Advantages of Panama Investment
Income tax exemption for 15 years
20 years import and sales tax exemptions
20 years income tax exemption for tourism activity investment
• Panama shows no signs of change in its upward progress. In its annual report, Moody's Investor Service says, "the country's split ratings and stable outlook reflect a manageable fiscal position."
• The International Monetary Fund (IMF) rates Panama as the fastest-growing economy in Latin America.
• A politically sound status is confirmed by the Political Risk Services (PRS) who have placed Panama in the top three countries of its hemisphere in terms of best risk-investment qualifications. Moody's and Standard & Poors have both granted high ranking to Panamanian financial institutions.
• A democratic constitutional government with an excellent infrastructure, including good hospitals and international schools, the modern Tocumen International Airport and advanced telecommunications, makes Panama a very desirable location for expatriates.
• Foreign and local citizens are guaranteed equal treatment in investment and property transactions, reinforcing Panama’s tradition of providing a investment-friendly foreign investment arena.
• Panama is ranked top of the list of the world's freest economies. According to Canada 's Fraser Institute (Economic Freedom of the World), Panama came in eighth with Australia , Ireland , The Netherlands and Luxembourg . Panamatherefore represents an environment conducive for the creation of companies, jobs and prosperity.
• Government incentive schemes have produced over 40 decrees offering investors special import, tax and operational advantages. These apply particularly to the tourism, maritime, real estate and mining sectors.
• Located at the Caribbean entrance of the Panama Canal, the Colon Free Trade Zone is the second largest in the world, housing around 2,000 merchants and receiving over 250,000 visitors per year, mainly from the USA, Haiti, Jamaica, Costa Rica, Venezuela, Ecuador and Columbia.
• A low cost of living and tax exemptions make Panama a cost-effective location in which to invest. Its tariffs are the lowest in the region, helping to increase foreign investment in both the public and private sectors.
• Around 80% of Panama ’s workforce speaks English, after Spanish. Most Panamanians living in the banking area ofPanama City are completely bilingual.
• Annual property capital appreciation of up to 20% and rental yields of approximately 8% make Panama property a potentially profitable investment.
• Retirement property investment is heavily boosted by the fact that the government’s Pensionado Programme entices international retirees due to its many tax exemptions and discounts.
Property purchase is a popular option amongst buyers wishing to capitalise on the excellent growth potential of property in Panama, particularly through the use of off-plan property as an investment vehicle. Alternatively, a buy-to-let situation can provide reliable rental income from property, along with substantial capital appreciation in the medium to long term.
Our Panama Investment Research section allows you to investigate further into investment property in Panama and the location as a whole. IPIN members can view carefully selected Panama investment opportunities and, if you are not a member, you can join FREE and gain instant access to our detailed Investor Reports on Panama property and investment opportunities.
