Thread: Tax Reform Law & Retirees

I have just read that as of March 15, 2010 retirees are no longer exempt from tax on the importation of cars into Panama. I had hoped to ship my 2003 Honda Civic from Miami but I will be paying in excess of $3000 just on tax alone. I am uneasy about buying a used car and therefore will be forced into purchasing new. I hope to rent in the Volcan or Boquete area and heard that a 4x4 would be useful. Is that really the case? I need to keep expenses to a minimum because I will be on a fixed income.
Thanks for your help,
Pam

Pam, I found the roads in the Boquete, Volcan area to be quite good. Unless you are planning trips to the wilds of Panama I think a two wheel drive will be fine. Others may know something I don't but I traveled all over the country and even the dirt roads I ventured down I has no problems. Might be worth saving the added purchase cost and insurance.

Don't bring your car. You can find good used vehicles for sale here. If you are moving to Boquete there is a guy you can have find you a used car for a small price. He even gets all the paperwork done for you. If you want to visit the rivers, mountains, beaches, etc., a 4X4 is a good idea. We just recently started adventuring and now are looking for a used one to save on shocks on our 2X. Or you can buy a brand new Yaris.

There is a lot to be said for higher ground clearance. Last rental I had was a 2wd SUV and it worked well.

I'm a big fan of 4 X 4s in Panama.

Thank you everyone for all your imput. I like the idea of buying new as I am not mechanically inclined and worry about the reliability of a used vehicle. I like the idea of buying used because of the cost. Either way I will need help with all the details of purchasing. There are so many details to work out it is overwhelming and all of the advise I can get is invaluable. We had planned on packing our car with some household goods in a container as we thought there would be no import tax for those with a pensionado visa. Now finding out that is not true, we have to rethink how we will ship our things.
Best wishes,
Pam

If you're worried about reliability but want to save cash -- but a 2 or 3 year old 4 X 4. You'll save a small fortune and get something that's almost new.

Becky, Any info on the person that can help us with finding a used car would be appreciated. Did you use him or know others that have used him? Once we are in Boquete, can we get new plates and car insurance locally? We will have an internation car licence from the US. Can we get out Panamanian license locally too or do we have to go back to PC to get that done?
Thanks,
Pam

Thanks Matt - That does sound like good advise. The worrier in me would ask "why is someone selling a relatively new car?" That is why I need someone trustworthy to help me as I am ignorant in all things mechanical. Here in the states I have even felt taken advantage of by car dealers. I think this is especially so being a woman, now add on being in a new country and not fluent in the language. I want to make this move so badly but it really is daunting.
Pam

The reason is because there's a small percentage of the population here that have enough money that they want to constantly own the latest model. So they upgrade every 2 or 3 years. Then call them "ye-ye" (pronouced yay-yays).

I bought my used car from a yeye through www.encuentra24.com With the help of a panamanian though. Am very happy with it!