Thread: Panama or Costa Rica? Where sould I go?

I spent time in both Costa Rica and Panama ( and other countries) before I make my big move offshore.

I had heard so many good things about Costa Rica but was sorely disappointed. Here's why:

1. Their prices are about 50% higher than Panama and other Latin American Countries. Food, clothes and especially real estate are much higher.

2. Crime is a big problem. I visited with 40-50 expats while I was there and they all said they would not even go to the grocery store or out to eat unless they had a neighbor stay at their house while they were gone.

3. Electricity is outrageously expensive in Costa Rica. Many of the people who live in the Central Valley ( San Ramon, Grecia, Atenas, have $300+ per month electric bills even though they don't need air conditioners or heat. Costa Rica is way behind in building hydro electric plants and that's why they have a shortage of electricity. Outages are common.

4.. Inflation has been running about 10% a year for the last 10 years so the economy is in shambles. Unemployment is a problem.

5. The roads are TERRIBLE compared to Panama. Don't drive at night! There are huge holes 2 feet deep with no warnings or markers.

6. Water outages are also common. Expats reported going 2-3 days with no water service.

Thank you very much for the info. Without that I would probably have chosen Costa Rica. Is Panama a safe country?

How strange, I was just looking at this very same question, zooming in on Costa Rica in particular. (What are the odds?) While researching, I found this article:
Panama vs. Costa Rica
It's a couple years old, but had some interesting points.

I'm hearing more and more people talk about relocating from the U.S. to other countries. I think the big question is, which countries are best? And/or is it really worth it? I'm still trying to sort this out. I like your criteria, Omerta. I'll be interested to hear more on this topic from this forum's global experts.

Also, that was GREAT info, CashFlowDepot. Thanks for sharing your experience!

Get details about the economy in Panama at Retirement planning services, retire in panama, panama real estate, panama retirement and best place to retire: Retirement Wave ( not just for retirees)

you have to give your email to get to the member's area but there are some great reports there.

Instead of me posting all the details here. I'll let you check it out.

I've only been to Costa Rica, and loved it there. I've only been in the northern part of the country. Didn't see much time. San Jose is supposed to have a lot of crime though.

Chile might be worth looking into as well.

Add Dominican Republic to your list. I was planning a trip a while back but was not able to make it due to an issue that came up last minute with college sadly.

Very inexpensive housing. You can live comfortably at $600+ US a month rental. I even found places for $240 US a month. Owned by surfers, comfortable bed and breakfast type places. There is also higher end living at higher cost with more resort like amenities. Lots of demand for rentals in areas that are good for kitesurfing/windsurfing as it is a world wide travel destination. Profit to be made via investment/rental properties with relatively low investment.

From what I hear the crime is not too bad although you do have to be careful. Consult with a reputable lawyer before doing any transactions.

As my assets grow I may eventually invest in some properties in DR. For more info check out the forum about DR I believe it is DR1.com

Originally Posted by CommonCents

Chile might be worth looking into as well.

I hear it is very entrepreneurial oriented -- would love to hear if anyone has had experience visiting/expating there?

Belize? Honduras? Roatan? (ISland off Honduras)?

Since I live in Colombia I know a little bit about Panama and Chile (although I have not been there yet). The quality of life in Chile is much better than in the rest of South America except, maybe, Brazil. Education is high quality and as MJ De Marco said is entrepeneur oriented.

Business climate is excellent in Chile. There are lots of investment opportunities there. The only downside I can see now is that it is a very active earthquake zone so do your research before going there.

As to the original question, I would go with Panama instead of Costa Rica. Reasons have been explaind before fro not considering Costa Rica. I would even say that currently it is safer living here in Colombia (and economy here is thriving, btw).

Originally Posted by Omerta

-Climate(sunny and hot all year long)
-Best country to start a business
-Strong healthcare system
-Low Real estate and best investment opportunities
-Good economy
-Very low taxes
-Low cost of living(real estate, gaz, food)
-very calm and stress-free environment
-Excellent quality of life
-High-speed internet access
-Beaches and golf courses

I think that here in Uruguay you have most the conditions you're looking for.

* Lots of Argentinian are coming here because of the conditions and stability to start/make businesses.
* You have great beaches (Punta del Este, La Paloma, Punta del Diablo).
* Healthcare is mostly free (at least in my city)
* You can rent a nice apartment from $800/month
* You can get a good lifestyle
* Is calm
* There are some zones on Montevideo that are starting to have optical fiber.
* There is a growing entrepreneurial environment (governmen agency to get non-refundable money, incubators, etc.)
* University is free (but there are private ones too)

I heard that Chile has a great entrepreneurial environment (Start Up Chile is program that gives entrepreneurs 6 months to stay there and $40.000).

If you come here let me know if you need some help

This is true. I forgot to mention Uruguay. I'd really like to go there and spend some time soon. Is education free even for non Uruguayans?

Originally Posted by tincho1492

I think that here in Uruguay you have most the conditions you're looking for.

* Lots of Argentinian are coming here because of the conditions and stability to start/make businesses.
* You have great beaches (Punta del Este, La Paloma, Punta del Diablo).
* Healthcare is mostly free (at least in my city)
* You can rent a nice apartment from $800/month
* You can get a good lifestyle
* Is calm
* There are some zones on Montevideo that are starting to have optical fiber.
* There is a growing entrepreneurial environment (governmen agency to get non-refundable money, incubators, etc.)
* University is free (but there are private ones too)

I heard that Chile has a great entrepreneurial environment (Start Up Chile is program that gives entrepreneurs 6 months to stay there and $40.000).

If you come here let me know if you need some help

Originally Posted by Alex Barboza

Is education free even for non Uruguayans?

I think so. I can ask if you want to.

Originally Posted by Alex Barboza

Since I live in Colombia I know a little bit about Panama and Chile (although I have not been there yet). The quality of life in Chile is much better than in the rest of South America except, maybe, Brazil. Education is high quality and as MJ De Marco said is entrepeneur oriented.

Business climate is excellent in Chile. There are lots of investment opportunities there. The only downside I can see now is that it is a very active earthquake zone so do your research before going there.

Chile has interested me for a while as a place I've wanted to visit ... thanks for the info Alex Barboza

Heritage + one episode of EconTalk (I think this one) turned me onto Chile
Chile Economy: Facts, Data, & Analysis on Economic Freedom

Thailand. Ticks all boxes except for best place to start a business (Depends on business) and taxes.

Originally Posted by tincho1492

I think so. I can ask if you want to.

Please do so.

Thanks

Originally Posted by tincho1492

I heard that Chile has a great entrepreneurial environment (Start Up Chile is program that gives entrepreneurs 6 months to stay there and $40.000).

Yup, my buddy just applied to Start-up Chile. I think they have new rounds and take a few new people every 6 mos. You live there for 6 months to start a business, work with others doing the same, Chile re-imburses you up to $40,000. very few restrictions, don't even have to have a Chile based business.

I think that's in Santiago, about 1.5hr to the beach.

I visited Chile in 2008, while I was exploring where to move to. There were several things that I didn't like about it.

1. The smog in Santiago is horrible. You feel like you're in a bubble surrounded by nasty air & just want to hold your breath.

2 The southern part is pretty but it gets cole , the northern part is void of trees and greenry. It's ugly. Their pacific coast is not as nice as other areas in central south america.

3. It's LONG way it you want to fly back home. 9-10 hour flight to Dallas or Miami.

4. It's just wierd paying $25,000 pesos for a vegetarian sandwich and juice. would be hard to get familiar with the currency conversion.

BELIZE
Belize is a basket case economically. Since tourism is way down because of the global economic down turn, their economy is a mess. They recently defaulted on their debt. There are a few places that are pretty but most have extreme poverty... especially Belize City. Crime is a big problem. It has hurricanes (Panama does not) . I've been there 3-4 times. One time I was with a driver, we were driving down a road with and there were 5 guys with machine guns blocking the road. My driver said don't worry, it is just the drug guerillas. I will talk to them and everything will be fine. He said something then we made a quick u-turn and drove away.

PANAMA

In Panama, you pay no taxes and file no tax returns if your income is sourced outside of the country. That's why so many companies, especially internet based companies are moving here. See the incentives for certain areas, like Panama Pacifico.

Panama Pacifico Special Economic Area. Specifically, this incentive legislation
created a special regime for the operation of the Panama
Pacifico Area and a new government entity, the Agency of the
Panama Pacifico Special Economic Area.
Detailed in Article 60 of Law 41, Panama Pacifico
incentives are directed to attract the following specific
business activities:
• Distribution centers of multinational companies (Law
8 of 2010);
• Back office operations;
• Call centers;
• Multimodal and logistics services;
• High-tech product and process manufacturing;
• Maintenance, repair, and overhauling of aircraft;
• Sale of goods and services to the aviation industry;
• Offshore services;
• Film industry;
• Data transmission, radio, TV, audio, and video;
• Stock transfer between on-site companies;
• Sale of goods and services to ships and their passengers;
• Corporate headquarters (governed by SEM Law 41
of 2007).
(The government is looking at the above business types,
marrying the use of the physical location--near Panama City,
near the Canal, and with an airport--with the desire to create
good jobs and revenue from property leasing. The
government earns revenue not from taxes, that are
exempted, but from an ongoing percentage of land use
charges paid by the developer on commercial leases. In
essence, the government remains a landlord, with private
businesses funding job creation)
The main benefits for the companies established in the area
are the following:
Tax incentives
All companies registered in the area will be exempt from
indirect taxes. For example:
1. Exemption from any tax, levy, rate, encumbrance, or
import duties on any merchandise, products, equipment,
services, and other goods in general that are entered
into Panama Pacifico;
2. Exemption from sales taxes;
3. Exemption from any tax, duty, rate, levy, or fee with
regard to the movement or storage of fuel or other
hydrocarbons and their derivatives;
4. Exemption from any commercial or industrial licenses or
registration tax;
5. Exemption from Stamp Tax;
6. Exemption from real estate taxes on land and
commercial/industrial improvements as well as from the
Tax on the Transfer of Immovable Goods;
7. Exemption from export/re-export tax of any type of
merchandise, products, equipment, goods, or services;
8. Exemption from any tax, rate, duty, encumbrance,
withholding, or other fees of a similar nature applied to
payments to foreign creditors, for the interest,
commissions, royalties, and other financial fees
generated by the financing or refinancing granted to the
companies in Panama Pacifico and for the financial
lease of equipment required for the development of the
activities, business or operations carried out within
Panama Pacifico.
Direct taxes are paid by all companies except those
established by Law 41 of 2004 as “Business Activities,”
specified under article 60 which will be completely exempted
of all taxes. (If your business is on the list above,
corresponding to article 60 of the law, it does not pay
income taxes either. If not, it will pay income taxes, as well as
the taxes below.)
Payment of direct taxes refers to:
• Income Tax Dividend/Complimentary Tax
Transfer/Withholding Tax;
• Special regimen of municipal taxes, determined in
advance by the Municipality of Arraijan for a period of
10 years.
One-stop shop

HONDURAS is beautiful but in the hurricane zone & their economy is hurting so i market it off my list. I visited Roatan in 2009.

I think the economy needs to be a key factor in where to relocate to. There's no need in moving from one unstable country another unstable country. A bad economy causes crime to go up and government services ( like electricity and roads) to go down.