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 ANPanama News on August 23, 2021:

PANAMA PACIFICO HAS 350 COMPANIES AND GENERATES 10,000 JOBS

(Panama City-ANPanamá) A total of 350 multinational and national companies operating in Panama Pacifico generate 10,000 jobs making this public-private partnership a business hub for corporations seeking a competitive position in Panama and the region.

In addition, in the 1,400 hectares, there are approximately 4,000 residents. It is a large community connected and constantly growing, made up of more than 100 entrepreneurs.

Panama Pacifico has become a leading business hub for corporations seeking a competitive position and driving the country's socio-economic development and a strong business community. "The interest of large companies shows us that they use the advantages offered by the area to bet on the country by strengthening commercial exchange and enhancing its growth," said Hernán Riveros, Manager of Strategic Client Development.

The main economic activities present are corporate services, maritime and aviation sectors, logistics and distribution, high-tech manufacturing, call centers, import and re-export of merchandise, and film industry.

Among the benefits they offer to the companies that make up the community are the specialized accompaniment in the search for the best development opportunities and the different incentives they provide: fiscal, simplified immigration, labor, and one-stop-shop, with more than 17 government agencies and exclusive services.

In addition, this area, which is only 20 minutes from Panama City, added offices of the DGI so that companies can carry out the procedures and consultations from the place.

The World Bank has rated Panama as one of the most politically stable countries in Latin America. And the same entity remarked that it will be the one with the highest growth this 2021 after the fall due to the pandemic. These forecasts, added to the stable and dollarized economy, make it an attractive and safe place for investment.

Recognized as one of the best free zones in the Americas, Panama Pacifico was established as a successful and model public-private partnership in Latin America. Panama Pacifico enables a sustainable environment that allows unleashing human potential. It creates a world-class sustainable urban ecosystem, for people and businesses to thrive.

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 August 13, 2021:

METRO LINE 3 LEADS US$1.1 BILLION IN INVESTMENT PROJECTS BY 2022

Rendering of Panama City Metro Line 3.

(Panama City-ANPanamá) Line 3 of the Metro, 28 projects of the Ministry of Public Works (MOP), and projects in the health sector lead the investments that for an amount of US $ 1,100 million the government plans to make in 2022, according to the draft budget that is in the Assembly for approval.

Alejandro Vernaza, deputy director of the National Budget, stressed that in terms of investments in the draft General State Budget for fiscal 2022, it is part of 28 projects executed by the MOP in the modality of 50-50 for an amount of US $ 1,100 million, which would be executed during the years 2022, 2023, 2024 and a small portion by 2025. That is, where 50% is paid, in half of the work, and the rest at the end of it.

The State budget for fiscal 2022, which was presented on Wednesday before the Budget Committee of the National Assembly, amounts to US$25,126 million, with an increase of 3.6% compared to the 2021 budget.

He stressed that among the projects that are being developed are those of the health sector, and through the IDAAN stand out: the water treatment plants of Howard, Gamboa, Sabanitas, projects that are of continuity and that have a considerable development for next year.

Similarly, projects are being carried out such as Line 3 of the Metro, the extension to the airport of Line 2, and the extension of Line 1 to Villa Zaíta. He pointed out that with these investment projects the issue of the dynamization of the economy and the generation of jobs, are important points for the economic reactivation of the country.

On the other hand, the director of the General State Budget, Carlos González, added that by 2022 the difference between current income and current expenses makes possible a saving that allows fulfilling 30% of the investments, with current savings and a reduction in financing to 70%, different from what it was in previous years of 100%.

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.

(Panama City-ANPanamá) With an investment that exceeded US$200 million, Panama already has the modern Panama Convention Center (PCC), located in Amador, on the banks of the Panama Canal and which was delivered to the Tourism Authority by the construction company.

The new infrastructure will replace the ATLAPA Convention Center and has a single building, with a common central space of 12 thousand m2 that has two main entrances: one oriented towards the Canal and another towards the city. From this central area, it is distributed to the other enclosures that are the following: banquet area of more than 4 thousand m2, exhibition hall with more than 15 thousand m2, and groups of meeting rooms accommodated around the large lobby. It has a maximum capacity of 23,906 people.

The delivery was formalized with the signing of the Act of Substantial Receipt of Work, and the confirmation of viability by the Comptroller General of the Republic. At the same time, the process of delivering the property to the American company SMG Latin America LLC is launched, to start the operation stage, as responsible for the administration and promotion of the convention center at an international level, so that this monumental turnkey work, equipped with state-of-the-art technology, begins to bear fruit and contributes to the economic reactivation.

The general manager of the ATP pointed out that "the segment of conventions, exhibitions, and meetings is probably the one that can most quickly contribute to the economic reactivation, through the entry of foreign currency from abroad. That is why on May 26 a Cabinet Council meeting was held at the PCC as a strategy of President Laurentino Cortizo Cohen to highlight the importance of the PCC for economic reactivation."

Ernesto Orillac, president of the National Chamber of Tourism (CAMTUR), for his part, stressed that "this business generates the highest tourist expenditure that exists in the industry. A visitor to congresses and conventions consumes, not including the air ticket and passenger registration, about 609 dollars a day according to figures from the International Congress and Convention Association (ICCA)." This contrasts with the expenditure of approximately 225 dollars according to figures from the Comptroller General of the Republic, in the last 3 years.

The president of the Chamber of Commerce, Industries and Agriculture of Panama, Jorge García Icaza, said that the PPC is an important contribution to the tourism gear that will have an important impact on tourism activity in the capital city and the interior of the country. "Panama has probably the best potential in the region to become that hub of conventions and events in Latin America for its air connectivity, additionally provides a safe climate to international business travelers and tourists."

He added that it is necessary to project the modern structure as a space for the celebration of international conventions that could have a Latin American version in Panama and, equally, capture the fairs that are held worldwide, which rotate the headquarters, so that the PCC applies and is assigned.

For her part, the president of the Panamanian Association of Professionals of Congresses, Exhibitions, and Related (APPCE), Kenelma Mendoza, said that the opening of the PCC will position the country internationally as a destination, being able to attract much larger congresses, causing an economic spillover throughout the country.

"Panama has all the structures and is one of the best-connected countries in the region and with the PCC we will be able to participate in large events," he said while explaining that the participants of an event after they finish their activity do post tours, that is, they are dedicated to knowing the country or return later with their family.

The imposing structure, strategically located on the banks of the Canal, on the Amador Causeway, stands out for its modern design and is equipped with the highest state-of-the-art technology.

The external shape of the building presents smooth curves and narrows to the center, emulating the figure of the isthmus of Panama; the roof rises in the narrowest area evoking a bridge that symbolizes our geographical position in a monolithic composition where everything is contained in a single volume. It also has 1,715 parking lots and a technical building for the production of cold and emergency energy. In its entirety, the main building has 62 thousand m2 of construction and more than 33 thousand m2 of leasable areas.

From BEVNET – Beverage News on August 4, 2021:

VARELA HERMANOS APPOINTS BLUE RIDGE SPIRITS & WINE MARKETING TO MANAGE U.S. SALES AND MARKETING FOR RON ABUELO RUM

ATLANTA, Ga. — Blue Ridge Spirits & Wine Marketing is pleased to announce it has entered into a partnership agreement with Varela Hermanos, S.A. to represent Ron Abuelo in the U.S. market. Under the new arrangement, Blue Ridge will manage all sales and marketing activities for the Panamanian-aged rum brand, effective immediately.

“We are very excited to welcome Ron Abuelo into our growing spirits portfolio,” said Blue Ridge Spirits & Wine Marketing’s CEO, Carlos Carreras. “This brand is a game-changer in the rum category, and we look forward to working closely with the team in Panama to accelerate the growth of the brand here in the U.S.”

The highly acclaimed rums of Ron Abuelo are produced by Varela Hermanos, Panama’s oldest distilling family that dates back to 1908 when Don José Varela Blanco established the first sugar mill in Pesé in the recently formed Republic of Panama. Known for their commitment to exceptional quality since the beginning, the family controls 100% of the rum-making process from cane to bottle: they grow and harvest 1,600 hectares of sugar cane, distill their own spirit, age it at their estate, and bottle within the community. The results speak for themselves: a collection of award-winning aged rums that are a true expression of their craftsmanship.

“We are thrilled to team up with a company that understands our heritage and shares our vision for the future,” commented Daniel Fábrega, Vice President, Export for Varela Hermanos. “The team at Blue Ridge recognizes the growth potential and distinct market opportunity for Ron Abuelo in the United States—we are confident we have chosen a terrific partner with both the energy and skill to bring our brand vision to life.”

Ron Abuelo is available in more than 20 markets across the U.S., with new markets planned to open over the coming year. Currently, the portfolio consists of eight award-winning aged rums: Añejo, 7 Años, 12 Años, Two Oaks, The Finish Collection (Oloroso, Napoleon, and Tawny), and the highly limited Centuria. Suggested retail prices range from $15 to $120.

About Blue Ridge Spirits & Wine Marketing

Founded in 2015 and is headquartered in Atlanta, GA, Blue Ridge Spirits & Wine Marketing represents a diverse portfolio of wine and spirits from around the world. Its portfolio includes emerging and established brands selected for their growth potential. The Blue Ridge team collectively has 250+ years of experience in the industry and a strong presence with established distributor and retailer relationships. The team is committed to fostering quality brand-building nationwide.

About Varela Hermanos, S.A.

Varela Hermanos, S.A. is Panama’s premier producer of distilled spirits with more than 110 years of experience across three generations. Known in more than 40 countries on four continents, the family-owned Varela Hermanos is run by Luis J. Varela, Jr. and is widely respected for their skill in producing finely crafted cane spirits—most notably, the award-winning aged rums of Ron Abuelo. The company also produces Seco Herrerano, the national drink of Panama; Cortez; and other spirits much-admired globally and domestically, where the company is responsible for producing 90% of the spirits consumed each year.

About Ron Abuelo Rum

The rums of Ron Abuelo are created by the expert distillers at Varela Hermanos, a family-owned company that dates back to 1908 when Don Jose´ Varela established the first sugar mill in the recently formed Republic of Panama. Each of the rums is masterfully created at La Hacienda San Isidro in the Pesé Valley and are uniquely delicious due to the region’s singular terroir (a rich mixture of volcanic soil and clay with special climate conditions that bless the hacienda) and Ron Abuelo’s most vital resource: its reserve of mature rums dating back more than four decades.

While each reference in the portfolio offers a different experience, all of the rums express the family’s passion to produce the very best in aged rum. The portfolio is composed of two distinct collections, Ron Abuelo’s Classic Range and the adventurous Finish Collection. The Classic Range includes Añejo, 7 Años, 12 Años, the highly limited Centuria, and Ron Abuelo’s newest rum, Two Oaks. The Finish Collection has three expressions: “Oloroso,” finished in Sherry casks from Spain, “Napoleon,” finished in Cognac casks from France, and “Tawny,” finished in Port casks from Portugal.

From Total Telecom on August 26, 2021:

SPARKLE LAUNCHES PANAMA DIGITAL GATEWAY WITH TRANS OCEAN NETWORK

The new facility aims to improve connectivity for Panamanian people and businesses and become the digital hub for all Central America, the Andean region, and the Caribbean

Sparkle, the first international service provider in Italy and among the top ten global operators, and Trans Ocean Network, a Panamanian telecommunications company, have agreed to form a strategic joint venture in Panama for the construction of an open landing and connectivity center that aims to become the digital hub for all Central America, the Andean region and the Caribbean.

Panama Digital Gateway will be a next-generation open hub featuring state-of-the-art technologies and infrastructures to satisfy all customers’ requirements. Located in Panama City, the new building will offer 3,200 square meters of colocation space for over 600 racks and 5 MW of power and will feature the latest security technologies and an expected Power Usage Effectiveness (PUE) of 1.4.

The hub will be integrated with Sparkle’s global backbone - more than 600,000 km of fiber spanning from Europe to Africa, the Americas, and Asia - and will also be the landing point of existing and upcoming submarine cables looking for a diversified entryway to Central America, thus strengthening the role of Panama as the strategic digital hub between North and South America.

By establishing a presence in the new hub, OTTs, carriers, financial institutions, and corporations will be able to benefit from Sparkle’s global connectivity services - including its global Tier-1 IP transit service Seabone and its capacity solutions – and access to other regional networks. The direct access to submarine cables provides a plus in terms of performance and resilience, as undersea cables are the information highways where Internet and telecommunication services travel at the speed of light, enabling real-time digital services.

“The development of infrastructures in the Americas represents a pillar of Sparkle's strategic plan to consolidate its positioning in the telecommunications wholesale market while reinforcing its offering of digital solutions to enterprises.”, explained Elisabetta Romano, CEO of Sparkle.

“The construction of the hub in Panama, a natural crossroad of Central America and a bridge between the Atlantic and the Pacific as well as a strategic hub between North and South America, is a project of fundamental importance for the landing of new submarine cables and the creation of an ecosystem of interconnected players.”

“Panama Digital Gateway consolidates and positions Panama as the digital hub of the region, strengthening the connectivity of our country, and becoming a strategic interconnection offer for OTTs, carriers, and enterprises”, stated Joaquín Victoria Díaz, General Manager of Trans Ocean Network. “We are very pleased to be participating in the construction and operation of this open hub in conjunction with a partner of experience and global scale such as Sparkle.”

José Alejandro Rojas Pardini, Minister of Facilitation of Private Investments for the Presidency of the Republic of Panama, highlighted that “This project positions Panama as the bridge for data connectivity of Latin America. Its geographical location and competitive advantages make our country an attractive Hub for investments in technology, reinforcing the Digital Hub strategy, which is being carried out by the Government of President Laurentino Cortizo Cohen”.

Interested in Investing in Panama Technologies?

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 POLS Attorneys Blog in August 2021:

FOUR SIMPLE STEPS TO RETIREMENT BUDGET PLANNING IN PANAMA

Retiring to Panama is growing in popularity, and many people from all over the world are deciding to make Panama their permanent home, as they head into retirement age and pensions. One of the most important aspects of planning your retirement to Panama is setting up a budget that will meet your needs and comforts. Luckily, in Panama, there are plenty of options for retirees (whether pensioners or not) on a limited budget and lots of great outings and activities you can do at a fraction of the cost you would at home. Here are our top four.

1. Eat local, shop local

The best way to enjoy Panama on a limited budget is to do all your shopping, when possible, from local sources. This means that you will need to do a little footwork, and a bit of research into your local neighborhood, town, or city. At the supermarket, but brands that are made in Panama. Go clothes shopping at smaller businesses, and locally branded department stores. The same thing goes when you go out to bars and restaurants. Avoid nightlife catered to tourists, and look for where locals go to hang out, and even fellow retirees. You’ll be shocked to see how far your money can go when following the lead of the locals.

2. Ride public transportation, when available

Another great way to get the most out of Panama (and have fun) on a limited budget is to use public transportation to get around. A bus ride is about 30 cents, and you can get pretty much anywhere in the country for less than $15 if you’re traveling a long distance. While taxis are relatively cheap, and cars may be a bigger convenience long-term, public transportation is a great option and one that could save you thousands per year in expenses.

3. Pick your real estate wisely

Whether you rent or buy, choosing where to live, and how you live is critical in saving money when retiring to Panama. There is a huge luxury market in Panama, which is relatively expensive for many retirees, but it isn’t the only option. For buying or renting, find a house/apt. that is away from large city centers, and look for areas with lots of local families, or local retirees. Another piece of advice is to see lots of places, in lots of areas. There is plenty of competition out there, so try to see a wide range of options before committing to a price.

4. Use your “jubilado” card

All retirees in Panama, both foreign and local, have a wide range of benefits granted to them by their “jubilado” status. This retirement status allows for 25-50% discounts on services, flights, medicine, and a host of other valuable day-to-day items. This will drastically reduce your cost of living, and make it much easier to splurge a bit with your budget. You can apply for a retirement visa which includes “jubilado” status, and as long as you’re in the country, and don’t stay out of Panama for 2 years, it won’t require renewal. Panama is a very welcoming country when it comes to foreign retirees, and with these great ways to save money, you will be able to enjoy the city in style.

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.

From Seatrade Cruise News on August 25, 2021:

AUG. 25 UPDATE: PANAMA CRUISES RESUME

Panama has repealed its executive decree of March 13, 2020, that suspended cruise calls, and Windstar Cruises' Star Breeze is set to arrive at the San Blas Islands on Thursday then Bocas del Toro on Friday. The ship will turn around Saturday at Colón.
The Aug. 28 cruise from Colón begins with a Panama Canal transit and calls at Panama City (overnight) then Isla Parida before continuing to Costa Rica.

Princess cancels South America/Antarctica, 2022 world cruise

Princess Cruises updated the restart timing for Island Princess and Diamond Princess. As a result, the line's 2021/22 South America and Antarctica program and its 2022 world cruise are canceled, along with two December Island Princess cruises.

Island Princess will now return to service with a series of Caribbean cruises in spring 2022, before its 14-day Panama Canal voyage on April 27, 2022. Diamond Princess will return to service in spring 2022 with a season of Japan sailings.

Details of both new programs will be announced shortly.

Passengers on canceled cruises may move to an equivalent future sailing at the 2021/22 rate or receive a future cruise credit or a full refund. FCCs may be used for cruises sailing by Dec. 31, 2022. Travel agent commissions are protected for cruises paid in full.

Island Princess and Diamond Princess join eight Medallion Class ships — Majestic Princess, Grand Princess, Ruby Princess, Enchanted Princess, Sky Princess, Regal Princess, Caribbean Princess, and Emerald Princess — which have returned to service or are scheduled to restart by Nov. 28, with destinations including Alaska, the Caribbean, Panama Canal, Mexico, Hawaii, and the California coast.

From Travel Agent Central on August 11, 2021:

PANAMA, COPA AIRLINES RELAUNCH “STOPOVER IN PANAMA” PROGRAM

A cosmopolitan city, coffee farms, abundant biodiversity, and pristine beaches can now be discovered at no additional airfare with Panama and Copa Airlines’ relaunch of the “Stopover In Panama” program. The initiative seeks to encourage passengers that travel to any of the airline’s destinations through Panama to schedule time for a stop in the country at the time of ticket purchase, without additional cost in airfare. In doing so, tourists can enjoy two destinations for the price of one.

Travelers in the United States can take advantage of this program via Copa Airlines routes out of Miami, Tampa, Fort Lauderdale, Orlando, Washington D.C., NewYork, Boston, Los Angeles, and Chicago. This program is available on trips to all destinations served by the airline in 28 countries across the Caribbean, CentralAmerica, and South America.

Visitors can now diversify their trip with special tours and packages that help them journey into Panama´s wonders. These experiences will allow travelers to discover Panama through its rich heritage pillars: Cultural Heritage (culture and history), Green Heritage (biodiversity), and Blue Heritage (ocean wonders).

Prospective travelers can get Panama inspiration and trip activity ideas from (www.stopoverinpanama.com) and then book their trip with Copa Airlines directly or through their travel advisor.

The redesigned website presents travelers with tours and packages based on the desired length of stay, and helpful planning tools such as suggested trip itineraries, videos, and photos. It also offers them easy booking alternatives for airport transfer, lodging and entertainment options, as well as exclusive stopover hotel rates.

The “Stopover in Panama” is valid for up to a seven-day stay on either the departing or returning segment of any Copa Airlines flight.

From the Sequim Gazette on August 5, 2021:

FAMILY CELEBRATES OLYMPIC GAMES SWIMMER WITH SEQUIM AND PANAMA TIES

Molly and Bernie Christianson were happy to get up early and watch live coverage of the Olympic Games in Tokyo.

The longtime Sequim residents joined other family members and friends spread across the country in rooting for 19-year-old Tyler Christianson, their grandson, and son of Sequim High graduate Eric Christianson.

Tyler, a dual citizen of Panama and the United States, was one of 10 athletes competing for Panama at the 2020 Summer Olympic Games (held in August 2021). He competed in the 200-meter breaststroke and 200 individual medleys.

On July 27, Tyler raced to a heat victory in the 200 breaststroke with a 2:13.41 finish — more than two seconds better than his entry time — and led from the first turn on, finishing with the 29th-best time (the top 16 qualified for the semifinals).

A day later, he came back from a fifth-place spot after one turn to win his heat in the 200 IM, finishing in 2:02.70 — about a half-second better than his entry time — and wound up 40th overall.

“It just hit me; he’s among the best swimmers in the world,” Molly Christianson said last week, in between her grandson’s heats.

Molly and Bernie moved to Sequim in 1978.

“We thought it was the most beautiful place on earth (then) and we still think that,” Molly said.

Eric graduated from Sequim High in 1987 before attending West Point. Eric was an athlete but no swimmer, Molly said.

“He was not very good in the water at all,” Molly said of Eric, but was athletic and competed in football and wrestling.

After graduating from West Point, Eric Christianson worked for six years and six months in the service, stationed in Panama. There he met Emyeny, a native Panamanian.

Tyler was born stateside, but he retains dual citizenship with the U.S. and his mother’s home country.

In interviews leading up to the Olympic Games, Tyler said he learned at age 8 to swim. By the time high school ended he was a state champion in Maryland and began receiving offers for his athleticism, Molly said, fitting his exhausting sports schedule in with his involvement in school leadership (he was Student Government Association President at his high school in 2019-20).

Tyler chose Notre Dame, and in his first year took home the Fighting Irish’s Rookie of the Year award and was named a USA Swimming Scholastic All-American. He qualified for the NCAA championships and then added the Olympic Games qualifier to his resume. He holds two Republic of Panama national records.

“I just really can’t wait because it’s going to be a blast to swim with the best athletes in the world and to represent my country, so that’s all I can really ask for,” Tyler said in an interview with WSBT TV in South Bend, Indiana, last week.

“I never thought it would be possible, you know. You write it down as a little kid — I want to be an astronaut, NFL Football player, I want to go to the Olympics — I wrote down ‘I want to go to the Olympics’ and to see that sheet that I had made like 12 years ago in first grade and look back and see I really did it, it means a lot.”

Molly said the Panamanian athletes — there were 10 listed as competitors, compared to 613 for the U.S. — are treated like celebrities in their home country.

“(He’s) like a national hero over there,” Molly said. “(But) he is a true American in the heart.”

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Until next time, thank you for reading “Panama Relocation Newsletter”.

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

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