20% of your wealth gone in one day? That’s what happened on Black Monday in 1987 in the US.
In case you’re thinking, “Oh, that’s just a US problem, that doesn’t concern me.”
Then, let me show you what else happened during the month of October, when Black Monday hit other markets throughout the world. Canada dropped 22%, the UK dropped 26%, Spain dropped 31%, Australia dropped 41%, Hong Kong dropped 45%, and New Zealand dropped a staggering 60%.
If the majority of your hard earned money had been invested in those markets… then a huge sum was gone.
That’s why I said, “This is a great example of why you shouldn’t own stocks – or at least why you shouldn’t own just stocks.”
There are many other alternatives; one being foreign real estate.
As many of you know, I am an avid surfer. Travel and surfing go hand-and-hand, so I’ve made it a point to see and experience many places throughout the world – surfing along the way.
My wife and I try not to visit one place twice. We want to check out new places and new waves.
But… there is one country that we just keep going back to. This place just always makes sense. It’s affordable, easy to access and is often literally in our path of travel.
This place is Panama.
In addition to great surf, Panama also makes a lot of cents for someone wanting to do business there. The country also has attractive immigration laws, tax incentives, and a capital city unlike any other in the region.
In fact, when people fly into Panama city they often say, “Wow! This looks like Singapore or Hong Kong or New York. Look at all the buildings!”
I could go on and on about all the incredible things Panama has to offer, but I’ll just give you a short list of the attractive investment-related facts:
- Property Tax: If your property is valued for less than $30,000, then you don’t pay property tax. This is a huge benefit for a real estate investor or someone who wants to diversify their holdings, because you don’t have to pay a ‘carry-fee’ every year. Also, if your property is valued over $30k, then there are many tax incentives that the government has imposed which often results in zero property taxes for up to 20 years.
- Income Tax: Similar to most countries, you’re taxed on what you make (duh!). But, the highest tier of taxation for Panama sourced income is only 27%, which is lower than most country’s minimum tax bracket! The huge benefit of Panama is that you are taxed ZERO percent on your foreign earned income.
- Capital Gains: Similar to the US, if you own a property for more than 2 years, you are only required to pay 10% on the profit of your sale. However, there are many deductions in his process and a realistic capital gains tax on property sale is closer to the low single digits.
- Rental Income (from your property investment): Rental income just goes on your personal income total, which you then get taxed for at whatever bracket you fall into. However, if your property falls into one of the ‘tourist zones’ you can be tax exempt on rental income for 15 years.
- Immigration: There are a variety of ways to get a resident visa, but all are pretty simple and are expedited with the purchase/ownership of property or entity (business) in Panama. After you have your visa for 5 years, you are then eligible for citizenship.
Those are just several of the exciting benefits of investing in Panama.
I didn’t even mention the beautiful nature, great surf, friendly people and incredible sites.
Purchasing property in Panama hits multiple birds with one stone, and is something you should think about. (I have personally been invested there for a while now.)
And even if you don’t plan on investing there, you should at least visit – it’s a destination that anyone will appreciate.
