Panama: Opposition to Rising Cost of Building Permits

The union of builders is opposed to the decision taken by the Mayor of Panama, which would represent an "increase in rates of up to 328%, depending on the cost of the building permit."

Friday, December 2, 2016

From a statement issued by the Panamanian Chamber of Construction:

A warning was given by the Panamanian Chamber of Construction (CAPAC) to the City Mayor, Jose Blandon, stating that "strong action" will be taken if he signs and promulgates the new agreement to increase the municipal tax rate,  
In a public statement the CAPAC "asks the Lord Mayor not to sign or to promulgate the the Municipal Agreement in question". 
If the decision in question is upheld, "the affected sectors will vociferous, as even though this would affect the interests of the industry, it would also have an impact, no doubt, on employment, on municipal revenue and on the country's economic performance" warned the CAPAC.

More on this topic

Construction Sector is Drowning in Bureaucracy

May 2017

In Panama the trade union claims that there are now 180 procedures which must be carried out with 20 different institutions in order to obtain the necessary permits for a construction project.

An excess of procedures and requirements that must be completed in order to develop real estate projects in the country remains one of the main problems affecting the development of the construction sector in Panama. A study prepared at the request of the Panamanian Chamber of Construction (CAPAC) reveals that "... there has been a decrease in the number of building permits, a reduction in the number of mortgages and a high inventory of high-cost apartments and offices."

Panama: Construction Permit Rate Hike Halted

December 2016

The mayoralty of Panama has announced that it will not confirm the increase approved for permits for projects whose values ​​exceed $1 million, until there is dialogue with the construction sector.

Regarding the controversy over the recent decision to increase municipal taxes for building permits, and about which the Panamanian Chamber of Construction (Capac) has said it had no prior knowledge, and that this measure is being taken "at the wrong time" the mayor said that the city council took the decision to give the green light to the measure, although his administration had suggested presenting the proposal to bring the issue to the Committee to discuss it.

Panama: Construction Choked by Red Tape

July 2015

The 60 steps needed to start a project and the slow pace of approvals is exasperating the sector, which fears a decline in foreign investment if the situation does not change.

According to entrepreneurs, reviewing and approving a building plan takes six institutions between five and nine months, while approving an environmental impact study can take up to twelve months.

Panama: Negotiations Over Changes to Building Regulations

March 2015

The Mayor of Panama and entrepreneurs have agreed to review and modify the agreement governing construction activities in order to streamline and simplify procedures.

From a statement issued by the mayoral office in Panama:

Representatives from the different sectors involved in construction and the district mayor of Panama, Jose Blandon gathered together in order to establish mechanisms that optimize the formalities o be carried out at a single window and strengthening the oversight capacity of the Municipality of Panama.

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