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Why Invest in Panama
Economic factors
Because of its key geographic location, Panama has a mixed-western economy mainly based on the services industry, heavily weighted toward banking, with more than 100 different banks, commerce, and tourism. The hand-over of the Panama Canal gives Panama Billions in revenue each year. Panama's economy is based primarily on a well-developed services sector that accounts for nearly 80% of its GDP. The GDP growth in 2007 was 11.2%. Services include the Panama Canal, banking, the Colón Free Trade Zone (One of only two TFZ’s in the world) has over 3,000 retail outlets and can be 25% less than Panama City, with $15 billion in world trade in the largest free trade zone in occidental hemisphere. Also insurance, container ports, and flagship registry, medical and health, and other business. While the country's industry includes, manufacturing of aircraft spare parts, cements, drinks, adhesives, automobiles, textiles and more recently, handmade artisan creation of Bush planes. The widening of the canal over the next 10 years (This is colossal to Panama as it means the new super tankers from China and Far East will have quick access to the East coast of America and Europe) will produce up to 40,000 new job opportunities and has an investment of $5.2 billion to complete the expansion. Many of the larger corporate companies have relocated there central offices to Panama including, Caterpillar, Dell, Cable and Wireless to name but a few and Microsoft is opening the 1st major knowledge centre outside of the USA. Also UNICEF has moved its world headquarters to Panama City with 6,000 staff and $6 billion is to be invested in expanding and modernizing the port terminals.        
Other Key factors to consider:
It has the lowest cost of living in The Americas Democratically elected government First class International schools. Some of the best well equipped hospitals in the world. Spanish is the main language but English is spoken widely by most Panamanians. 25–27 degrees all year round No Hurricanes, No earthquakes One of the main cruise line destinations in the Caribbean and Americas 300+ tropical, golden beach islands, on par with the Maldives. The currency is US dollar UK Citizens are allowed to live in Panama. Huge incentives for Retirees (same as a local Panamanian) Law No. 8 of June 14, 1994 - the most modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean No Capital Gains Taxes and other tax benefits On top of the commercial side of Panama you have safety aspect, if you look at any website or safety reports (including a Pinkertons report) you will notice that Panama is one of the safest places to live in the world. City AM newspaper believes Panama is the top destination in the world to invest in now and if you look at the figures and history you can see why.
Property market
With a $5.3billion canal expansion project already prompted investors to pump further money into the country, and sales to second-homers and retirees hit an all-time high in 2007 amidst a frenzy of development and investor speculation. More than 35 high-rise buildings are currently under construction, with an additional 300 projects in the planning stages. In 2010 over 40,000 units will be released onto the market. “In 2007, Panama’s construction industry emerged as the country’s pecuniary backbone,” explains financial analyst Alejandro Gomez. “The economy grew by 17.4%, bolstered by a property boom. Real estate is on a meteoric trajectory.” In the last 12-months, official figures state that foreign investment in Panama has risen by almost 20%, with the country benefiting from its ability to diversify from a purely US focus. Brianna Meighan, founder and editor-in-chief of the Panama Real Estate Magazine, and executive producer for Panama Hot Properties TV, identifies the current mix of buyers: “Foreigners, from Venezuelans and Colombians to North Americans, Canadians and Europeans are all looking to Panama as an attractive option for relocation, retirement and investment. South Americans are heading to Panama in search of a stable economy and government, while North Americans, Canadians and Europeans are looking to Panama for everything from retirement to corporate relocation, and low cost of living as a second-home or vacation destination.” Other factors include a Consejo de Gabinete approved 20-year property tax exemption for apartments and houses issued permits before 31 December 2009. In terms of property, many movers and shakers feel that, as Panama City becomes increasingly more congested, some city-dwellers will increasingly look outside the capital, but demand will remain for property in Panama City. Reflecting this, The Hilton Group has committed significant budgets to building hotel complexes in Panama as capital appreciation on residential units reaches 15-20%. Rental yields in Panama City and second-city David are achieving upwards of 11% on a property of around 190 square metres. “Rentals of condo units in Panama City and the Pacific coastal regions are set to increase tenfold within the next few years,” adds Ernesto Lara de Barboza. “A lack of quality hotels is further fuelling the rental market - but even with new hotels now under construction, the shortfall in accommodation is still significant, especially when set against the rising levels of tourism.”
Accessibility
Travelling to Panama is very accessible world wide and now the skies are opening up for European travel with direct flights going from Paris, Milan and Amsterdam. There is also talk of direct flights starting from the UK in the not so distant future which will really boost the investment and tourism market in Panama. Flight times are around 9 hours.
Climate
The climate in Panama is great all year round with the days being hot, nights much cooler; temperatures range from 32 °C (90 °F) during the daytime to 21 °C (70 °F) in the evening practically year-round. Humidity is always high at about 80 percent. The rainy season takes place between October and November, and the best months to visit are mid-December and late March.
Tourism
Panama remained largely ignored by tourists until the hand-over of the canal from American control in 1999, but inward investment soon pumped into Panama’s stable dollar economy and local fortunes began to thrive. Since then, an unprecedented level of press interest has seen positive headlines in the Wall Street Journal, Conde Nast Traveller, National Geographic, New York Times and CNN Money magazine, amongst others. As Panama’s largest commercial partner the USA remains an important trade ally and, until recently, tourism was also squarely targeted at America. However the credit crunch has seen a fall in US investors and visitors, and paved the way for Europeans to fill the void thanks to strong currencies and direct flights from Paris and Milan and Amsterdam. Panama has everything you would want for a holiday destination with weather always warm ranging from 28 °C to 32°C throughout the year. You can enjoy the hussle and bussle of what the city has to offer, casinos, fine dining, shopping, cruise the canal, jungle trekking or relax on one of the Caribbean beaches or San Blass islands boasting 300 tropical islands. |
