Getting a Loan

Several banks in Panama are very comfortable with home loans for foreigners.  Typically, loans are issued for up to 70-75% of the value the bank establishes for the property.  Loans are usually variable rate and can range from 10 to 30 years.  For senior citizens there's one hitch: loans must be paid by the age of 75.  So if you are 65, the maximum time of the loan you receive will be 10 years.

To qualify for a loan, banks normally require the following from foreign investors:

• Proof of income (pay slips, CPA certified income statements)
• Last three personal income tax declarations
• 2 Bank references
• 2 Clear copies of passports and driver's license
• Copy of public utility bills of current residence
• Credit Report (Experian, TransUnion, Equifax)
• Life Insurance
• Fire Insurance for the property to be purchased
• An account with the lending bank (to auto-debit your monthly payments)

Typical loan terms:

• 15-25 years (or shorter if you're approaching 75 years of age)
• Fixed rate based on the Libor rate or variable based on Prime Rate
• 1.5% closing fees

In summary, Panama's strong banking system and flexible lending policies for foreigners provide investors a unique advantage over other popular offshore retirement and investment destinations.