Boost to Middle Class Housing in Panama

The measure must be passed in the National Assembly by amending the act, which is expected to happened very quickly.

A current limit of $80,000 has been established as the maximum value of homes that can be financed under the law, which allegedly has led to low-quality housing solutions being built to keep costs within that range.

An article in Panamaamerica.com.pa reports that "Extending the benefits of the Preferential Interest Law to the homes worth $120,000 is an opportunity that is being offered to the professional class in the country so that they can buy a home, according to the promoters’ who explained that ‘another benefit is that more projects can be built downtown which will generate more movement in the market."

Source: Panamaamerica.com.pa

More on this topic

Panama: Preferential Interest Rate Law Changes

March 2012

The National Assembly has given the final approval to increase ceiling rate for preferential interest to $120 thousand, which will have a direct impact on the housing market.

The plenary of the legislature approved on third reading bill no. 241, by which the ceiling for preferential interest rates has been increased to $120,000 reported Capital.com.pa.

Panama Amends Fee for Registered Companies

January 2012

The country will charge a single fee of $300 annually to corporations, limited liability companies and other legal persons.

The Ministry of Economy and Finance (MEF) has introduced in the National Assembly a bill that will increase the preferential interest rate on mortgages valued from $80,000 to $120,000, and has also modified the payment of the flat rate tax for corporations and legal individuals, the website PanamaAmerica.com reported.

Incentives for Housing Construction Proposed

June 2009

Legislation in El Salvador proposes preferential interest rates for the purchase of new housing with costs between $15,000 and $60,000.

The Salvadorian Chamber for the Construction Industry (Casalco) presented to the Legislative Assembly a government bill that would encourage low-income families to purchase new housing in the range of $15,000 to $60,000.

Low-cost construction to mitigate crisis

January 2009

The low-cost housing market is becoming more attractive in Panama, and is aided by the preferential interest rates for new homes with a cost that is lower than $80 thousand.

According to the article in La Estrella (www.laestrella.com) "the head of the Ministry of Housing (MIVI), Gabriel Diez, proposes that they direct future construction towards projects that are within the margin of preferential interest rates.