How the relocation industry in Panama really works

Anyone looking into a move to Panama quickly comes across numerous providers of relocation services.

At first glance, many of these offers look similar.

In practice, however, there is a fundamental structural problem.

The traditional business model

Many relocation providers earn their money through commissions.

Typical sources of income:

property developments
developer commissions
insurance policies
arranging service providers
kickbacks from lawyers or estate agents

This model is widely used in Panama.

However, it inevitably leads to a conflict of interest.

The financial incentive lies in the client buying a particular property or using certain service providers.

Why this can be problematic

Relocation is a complex decision.

It concerns:

place of residence
assets
family
tax structure
long-term life planning

When advice is also a sales pitch, it becomes difficult to remain objective.

Why we do not accept property commissions

The market for relocation services in Panama has grown significantly in recent years.

Many people from Europe, North America and other regions are interested in taking up residence in Panama – whether for tax, business or personal reasons.

At the same time, a large number of providers have emerged offering assistance with relocation.

At first glance, many of these offers look similar.

On closer inspection, however, a fundamental difference in the business model becomes apparent.

Our approach

Gerdom & Partner deliberately operates on a different principle.

We:

do not sell property
have no involvement in projects
receive no developer commissions
charge no agency fees

Our only remuneration is the fee paid by our clients.

This means that our economic interests do not depend on

which property a client buys
which estate agent they work with
which service provider they use

Our role is solely to support our clients in making an informed decision.

Why we chose this model

For many people, relocation is one of the biggest decisions of their lives.

It concerns not just a property, but often:

assets
family
tax structure
long-term life planning

In such a situation, we believe independent advice is crucial.

Many of our clients are entrepreneurs or investors who, from their own professional experience, understand how important clearly defined interests are.

That is precisely why they value a consultancy model that operates without commissions.

What this means for our clients

For our clients, this approach has one simple advantage:

Our recommendations are not influenced by sales interests.

If a property isn’t suitable, we’ll say so.

If a particular neighbourhood doesn’t suit your lifestyle, we’ll bring it up.

And if Panama isn’t the right choice overall, we’ll say that too.

Our principle

Our clients pay us for one thing:

Independent advice.

Not for sales.

One final thought

Buying a property abroad can be an excellent decision.

But it can also turn out to be an expensive mistake if it is made too hastily or on the basis of one-sided advice.

Our aim is to help our clients avoid exactly that.