“It’s chaos out there, I tell you; it’s chaos!” That’s a direct quote from more than one new visitor to Panama I know, who’s taken a rental car out for a drive. Or maybe it’s an ex-pat, who has finally purchased a new mid-sized SUV after getting tired of wondering if the wheels would fall off the taxis he’s been taking.“Chaos. Absolute chaos.” The word and the theme are oft repeated, at least in the beginning of every newcomer’s attempts to navigate the highways and byways of the isthmus.

Eventually, however, the rules of the road begin to be clarified. We’re not talking traffic laws here, so much as rules of thumb or laws of physics.

An example of a law of physics is when a car attempts to enter a crowded boulevard from a side street by sticking its front bumper out as far as possible. The question becomes not “does he have the right-of-way?” because you do. No, the issue is whether or not he has the angle. If he’s nudged forward just enough and is aimed properly, you might as well let him in, because there’s no point disputing. So after a while, you learn your lesson. Never give an inch and work for every inch you can maneuver, but don’t fight the angles.

Lanes are like a rule of thumb, in that on most roads in Panama, lane markings are really guidelines. In the city, some two-lane one-way streets can actually accommodate two and a half almost three lanes of traffic on a busy evening. It is obvious that drivers of the buses so aptly nicknamed Diablo Rojos have not heard of lanes.

U-turns require a strong familiarity with the laws of physics involving bodies in motion, speed and space. Balboa Avenue is the U-turn capital of the world and combines angles with daring, luck and faith. Some people never actually make the U-turn they’re lined up for.

One of my personal rules of thumb is “there will always be pedestrians.” What I mean by this is that when ever I’m waiting to turn onto a busy street, like Calle 50 for example, when there is finally an opening as soon as I begin my turn, a mother holding a kid’s hand has also spotted the opening and is attempting to cross. It’s not always a mother, sometimes a guy is pushing a hotdog cart; or a young lady in tight jeans and high heels; or two boys in their white shirt, blue pants school uniforms; or the oldest living Pananamian man, who is still getting around. When there’s an opening there will be a pedestrian. That’s not chaos. You can count on it.

Here's what you need to know

Hooray! 20 year property
tax exemption extended

By Steven Rich, Marketing Manager for Panama Offshore Legal Services www.pos-inc.com (507) 227 – 6645 e-mail: marketingposi@yahoo.com

April 15 was a good day for taxpayers in Panama - not for U.S. citizens who ?led their 2007 income tax returns by April 15 - but for the real property purchasers looking to buy without having to pay annual property taxes in Panama. Law 21, 2008 went into effect on April 15, extending the 20-year property tax exemptions on new construction for another two years. The exemption applies to both new residences and commercial properties.

The 20-year property tax exemption law expired on August 31, 2007, which left the construction industry in a bind. Developers of new residential and commercial properties were not able to offer this tax exemption to purchasers, making the slightly older buildings more attractive to buyers.

The tricky part is to comply with the strict time limits. The exoneration begins on either when the Occupancy Permit is issued or the day the improvements are registered by public deed with the Public Registry of?ce, whichever comes ?rst. This must be done by December 30, 2011. Since registration with the Public Registry takes around a week, plan to ?le the required documents at least one week before the deadline.

There are two deadlines. Obtain your building permit before July 1, 2009 and complete your home or project obtaining either your Occupancy Permit or ?le your improvements by Public Deed with the Public Registry by December 30, 2011.

Properties completed after the deadline or those which fail to meet both deadlines will have different property tax exemptions based on the property improvements value as follows:

Residential use construction valued up to $100,000 will qualify for a 15-year property tax exemption. From $100,000 to $250,000 quali?es for a 10-year exemption. Over $250,000 quali?es for a 5- year exemption.

Improvements and construction of “residential purpose” properties include apartments, condominiums, single-family homes, duplexes, and any other type of property providing means of living.

Do not wait if you plan to purchase raw land and build your own home. It takes time to locate real estate in Panama. It takes time waiting for the escrow process before you can take title to the property. Now that you are the titleholder, you must hire an architect to design the home. Then once the architect designs are prepared, you can apply for a building permit. You will need to get quotes from reputable builders and select the contractor. Construction takes time in Panama. With the current real estate boom, equipment, materials and good workmen are in demand. Finally, once the home is built you can apply for your occupancy permit. Some experts predict that the entire process can take up to 30 months.

Panama’s property tax exemption is not automatic. You must apply for the exemption or you will not be entitled to it. Building project developers apply for it on behalf of all of the units, so if you purchase a condo in a new building, you do not have to worry about it. However, if you build your own home you must apply for the exemption. Go to the Direccion General de Ingresos (DGI) of?ce to get the forms to apply for the 20-year property tax exemption. You must bring a copy of the escritura publica (public deed) along with a copy of your occupancy permit and a copy of the building permit.

Take advantage of Panama’s gift of 20-year property tax exemptions while it lasts!

Sales are on at Albrook Mall

In Edmonton, Canada, exists the Mother-of-All-Malls, complete with indoor wave machine“ocean” and a self-contained hotel. ALBROOK MALL is big, but not that big. It does boast larger than life replicas of various critters stoically guarding the exits. These beasts provide orientation as to where one entered or left a vehicle and also designate meeting points. (“I’ll see you at the elephant at noon”.) Navigation doesn’t require a compass, but hard-copy maps of the center are available. Find one and orient yourself! Or wander aimlessly and consider it an indoor adventure. Rainy season approaches.

Moose has an eye catching
ad campaign.

The newly expanded section of Albrook replete with high-end designer stores contrasts dramatically with the original, familiar, stomping grounds. Beautifully appointed with additions of kingsized kangaroos, whales, penguins, and overhead predator birds, the area boasts a twofloored COLLINS department store. Great sales are in progress and mark-down racks are found in all areas. Slightly imperfect stoneware plates were on sale for 69 cents apiece in the impressive house ware’s department. Nearby MADISON STORE is a bargain hunter’s dream, bursting with nice men’s and women’s name brand clothing on store-wide sale racks signed at $4.95 an item. A small women’s clothing store, MIXTURA, caught my attention. The stock is interesting, varied, and eye catching. A selection of shoes was available for $9.99 and another batch offered at 50% off. This shop has beautiful and unusual jewelry starting at $23 for necklace and earring sets. Bracelets were available for as low as $4.00 each, and richlooking handbags displayed from $25 up.

Albrook Mall has plenty of
wildlife-and wild sales.

Okay, I fell in love with MOOSE for three reasons. I like to say the name, their headless-model ad campaign is brilliant, and the mounted moose head in the store reminds me of my stint in Alaska! The high quality merchandise is moderately priced, many pieces bearing the cool signature logo. Men’s golf shirts in fabulous colors retail for $30, cargo shorts are $24.95, and some tee shirts go for $14.95. Women’s and children’s clothing are also available. The ambience is pleasing, and a couch is provided for those needy of getting a load off their feet.

RENATOS stole my heart. A Colombian leather shop where all women’s shoes are priced at $55! (Men’s are slightly higher.) There are gorgeous designs and colors in bags as well, beginning at $80 and ranging to $130. Seek out jackets, attaché cases, and an adorable miniature poodle named“Nacho”! At first glance I thought he was stuffed, but no, this lively cutie begs to be cuddled. In GIORGIO OF ITALY linen clothing can be purchased for prices as low as $14.95. Currently percent-off displays are abundant. I bought a top at half-price, the inside label stating “Made in Italy”, so I guess it really was.

There are discounts galore at Mixtura.

At BMB I snatched a pair of Kenneth Cole shoes originally costing twice as much, and my friend succeeded in obtaining a healthy discount off drool-inducing footwear bearing an inconsequential smudge on one toe. Always inquire about markdowns for imperfections. You’ll be surprised how often costs will be lowered.

Being deprived of a sense of direction I won’t attempt to print detailed street instructions to Albrook. (I don’t drive in Panama City, I “passenger”.) Sales are plentiful right now in many stores too numerous to catalog here, so snoop around, and . . . HAPPY SHOPPING!

Panama City Social Scene