When people look at investing overseas there are a number of important factors that they have to consider. Economic growth potential, political stability, currency stability, and location are just some to name a few. But, as promising as all of these factors look, they hold less weight if the cost of doing business outweighs profits. This is why Panama City is perfect for the offshore investor and retiree. As of February 2014, Panama City, Panama is considered to be the cheapest city, by cost of living standards, in the Western Hemisphere.
According to the latest bi-annual Worldwide Cost of Living Survey conducted by the Economist Intelligence Unit, Panama City, Panama is the eighth cheapest city to live in the world, and the cheapest city in the hemisphere. The rankings are based on currency strength, the cost of food, clothes, healthcare, education, transportation, and housing. This is the second time in the past year that Panama City has gained this distinction, and for good reason.
What’s the Cost of Living/Doing Business in Panama City?
The cost of living in Panama City can vary, depending on what type of lifestyle you choose to lead, what you want to do with your money, and where you want to live. However, basic goods and services are nominally cheaper than their equivalents in North America, Europe, and many parts of Asia and the Middle East. While there’s no uniform number of what it costs for everyone, the basic “daily basket” of goods can be as little as half of what it is in neighboring countries in the region.
As far as businesses go, the same can be said for most expenses. Minimum wage is about 1/3 of its equivalent in the United States and Canada. There are also free-trade agreements between Panama and a number of countries (including the US and Canada), which makes importing and exporting less expensive than many other places in the region. Businesses also have a favorable tax status, and foreign investment is encouraged through tax breaks and government subsidiaries in certain industries. Panama also runs on the US Dollar, which makes international business much smoother to deal with than in a country with a constantly fluctuating currency.
Buying property, and even renting property in Panama City can be much cheaper than many capital cities in the world, especially one with such a strategic location. There are many parts of Panama City where you can buy a house for less than 100,000 and still have the benefits of living in a safe, central area. Rent can range anywhere from $500 to $5,000 a month, depending on location and size. However, when compared to North America, and even most of Latin America, these prices are low, and the value for what you pay for is almost unmatched in the hemisphere.
To find out more on how to invest your money in Panama, Panama relocation, and how to handle the process of moving your business or family, contact us today. Like any other move or investment, it’s important to do a good amount of research on what you’re getting into, as well as seeking the advice of a skilled attorney in the field.
