Investing in Panama: Why and Why Now?

Posted by cassidy

April 8, 2008

Panama is a country that stretches out in a rich native heritage. It possesses a number of enthralling places that reels in countless tourists and regular holiday makers every year.

Moreover Panama is also cited to be an ideal address for retired professionals from neighbouring countries such as the United States and United Kingdom to spend their pensioned years in wholesome serenity and bliss that Panama also has to offer.

Owing to the increasing numbers of tourists and foreign dwellers, more and more businesses are now seeking to invest in Panama. Below I shall discuss some of the main aspects that make Panama an ideal place to set up your next business:

1. Non-resident international businesses are not liable to pay taxes on the total assets owned and profits made when operating in Panama. However you must pay taxes to the government of your country on money (salary or capital gains or tax-advantaged dividends) that you are paid by your Panamanian business or corporation.

In some instances your business can even bear some of your expenses, through considering them as legitimate business expenditures. The Panamanian government does not ask to collect sales tax from customers, and there are no Tax reporting requirements on businesses operating in Panama. No capital gains tax, no stock sale or transfer tax, no property tax, no tax on interest income and no gift tax. Investing in Panama couldn’t get any better!

2. Panama possesses one of the most stable political governments in Latin America, and has been run under the same corporation law for the past 70 years. Panama’s army was abolished in 1994 (via constitutional amendment, supervises by US Security forces).

Panama houses over 500,000 corporations and foundations, making it the second largest jurisdiction in the world after Hong Kong. If you are looking to invest in Panama, you might be glad to hear that with 2000 import/export business operating in Panama; it is the world’s second largest trade free zone. Businesses which invest in Panama can make the most out of the export/import policies practised in Panama, as duties are not levied on the export and import of goods.

3. The economy of Panama is regarded as one of the most prosperous, advanced and stable economies in Latin America. Investment in Panama might be very favourable for businesses as the inflation rate in Panama as been under 2% in the last 40 years. During the Asian currency Crisis, Panama remained unharmed.

Panama is also a major hub on the Global Crossing optical fibre backbone, which means that internet access is readily available anywhere in Panama, and is remarkably fast! This can serve as an added value for your business, especially if it is an online based business.

4. A low cost of living, means that minimum rates of pay are reasonably low, in contrast to UK and US countries. You will come across many potential workers who are educated, honest, reliable and diligent towards their work, and will be able to handle your business very well.

Panama is undoubtedly a potential candidate for the next major business capital of the world. So what are you waiting for? Choose Panama for you next business investment today!

Panama is next big tourist destination. Stay in the Gamboa Resort (http://www.gamboaresort.com) or in Gran Hotel Nacional (http://hotelnacionalpanama.com). Now is also the best time to invest in Panama real estate. See exclusive offers here: http://www.panamahotrealestate.com

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