your privacy, protection and anonymity. The Founder has no control of any sort over the Foundation and its affairs, and is only recognized as the individual who presented for filing the Foundation articles in the public registry when the foundation was originally registered.
• Council: The Foundation's Council can be thought of as being similar to the board of directors of a corporation. The council members are each recorded in the public registry with their names and identification as council members of the Foundation. The firm you work with appoints a Nominee Foundation Council to fill the council positions like we provide nominee directors for a corporation. The nominee council members do not know who you are to provide privacy and anonymity for you. Along with each nominee council member comes an undated letter of resignation enabling you to replace the council at any time. Nominee council members have no control over the Foundation assets, can not go to the bank and take money out since they are not bank account signatories. If the nominee council members tried to add, change or delete the bank account signatories the Panama bank would directly contact the existing signatories on the account for permission in which case the signatory would call the police and the nominees would go to jail. The nominees know this, Panama banks understand nominees and this is not a scam that will work. Being a nominee does not come with bank signatory privileges or any other form of asset control. A Panama Corporation can take the place of the nominee council members.
• Protector: The Protector is the person or entity who has the real control over the foundation and all of the foundation assets. The Protector is appointed by the Foundation Council at the time the Foundation is created. After the Protector is put into position, the Protector is free to remove and replace the nominee council members whenever they chose to do so without any further permissions or steps needed to be taken. The Protectors appointment can be kept private through a notarized Private Protectorate Document, signed by the nominee foundation council members. This document is not registered or recorded anywhere thus the position of protector is quite private or just about anonymous, not to be found in any government database or registry. As protector you can maintain complete control over your foundation and its assets while maintaining serious privacy. A protector is not mandatory, and one can always use a nominee protector as well. It is possible to insert in the foundation charter or in its regulations that in order for the nominee council members to actually be able to exercise their powers they are required to obtain written authorization from the foundation protector. This means if they tried to do something on behalf of the foundation like enter into a contract they would be required to present the document that names them as foundation council members and this document also limits their ability to act requiring written permission from the protector. In the case of a bank, the bank contacts the existing signatories in the event there is a request to add, remove or change signatories. Same would apply regarding a request to close the bank account.
• Beneficiaries: The Panama Private Interest Foundation does not have owners, it has foundation beneficiaries. The Foundations Beneficiaries are appointed by the Protector through either a simple private written set of instructions which will keep your beneficiaries private out of any registry or database. One could instead use a more formal set of Foundation By-Laws. Either way, the privacy and confidentiality of beneficiaries can be assured. This is important to protect against kidnapping, blackmail, extortion, identity theft, frivolous litigation (if ones assets are concealed they are not so much of a target). The Panama Foundation may be set up so that the protector (that would be you) is the sole beneficiary of the foundation until death, at which time the foundation continues but its purpose alters for the benefit of the other beneficiaries you so designate. You could insert instructions that are highly specific like if a certain beneficiary (say surviving spouse) remarried their benefits may shift to another beneficiary (children). Foundations can continue for 120 years. Panama Foundations restrict the ability for the beneficiaries to fight with each other over the estate and wind up not speaking to each other for the rest of their lives.

Letter of Instructions: The Letter of Instructions is a simple letter, written by the Protector, which specifies exactly how the Foundations assets should be handled or distributed upon a triggering event such as the death or incapacity of the Protector. The Letter of Instructions should also state whether the Foundation should continue existing, and have a new Protector appointed, or if the Foundation should be dissolved and how the assets should be liquidated upon the death of the Protector. There is no specific format for the Letter of Instructions, and it can be written or changed at any time after the Foundation is formed, per the Protectors wishes. The Letter of Instructions can be held privately with no filing requirement so there is non-disclosure of details with serious privacy for all concerned. Generally, most people prefer to maintain the Letter of Instructions privately, so that the Beneficiaries and Protector remain anonymous and private.
Foundation By-Laws: The Foundation does not need to have By-Laws, since a Letter of Instructions is legally sufficient for fulfilling the Protectors' requested testamentary instructions or wishes. However, one could have a more formal Foundation testamentary document, written and signed by an attorney from our law firm, and notarized by a Panamanian notary. The Foundations By-Laws essentially handle the same function as a Letter of Instructions since the By-Laws specifying how the Foundation should respond upon a specific triggering event such as the death or incapacity of the Protector. The By-Laws should also state whether the Foundation should continue existing, and have a new Protector appointed, or if the Foundation should be dissolved upon the specified triggering event(s). There is a legal precedent that the By-Laws must follow. By-Laws content can be modified at any time at the discretion of the protector. The By-Laws can be held privately for anonymity, or can be registered publicly which is not suggested normally.

Unique Foundation Features and Benefits:

• Anonymity: Like the Panamanian Corporation, the Private Interest Foundation provides anonymity to its beneficiaries as well as to the Founder.
• Arbitration: The Foundation Charter may provide that any controversy arising in connection with the Foundation be resolved by arbitration, thus avoiding the public records of litigation. These provisions may also include the location and the procedural rules to be followed in arbitration.
• Asset Protection: The assets of the Foundation cannot be used to satisfy the debts of the Founder or of the Foundation beneficiaries, such as divorce proceedings, lawsuits, bankruptcy or other liabilities. When assets have been transferred to the Foundation and out of the reach of creditors, any claims of fraudulent transfer to remove assets from the reach of creditors must be made within three years and the court wait to hear such a claim in Panama it usually five years maybe longer.
• Capital Requirements: A minimum of US $10,000.00 of assets must be transferred to the Foundation, although this need not take place immediately following establishment. There is no recording in any registry of the capital amounts other than this minimum transfer, so the sum of total assets held by the Foundation remains totally private.
• Confidentiality: The Foundation Nominee Council Members, Registered Agent (us your law firm) and any other person that is privy to information relating to the activities, assets, transactions or operations of the Foundation are required to keep this strictly secret. In addition to civil liability for actual damages, breaches may result in imprisonment for up to six months and penalties of up to $50,000.00. Panama thrives on Privacy.
• Documents and Records: There are no requirements to file tax returns or a financial statement which means no auditing of such things. Books and accounting records may be held in Panama or abroad, you can even electronically put them up on a server in encrypted form is some part of the world where the location is only known only to you. Discovery is tough if you have no idea where the books and records are. Furthermore, the management and operation of the Foundation is not subject to the supervision of any governmental authority. No snooping, no fishing expeditions, no harassments, no Panama taxation, nothing vital in public records, anonymity for Foundation Founder and beneficiaries, etc.
• Estate Planning Vehicle: The Panama Private Interest Foundation is a sophisticated and efficient substitute to wills, trusts etc. The Panamanian Foundation is a perfect vehicle for inter vivos or mortis causa estate planning, as it can be set up to remain in perpetuity in so far as the purposes of the Foundation continue to be met. This may prevent hereditary disputes, as well as avoiding forced heir ship rules.
• Foundation Council Meetings: It is not necessary to hold annual meetings.
• Founders: The Founder may be one or more natural or legal persons of any nationality. Panama law is silent on the transferability of the Founder’s rights and obligations, there is nothing to prevent the transfer of these rights and obligations from a nominee founder as registered in the Foundation Charter to the real founder by a private document, think secrecy. We normally use a Nominee Founder. It is possible for the Founder to retain certain controls with respect to the Foundation, although these should be set out clearly in the Foundation’s Bylaws. There can also be a private instruction that speaks to this subject.
• Preservation and Administration of Assets: The Private Interest Foundation is a perfect vehicle for the preservation and administration of assets. The Foundation Charter may limit or prohibit property splitting, property transfers, the mortgaging or using of property to secure loans or other forms of financing, and regulate the general administration of the assets or business donated to the Foundation. The Foundation should be authorized to preserve, administer, and invest the assets consigned to it and to conclude all commercial and legal transactions necessary to the realization of its purposes. The Protector can play a vital role in the administration of the Foundation.
• Revocable: Although the Foundation is generally irrevocable, there are a limited number of cases, where it is possible to revoke its establishment:
  • Before registration of the Foundation Charter.
  • When the Foundation Charter expressly provides for revocation.
  • For any of the Civil Code causes for revoking inter vivos donations.
• Tax Advantages: The assignment, transfer or donation of assets to the Foundation is not subject to any tax under Panamanian law, neither is the organization, modification or dissolution of the Foundation. Provided it meets general requirements; income generated by assets of the Foundation is not subject to taxes, contributions, rates or liens of any kind.

Other Foundation Technical Points

• There is no statutory requirement for a private foundation to file any annual tax return or financial statements.
• One could set up a Panama Foundation to transfer control of assets to the surviving spouse, and one could insert instructions privately that if the surviving spouse remarried the control reverts to another family member or another person. The Panama Courts would find this completely enforceable and this is not at all unusual
• The foundation is revocable by the founder. If a nominee founder is used private instructions can be established to transfer this control to another.
• The foundation may be created to become effective on a certain date, on the occurrence of certain event or condition, or upon the death of the founder.
• Detailed information about the names, percentages and other particulars regarding the beneficiaries can be included in a separate document called “Regulations or Instructions” which is of a private nature and as such does not have to be recorded at the Public Registry Office. Anonymity.
• A foreign foundation may re-domicile in Panama through a Certificate of Continuation. By the same token, Panamanian foundations may transfer their domicile or assets to another country if so provided in the foundation charter or its Regulations.
• The rules of “forced heir ship” of other countries will not be applied against the foundation.

Why consider Panama

To quote International Living "Panama is not only the most sophisticated offshore haven in the Americas, with some of the cheapest beachfront in both the Caribbean & on the Pacific Coast, but it also has the best retiree benefits in the world.  In Panama you can have it all - great weather, gorgeous beaches, fresh mountain air, a safe, sparkling city, warm, friendly people and all the luxuries you deserve - but at a fraction of the cost you'd pay at home.  This is your best chance to fulfill your dreams in Panama."  IL has it right, Panama is the NEW AMERICA, consider it a new beginning just with luxuries you are used to back in the US or where ever you may be from.  If you have questions on Panama please visit www.beachesandcity.com to get answers.

Over for now
Panama Man

Panama Man talks Coronado part II

Hello again, Panama Man as promised wanted to finish our series on Coronado. Coronado is located in what's known as the Arco Seco, or dry arch. This region is known for its lack of rainfall. Whereas Panama's "wettest" areas (mostly on the Caribbean coast) can receive up to 129 inches of rain a year, the Arco Seco gets less than half that, typically a maximum of about 69 inches.

So why would so many expats choose the Pacific over the turquoise waters of the Caribbean? Rainfall has a lot to do with it. Even during the rainy season (typically April through December), rainy days in Coronado tend to consist of only an hour or two of rain. Most days, you see the sun. That's a powerful plus.

In the Coronado area it is simply impossible to be friendless or bored.

The community here used to consist solely of wealthy Panamanians. But after the late 1990s, that began to change.  Property values increased and that drew foreign and local investment. Expats began to move to Coronado, and a trickle became a steady stream.

Today, Coronado is filled with a fun, interesting mix of Panamanians and expats...part-timers and weekenders and full-timers, too. The town is growing, with a new shopping plaza and hospital bumping up the "wow factor" in a big way. With growth has come an increasingly active community that calls itself Expats West. There are schools and classes and charity drives. New restaurants and cafes provide a good variety.

Though property prices right in Coronado town have risen, this beach community still offers the best value Panama's Pacific Coast has to offer. And though it can be tough to find a home for under $200,000 right in Coronado, growing pueblos 10 to 20 minutes away offer bargain beach property in close proximity. So there truly is something for everyone here.  If interested in exploring more Panama Real Estate in the Coronado or any other area of Panama please visit the best Realtors in the country, Re/Max Beaches and City (www.beachesandcity.com) and send Janet or Richard a message and they will surly help you find what you are looking for.

For today

Panama Man

Panama Man talks Coronado

There is one town that's growing into a bustling beach community.  I'm talking about Coronado, the "crown" of the Pacific.

Over time, several things become apparent. First, Coronado is only an hour from Panama City. It is the best beach you can get to in such a short period of time.

The more time you spend in Coronado, the more clearly you see it: here you can have the ultimate city-beach blend. That's a cocktail I could really go for.

more on Coronado to come tomorrow

over
Panama Man

Panama Real Estate activity

Well, I just returned from Panama and had a great visit.  I was checking on how the Real Estate was holding up and it is excellent for investing or living.  I actually found a place in the Coronado Beach area for $55,000, that rights $55,000 for a small one bedroom in the Beach area. 

Doesn't get any better than that.

Over for now
Panama Man