With over 1,400 miles of coastline and several islands equipped with the paradise essentials – coconut palms and crystal-clear waters – there are plenty of properties in Panama to choose from.
 
"Panama has the fastest growing tourist sector and economy in Latin America," says Arthur Rooney, Director of The Just Group. "It is also forecast to be the centre for cruise liners operating in the Caribbean and the Pacific."
 
The key investor group in Panama property are retirees, and it is not hard to understand why.
 
"There is a 20-year exemption from Panamanian property tax for residential properties," Rooney points out. "Plus, the sports and recreation facilities – including scuba diving, golf, deep-sea and lake fishing, rafting and hiking – are excellent. This has made Panama the world's number one retirement destination."
 
Cheap living costs, a good year-round climate and a growing expat community are also likely to attract more retirees to the Panamanian property market.
 
Investors interested in Panama property will also be happy to find the signs appear equally good for the growing tourist and – already strong – business sectors.

"There is a Seaworld-style resort being built at San Carlos at a cost of US$300 million," says Rooney. "Donald Trump is building a 65-storey hotel with 800 rooms/condos, casino and yacht marina and some Hollywood film stars have been buying homes in Panama as well."
 
Panana city, the economic hub of the country, is also popular with investors. The Ice Tower is currently being built, which will stand 381 metres tall – making it the tallest tower in Latin America – when it is completed in 2010.

Construction is also underway to double capacity of the Panama Canal, at a cost of US$5.25 billion, and the city is already an international banking centre, with over 150 banks, second only to Switzerland
 
Property options in Panama for British retirees and investors looking for holiday homes include Los Altos de San Carlos. The development is a gated community with mountain and sea views – just one mile from the planned marine park – and offers the opportunity to purchase apartments off-plan at an introductory discount of £20,000 with guaranteed non-status, no documentation mortgages over 20 years. Introductory prices range from £49,000 to £69,000.

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Article first published 23 November 2007