Panama Relocation Newsletter

POLS ATTORNEYS NEW POLICIES ON US PERSONS

POLS Attorneys is no longer accepting US persons as clients for incorporation services of Panama corporations or foundations, as well as nominee director services, and bank introductions (unless required for Panama immigration processing or Panama real estate transactions).

As part of our compliance requirements, all US persons who do business with POLS must sign a document called “Disclaimer, Waiver & Release for US Persons”, whereby the client is informed of the US reporting requirements for US persons who own entities or bank accounts outside of the US, and releases POLS Attorneys from all liability in connection with said fiscal reporting or tax obligations.

If you are a US person and are a client of POLS Attorneys, please contact us at info@pols.com.pa to complete the updated compliance forms for US persons, and make arrangements to change your directors to your own directors, if you have used nominee directors services.

From the Seatrade Maritime News on July 14, 2021:

PANAMA’S $6 BILLION IN INVESTMENT OPPORTUNITIES AND CREATING ‘A HUB OF HUBS’

In an exclusive interview with The Maritime Podcast Jose Alejandro Rojas, Minister of Facilitation of Private Investments for the Presidency of the Republic of Panama explained in detail the opportunities available and how Panama is gearing up for the future with the 2030 National Logistics Strategy.

Linking the Pacific and Atlantic Oceans Panama has a long history as a shipping and logistics hub and Minister Rojas 'department has been working to streamline processes that link the various parts of that logistics chain.

“We have the Panama Canal, we have the five ports, we have the Free Trade Zones, railroad dry canal that connects ocean to ocean in 45 minutes, and then we have the aspect that air cargo of the airports. So, in all these institutions, the infrastructure itself has been built.

“What needs to be improved is on all processes that deal with the trade between all these institutions and the regulator, one such as customs. So, we work very hard on our main focus is working on simplifying standardizing detail and the interoperability of these processes and systems. And that's where we have been focused,” the Minister told the Maritime Podcast.

One of the first countries in Latin America to privatize its ports Panama has a highly developed ports system despite its small size geographically. The focus now is on value-added logistics and linking all the different players in the sector. Investment opportunities that result will include port concessions, a shipyard, agri-parks, and opportunities in LNG power generation and bunkering.

“We believe that there's going to be opportunities for generating integration between ports and industries. So, they become one area and you don't have to go through customs to get out of the port and then to get into the free zone by having more integrated areas of value-added close to ports,” Minister Rojas explained.

“Between the turnkey projects that are restructured financially, and public-private partnership projects, we have over $6 billion in opportunities, we're also working hard on generating opportunities for more private investors, so more citizens because the corporate investments take more time.”

With international bids planned the Minister welcomed prestigious international companies from the sector to get involved.

Looking ahead Minister Rojas stated: “We're going to keep working on consolidating Panama as a hub of hubs - a logistics hub, hub of business and services, hub of connecting people through our airports, and energy hub, a technology hub, and also a value-added hub.”

Interested in Investing in Panama?

For more information, Feel free to visit our website at www.pols.com.pa or contact us directly at info@pols.com.pa or call or WhatsApp + (507) 6605-0867.

From ANPanama News on July 8, 2021:

PANAMA WILL BE THE COUNTRY WITH THE HIGHEST ECONOMIC GROWTH IN LATIN AMERICA

Panama City.

(Panama City-ANPanamá) Panama will be the country with the highest economic growth in Latin America, reiterates a report by the Economic Commission for Latin America and the Caribbean (ECLAC) that raised its estimate of average growth for the region in 2021 to 5.2%, a figure that denotes a rebound from the deep contraction of 6.8% recorded in 2020 as a result of the adverse effects produced by the COVID-19 pandemic.

Executive Secretary of ECLAC, Alicia Bárcena, in a virtual press conference in which she urged governments to maintain emergency transfer policies to strengthen a reactivation that is sustainable over time, fairer, egalitarian, and environmentally friendly.

"We need policies for a transformative recovery with an emphasis on investment. Industrial and technological policies to boost the growth of more technology-intensive sectors that generate quality jobs. Restructure health and education systems. Sustain transfers, universalize an emergency basic income, implement anti-hunger bonds, ensure access to a basic digital basket, strengthen support for MSMEs. Promote cross-cutting and sectoral policies to move towards a new model of development," she said.

In terms of foreign trade, the outlook is more favorable, since regional exports are expected to increase 22% in 2021 (after experiencing a decrease of 10% in 2020), which is explained by the increase in the prices of raw materials, the recovery of demand in China, the United States and the European Union, and the recovery of economic activity in the region. Meanwhile, in the period January-April 2021, the value of intraregional trade expanded by 19% compared to the same period of 2020, which would recover values close to those of 2019 (which were already very low).

The Panama Maritime Authority (AMP) and Panama’s Ministry of Foreign Affairs have renewed the Agreement on Maritime Transport between the Government of the Republic of Panama and the Government of the People's Republic of China.

The new agreement came into force on 21 July 2021 but to avoid interrupting its implementation it was considered that from 17 May 2021 until it enters into force, both parties would continue to benefit from its provisions.

The agreement will be extended to five years, up from three years from the precedent agreement that started 1 July 2018 giving Panama-flagged advantages and vessels lower port costs in China.

In November 2017 in Beijing, Panama, and China signed a bilateral Agreement on Maritime Transport that included Panama in the list of co-operative nations and promoting the competitiveness of the Ship Registry. A Memorandum of Understanding (MoU) on maritime matters was later signed by China’s Ministry of Transport and the AMP.

The renewal of this Agreement represents a series of advantages for Panama-flagged vessels.

- Appropriate measures to facilitate and expedite maritime transport to avoid unnecessary delays; granting favorable treatment in the collection of tonnage fees based on preferential rates.

- Promote maritime and port development; full and efficient use of the maritime fleet to meet foreign trade demand.

- Ensure the safety of navigation and protection of the environment (including the safety of vessels, crews, passengers, and cargo).

- Improve the business relationship and exchange of scientific and technological experiences; and exchange information on international maritime organizations and conventions.

- Include the protection of the maritime environment, the development of marine resources, the observation of the sea, forecasting and warning of natural disasters, and research, development, and training on marine maritime issues.

- Promote the supply of services to Panama-flagged vessels.

- Increase the demand for maritime transport services for export and industrial production.

- Maintain close relations that allow free and unimpeded access of Panama-flagged vessels for cargo traffic to and from China.

Panama-flagged vessels will maintain the same uninterrupted port tariffs benefits and preferential treatment in the ports of the People's Republic of China, reaffirming the status of "Most Favored Nation".

From Business Wire on July 13, 2021:

ENERGY TRANSFER ANNOUNCES DEVELOPMENT OF LIQUIFIED PETROLEUM GAS ASSETS IN PANAMA

The Trans-Panama Gateway Pipeline Project would Move Liquified Petroleum Gas Across Panama for Re-Export.

PANAMA CITY & DALLAS--(BUSINESS WIRE)--The Republic of Panama and Dallas-based Energy Transfer LP (NYSE: ET) announced today that the parties have signed a Memorandum of Understanding (MOU) to study the feasibility of joint participation in a proposed Trans-Panama Gateway Pipeline project. The non-binding MOU signed yesterday in Dallas by Energy Transfer Executive Chairman Kelcy Warren and Panama President Laurentino Cortizo Cohen would expand Energy Transfer’s international operations into new markets while providing Panama the opportunity to establish itself as a distribution center of petroleum products to markets globally.

Energy Transfer, formed in 1996 is one of the largest and most diversified midstream companies in the United States with more than 90,000 miles of pipelines and associated infrastructure in 38 states and Canada, with international offices in Canada and Beijing.

The project under consideration by the parties includes the development, construction, and operation of a terminal on the Pacific side of Panama and another on the Atlantic side connected by a pipeline for the receipt, transportation, and export of liquified petroleum gas (LPG) to international markets. Any decisions made by the parties will be based on the outcomes of joint feasibility studies and an economic analysis related to the transportation of LPG in Panama.

From ANPanama on July 19, 2021:

PANAMA AND COSTA RICA LEAD THE REGION IN DIGITALIZATION

(Panama City-ANPanamá) Panama and Costa Rica lead the region as the countries with the highest level of digitalization, says a report by the company Red Hat, which also believes that governments must further streamline technological processes to serve both the public and private sectors.

The report indicates that in Central America and the Caribbean (CEACA), this acceleration is very heterogeneous among each country. For example, Panama and Costa Rica show high levels of digitization according to the World Economic Forum's Networked Readiness Index (NRI), compared to other countries, but only similar to the average in Latin America, the rest of the region is behind by a long distance.

In addition, the study of the Inter-American Development Bank (IDB) "Digital Economy in Central America and the Dominican Republic" with figures for 2020, points out among other aspects that although in Panama there is not such a high internet penetration, when registering that just over half of the population uses the Internet (58%), mobile broadband shows a high indicator since 137 out of every 100 inhabitants have an active subscription, while 13 out of every 100 inhabitants have a fixed broadband subscription.

In the face of current demands, different initiatives are known in the CEACA region. For example, in Panama, the government has secured an injection of US$350 million CAF dollars - development bank of Latin America - for the Program to Support the Digital Transformation and Inclusion Strategy, which seeks to support the country's efforts to promote the digital transformation of the State and the productive sector, as well as the closing of the gaps in digitalization.

The expert says that a change in public entities moving from data centers to cutting-edge computing, as retail or the financial sector has been doing, can help government departments provide better services that allow them to be more efficient and profitable.

From ANPanama News on July 6, 2021:

PANAMA SURPASSES THE WORLD AVERAGE IN VACCINATION AGAINST COVID-19

(Panama City-ANPanamá) Panama has surpassed the world average of vaccination, according to the most recent report of the Pan American Health Organization (PAHO), even though the country faces a third wave of infections, which forced the authorities to apply new restriction measures in some districts of the country.

The (PAHO), highlighted in its latest report that the official data published by Our World in Data, mentions that Panama with the immunization strategy it develops reaches 27.6% of the population vaccinated with at least one dose until June 26, 2021, which places it above the global average of 22.9%.

PAHO highlighted the progress made after the coordination meeting of the network of public hospitals to follow up on the increase in COVID cases in some areas of the country.

This initiative allows Panama to prepare for the possible impact of installed capacity in hospitals such as the Social Security Fund Complex, Santo Tomás, and San Miguel Arcángel, reinforcing existing strategies and coordinating the referral of patients to centers such as the Panama Solidario Integrated Hospital, the temporary care center located in the Figali center, and the Specialized Higher Technical Institute (ITSE), where they have a Respiratory Care Unit (UCRE).

The Expanded Program on Immunization (EPI) highlighted in its latest report that so far in Panama have been applied 1,614,850 doses of the vaccine against COVID-19 throughout the national territory.

Meanwhile, in Panama, there are 389,434 recovered patients, 605 new positive cases, for a cumulative total of 408,728. To date, 6,707 tests have been applied, and a positivity rate of 9% is maintained.

In the last few hours, 9 deaths have been recorded, totaling 6,583 cumulative deaths, for the lethality of 1.6%. Active cases total 12,711. In-home isolation, 11,980 are reported, of which 11,606 are at home and 374 are in hotels. There are 731 inpatients, of whom 610 are in the ward and 121 in the ICU.

From ANPanama on July 20, 2021:

PANAMA WILL HAVE MORE THAN 800 THOUSAND PFIZER VACCINES AVAILABLE

(Panama City-ANPanamá) A total of 863 thousand 870 vaccines will be available in Panama from this Wednesday after adding the order delivered by the pharmaceutical Pfizer and a donation from the government of the United States to combat the pandemic.

This twenty-fourth batch of Pfizer vaccines was received by the Deputy Minister of Health, Ivette Berrío, on behalf of the National Government.

In addition, people over the age of 12 with chronic diseases or with a certified degree of disability will be vaccinated.

Meanwhile, it was reported that on Wednesday a donation of 500 thousand doses of Pfizer's vaccine arrived in Panama, as part of a donation from the U.S. government to the country.

Likewise, it reiterates that anyone who is already vaccinated must continue with biosecurity measures, such as wearing a mask and face shield, using alcohol gel or alcohol, maintaining physical distancing, and ensuring frequent hand washing to avoid contagion.

From ANPanama on July 19, 2021:

PASSENGER MOVEMENT CONTINUES TO GROW AT PANAMA’S TOCUMEN AIRPORT

(Panama City-ANPanamá) The Movement of Passengers through the International Airport of Tocumen continues to grow and according to the latest figures to June was recorded 24.9% more compared to May of this year.

The most recent statistical data published on the Tocumen, S.A. website demonstrate a sustained recovery in passenger operations and transit for four consecutive months, as vaccination against COVID-19 progresses in the main destinations in North and South America that connect in Panama.

During June, 751,219 passengers were moved through Tocumen International Airport, that is, 149,941 more passengers compared to May 2021. From January to June 2021, a total movement of 3,099,683 passengers is reported.

Recently, the airline Turkish Airlines increased to five the weekly frequencies between Panama and Istanbul starting from July 12, while Air Europa restarts its operations with two weekly flights from this July 20. For its part, COPA has already reactivated connections to 58 destinations.

Among the regions that recorded the highest passenger movement through Tocumen International Airport in June, North America represented 40.98%, similar to South America with 40.41%; Central America 8.9%; and the Caribbean region 6.7%.

Tocumen International Airport currently offers the possibility of connecting directly with 65 cities in 31 countries in America and Europe, through 19 airlines.

From the POLS – Attorneys Blog on July 14, 2021:

WHERE TO RETIRE IN PANAMA: CITY, COUNTRY, OR SUBURBAN LIFE?

Each year, millions of North Americans take the big step of retirement, and many move locations to do so. Moving can be a challenge, particularly at the age of retirement, but it’s a step that is more common than not due to the retirement lifestyle, and opening a new chapter in life, so to speak. Because of this, finding the best place to retire that suits your needs, taste, and budget, is an essential part of the planning phase before diving in headfirst. This is why retiring in Panama is such an attractive proposition. Retirement in Panama may sound exotic to some, but it’s been on the radar for Canadians and American citizens for quite some time now.

Panama, when looked at as a retirement destination, checks all the boxes for success. It has a year-round warm climate, it uses the US dollar, it’s a relatively close (and direct) flight away from North America, and it has a variety of location-based lifestyle options that fit nearly every retirement need. Panama is an isthmus, and because of that, it has two coasts of beaches. There are mountains, valleys, suburbs, and cities in Panama that each has its charm and pros/cons for retirees. In the general sense, Panama has options for almost anyone, so choosing where to retire boils down to choices and budget.

Where should you retire in Panama?

There’s no cookie-cutter answer for this question, and that’s a good thing. With so many options at so many budgets, it depends on you. Many retirees choose to live outside of Panama City, as city life in Panama can be hectic and a bit pricier. That being said, there are many benefits to retiring in Panama City, mainly from a convenience angle. Panama City has easy access to world-class shopping, serviced condos, hospitals, and is easy to get in and out of via Tocumen International Airport. People who retire in Panama City do so for these conveniences, but also the social aspect of city living. With a large expat community, you’ll find that it’s easy to make friends with fellow expats, including retirees, in the city.

Small town Panama

If city living is not your style, Panama offers rural retirement options that are practically unmatched in similar communities across Latin America. Rural, small-town retirement is the most popular option for expats in Panama and good reason. Panama’s interior (anywhere outside of Panama City and suburbs) offers lower costs of living, beautiful nature, a traditional community atmosphere, and quiet. Because of this, communities like Boquete, Volcan, and Coronado have flourished due to North American retirees.

Small towns that attract retirees tend to have many more amenities than North American expats look for when relocating to Panama. These include services with English-speaking employees, good restaurants, boutique shopping, and modern real estate options. You will find that the expat communities in Panama’s rural towns are tight-nit, and often very involved in creating an atmosphere that is both comfortable and convenient where possible. The downsides, however, can be access to hospitals, airports, and certain other services that don’t lend themselves geographically to rural living. The cost of living in these rural expat communities may be a bit cheaper than the city, however not significantly in the places where expat retiree saturation is big.

Panama’s Suburbs

Though not as popular with the majority of retiree expats, Panama’s suburban areas outside of the capital have a lot of value as a potential retirement location. Real estate in Panama City suburbs has great value, whether buying or renting. You’ll find that due to available space and access to the main highway, Panama’s suburbs have great buying and rental options at all budgets. Retirees in Panama’s suburbs can expect good services nearby as well, plus shorter access to medical services, as well as the international airport. If you are someone who likes conveniences but doesn’t want the noise and hustle and bustle of an urban capital, then suburban Panama retirement is right for you.

To learn more about how to invest in Panama, retire in Panama, or relocate to Panama for work, don’t hesitate to call us today and speak to one of our legal associates!

Thinking about Buying Property in Panama?

Contact the Keller Williams Panama - KW Obarrio Real Estate office Panama City.
E-Mail: kwobarrio@kwpanama.com
Telephone: + (507) 368-0700

The address is building PH SL55, Floor 31, Samuel Lewis Avenue & 55th Street, Obarrio, Panama City, Panama.

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For your Panama relocation services, immigration, real estate, and a corporate law primarily for local Panama businesses needs contact:

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