Photo: Courtesy of La Estrella
The recent public forum held in Panama City last Thursday, October 29th, 2009, and last month’s public disdain and rejection of proposed law project 71 have brought the issue of ROP land in the forefront of Panamanian news.
The merits of this new Project Law 71 and its predecessor Law 23 have been debated and analyzed in great lengths in blogs and online forums. What I would like to discuss here is the effect that this whole ROP Coastal and Island Land Titling “gong show”.
In last week’s forum, it was obvious that the primary concern for all ROP land holders is the clear and present danger of expropriation. Despite finance minister Vallarino’s repeated assurances that project Law 71 only aims to reshape the pricing and tax aspect of ROP and not take away properties from ROP owners, everyone who has lived in Panama for a while feels insecure and concerned about the future of their invested money.
Another good point on the issue of ROP was brought up in today’s La Estrella. Panama has signed bilateral agreements with countries like US, Canada, and most European and Latin American countries that forbid expropriation of investments made by citizens of the signed countries in Panama.
Further more, at a time when Panama is trying to promote a tourism conscious and investor friendly image, this ROP titling fiasco is the worst possible projection. Tens of thousands of foreigners, who purchased rights to untitled land years ago under false pretenses ( sleek marketing, “smooth” realtors etc.), and who are now faced with the possibility of loosing their investment money or paying exuberant amounts in order to receive title, do nothing but tarnish the Come-to-Panama-and-invest-worry-free image that the new administration is trying to project globally.
Project Law 71 passed the first Assembly Debate haltingly in the beginning of October, without consultation of all parties involved. It is scheduled to enter the second debate sometime in the second half of November in a special National Assembly session.
As an ROP land holder myself, I hope that the powers that be got the message through last months law opposition and come up with a viable, reasonable and fair solution to this chronic ROP mess. There is more at stake here than a few millions in land purchasing and taxation. I dare to say that the future of Panama’s tourism and foreign investment is on the chopping block.
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