If you’re looking at investing in Panama you’ve got a lot of options, and that’s a good thing. Panama has lead the way when it comes to offshore investing over the past twenty years, and the reasons are as diverse as the investment options: favorable tax laws, booming services industry, a reliable financial structure, and much more. When looking at Panama as a potential investment target, there’s lots to consider, and many ways to do it. Here are five ways we’ve picked out that can help you get the ball rolling, and ready to invest in Panama right now!
Real Estate:
Real estate is one of the most popular investments in Panama because as an asset, there are many advantages. New real estate purchases get tax breaks for up to 20 years. Homes and condos have favorable financing options, and are often available at a discount if purchased straight out. The rental market is stable, and long-term leasing options can be very profitable, especially in the expat-heavy areas and resort towns. A real estate investment, much like most investments in Panama, also helps expedite the residency and other forms of the visa process, which has many collateral business benefits as a result.
Create a Panama Corporation:
Panama offshore corporations are private entities that allow foreign investment into Panama, under the auspices of Panama’s favorable tax and privacy laws. This is a great option for investors who run international businesses and want to financially operate them without the tax and regulatory burdens of their home country of residence. By creating a Panama offshore corporation, you can partner with other investors and collaborate under a separate entity without listing your investors publicly. The savings on taxes alone produce an almost immediate ROI, and can be scaled much easier than in other countries in the region.
Agriculture:
You may not think of Panama as a big agricultural country (mostly due to its size and terrain), however agricultural investments are very popular, and a great way to invest into the country. Panama’s main agricultural product is coffee, and coffee investments in Panama are some of the most lucrative in the world. Although agriculture investments tend to be large-scale, they can ultimately set you up for long term returns, and are a great way to gain Panama residency and access to Panama’s favorable banking and tax infrastructure.
Logistics/Services:
Panama has a very vibrant small/mid-sized business market, and a strong services market that can be leveraged for big gains when it comes to offshore investments. With the Panama Canal bringing so much into and through the country, shipping and service logistics are in a constant high demand. Businesses that provide valuable services tend to thrive in Panama, and the scale of the investment is very open, meaning that you can make a small investment and still have a big impact. This type of investment also presents a great opportunity for financial partnerships with existing logistics/services businesses, which will grant you (the investor) the ancillary offshore investment benefits already associated with the existing business.
To learn more about how you can invest in Panama, don’t hesitate to reach out to us with any questions or concerns. Like all things involving business in Panama, we recommend you seek legal counsel before making any investment decisions.
