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 September 27, 2021:

H&M COMPANY CHOOSES PANAMA AS ITS LOGISTICS HUB FOR THE REGION

(Panama City-ANPanamá) The company H & M chose Panama as its logistics hub for the region and settled in Panama Pacifico to distribute all its fashion products, from here, to Central America mainly and also opened its first store in the Multiplaza Shopping Center.

"H&M has always been evaluating new markets and has had an interest in Panama because we believe it has a lot of potentials. It is a country with strong foreign investment, has large structures and large shopping centers with a variety of options for the Panamanian consumer," explained Jaime Sampol, General Manager of Hola Moda, about the arrival in the country.

For her part, Paola Alvarado, Marketing Manager, analyzed the opening of the store and the first days in the market: "We have felt good reception, customers are very excited and we have been able to connect with them positively. We are very happy."

Currently, there are about 90 employees who work in the company in its different points: the distribution center, the store, and the central offices.

"We wanted to benefit from the conditions of a free zone, we decided on Panama Pacifico because the infrastructure is a great differential, and only the access and order they have proven it. In addition, due to the proximity to the center of Panama. It's the best option for our store," Sampol said.

"That renowned companies with a great trajectory bet on Panama Pacifico as the center of their operations shows us that we are in the right direction, creating a world-class space that facilitates accompanying all our clients in the growth of their businesses. We consider ourselves a strategic partner for our clients, we provide knowledge and special benefits to strengthen their strategic advantages. We consider that each investment is a vote of confidence to promote the joint growth of the area and Panama," said Ricardo Alberto Icaza, Business Director of Panama Pacifico.

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 September 30, 2021:

PANAMA PREPARES TO OPEN ITS NEW TERMINAL AT TOCUMEN AIRPORT

Check-In at Panama’s Tocumen Airport.

(Panama City-ANPanamá) Tocumen International Airport began testing and operational drills of the new Terminal 2, in preparation for its full opening, which will become the most modern air terminal in the region and will consolidate itself as the hub of the Americas.

The first massive drills were carried out with the participation of 364 young people from the Technological Universities and the National University of Panama, representing an average flow of November. With their respective suitcases, the students in the role of passengers were attended by 250 collaborators of companies and airport institutions.

The tests are used to make adjustments to the information technology platform, security, check-in modules, migration, customs, luggage transport belts, and the general control center of the airport.

The new terminal, of 116,000 square meters presents 99% progress in its construction, currently partially uses the boarding doors. "We hope that these tests will help us identify details of the operation that need to be improved, before an official inauguration and to open all the components of this work," said Raffoul Arab, general manager of Tocumen, S.A.

Student Allyson Bernal, who collaborated in the drill acting as a passenger leaving Europe, expressed her satisfaction to be part of a historic event for the main gateway to and from the country.

For her part, the volunteer Maritza Pitti, who collaborated in the process of checking the efficiency of technological systems, valued the exercise positively because it is a great contribution to her professional training.

Beatriz López, the chief engineer of special projects and coordinator of the operational tests in the new Terminal 2, explained that the drill allowed to evaluate the behavior and make adjustments to the operating systems directly involved in the process of attention during the departure of passengers.

Within the operational testing schedule, testing and drills are scheduled to continue next week.

The new Terminal 2 required an investment of more than 912 million dollars and will expand the capacity of Tocumen International Airport from 16 to more than 20 million passengers a year.

It will increase the boarding and disembarkation gates from 34 currently to 54, 12 remote stations, duty-free commercial areas, restaurants, banks, VIP lounges, Customs, Migration, National Police, among others.

(Panama City-ANPanamá) Special incentives and discounted fares on air tickets are some of the initiatives Copa Airlines launched on the market to reactivate tourism activity in the country that has been hit hard by the COVID-19 pandemic.

These fare initiatives seek to create synergies to take advantage of the opportunities offered by the advancement of the vaccination program in Panama, the relaxation of entry requirements to the country, and the gradual recovery of air connectivity through the Hub of the Americas of Copa Airlines.

"The connectivity offered by Copa Airlines through the Hub of the Americas is a fundamental engine of economic development for Panama and the region, thanks to the reality that it promotes tourism, facilitates trade, and increases productivity, so we do not hesitate to work with the authorities to promote and firmly support the reactivation of the tourism sector, as part of our historic commitment to the development of Panama," said Pedro Heilbron, CEO of Copa Airlines.

Hand in hand with the Tourism Promotion Fund (PROMTUR PANAMA), Copa Airlines recently relaunched the Panama Stopover program, which offers an incentive so that the thousands of passengers who transit annually through the Hub of the Americas® in Panama via any Copa Airlines flight, can include in their itinerary an extended stay in the country of up to 6 days and 7 nights, no additional cost in the airfare. This product is available in all countries of the airline's network.

"One of the main objectives of PROMTUR Panama is to generate demand from international travelers through strategic alliances, and programs such as the Panama Stopover align with our efforts to position the country as a tourist destination in an attractive way for the thousands of tourists who travel through Copa Airlines," said Fernando Fondevila, CEO of PROMTUR.

Another of the initiatives promoted by Copa Airlines is Panama Irresistible, which offers air tickets at reduced prices to travel to Panama from more than 30 destinations, such as Los Angeles, Orlando, Chicago, Miami, Guadalajara, Barranquilla, Santo Domingo, Mexico City, and Lima, among others. Special fares, which average a 35% discount on ticket prices.

When looking for a place to live in Panama as a recent expat, there are a lot of factors to consider. For families, many of these factors are centered around the needs of their children. Raising kids is a tough task, and it can be even tougher when moving them out of the country and their comfort zone. Finding the right fit for your kids can lead to a much easier transition living in Panama, and improve the quality of life for the whole family. Before deciding where to live in Panama with kids, let’s take a look at some of the most family-friendly areas, and why they would be good options.

Panama City

The broadest offerings for living in Panama with kids can be found in the country’s capital, Panama City. There is a lot of education, leisure, and domestic resources in Panama City, and most are available within a very reasonable budget. Schools are plentiful, with international schools, religious schools, and public schools all available to choose from. There is not a lot of green space in most of the city, however, there are areas that surround parks that are highly popular with expat families. These areas are San Francisco, Albrook, Clayton, and El Dorado. There are smaller parks in other neighborhoods, however, they’re less kid-friendly and tend to be less taken care of.

A big plus of living with kids in Panama City is access to other families. Because Panama is largely a rural country, expat families can feel very isolated at times if not near a population center. In Panama City, children have great access to both local and foreign families, and opportunities to participate in events and activities with them to build friendships. Many families in Panama host events indoors due to the heat/humidity, but many also host pool parties, BBQs, and playdates at their homes and common areas of their condo buildings.

Boquete

When most people think about Boquete they may not think of it as a kid’s type of town, but that couldn’t be further from the truth. Boquete is a very popular destination for North American retirees who live in Panama, and this often overshadows many of its family-friendly benefits. Few towns have as much safe, accessible nature around them as Boquete. This is a great advantage for families with active kids or kids who love the outdoors. Space is plentiful in Boquete, and kids of all ages participate in hiking, sports, outdoor education, and bike riding. The weather in Boquete is cool and less rainy than in many parts of Panama, which allows for year-round outdoor activities amongst kids.

The community of expats in Boquete is very large and very tight-knit. This allows for families to network with other families in a similar position, which helps a lot with adjusting the kids to a big move. Many local families are active in the community, giving kids a wide range of friends and activities to participate in.

The drawbacks for families in Boquete are isolation and limited educational resources. Due to the location of the community, it is relatively isolated from the rest of the country’s population centers. Families that are looking for lots of schools, recreation programs, and other resources may find Boquete to be lacking in those areas.

Coronado

The beach area of Coronado has a similar demographic to Boquete when it comes to expats, though more and more families have been moving there in recent years. It is a growing community with relatively quick access to Panama City, and plenty of modern shopping and other resources that families want/need. The beaches of Coronado and Gorgona are kid-friendly, and most expats live in condos with direct beach access.

Families can safely enjoy the beach together with their kids, typically just a few steps away from home. There are several private and public schools in the area, too, which is great for local and expat families alike.

Food options are plentiful in the area, which means parents don’t have to drive to grocery shop for kids or buy a pizza for a get-together. Coronado and the surrounding areas are generally not walking-friendly, which means families will have to do a significant amount of driving back and forth with their kids. That being said, most expats live in condos that have dozens (if not hundreds) of other expats living there, so in-building get together and parties are frequent and very beneficial for busy parents. The proximity to Panama City also means that families can take their kids on frequent museum or mall trips if they want to. It also means that the international airport is not too far away, which allows for easy travel, and a big benefit for kids who travel to see grandparents or separated parents in other countries.

Every family is different, and there’s a good fit for everyone in Panama.

It’s important to remember that these three locations are just a simple guide as to what to expect when living in Panama with kids. There are dozens of communities all over the country that offer different experiences than the ones above, too.

The most important aspect of planning a move to Panama with kids is to do what’s best for YOUR family. We recommend visiting Panama with the family first, to see for yourself. There is no bad choice, as long as you’re making an informed decision that checks off all the boxes that you need. Make sure you set up a situation where your kids can adjust to a new culture and new way of life at their own pace. Give them as many resources as they need. Create the best life for everyone in your family in Panama!

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 September 26, 2021:

PANAMA IS ELEVATING THE CRUISE EXPERIENCE FROM THE ATLANTIC TO THE PACIFIC

From sea to shining sea, Panama is investing in its cruise tourism infrastructure, upgrading facilities to lure cruise lines and passengers to spend more time exploring all the country has to offer.

In Colon, on the Caribbean coast, the focus is on a massive shopping and leisure complex, Colon 2000 Duty-Free. Located between Colon’s two port terminals, the 70,000-square-meter commercial space will house stores selling international and local brands, restaurants, bars, and a cinema, as well as provide services like ATMs and Wi-Fi.

The complex is located in Colon’s tax-free shopping zone, meaning visitors can find attractive low prices on goods from the likes of Nike, Victoria’s Secret, Pandora, Nevada, Tommy Hilfiger, and Nautica. Dining options will range from outposts of established Panamanian restaurants to a food court offering burgers and sandwiches.

An open-air design with outdoor seating and walkways invites cruise passengers to linger before or after their day tours into Panama. Kids can enjoy play spaces, while adults sip a coffee or check their email in a lovely waterfront setting.

The new venue, scheduled to open in October at the start of Panama’s cruise season, has benefits for all involved. Cruise lines have yet another attraction in Colon to offer their guests; visitors have a place to spend an extra hour or two off the ship, without having to worry about transportation or safety; and Panama can maximize its economic profit from cruise ship tourism.

At the opposite end of the Panama Canal, in Panama City, an even greater construction project is underway. Here, along the Amador Causeway that leads from the city to some outer islands, the government is building a new cruise port, with two piers and a state-of-the-art terminal, comparable to the one you’d find in Miami.

The first 380-meter-long pier is scheduled for an October 2021 opening. The second pier and the terminal will take at least another year to finish. When complete, the new port facility will be able to accommodate two neo-Panamax ships at the same time and handle all the operations of homeporting ships, as well as ones visiting for the day before or after a Canal transit.

The implications of this new development for Panama’s cruise tourism industry are huge. For the first time, large ships can dock in Panama City; the current tender pier is not set up to handle any but the smallest ships. Plus, with new homeport capabilities, Panama can position itself as a gateway to several new itinerary options.

These could include roundtrip Panama cruises calling in both Pacific and Caribbean ports, with a Panama Canal transit in between, or cruises along the Central and South American Pacific coasts and out to the Galapagos. The set-up also makes it easier for cruise lines to run Caribbean cruises with a full, rather than partial, Panama Canal crossing at one end.

Interested in Investing in the Panama Cruise Tourism Industry?

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

From Panama News on September 19, 2021:

PANAMA CANAL TO INVEST US$32 BILLION TO IMPROVE ITS COMPETITIVENESS

The Panama Canal will execute, in the next 10 years, a portfolio of investments and projects for about US $32 Billion to strengthen the sustainability of the business in the long term, improve its competitiveness and contribute to the economic growth of the country, the institution reported.

This investment plan, which highlights the contribution of the workforce, includes the execution of the decarbonization program in operations and that of water projects, the latter aimed at supplying water for the country's population and the operation of the road. It also includes digital transformation through the incorporation of new information technologies that streamline processes.

Last March, the Canal announced its goal of being carbon neutral by 2030, aligned with global commitments established by bodies such as the United Nations and the World Maritime Organization.

By offering a shorter route, the Panama Canal encourages transiting ships to emit fewer polluting gases; however, the organization is committed to achieving carbon neutrality in its operations through concrete actions such as generating electricity from renewable sources, consolidating its facilities to minimize the impact of the carbon footprint caused by the mobilization and transfer of employees to multiple locations, capturing CO2 through the efficient management of the forested areas of the Watershed. As part of this objective, the corresponding authorities have been requested to acquire some 8,000 hectares within this region, to expand environmental protection and sustainable development programs in the Basin.

In addition, migrate its fleet of cars to electric vehicles, and floating equipment to hybrid sources. For this initiative, the Panama Canal estimates to allocate between US$500 million and US$1.5 billion over the next decade.

According to the report, the other key to the sustainability of the Canal is to ensure the availability of water for the population and the operation of the road, because the climatic variability in the last decade has affected the Watershed. With this objective, the Panama Canal is advancing a water program that estimates an investment of US$1.9 billion until it enters into operation in 2028.

In terms of digital transformation, the plan is to allocate US$500 million in projects that incorporate technologies, information, and data management to maximize the capacity of the current interoceanic waterway plant.

In addition, it is estimated to invest US$2.4 billion in the replacement of equipment such as tugboats, and modernization of facilities such as the water treatment plants and dams of the Canal.

The investment also includes the relocation and modernization of facilities that consolidate operations and minimize the carbon footprint that naturally causes the interaction, mobilization, and transfer of more than 9,000 employees.

Until 2030, the Canal plans to allocate about US$2.8 billion to the regular maintenance of its plant, considering that the Panamax locks will complete more than 110 years of operation during the next decade. These investments include the dredging of navigation channels, the maintenance of floating and rolling equipment, as well as the electrical systems that energize the operation.

Over the next 10 years, the Canal aims to provide direct contributions to the National Treasury of approximately US$21.5 billion. In this way, the waterway will fulfill its constitutional responsibility to operate safely, continuously, efficiently, and profitably, promoting growth and opportunities for the country. In the first 20 years of the Panamanian administration, the Canal contributed US$18,642 million.

The investment plan for the next decade includes US$2.2 billion to cover financing, mainly, of the expanded Canal. In five years of operations, thanks to investment in the new locks, the Canal's revenues have increased from $2.5 billion in 2016 to approximately $4 billion in 2021.

Finally, the Canal, as part of its long-term vision, will implement a more dynamic pricing strategy, ensuring that its service generates added value to its customers. This price structure will incorporate, for example, elements aligned with environmental sustainability, encouraging ships that transit the Canal to do so with greater energy efficiency and using alternative fuels.

Interested in Investing in the Panama Canal?

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 Banco General News on September 18, 2021:

PANAMA BETWEEN LIGHTS, CAMERA, AND ACTION

The natural scenarios, the unique locations, and the economic incentives of Panama have been key for more international production companies to bet on it as an ideal filming destination.

Did you know that, on average, about 40 international productions a year are filmed on the isthmus?

In fact, from 2015 to 2020, Panama hosted more than 300 foreign audiovisual productions including feature films, documentaries, music videos, reality shows, and commercials, generating a total of about 25 million dollars. Nothing bad for our film industry that, despite being relatively new and small, has been having a positive economic impact on the country.

This good news comes from the hand of the Film Commission of Panama that, aware of the great potential and originality of our country, not only continued at full speed during the pandemic but has also been strengthening Panama as a backdrop for the realization of foreign films.

On the big screen

If you thought you had seen images of Panama in the feature film The Tailor of Panama, filmed in 2000; in the third season of the American series Prison Break, recorded in 2007, or the film Quantum of Solace, in 2008, he was right.

Making a brief review of how our country has been the successful scene of world-class productions, is enough to go back to certain scenes shot in places that are familiar to us. Such is the case of those that appeared in the last James Bond saga, Quantum of Solace, and that was filmed in Santa Ana, where the star actor, Daniel Craig, got into a taxi in his characteristic whole. He may also have been familiar with the waters of Colón, where agent 007 masterfully drove a speedboat.

Four years later, in 2012, some locals may have run into American actor Mark Wahlberg, who came to shoot the film Contraband, starring in scenes in the Panama Canal, Panama Ports, El Chorrillo, and the marine viaduct.

In 2013, spectacular shots of buildings on Balboa Avenue, the Panama Canal, and the Centennial Bridge were made for the reality show of extreme competitions, The Hero, hosted by Dwayne Johnson, better known as The Rock.

The following year, Panama was the filming center of the film Escobar: Paradise Lost, with the Oscar winner, Benicio del Toro, as the protagonist.

The same thing happened in 2016, with the filming of the single Duele el Corazón, by the Spanish singer Enrique Iglesias, with the Puerto Rican Wisin, with scenes at the top of the skyscrapers of the capital and in the Sarigua desert.

And, more recently, Panama witnessed two high-level productions: The third season of the Spanish Netflix series, La Casa de Papel, filmed in Guna Yala in 2019, Suicide Squad 2, whose world premiere has just been given, which generated about US$ 5.5 million to the country after filming carried out in the Old Town and the province of Colón in February 2020. This last production hired 2,500 Panamanians as part of its local team.

Why Panama?

"Panama has always attracted the attention of foreign producers for its beautiful locations, security compared to other countries in the region, diversity of cultures, financial stability, management of the dollar, connectivity, professionalism of its technicians and facilitation of procedures," says Essie Mastellari, head of the Film Commission, an office attached to the Ministry of Commerce and Industries that has been promoting all these attributes and placing the country on the international map as a stage. ideal filming.

This work not only requires a continuous presence in international festivals and visits to foreign markets to create and strengthen contacts, but also regular meetings with the producers.

"When we make the presentation, we show them a range of possibilities with photographs of Casco Viejo, Colón, the beaches, ethnicities, cultures, and everything that Panama has," says Mastellari, who highlights that some film productions are not necessarily looking for beautiful areas, but locations that fit the needs of the scenes they have in mind.

In the sequel to The Suicide Squad, “they were looking for a place that met certain specific requirements for some shots, so they went to Columbus and liked it for the part of the film they were going to shoot," he says.

Likewise, Mastellari gives them to know our trajectory and experience as a filming place with reference images where other projects have been filmed and how previous producers have worked with them. "This James Bond scene in Mexico, it was really filmed here," he explains.

After this process, the production companies interested in knowing the places presented send their location scouts (location finders) to investigate them and, after the decision to film on the isthmus has been made, they proceed to register the production with the Film Commission.

Diamond in the rough

Although Panama has always attracted international productions of various amounts of investment, the reality is that it was not a strong competitor to other countries in the region, such as Puerto Rico, the Dominican Republic, and Colombia, which for some times have been offering an economic incentive or against Costa Rica, which in addition to having scenarios similar to Panama, it is forging a respected film industry and is also close to launching one.

Aware of the benefits that Panama could bring as a filming location for foreign projects, a group of independent filmmakers worked on the creation of Law 16 of April 27, 2012, (Film Law), which enacted that any international production company that filmed in canal lands with an investment amount greater than US$ 3 million would be given an economic return of 15% of the budget. The rough diamond was beginning to be polished.

This attraction gave a boost to the industry with the arrival of more foreign producers, receiving between US$ 7 and US$ 8 million a year. However, this incentive remained lower than that of the Dominican Republic, Puerto Rico, and Colombia, which offered 35% and 40%, respectively.

So, intending to step harder in this tight arena, the Film Commission got down to work, proposing a striking 25% economic return for an investment amount of US $ 500,000, which began to take effect from November 3, 2020.

The effort paid off and very soon we will witness all the commotion that will accompany the arrival of two major productions that apply to this new economic incentive:

Stars at Noon, with an investment amount of US $2 million, will be filmed all in Panama and the U.S. reality show Beyond the Edge, which chose Bocas del Toro as its set, with a budget of US$4.4 million.

Stars at Noon

In a month the filming of the feature film Stars at Noon will begin, under the direction of the French screenwriter and director Claire Denis, who was in Panama during the third edition of IFF Panama, 2014 where she shared with Pituka Ortega de Heilbron, director of the Panama International Film Festival, who told us how delighted Denis had been with our country.

Claire made a preliminary visit in November 2019, having seen Nicaragua, Costa Rica, Colombia and both she and her producers were comfortable with what Panama could offer. The pandemic came, the project was paralyzed and at the beginning of this year it woke up again, and here we are," recalls Ortega de Heilbron.

Based on the novel by Denis Johnson, titled with the same name, the film tells the story of an American woman during the Sandinista revolution in Nicaragua in the 80s and will feature the stellar performance of the American Margaret Qualley, mostly recognized by the film Once Upon a Time in Hollywood, and the British Taron Egerton, who played singer Elton John in the film Rocketman, as well as with Panamanian actors and the participation of 85 members of the local industry.

Homemade

The national film sector also brings us a breath of fresh air. Despite the circumstances of the pandemic, it continued to demonstrate local professionalism with productions ready to be launched soon.

"From 2013 to 2020, 12 films and 13 national documentaries made with the financial support of the Fondo Cine have been released. We currently have pending in different stages of production 16 films and 17 documentaries, many of them with valuable stories that reflect our culture and identity," says Sheila González, director of the National Film Directorate of the Ministry of Culture of Panama (Dicine).

"We see that little by little with the support of the State, the cinematographic activity in Panama is being reactivated, which brings important economic benefits to the country because, in addition to cinema, it also generates jobs in other sectors such as tourism, transport, art, hospitality, logistics, and gastronomy, among others," concludes Sheila González.

Continue on the scene

What began a few years ago as an artistic dumbbell between Panama and the film industry is stealthily transforming, not only into a potential economic engine for the country, hoping to inject 6%, but also into an important showcase that shows the world all the attractions and qualities of our terroir and how prepared we are to work with the largest international production companies.

And, although there is still a long way to go, the idea is to continue being part of the world scene in terms of high-level productions and continue to widely disseminate our benefits which, shortly, could position us as a reference in the region.

Interested in Investing in the booming Film Industry 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.

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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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