Top reasons to invest in Panama
A stable economy that uses the US dollar. Unlike the world trends, Panama has had an average growth of 8% in the last 10 years. Among the main activities are the service , tourism and logistics sectors, which are equivalent to around 75% of GDP. The country has been rated with stable investment grades by the most prestigious risk rating companies.
The Government has drafted laws that favor investment in Panama and tax incentives, in addition to offering legal certainty that attracts more and more foreign investors.
In the worldwide ranking, it occupies position # 25 out of 190, above its neighboring countries such as Colombia and Costa Rica.
Panama gives protection to people of 50 different nationalities, with priority to Spaniards and Italians, so that they can obtain permanent residence. The retired foreigner residing in Panama enjoys the same advantages as the national, including discounts and property exemptions.
Both foreign and Panamanian citizens are guaranteed equal treatment in investment and property operations.
Such as Panama Pacifico, a 1,400 hectare Business Hub adjacent to the Canal and just 15 minutes from the city, there is also the City of Knowledge, which houses companies and research and innovation centers, International Organizations and Universities or the Colon Free Zone, the second largest in the world with a commercial turnover of around 28,500 million dollars annually.
Through Law No. 41 of August 24, 2007, benefits and tax incentives are granted when investing in Panama, a special and expedited immigration regime, a special labor regime with a special visa, not requiring a work permit and where no limits are applied for hiring foreign personnel. Thanks to these incentives, there are more than 120 multinational companies based in Panama for their regional operations.Some of the companies that have established themselves in the country are companies such as Procter and Gamble, Adidas, Halliburton, Dell, Bayer, Caterpillar, Bauer, Phillips and Nestlé, among many others.
It has 6 submarine fiber optic cables that cross the country and ensure fast connectivity for telematic communications.
Panama has more than 90 banks with efficient regulations, liquidity and healthy balance sheets. The Panama Canal contributes 4.5% to the national GDP and participates in 5% of world trade with 120 routes from 80 countries. Presence of megaport conglomerates between the Atlantic and the Pacific just one hour away, placing the country in a strategic enclave and at the nexus of both oceans.
Panama is considered as a country that enjoys a healthy and stable democratic system. Their governments have always focused on the implementation of public-private alliances in order to favor their development and investments in Panama. With a good level of security and a low incidence of natural disasters, it is an ideal country to invest and also to live.
This means that in Panama only the income that is generated within Panamanian territory, whether natural or legal person, will be taxed. Obviously, there are tax laws that must be complied with, but it is usually very competitive when compared to those that exist in other countries.
Panama recently created an investor residency program to boost its economy (Executive Decree No. 722 of October 15, 2020). It is expected to boost the real estate and construction sectors. To apply for this program, foreign investors must invest in real estate for a minimum of 500 000 USD. Real estate investments can be for units already completed or also through investment through contracts of promise to purchase and sell real estate units, through the incorporation of a trust that guarantees the purchase of the real estate.
Other investment modalities established in this decree includes the purchase of securities in the Panama Stock Exchange for a minimum amount of 500 000 USD and establishment of fixed bank terms for a minimum of 750 000 USD.
These values must have a direct impact on the national territory. All investments must be kept for a minimum of 5 years and for the investor to obtain immediate permanent residence after the completion of the process, which is estimated to take 30 days.
For the first time, there will be a program that allows Qualified Investors to apply from abroad. That is, you can make the investment from abroad, through a local lawyer, and complete the process when you are in Panamanian territory.
Recognizing the Panamanian economy and its prospects for 2023
In terms of politics and economy, Panama has had its ups and downs throughout the years.
As a result of its thriving economy and promising growth prospects, it remains an attractive investment and business destination.
Global economic recovery from the 2020 pandemic crisis is slowing down, and restrictions are easing, leading many to be optimistic about Panama's 2023 economic outlook. Here we examine Panama's present economic status and what we think 2023 will look like based on data trends, politics, and the global economy as a whole.
An overview of Panama's current economy
Having invested heavily in infrastructure projects such as the Panama Canal expansion and the Colón Free Trade Zone in recent years, Panama still has a strong foundation for its economy. In addition to being close to North and South America, it serves as a major international trade hub. Due to its open-market policy, Panama is also an attractive location - particularly since its population is expected to grow by 1% per year in the near future.In response to this high population growth, new development initiatives have sprung up throughout the country to meet the demand for housing and consumer goods. The Panamanian economy is largely based on the services sector, with banking, tourism, international trade, and logistics all contributing significantly to Panama's gross domestic product (GDP) A number of free-trade zones have also become increasingly important to Panama's economic growth. Taxes and fees, as well as international trade are among Panama's sources of revenue in the services sector. In addition to canal business, Panama is well positioned to benefit from shipping and logistics business as well.
Panama's Economy for 2024
Which industries should be watched in the Panamanian economy as a whole?
Top investments Panama, your trusted partner
Now you know why everyone talks about Panama and its many benefits, you want to invest in Panama, benefit and be part of this opportunity to do business. Entering a market in an unknown country is not easy. You need a reliable link in Panama, with high ethical standards, that shows you how and where to invest. You want someone to protect your financial interests and manage your investments in a professional manner. Top Investments Panama is exactly what you need. Meet Liz González (Founder and CEO of Top Investments Panama) and decide for success.
We provide the most suitable and
quality properties.
Office address
Ave. Héctor Santacoloma, Plaza Balboa,local No. 11, Planta Alta, Santiago, Veraguas.
| 