If you have purchased real estate in Panama, or are planning on doing so the following may significantly lower your property taxes

Law 21 of the fifteenth of April of 2008 establishes extensions to the tax exonerations set forth by Law 6 of 2005. These exonerations can be applied to any construction with construction permits issued before the 1st of July of 2009. These special exonerations are for a period of 20 years starting from the time that the improvements are inscribed, or when the authorities issues the certificate of occupancy, whichever of the two occurs first.

The exoneration will be applied if these properties with building permits issued before the 1st of July are duly inscribed in the public registry by the 31st of December of 2011.

Law 21 which was approved in April of 2008, is of public interest and has a retroactive effect by declaration of the same law.

Law 6 of 2005 stated that new construction with construction permits issued before the 1st of September of 2006, and who obtained their occupancy permits before the 31st of Agust of 2007 would be exonerated from property taxes for a period of 20 years.

Law 6 also established that real estate with occupancy permits expedited after the 31st of Agust of 2007 would be exonerated in the following manner:

• 15 years of property tax exonerations for Residential properties with a value up to 100,000 USD
• 10 years of property tax exonerations for residential properties with a value between 100,000 USD and less than 250,000 USD
• 5 years of property tax exonerations for residential properties with a value of 250,000 USD or more.

Law 21 of the 15th of april of 2008 was published in the Gaceta Oficial Digital No. 26020 of April 2008.

Carnavales are just around the corner. They are scheduled to start the 13th of February, and will run through Tuesday the 16th. Panama’s Carnavals take place for 4 consecutive days before Ash Wednesday. The Carnaval festivals culminate on Tuesday (Fat Tuesday) with the Entierro de la Sardina Celebration.

Panama’s most famous Carnaval celebration sites are: Las Tablas, Villa de los Santos, Ocu, Chitre, Dolega, Penonome, and Panama City. The Carnaval celebrations included “Mojaderas” or “Culecos” in which water is sprayed over the crowds to help refresh the masses from the tropical heat. In the evenings there are parades with extravagantly adorned Carnaval queens, accompanied with live latin murga music. At night the celebrations continue with dancing and music. There is little downtime during the Carnavals.

Please plan accordingly for the Carnaval celebration as all government offices, banks, and most private business close for the festivities. Have a safe and fun Carnavals!

By Matthew Bristow, Dow Jones Newswires

Panama will spend $300 million on a liquid natural gas, or LNG, terminal and $ 130 million on a gas-fired generating plant, the country's ministry of finance said in a statement Wednesday. The projects will help meet the country's growing energy demand, and reduce the use of liquid fuels, the statement said. The LNG terminal will allow the country to receive, store, and then regasify LNG cargos in Colon, which is near the Atlantic entrance to the Panama Canal. The projects will take around five years to complete.

On Wednesday morning, the Chief Executive of Toronto-listed oil company Pacific Rubiales Energy Corp., Ronald Pantin, said the company plans to start exporting gas to Panama and elsewhere in the Caribbean in the near future.

By Bob Askew

You have 90 days to get a Panama driver's license from the date of entry into Panama. Steps for getting initial Panamanian driver's license if you have an valid US state driver's license (under 70 years of age**).

Step 1. Authentication/Certification of State DL by US Consulate in Clayton:

• A. Take your US state DL to the American Consulate in Clayton. Bring your passport and pensionado card (cedula, work carnet, etc., if applicable) during the entire process. You may need to park outside the embassy compound (I’m not sure of the latest policy).
• B. Go to the cashier at the consulate and ask for a DL certification form.
• C. Fill the application but DON'T SIGN it at this time.
• D. Take the application to the cashier and pay $30.00.
• E. Take a seat until your name is called.
• F. When they call your name, go to the assigned window and sign the form in front of the consul.
• G.You will be given a photocopy sheet of your driver's license with all the required stamps and signatures. You will need to take this form with you to the Panama Foreign Ministry office (Ministerio de Relaciones Exteriores) as well as to the SERTRACEN (the contractor who runs the driver’s licensing operation) driver's license office. (Map to Sertracen follows in Step 4)

Step 2. Authentication of State DL by Panama Foreign Misistry Office (Ministerio de Relaciones Exteriores).

• A. Go to Ministerio de Relaciones Exteriores office which is on the ground floor of Edison Plaza (hours 8 a.m. to 4:45 p.m. M-F; Saturdays half day).The Edison Plaza complex sits in the corner of Via Brasil and Tumba Muerto. The Foreign Ministry office is in the ground floor strip of businesses that parallel Tumba Muerto, just about at the base of the pedestrian overpass over Tumba Muerto.
• B. Stand in line for receiving documents (leftmost line).
• C. When it is your turn, hand your US Embassy documents to the clerk, he knows what to do – he fills out some paperwork, hands you a filled-out bank deposit slip and tells you the following:
• Go to Banco Nacional at the base of the “V” of the same strip mall ( Edison Plaza ) to pay $2.00 (using the deposit slip the clerk gave you) *and* to get another $2.00 worth of stamps (called “timbres” in Spanish, two each one-Balboa (dollar) timbres). Four bucks total.
• The clerk will also tell you when to return to the same Foreign Ministry office to pick up the completed paperwork. If you had dropped off your paperwork before mid-morning, you’ll probably be told to return after two p.m. Later than mid-morning and likely you’ll be told to return the next work day. Remember that government offices and banks are not supposed to serve you if you are wearing shorts. Dress appropriately.
• D. Return to the Ministerio de Relaciones Exteriores office with the completed deposit slip (from Banco Nacional) and the two one-Balboa stamps and stand in the rightmost line (for picking up completed documents). They’ll give you the completed paperwork and make you stick on the timbres and then they’ll stamp it.

Step 3. Blood test (for blood typing only – this is required even if your blood type is shown on your US driver's license)

• A. Go to any of the clinicas/laboratorios around the city (I like Raly) and get the test for blood type only. The glucose test is not required any more. Clinicas Raly are in the phone book and they have a website (www.laboratorioraly .com). Look under "Directorio" for locations.
• B. you can get testing done while waiting for Ministerio de Relaciones Exteriores office to stamp paperwork.
• C. Once results are available (about an hour), add the test results to the other documentation.

Step 4. SERTRACEN - Albrook Driver License Issuing Location

• A. Take all of your stamped paperwork, blood test results, passport, pensionado (or other status/residency) card and US driver's license to the SERTRACEN DL office. It is in Albrook in the former American Canal Zone, not far from the Rey supermarket. Look at the map at www.sertracen. com.pa. Plenty of nearby parking.
• B. When you enter the SERTACEN building, immediately get a numbered ticket and wait your turn. If there are two of you, each get his or her own ticket. When your number is called, go to the main desk where the person will review your paperwork. If you have everything, you have 6 more steps:
1. You will use your ticket number for being called to the first two steps. The first is data entry and more document checking.
2. Next more data entry and digital photo.
3. The 3d step is simple vision test. You will be called by name. Listen up!
4. Now the simple hearing test behind the walled area.
5. After hearing test, they’ll send you to the cashier to pay $40.
6. Final step to the last window where you get the completed license! Whew!

** For persons 70 years of age and older, you are required to get a statement from either a gerontologist or internal medicine doctor attesting to your fitness to drive. It must be from one of these two medical specialists.