On-The-Ground Relocation Support In Panama
Retire To The New Auld Sod
Sept. 23, 2009
Waterford, Ireland
PLUS:
- Why Would You Want A Panama Corporation?...
- How To Open A Panama Bank Account...
AND:
- Little Ireland Finds Herself At The Center Of A Big Brouhaha...
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The Smart and Experienced Money Is Moving Into International Real Estate...
But how do you begin? Where do you start?
Over three days in October, Lief Simon and 12 other international real estate investing professionals will discuss how and where to position yourself in world property markets for profit.
For instance, find out where to find Distress Sales in one of Europe's most popular beach resort areas...where families from all over Europe continue to vie for vacation rentals every year. You can buy here right now at discounts of up to 22% or more ... with financial incentives including cash back and no money down.
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And that's only a start.
Learn more about this market, plus over a dozen unique globe-spanning opportunities, here.
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Dear Live and Invest Overseas Reader,
I first recommended the Emerald Isle as an overseas retirement haven 25 years ago. A young editor, fresh out of university, I was enchanted by what this beautiful, magical land of patchwork fields, ancient fortresses, and hospitable, fun-loving folk had to offer. Never did the 21-year-old, though, imagine that, 13 years later, she'd be taking off, with her family and business, for a new life in the Auld Sod.
The Ireland I relocated to bore little resemblance to the one I'd written about early on in my retire-overseas career, for, in the interim, the Celtic Tiger had begun to roar. Sleepy, overlooked Eire, for decades perhaps the most affordable place to retire and own property in all Europe, had become, by the mid-1990s, the golden child of the EU. For the first time in anyone's memory, this country was no longer a net exporter of population. Irish lads and lasses, coming of age, had no reason to look beyond their own shores for opportunity. It existed all around them, in abundance enough, even, to begin luring their compatriots home. Irish who'd left the island in previous decades began returning.
Growth and inflation continued unchecked through the new millennium. And the face of this country changed. Country pubs were replaced by super pubs with disco balls and sometimes two or three levels of dancing. Young Irish labor in hotels and shops was replaced by immigrant labor from Eastern Europe. The young Irish were off now working for international customer call centers and Dell. Real estate agencies popped up on every street corner in central Dublin, selling not only Irish property but property overseas, as well. Interested in a holiday home on the coast of Spain or Croatia? You didn't have to go far to find an Irish agent standing by to broker the purchase.
When we arrived in Ireland as new residents, Lief and I came to the same conclusion: It's only a matter of time before this runaway freight train rolls off the cliff. We decided to put the market realities aside, though, for we knew we'd be in Ireland for five or six years at least, and I had my heart set on sampling Irish country living. We invested in a home, reconciled to the notion that we could well be buying near what would prove this market's top.
Predict anything long enough, and it's likely to come to pass. We predicted the collapse of the Irish property market for more than 10 years. This didn't come to pass while we were Irish residents, but it is certainly the reality today five years later.
As a result, the cycle is coming full circle, and, again, the face of this country is changing. I relocated my business to Ireland a dozen years ago to take advantage of low costs of living, of labor, and of doing business. That's why Dell, et al., moved into this country over the past two decades, as well. In the interim 20 years, inflation roared along with the Tiger, and Ireland became anything but low cost. The Irish themselves began referring to their homeland as "Rip-Off Ireland." Dell and company have moved on (to Eastern Europe, mostly). Dell's departure from Limerick, for example, cost that town nearly 2,000 jobs.
What's the point of all this for you, the would-be retiree overseas? Simply that the Auld Sod is returning to its old self. The international investors have pulled out, the overseas property agents have closed up shop, and the East Europeans who came to Ireland in search of opportunity are retreating. Beyond the hubbub surrounding this dramatic reversal lies the real Ireland, the enchanted land of green fields, stone castles, and pub-loving folk. This real Ireland is re-emerging, and (here's the real point) it's more affordable than it's been in more than a decade.
Our own Lynn Mulvihill, Editor-in-Chief of our Overseas Retirement Letter, hails from Ireland's Sunny Southeast. I asked her, therefore, this month, to share a full from-the-scenes report on the re-emerging opportunities for retirement in one of the world's longest-standing overseas retirement havens. In it, Lynn focuses on a little-known but beguiling coastal region of her homeland, a beautiful spot, where, for the first time in a long time, it's not wholly unrealistic to think about setting down retirement roots.
And it's not only the cost of living that's more affordable than it has been in a decade, but the cost of real estate, as well. Property prices Ireland-wide are down as much as 50% and more from their hyper-inflated levels of two years ago. The crisis buy opportunities abound.
Lynn's report, which has made me homesick for this part of the world that we called home for seven years, is in production now and will be dispatched to Overseas Retirement Letter subscribers by the end of the week. If you're one of them, you're in for a treat. This is a special and timely issue.
If you're not yet an Overseas Retirement Letter subscriber, you have a limited-time opportunity now to try a trial subscription for US$1. Full details here.
Kathleen Peddicord
P.S. As we go to the virtual press with this timely issue, little Ireland finds herself at the center of a big battle. A year ago, Irish voters rejected the Lisbon Treaty, the proposed new EU charter. Ireland is to vote again on the question next month. A second "No" would mean that the treaty would not take effect and that the whole European Union experiment might begin to pull apart at its seams. The EU, wishing to avoid this and working to woo the Irish vote, is offering Ireland 14.8 million euro to be used to help support and retrain the recently let-go Dell employees.
Already, the European Central Bank has lent the Irish banking system more than 120 billion euro.
In other words, Ireland seems to have benefited from her EU membership. Will she go along this second time around with the proposed new EU charter? If not, it's possible this little green isle could become the first country dis-invited to the EU party. We'll keep you posted.
Meantime, Lynn, in her Overseas Retirement Letter report, puts things into perspective. EU member nation or not, Ireland sure is one of Europe's most charming places to think about spending your retirement years...
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From Cuenca, Ecuador (cheapest)...to Ambergris Caye, Belize (foreign resident-friendly)...from El Valle, Panama (sweet mountain living in a top tax haven)...to Mendoza, Argentina (wine country on a budget)...from Hangzhou, China (exotic and ultra-cheap) to Languedoc, south of France (Old World living on a budget)...
Complete and in-depth reports on the world's top retirement havens for 2009, including full details on residency, health care, taxes, and itemized monthly budgets.
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"I have enjoyed my subscription, Kathleen, and I thank you for the solid advice. I am wondering about the benefits and procedures of setting up a corporation in Panama, as opposed to the United States. Also, what kinds of services and benefits are offered by the local banks in Panama if I were to open a savings or business account there? Thank you for your help."
-- Lili K., United States
The main advantages of a Panama corporation as opposed to one in the United States are to do with asset protection, not tax planning. Most people set up a corporation in Panama to hold assets outside their home country or an international business.
The set-up process is straightforward. The cost can vary from US$1,000 to US$5,000. The annual cost to maintain one is US$550.
Not nearly as straightforward is the process of opening a bank account in this country. In the States, you walk in, sit down with an account representative, answer a few questions, fill out some forms, and, in no time, you've got a bank account. That's not how it works in most of the rest of the world, including Panama. The U.S. wars on terror, taxes, drugs, and money laundering have created stress on banks worldwide to comply with U.S. "know your client" standards, which are more onerous for the American abroad than for anyone else.
Furthermore, some countries (including Panama, for example) view opening a bank account not as a right but a privilege. You're going to have to jump through hoops.
Generally speaking, you'll need two banking references. If you have only one bank account currently, you might be able to substitute a letter from a credit card company for the second bank reference. You'll also need at least one local professional reference, from an attorney or accountant, for example, in the country. The attorney helping with your residency visa work or the purchase of your home (if you're buying one) should be happy to help. You'll need two forms of photo identification, typically your passport and a second ID, such as an American driver's license. You'll also likely be required to produce a local utility bill in your name--which means you won't be able to open your local bank account until you've rented or purchased a place to live and had the electricity, telephone, Internet, or cable installed.
Armed with those documents, make an appointment to meet with a bank representative. Yes, you need an appointment. Better is an introduction or personal referral from someone already doing business with the bank. During your meeting (it will seem more like a job interview), expect lots of questions. Why are you opening this account? How much money will you be depositing initially? Where is that money coming from? How much money do you expect to receive into the account on an ongoing basis? What will be the source of those funds? How much will you be withdrawing from the account each month?
The paperwork involved will be far greater than for opening a U.S. bank account. Expect reams of forms and required signatures. This is all part of creating your file. Once your file has been compiled, it must be reviewed. You'll be told this review process will take a week, but, in many cases, it can take much longer. Don't be afraid to contact the bank every day to check on the status of your file, lest they lose track of it.
Opening a corporate account is an even greater challenge. For this, you'll need considerably more documentation, and you may have to schedule personal interviews for each of the company's named officers. Your file in this case will be reviewed by a committee. The committee's job is to ask for more documentation. No matter how much paperwork you've provided, it won't be enough. Week after week, you'll receive additional requests for further material--additional reference letters, corporate financial statements, financial information on the principals involved with the business, etc.
Expect the entire process to take at least two to three months, even if you're proactive and following up regularly. We've still not been successful in opening a corporate account here in Panama City, not even at the bank where we've had personal accounts for several years. We keep at it. |
