Foreigners are subject to "Know-Your-Customer" (KYC) requirements when opening an account with a bank in Panama. Subject to changes according to internal procedures of each bank, applicants must appear in the person at the bank for a personal interview and provide :

1) 2 Letters of Reference from 2 other banking institutions, authenticated with Apostille or by Panama Consul, addressed to the bank in Panama,

2) Copy of the passport and another picture identification (providing the original documents for verification)

3) Tax return or other document which will help the bank identify the income range of the applicant and compare it with the movement of account.

The Panama Superintendent of Banks has a website http://www.superbancos.gob.pa where all institutions licensed to provide banking services are listed. Institutions which do not appear in this listing act in violation of local laws and depositors risk losing their deposits.

In addition, Panama banks owned by investors holding publicly-traded shares, disclose their financial statements and relevant events to the Panama Stock Exchange http://www.panabolsa.com, which helps to gauge their financial solvency.

 

Ownership and Holding of Properties by Foreigners

 

 Panama is one of several Latin American countries that welcome foreign investment into real estate, by allowing full ownership of property by citizens of any country. Added to other advantages such as use of the U.S. dollar as legal tender, a legal system for accurate registration of property titles and a cadre of U.S.-trained engineers and architects, Panama City has become the destination of investments into real estate as seen in its urban skyline. Rural properties are also of interest for foreigners, since the American Association of Retired Persons named Boquete in Western Panama as the 4th best foreign location for living by U.S. retirees.



The Panama Constitution guarantees the right to ownership of property, as well as equality between nationals and foreign residents before the law. However, special restrictions can be enacted for immigration and health purposes. Ownership of property by foreigners is not allowed in the areas up to 10 km away from the borders, which are covered by inaccessible rainforest – thereby leaving the best lands open to foreign investment. The seas, lakes, rivers and the Panama Canal waterway are non-transferable public domain, while owners of beaches and islands must grant a public right-of-way to the sea.

The Constitution forbids confiscation of properties as a penalty, although property acquired under money laundering schemes is subject to forfeiture. Expropriation is allowed for emergency public interest purposes, but only after a hearing with the owner and payment by the Government of fair, adequate and prompt compensation under international standards. Bilateral investment treaties with the U.S., France, United Kingdom and most European countries further ensure protection of investments from citizens of said countries.

Possession rights may be requested from the Government over public lands available for agricultural purposes. However, possession rights are not clearly registered and do not grant as many rights as property rights.

Leases on property are also available. A non-interest bearing, refundable deposit with the Ministry of Housing is required as well as registration of the contract with said Ministry. Lease agreements with terms above 3 years must be registered at the Public Registry.
 

How is property transferred

Unlike the U.S., where each county has court clerks for registration of title deeds, Panama has a single, centralized, computerized, national Public Registry where ownership and encumbrances of Property, Condominiums (called Horizontal Property), Airplanes and Ships are registered. Property-related transactions are not valid before the public until recorded at the Public Registry. The centralized system allows a title search at the Public Registry to reveal in a single day the measurements, coordinates, mortgages, encumbrances, judicial actions, restrictions, rights-of-way of each property, which is assigned a "finca" number for identification purposes.

The Civil Law requires that the buyer and seller appear in person before a Notary Public to close the sale. However, parties located abroad can grant a power of attorney before their local Notary Public and Panama Consul to appoint an attorney-in-fact to conduct said formality in Panama. The Notary Public drafts a Public Deed, a true copy of which is registered at the Public Registry in 1 or 2 weeks. Transfers of property are subject to a registration duty of US$2.50 for every US$1,000 of the transaction price (usually paid by the buyer), as well as a Capital Gains Tax of 2% on the assessed value of the property (levied on the seller) increased at a 5% or 10% annual rate from the previous sale price.

Properties that are not being used actively are subject to adverse possession claims by residents without title that live there for 15 continuous years without opposition from the owner. This is not a problem in real estate markets of Panama City and other urban areas, but is a potential source of disputes in large, remote, rural properties. A physical inspection and a search of the plat at the Property Surveyor's Office ("Catastro") is a must before purchasing such rural properties. Local insurers do not provide title insurance but some U.S. buyers have sought coverage from specialized insurers abroad.

Condominiums and gated communities may be subject to a special Horizontal Property regime. This regime allows individual housing or office units to be separately sold, while their current and future owners remain subject to use restrictions in the By-laws of the complex. The permanent nature of these privately-enacted restrictions make this regime an efficient tool for developers interested in preserving the special nature of large residential and commercial developments.

Financing of real estate

With almost a hundred general-license banks, Panama has no shortage of financial institutions willing to lend credit-worthy buyers of urban properties, subject to a mortgage on the land or a pledge of funds as collateral. The use of the U.S. dollar as currency and the lack of exchange restrictions allow banks to grant 25-year mortgages at rates between 7 and 11%, which are among the most favorable lending conditions in Latin America. After their purchase, urban properties with high resale value can serve as collateral to finance an ongoing business activity of the property owner.

In practice, a prospective buyer requests a letter from the bank financing the purchase, stating that payment will be made once the transfer of title and the mortgage are simultaneously registered at the Public Registry. This serves as an escrow service which provides an additional guarantee for both the bank and the buyer. Valid mortgages must be granted before a Notary Public and recorded at the Public Registry. Applicable registration duties are of US$0.25 for every US$100 of the mortgage amount.

 

Tax incentives

Real estate with an appraised value above US$30,000 is subject to yearly property taxes between 1.4% and 2.1%. However, the Panama Government provides incentives to the construction of buildings and ownership of residences, which encourage investments by locals interested in a secure tax shelter. The fact that construction provides needed employment to unskilled labor and addresses a chronic housing shortage, has prompted the Government to provide the following tax incentives:
1) 20-year exemption of property tax on the value of buildings and improvements, (in force until 2006, after which the maximum will be of 15 years.)
2) Exemption of Capital Gains Tax on the first sale of residences,
3) Banks granting residential mortgages for new residences below US$62,500 receive a negotiable tax credit equivalent to interest reduced in 2 to 4 points below the prevailing rate,
4) Buyers of residences can deduct from their taxable income the amounts paid as interest for mortgages without the tax credits listed in 3),
5) Developers can deduct up to $1,000 on taxable income from the sale of low-income housing with a price of less than US$14,000,
6) Developers can declare as non-taxable income the profits from sale of real estate that are re-invested in the construction of new residences, as long as the value of the new building is below US$62,500 and equivalent to four times the amount of the profits realized.

Foreign investors should seek the advice of competent tax counsel in their country of residence to determine their applicable fiscal compliance requirements and liabilities.
 

Special zones of interest

The XVIII- and XIX- century buildings of the Old Panama City (called "Casco Viejo") represent a historical district of interest, for which special incentives have been enacted. Only residential, commercial, tourist and cultural projects that preserve the architecture of the district are allowed, after being reviewed by the a government board. In addition to normal tax incentives, banks granting mortgages Casco Viejo projects receive a negotiable tax credit equivalent to interest reduced in 2 to 4 points below the prevailing rate.

 The largest real estate transaction in the Americas is the ongoing sale or lease of 300,000 acres of land and buildings of the former Panama Canal Zone turned over by the U.S. to Panama in 1999. The Autoridad de la Región Interoceánica (ARI) a government entity in charge of attracting investors interested in converting these facilities into economically-viable businesses. Business opportunities are grouped into:
1) Maritime activities: container ports, ship chandelling and repair, salvage operations),
2) Industrial parks: maquiladoras, information technology and other environmentally-sound industries,
3) Tourism: retirement communities, hotels and eco-tourism, and
4) Education: higher education and research.

Parcels available for commercial or residential development are listed in the local media and the ARI Internet website. Also available for sale are 3,000 housing units already built in suburban areas.

Non-residential parcels or pre-existing facilities are offered by ARI for lease or concession for a renewable period of up to 25 years. Private investors can also submit project proposals with the respective feasibility and environmental studies to ARI, which if approved will then be open to public offering. Said contracts are granted under a public bid procedure. In the case of mega-projects where only a few qualified operators exist worldwide, an exemption from the public bid procedure may be exceptionally granted that allows direct contracting. Housing units are offered for sale by ARI and sold to the offer paying the highest price above the base price listed in the media.

Additional incentives for real estate developers are described in the Export Processing Zones, Tourism and Reforestation sections.
 

For a married couple, seeking residency in Panama, does each spouse need his/her own $200K in CDs or CD + real estate? Or is $200K of real estate in the husband's name good enough?

WE did not get depository visas, so I can't say for sure, but if its like the business investor visa, and a couple wants to qualify with only ONE qualifying amount, then one spouse must be "primary applicant" and ALL qualifying assets (to the qualifying amount) must be in that person's name. I believe, though not certain (been awhile since I researched this) that for depository visas, the deposit must be in the name of a natural person not a corp. or foundation and, to
the extent you choose to use real property as part of the minimum amount needed to qualify (I believe you can use up to $80K of the $200K in the form of titled property), the ownership of that property. But I can't say for sure. Those are the nuts and bolts of the procedures that can and do change often, they are set by administrative fiat and not by "law" and anything you "learn" on the
net is merely background research. The only person who can answer this kind of question for you and advise you of the alternatives open to your particular situation (persona, familial, financial) is your own Panamanian attorney.

Your question is an excellent example of why expats should retain competent counsel BEFORE taking any of the steps in the process, if the intent is to marry the purchase of property with visa
qualification. You need to be very specific with your lawyer about ALL your concerns: initial and yearly costs, visa alternatives and the requirements for each, the concern of each spouse for control of assets, probate avoidance, and any other issues that are of importance to you. There are many factors that can impact the process and all must be considered and sometimes, choices must be made to meet one particular issue that might be different than you would wish with
respect to another issue. (i.e., need for one person to have qualifying amount of assets and in personal name vs. the desire to avoid probate); etc. etc.

What is the process for an American getting married in Panama?

The process of getting married in Panama is not too difficult. You will need your birth certificate, any divorce decrees, a medical checkup with blood work conducted in Panama.  Remember to bring all originals and copies of everything. When you arrive in Panama, you need to go to the US Consulate with your birth certificate and divorce decree if you have one and present them to the officer who will authenticate the paperwork and provide you with an eligibility statement. Of course you will also need your passport, too. Overall the process was quick and painless, the medical took about 1 hour and $30.

Panama 's visa options, permanent residency
and obtaining a Panamanian passport.
 

So, you've finally decided that Panama is the place for you to settle down, and your 90 day tourist visa is about to expire, what now? Well, if you want to reside in Panama on a permanent basis, you need to establish permanent residency. This means, applying for a Panamanian Residency Visa that will allow for permanent residency.

Panama offers a variety of options for those seeking to reside here permanently. Most types of visa are designed to promote investment and/ or stimulate the local economy in one way or another. Regardless of what type of visa you choose, we advise that you clearly understand the documentation requirements, all costs or required investments, the time frame associated with each particular visa and of course, how it will benefit you and your situation.

When you find a visa type that interests you, it's very important that you confirm that this visa indeed offers permanent residency, as not all of them do. Plus, if your goal is to ultimately become a citizen (duel-citizen), and obtain a passport, you need to confirm whether or not the visa you are applying for actually grants a passport option. Just because you obtain permanent residency in Panama, doesn't necessarily mean that you will become a passport- holding citizen.
 

 Pensionado (Pensioned) visa

The most popular, lowest cost and easiest type of resident visa is the Pensionado (Pensioned) visa, which requires that you prove that you have a lifetime pension income of at least US$1000 per month (add US$100 per dependent, spouse and/or any children under 18 years of age). The pension can be from a governmental source (such as Social Security) or through a private corporation.

The Pension visa also offers good benefits, such as importing a car duty free every two years (saving you about 10% on duties), importing your household goods duty free (up to US$10,000 worth) as well as, a long list of special discounts on travel, dining, entertainment and more.

Unlike other visa types that take a year or more to obtain the permanent residency status, the Pension visa gives you permanent residency within just a few weeks. However, under the Pension visa, you can never become a citizen, which means you can never obtain a Panamanian passport.
Also, the Pension visa does not allow you to obtain a work permit in Panama, so you cannot be employed under a labor contract (you can, however, own and operate a business of your own). The costs for processing your Pension visa range from around US$I,000 to US$2,000 per person in legal fees and government expenses, (depending on what law firm you use).
 

Self-Economic Solvency visa

The next most popular type of resident visa is the Self-Economic Solvency visa, which requires that you invest a minimum of US $200,000 in any one of the following ways:

1) In a titled property, in your personal name, with a registered value of US$200,000

2) In a two year CD or time deposit at a Panamanian bank, or

3) In a combo of US $120,000 in a two year CD at a Panamanian bank and US$80,000 in a titled property in your personal name.

The Self-Economic Solvency visa offers permanent residency after one year of being a temporary resident. And once you have been a permanent resident for five years, then you can become "naturalized," which means you become a citizen and are eligible for a Panamanian passport.

You can also apply for a work permit (so you can be employed under a labor contract) under the Self-Economic Solvency visa. The cost to process the Self-Economic Solvency visa ranges from US $1,000 to US $2,000 per person, with costs varying from law firm to firm.
 

The Business Investor visa

The Business Investor visa is a slightly more complicated type of visa, which requires that you establish and operate a business here in Panama. To begin a business, you must have a commercial license, a physical office or store front and a minimum of three Panamanian employees on the payroll (under labor contracts registered at the Social Security office in Panama). Your name must also be personally registered on the board of directors as the President of the corporation.

There are actually two types of Business Investor visas.

One is the Small Business Investor visa, and the other is the Regular Business Investor visa. The difference between the two types is that the Small Business Investor visa requires an investment of only US$40,000 in the business, plus you have to renew your temporary resident visa three times over a five year period before you can obtain the permanent resident visa.

The Regular Business Investor visa requires an investment of US$100,000 and you can obtain the permanent resident visa after just one year of having a temporary resident visa. Your accountant will need to provide a financial statement showing that you made the required investment in order to qualify for either one,

The Business Investor visa offers the option to become naturalized, so you can obtain citizenship and passport after five (5) years of being a permanent resident. You can also apply for a work permit (so you can be employed under a labor contract) under the Business Investor visa. The costs of processing the Business Investor visa can range from US$5,000 to US$10,000 or more depending on the nature of the business.

Beware of lawyers that suggest setting-up a fictitious business operation under an otherwise non- operational corporation, put them- selves or their friends and/ or employees on the payroll (for social security purposes), and process your resident visa under this structure.

The Immigration Department last year did an investigation of over 80 business owners that applied for Business Investor visas, and only five (5) of them were truly operating businesses. Needless to say, the rest of them face all sorts of legal problems with their resident visas. You should only process the Business Investor visa if you are planning on operating a real business in Panama and you plan to hire at least three (3) Panamanian employees.

Before jumping into the business, make sure you clearly understand the labor laws and your obligations as an employer as well. Panama has some very strict labor laws that are highly in favor of the employee
 

The Agricultural Investor visa

If you have a fancy for farms, animals or the country, you might consider the Agricultural Investor visa, which requires that you purchase land and invest in an agricultural business, such as a corn, wheat or a coffee plantation. In addition, the farm must be certified by the Ministry of Agricultural Development (MIDA).

The requirements are fairly basic in terms of the investment & documentation, however, the disadvantage of this visa is that you have to renew your temporary visa, every two years for about five to six years, until you receive permanent residency status.
Once you have been a permanent resident for five years, you can become naturalized, obtain Panamanian citizenship and a passport. The legal processing costs can range from US$l,000 to US$3,000 per person (depending on what law firm you use).
 

The Reforestation Investor visa

Foreigners that purchase title land in their name or through a corporation, for the amount of $60,000.00 in reforestation activities or authorized forest plantation by the National Authority of the Environment will be able to request this permission. The investment should be done in a minimum of 10 hectares. The term of this visa will be for six years, extendable yearly.

Foreigners that purchase title land in their name or through a corporation, for the amount of $80,000.00 in reforestation activities or authorized forest plantation by the National Authority of the Environment will be able to request this permission. The investment should be done in a minimum of 20 hectares. The term of this visa will be for 2 years, then you can apply for the permanent visa
 

Typical documentation requirements when applying for any type of visa

Typical documentation requirements when applying for any type of visa usually include the following:

 Valid Passport
 Police Report (not required for all visa types) -HIV test
 Medical certificate
 Bank reference letter
 Passport sized photos
 Birth Certificate (for children under 18 if applying as dependents )
 Marriage Certificate (for spouse if applying as a dependent)

A Panamanian attorney is required to process the documents, and will require that you sign a power of attorney to represent you in the immigration process. Please note that all documentation originating from outside of Panama must be original documents, dated no more than three months old, and must be authenticated either through the consulate or embassy of Panama, in the country of issue, or by apostil (an internationally recognized form of authentication, normally obtained through the Department of State or Ministry of Foreign Relations).

Panama also has very strict immigration rules in terms of what nationalities they will consider for resident visas. The immigration department has a list of restricted countries, including (but not limited to) Colombia, Pakistan, Russia, China, India, among several others.

Citizens of these "restricted" countries must provide additional proof of economic solvency and they are screened thoroughly through Panama's National Security Council. The majority of the applicants from these restricted countries are declined for resident visas unless they have particular circumstances or a high-net worth that could work in their favor.


Be sure to consult with your attorney to confirm whether or not your home country is among those on the restricted list prior to applying for residency. However, if you are from countries, such as the United States, Canada, most of Central/South America, Europe, New Zealand or Australia, you should not have a problem.

Once you fully understand the various residency and visa options, and have identified a match for your needs, then begin preparing the required documents, and try to be as organized as possible, otherwise, you may find yourself spending lots of time and money on repeated ( expired) documentation. As always, be sure to research this subject in depth with a qualified and experienced attorney, one who clearly understands your language as well as, your personal situation and goals.
 

 Mortgages / Financing
A foreigner's guide to financing property in Panama

With the daily influx of international buyers and investors coming to Panama for real state, Panama's banking sector has recently established financing opportunities that will now include foreigners; the non-Panamanian.

It's expected that some 80 million, North American Baby Boomers will retire over the next decade, with around 5% of these Baby Boomers relocating to areas such as, Mexico, Central America and particularly, Costa Rica and Panama.

Many of these foreign buyers or retirees are simply seeking a better quality of life, better weather, cheaper property; or a lower cost of living; all of which Panama offers. In February 2005, The Los Angeles Times declared that “In Panama, American retirees are finding more paradise for less" and each day, more foreigners are beginning to realize just that about Panama.

As a result, the local Panamanian banks are opening their doors and welcoming foreigner financing. Additionally, the local banks are now offering foreigners competitive advantages, in order to compete with Panama's larger, international banking institutions. Many of the larger international banks are offering terms and rates that are comparable to North American averages, and the local Panamanian banks are not far behind either.

Typically, Panamanian banks only offer financing towards Titled Properties where improvements have been made, infrastructure already exists, and the property is located in an urban or developing area. Normally the banks will not provide financing towards raw land (land sans general infrastructure), unless of course, you have an established credit history with the bank, and/ or substantial assets on deposit with the financing institution.

Generally, if you are trying to buy a raw lot/land, with no or even little infrastructure, no improvements, dirt roads, no utilities, located in the middle of essentially, nowhere, chances are the banks will not approve your loan. Conversely, purchasing a (custom-built) home, in a planned (residential) community bank financing should be no problem as long as you can make the down payment, which is usually about 30% of the purchase price (or appraised value) and provide proof of income.


When comparing financing in the United States or Canada to financing in Panama, you will find that the terms and rates are very similar; however, the application process will differ greatly. For example, when you walk into a U.S. bank and apply for a mortgage, the banker will ask for your social security number, run an electronic credit report, and about 3 minutes later, you and the banker will know whether or not you qualify for financing.

In North America, financing is all about your credit history; whereas in Panama, the banks emphasize your ability-to-pay (income sources) as well as the property's loan-to-value ratio. As a result, Panamanian banks will require that you provide extensive documentation to prove your income and prove the value of the property that you are buying.

Keep in mind that a foreigner applying for a mortgage in Panama is a tedious process, because quite simply, the banks do not know you, since you do not exist in the local credit system. So bare this in mind when applying for, or processing your loan as a foreigner. Consequently; the mortgage application process will require a great deal of document preparation and organization.

As with most things, the more prepared you are, the faster and smoother the process will flow. We have included general documents that most Panamanian banks will require for the mortgage application:

1. Photocopy of your entire passport (all pages including stamps)
2. Photocopy of one additional photo ID (Drivers License)
3. Utility bill (showing your name and physical address)
4. Curriculum Vitae (personal education & work resume)
5. Two (2) original bank reference letters
6. Two (2) original professional or commercial reference letters
7. Photocopy of bank statements for last 12 to 24 months
8. Last two (2) years tax returns (or audited financial statements)
9. Letter explaining your income sources & reason for the purchase of the property (personal      residence. vacation home. rental property, investment. etc.)
10. Appraisal of the property (must be done by a bank-approved appraiser)
11. Purchase contract
12. Title deed of the property
13. Completed and signed bank mortgage applications and agreements


Please note, that most Panamanian banks require that all documents originating from outside of Panama, must be "authenticated," either through the Panamanian Consulate in the home country (or region) of issue, or authenticated by "apostil" (an apostil is an internationally recognized form of notary / authentication).

Undoubtedly, applying for a mortgage will require a considerable amount of personal time, to meet with the bankers, complete the applications, organize all the documents, etc. In some cases, you may find that after visiting with a few banks, the banks you meet with may not even offer financing for the region you wish to apply for a loan.

You may find that some banks only offer financing in certain and/or limited regions throughout the country; i.e. Panama City only or mainland only. In the end, you may find that applying for a loan can become a full-time job. We always encourage that you first consult with a local professional, perhaps a mortgage broker in this case, research the topic yourself and prepare ahead of time as much as you can. Because purchasing property in Panama is safe and it can be a fantastic investment, but to ensure that everything runs smoothly, it's your responsibility to be well-informed, and arrive prepared.
 

DEVELOPING BENEFITS

 The Panamanian government welcomes and encourages foreigners to purchase/ develop real estate in Panama.

 Panama has a unique geographical position, and fortunately Panama does not suffer from natural disasters such as hurricanes or destructive earthquakes that often plague its Central American neighbors.

 Home ownership in Panama is currently at unbeatable prices! Foreigners can buy and sell Panamanian property legally and easily, and are also protected by exactly the same rights that protect local Panamanian property owners, see LAW #54.

 According to the National Immigration Directory, 1,118 retiring foreigners (pensionados) immigrated to Panama between January 2002 and April 2005. The movement is intensifying rapidly, with a 29% increase in 2003 over 2002, and 99% 2004 over 2003. The 2004 increase of foreign retirees was over 400%. In 2005 already 2,500 new visas were issued. Retirees from the United States comprise the largest group, with 67% of the total.

 Foreign investors in Panama and the businesses in which they participate, have the same rights and duties as local investors and enterprises; including the rights referring to freedom of trade & industry, as well as rights to import & export.
 

RETIREMENT BENEFITS

 Panama has been declared by many as the most preferred location for a second or retirement home for North Americans.

 For its citizens, Panama is one of the top three of Latin American countries for quality of life: health, education and economic well-being.

 Panama has the best retiree incentive program in the world, benefits including discounts on air travel, eye exams, movies, restaurants, and much, much more.

 Panama City is Latin America's location for the Johns Hopkins International Medical Center. At this time, the only other country outside of the United States to have Johns Hopkins is Singapore.

 Panama City is often referred to as a "Second Miami" because of its sophisticated business district, healthcare, the American-style infrastructure and the elegance of many of its neighborhoods.

 Retirees can bring all household goods to Panama, TAX FREE.

 Panama has a perfect climate with temperatures between 77 and 87 degrees year round.

 Panama's Pacific Coast is home to world class deep sea fishing.

 Panama has the highest level of communications infrastructure for telephone, fax, internet, and cellular communications in all of Central & South America, including the Caribbean.
 

RELOCATION BENEFITS

 Panama City is home to the second largest international banking center in the world next to Switzerland.

 Panama has the most modern and successful international banking center in Latin America, with more than 150 banks from 35 different countries.

 Few other Latin American cities can boast buildings of such quality construction and so many attractive neighbor- hoods.

 Panamanian tariffs are the lowest of all the Americas!

 Panama is a shopper's paradise whether you are shopping for fashion, computers, electronics, or automobiles; you can find everything you need in Panama.

 Private education is excellent! Panama City has many international schools and dozens of other bilingual schools available.

 The U.S. dollar is Panama's legal currency, nearly eliminating any currency exchange risks to foreign companies relocating here.
 Panama has experienced less than 2% inflation increase over the past 40 years.

 NO PROPERTY TAXES on new construction.

 Panama's Cost-of-Living: rent, homes, services, utilities, transportation, food, etc. are well under USA and European prices.

 Average prices for a Full Time/Live-In Maid range $150 to $200 per month; Landscapers/Gardeners' costs range between $8-$12 per day, and sometimes even less.

Where is the recommended spot in Panama for a first time visitor considering a move out of the US?
 

The answer depends upon what you can afford and what are your tastes and interests.
For example, do you prefer to live within a large city within a high rise apartment at a ball-park property cost of $30K to $250K and up? Or do you prefer to live just outside of a large city in a
house at a cost of $20K to perhaps as much as $150K or more, or further away in the more remote areas of Panama where you can live perhaps much cheaper? Perhaps you'd like to live on the beach? Or, at higher elevations in the mountains where the temperatures are cooler and the air is not as muggy as it is at sea-level?

What made you choose Panama over other foreign destinations? What is your experience level with regards to Panama (what do you already know)? Do you speak any Spanish? Do you have any friends or relatives in Panama? Are you young with kids or retired and looking to stretch your fixed income? Also, if you want to live in Panama hopefully you have a pension and/or are receiving social security...or independently wealthy ($200K or more in cash) because foreigners "typically" are not allowed to work for pay unless they work within their own business. Of course, if you are single you can marry a local and become eligible to work via permit, but unless you have a high demand skill, likely the salary will be only a fraction of what you could get in the States.

I recommend that you read as much as you can and explore all of the archives and available links
to other related Panama information. Then, when you think you have educated yourself sufficiently, plan a 2 or 3-week vacation to explore a few specific areas of Panama, just to get a feel if you really want to carry through with more long-term plans. Then make a few more trips to expand upon what you've already learned.

Then, before you finally decide to spend a lot of money on a house or an apartment, I recommend that you transition into Panama by first renting an apartment for perhaps 6-months to a year before committing towards the purchase of property.

Remember, that once you cross the border into Panama, rules and ways of life you took for granted in the US may be entirely different. Panama will not adapt to you. You must adapt to Panama. The best way to adapt is to learn before you arrive so you will be better prepared and ready to adapt.
 

What is the definition of 'multiple' for purposes of the multiple exit and entry permit?  Has anyone found a need for the permit?

The Multiple Entry Visa is a requirement for those persons that have a "Turista Pensionado Visa" in order to freely leave and enter the Republic of Panama at any time without any immigrations problems at the airport.
To obtain the multi-entry visa you must go to immigrations and ask for the form at any of the two windows next to the cashier at the end of the first floor were you went to register your passport. You don’t need a number or make a line or need a lawyer. Before you go there make a copy of your passport page that show your picture and passport number plus a copy of your pensionado card. Fill the form and turn it in with your passport to the same window. Again; neither line nor number required. 48 hours later, come back to the same window pay $100.00 for two years, $50.00 for six months or $25.00 for a 3 months permit. You must state for how long you want it when you fill the initial application. Very easy to do and not time consuming.
 

How much money do you save yearly (in discounts), with your pensionado visa?

Summary of Benefits and discounts According to Panamanian Law:

Article I
To receive these benefits, it sets:
A. The age at 55 for women and 60 for men for all residents of Panama be they Panamanians or of different nationalities.

B. It states that all Jubilados and Pensionados (irregardless of Age) are also entitled to these benefits:

1. Discount of 50% of price charged for entrance to recreation and entertainment activities, such as movies, theaters, sports and other public productions. This discount is not applicable for those events marked as benefits for the youth, homeless or those specifically authorized by the competent authorities.

2. Discounts for the following means of public transportion:
a. Inter-Urban buses, 30%
b. Trains, 30%
c. Launches and boats, 30%
d. 25% discount in air fares in public and private national and foreign Airlines.

3. A minimum discount of the regular prices of hotels, motels and
pensions:
a. 50% from Monday to Thursday
b. 30% on Friday, Saturday and Sunday

4. 25% discount of food consumed by the individual in all restaurants except for the Fondas which do not require license to operate.

5. 15% discount in those rapid food establishments.

6. 15% discount in the total cost for services of hospitals and private clinics.

7. 10% discount in pharmacies for those medications obtained with a medical prescription.

8. Discounts in the following medical services:
a. 20% in consultation fees of general medicine doctors and medical and surgical specialists.
b. 15% for dental services.
c. 15% for optometry

9. Insurance companies that include in their policies health benefits for illness shall adjust their fees to include the necessary adjustment so that the benefits of these discounts are transferred in the payment of the premiums when the insured is 55 years old if female, and 60 years old if male, as well as to the Pensionados & Jubilados.

10. 20% discount for technical and professional services.

11. 20% discount for all prosthetic devices as well as those items and accessories of personal assistance.

12., 13.,14., 15., 16. & 17. pertain to commercial transactions, loans, etc.
18. 50% discount in cost of passports.

19. 25% discount in monthly electrical consumption of private or public entity up to 600KW's and the normal tariffs will be applied to anything above that amount.

20. Discuss discounts to properties owned by associations of retired “jubilados and pensionados” and the different discounts they are entitled to obtain.

21. 25% discount to the basic phone service charges when:
a. the phone service is in the name of the individual
b. is for a residential phone
c. is for one and only one phone. The normal tariffs will apply for anything more.

22. 25% discount in the water bill as long as:
a. the consumption does not exceed $30.00
b. by bill is in the individual’s name
c. the bill is residential and is the prime residence. The normal tariffs will apply to all other residences.
 

Does anyone know what paper work is needed to open a bank account in Panama as a foreigner?

Panama has to comply with international "know your customer" laws and regulations and banks require all of this documentation to basically cover their backsides. All of this paperwork stays in their files, so if you turn out to be an international drug smuggling money launderer, they can show the feds that they complied with the rules to make sure that you are who you say you are. See below for a list of required documents.
The following documents are required to open a personal bank account in Panama:
Photocopy of passport for each signatory. The photocopy of passport should be Notarized, and must include the photo of the person, the personal details (passport number, etc.), the signature, and the most recent entry/exit stamps (if any). The photocopy should be clear and legible.

Two (2) Financial Reference Letters. The financial reference letters can be from any banks, brokerage firms, or credit unions. The letter should be on the financial institutions letterhead, and should include the signature of an official, and the contact information (address, telephone, fax, email, etc.). There is no specific format that the reference letter must be written in.

Two (2) Professional or Commercial Reference Letters. These reference letters can be from your attorneys, accountants, financial consultants, or any company(s) that you have a business relationship with. The letters should be on the professionals (or company's) letterhead and should include the signature of the professional (or company representative), plus their contact information (address, telephone, email, etc.). There is no specific format that the reference letters must be written in.

Signed Account Applications. You must sign the original bank account applications.
 

Anyone know what inoculations one should get updated before moving to Panama?

No shots are required, but just to be on the safe side, I had tetanus, typhoid, hepatitis A&B. Those are, I think, the only ones available. You can also get a prescription for anti-malarial, but there's no inoculation for that.