Why Panama is so attractive for living and doing business? What draws investors from all over world into this county in Central America, which lies between continents?
Panama is the most stable and developed country in Latin American world, however it has just celeberated its 100 year anniversary. It is catching attention not only from businessmen and politicians, but also from film directors and actors, designers and, inevitably – tourists and expats. Of course, local policies and institutions are all contributing to that, besides local people are tolerant and friendly.
American investors discovered Panama long ago, and it seems now it is time for European and business people from growing economies.
Panama has the second largest Free Trade Zone in the world and the third in terms of asset volumes financial center with more than 90 local and international banks.
Another great point of this country is its currency, which however calls itself Balboa to be proud, nevertheless it is simply US dollar. Local inflation rates have been historically low and until recently have been around 2% per year. Nowadays it is higher but still usually stays within 5%.
In 2008 during a state referendum it was decided to begin the project for Canal Extension. In 2009 the net profit from Canal operations were close to $2 billion, and it is expected that once the works on extension will be over in 2015 it will open new opportunities to the nation of Panama and by 2025 they could become as wealthy as Holland.
Panama City’s appearance is changing dramatically and compared to its Latin American neighbors looks modern and impressive. Local infrastructure took a great leap and every year is full of grand openings, one of the greatest recent achievements is the first in Central America line of Metro. Panama City offers best malls, restaurants and many other recreational facilities which are present in variety. Local airport connects three continents with direct flights with hundreds of cities all around the world.
Panama implemented more than 40 laws in support of international business. Among them are protection of financial information and many benefits for local and international companies.
Real estate prices in Panama can be compared to ones in Eastern Europe. Average price for luxury real estate here can be $2,000 per square meter, middle class property can be sold at $1,200-1,500 square meter. At the same time, obtaining residence in Panama can be a less complicated procedure than almost anywhere. Applying for a bank loan isn’t as difficult either, besides there are many agencies which are ready to deal with it for a fairly small commission. Many of them are “one-stop shop”, which offer anything from dealing with financial institution down to getting a residency permit.
Many investors compare Panama to Florida, and obviously Florida looks more attractive in many ways, but Panama has its advantages. Living costs are significantly lower here, besides there are many unexplored places and you can always find better privacy. Panama has been compared to Florida in its 70-ies. And if we look at the example of Florida real estate, the perspectives for Panama look really good.
One more important thing to mention is Panama’s “Pensionado” program. For many now Panama has been called one of the best place for retirement. And affordability of local medical system along with high standards in service and low living costs contribute to the reputation of that kind.
