Development in Panama is moving full speed ahead. The Panama Property market is attracting the American retiree population, as well as many other buyers from North and Latin America and investors from Europe, Asia and the Middle East. Whether investing or relocating Panama has many reasons why this region has been attracting people for several years and will it seems continue to do so.
Panama's economy has steadily increased in recent years and the Executive Board of the International Monetary Fund (IMF) concluded that the Panama economy grew a healthy 4% in real terms during the past few years.
Why purchase in Panama?
Panama has long provided several important incentives for foreign investors, including:
• US dollar-based economy
• Low inflation and zero foreign exchange risk
• Total absence of exchange controls
• Equal treatment of foreign and local citizens
• One of the most flexible company laws in the world
• No restrictions on 100 per cent foreign-owned companies
• No restrictions on mergers, acquisitions or joint ventures
• Excellent tax holidays for specific investments in sectors such as tourism, maritime, real estate, mining,
• High percentage of labor force is bilingual making it an attractive desitnation for Europeans and South Americans
• Panama has been ranked first in the region for low cost of living, operational cost and index of labor by the Tripartite Committee, which consists of the Economic Commission for Latin America and the Caribbean (ECLAC), the Organization of American States (OAS) and the Interamerican Development Bank (IDB). Panama has full coverage from OPIC, MIGA, IDB and other multilateral entities.
Political Risk Services (PRS) placed Panama in the top three countries of the hemisphere with the best risk-investment qualifications. Moody's and Standard & Poors have both granted high ranking to Panamanian bonds.
Panama has also showed no signs of change in its upward progress. In its annual Report, Moody's Investor Service says, "the country's (Panama) split ratings and stable outlook reflect a manageable fiscal position. Free Trade Agreements, such as the recent accord with Taiwan, will also help to benefit the Panamanian economy by encouraging foreign investment into the nation's financial and communications systems, the report added. In total, Panama has Bilateral Trade Agreements with over 20 countries throughout the world. There are numerous reasons to view the Panama City Property Market as stable and viable - especially now that the second Panama canal is under way for construction which will add greatly to this regions properity.
