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Buying a Boat in Panama Could Save You Money
By Michael Evans

When it’s time to retire, you won’t find Ann Roess sitting on the porch with a pair of knitting needles, or her husband Mike puttering around the yard with pruning shears. Instead, the Minnesota-based couple will be cruising the Caribbean aboard their yacht Escapade.

And by buying their sailboat in Panama, Ann and Mike saved at least 15%. “Boats are marketed in Florida and the Chesapeake, Virginia, area,” says Mike. “When we started to look for a boat, we found that the boats that were in those areas were more expensive. We did look in Fort Lauderdale, but we realized pretty quickly that we could get a better deal if we were willing to go to a foreign country, and that it would be fun.”

They found Escapade—a Hylas 49 sailboat, which sleeps up to eight people—on Yachtworld.com, a website that connects boat sellers and buyers. A Spanish mariner owned the boat and docked it in Panama. The Roesses had a gut feeling that it was the right boat for them, so Mike hopped on a plane.

After landing in Panama City, Mike traveled to Shelter Bay Marina—situated at the Caribbean entrance of the Panama Canal—to meet up with the owner and check out Escapade. Mike was thrilled with the vessel, so, after getting the green light from Ann, he bought it.

“It was very much like doing a transaction in the U.S.,” says Mike.

People looking for boats often miss the deal of a lifetime because they’re afraid to look beyond their nation’s borders. “I think there is a certain amount of fear out there with regard to buying a boat in a developing country. But don’t be afraid to do it. Some people who were interested were afraid to get on a plane and go to Panama. We weren’t, and therefore we benefited from that.”

Was there a tax saving, too? Well, that’s still up in the air. “When we bring the boat back to the United States—if we leave it for 30 days in Florida—we’re going to have to pay the sales tax. We’re certainly considering leaving it in Panama, and that would save us that money,” Mike says.

And the couple estimates they can save as much as 40% on marina fees, too, if they keep Escapade in Panama rather than docking it in Florida. Mike was impressed with Shelter Bay Marina’s facilities and security. “It’s fenced and protected, so it’s a very safe place to dock a valuable yacht,” Mike says. “The chance of theft is like zero. They have no issues at all, and that’s not true of a lot of marinas in the Caribbean.”

Plus, leaving the boat in Panama offers geographic advantages. “Panama is much closer to the cruising grounds we want to spend most of our time in, the southern Caribbean,” Mike says.

Mike and Ann aren’t waiting for retirement to enjoy their new boat. In fact, Mike recently took Escapade on a Caribbean crossing and the whole family went sailing during spring break.

As for where they’ll call home in the coming years, Ann and Mike are taking their time before making a decision. Regardless of where they land, it’s safe to bet that an ocean breeze, fresh seafood, a little dancing, and exotic drinks adorned with paper umbrellas will play a role in Ann and Mike’s future.