Well, it’s certainly nice to know this blog is being read by those in the know. Following Ahmed’s predictions that Panama is a bubble about to burst, the Panamanian government has obviously come to the same conclusion and decided to step in and do something about it.
La Prensa recently reported that the Panamanian government has decided to extend the 20-year property tax exemption for apartments and houses – for any projects where the building permit has been issued before the end of 2009.
And while these buildings may not all get built in that time frame, I certainly see a scramble to get the permit.
Also along these lines, the government has also decide to restore the 90-day visa for U.S. citizens, in an attempt to keep Panama competitive.
There has, of course been a backlash against these decisions, which clearly favor outside investors over locals, and whilst I feel this may extend the bubble for a short time, and possibly attract more U.S. investors, maintaining a balance between the needs of the investor and the needs of the local population is going to become an issue at some time in the future.
And, to whichever government official keeps an eye on the blogoshere – Happy New Year to you and your family !
