Since 2004, the real estate market in Panama has been undergoing a boom, and among the main reasons for the rapid flowering of the small isthmus (with fewer than four million people) are its economic structure and incentive laws .
Panama is stable in the matters of politics, social, labor and currency, ensuring equitable treatment to foreign investors, there are no restrictions on the entry and exit of capital, it offers tax incentives and financial benefits and there is a law for Investment Stability, which ensures no expropriations.
According to the newspaper “El Tiempo” from Colombia, the advantages offered by the country for citizens towards foreign investment are:
• Tax incentives for foreign investors and tax exemption for importing household goods, even vehicles.
• Special legislation for pensioners of different countries including: 50 percent off entertainment, 30 percent off hotels and buses, boats and trains, 25 percent discount on plane tickets and utility bills, and 20 percent less on medical consultations, among others.
• The status of the country as a “tax haven”, more than 80 banks from around the world have branches there and hold capital from businesses and natural persons from various countries.
• Instruments to establish structures “offshore”, for asset protection, estate planning and to organize investments in the country of origin or abroad.
• The annual traffic of 14,000 ships (equivalent to toll revenues of $ 424 million in the last year).
• The construction of the third set of locks for the Canal, which will generate 40,000 direct and indirect jobs between 2007 and 2014.
• The visit of hundreds of thousands of tourists who come to rest to in the resorts or shop at the duty free zone in Colon, which encompasses 2,000 companies and moves 12,000 million dollars a year in imports and re-exports.
• Conditions such as a low cost of living, warm weather, a no hurricane zone, proximity to exclusive beaches and islands in the Pacific and the Atlantic and it has been selected as the one of the best places in the Americas for retirement by prestigious publications such as Modern Maturity magazine and Conde Nast Traveler, all of which are included in this economic phenomenon.
• It also highlights the highest security certifications for tourists from Pinkerton Intelligence Agency and the AARP (American Association of Retired Persons).
• Tax exemptions for new construction and incentives for entrepreneurs who wish to undertake real estate projects.
• The ease of entry into the country and the many options for nationalization and the right to establish all kinds of businesses.
The lawyer Alia Benedetti (Benedetti & Benedetti Lawyers) told a Spanish media during the event “How to Invest in Panama”, held in the framework of International Real Estate Exhibition in Madrid, that “undoubtedly investment properties have put this country on the world map”