Tuesday, January 11, 2011

How To Make The Most Profitable Investments In Panama

Guest post By Jorge Rodriguez


Panama is no doubt one of the biggest success stories of Latin America. Fifty years ago this country on the Southern tip of Central America was dirt poor. Today it's classified as a high income country, in the same group as countries such as Argentina and Chile. In the following paragraphs we will take a quick look at the most profitable investments in Panama City.

An investment in real estate in this country can be very lucrative. As a result of increased foreign demand, the Real Estate market in Panama is in a better state than in most other countries in Latin America and even the world. This is mainly a result of increased international property investments after steps taken by the Panama Government to encourage foreign investment in this market sector.

Nowadays any foreigner can easily buy property anywhere in the country. You get full ownership and the transaction gets recorded at the deeds office. You can afterwards sell the property to whoever you want at a time of your choice. You are also free to send the profits back to your home country. The only applicable tax is a 2% transfer tax which is levied on this type of property sale.



New property investments - construction -  in the country are under current law exempt from paying property taxes for up to two decades. If you need to import building materials to build a commercial or residential property, these imports are also exempt from import duties. The rental income you derive from the building will also be tax free for a specified period and under certain conditions.

You also have the option of investing in a business in Panama. The country is politically stable and offers higher returns on investments than in the majority of developed countries. You are free to invest or repatriate your profits, subject to certain conditions.

If you should decide to invest your money in a business in this beautiful country, you have the choice of investing in an existing business or starting a new one. A new business has the advantage that you can structure it to your own liking. An existing business, on the other hand, already has a customer base, so you can start making money immediately.

Commercial and industrial businesses and real estate are some of the most profitable investments in Panama. If you make sure you only deal with trustworthy partners, your investment will undoubtedly prove to be a highly profitable one. First, however, make sure you are aware of all legal requirements applicable to your case. In this regard a good investment lawyer on your team will be a great asset.




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