The Many Reasons for Panama Relocation
Panama offers many reasons to do Panama relocation. One reason is the lower cost of living compared to Europe and the Northern Hemisphere according to a recent Global Cost of Living survey conducted by The Economist.
A second reason is Panama has lower income tax rates than Europe and most Western Hemisphere countries. Income earned outside of Panama is tax free. Panama levies a low 25% corporate tax rate on its corporations who enjoy similar tax deductions as in the U.S. Employees and self-employed in Panama earning less than $11,000 USD are not subject to income taxes. Employees and self-employed who earn between $11,000 USD and $50,000 USD only pay a low 15% tax rate. Those making $50,000 or higher pay a flat 25% tax rate.
Panama has a strong economy which wasn’t hurt by the worldwide economic crisis. In fact, Panama’s economy has grown at an average of 8% (GDP) over the past five years.
Panama has created a safe haven for foreign investments. Article 44 of Panama’s Constitution protects real estate private ownership and private investments. The Civil Code of Panama guarantees equal application of the law for citizens and foreigners including leases and commercial contracts. Panama even has a Foreign Investor Protection Law (Law 54 of 1998) providing equal rights for all foreigners in all business matters of trade, industry, importing and exporting.
Panama guarantees that foreigners can dispose of their investment profits as they see fit including repatriating their investment funds and profits to other countries with the unimpeded right to commercialize their production in Panama.
The labor force in Panama is very cheap compared to Europe, Canada, and the U.S. where the current minimum wage is $2.14 USD per hour. Commercial lease space is inexpensive. Creating a new Panama business can be quickly accomplished. The 2010 Latin Business Index published by the Latin Business Chronicle website named Panama as the number one “best place to do business in Latin America”.
Panama has a good infrastructure with quality highways which connect the Atlantic and Pacific oceans and the interior. Panama City is eliminating their old busses and replacing them with brand new Volvo busses while building a new, modern metro subway system. The Panama Canal expansion will be completed in late 2014 which will handle larger ships. Nearly every international and domestic airport has or is being renovated. New domestic flight airports are being built across the country.
Panama’s immigration laws are amongst the most liberal in the Western Hemisphere with over a dozen residency visas so foreigners can become permanent residents by investing in Panama’s economy for as little as $80,000 USD. Pensioners and retired people over 18 years of age who are receiving monthly lifetime annuities or pensions of a minimum of $1,000 USD can become permanent residents. Panama’s president issued new decrees in 2012 declaring 47 friendly countries citizen’s can apply for immediate permanent residency by starting a new business, buying an existing Panama business, or being offered a job in Panama.
Panama has a lot to offer besides what is mentioned above. Panama offers warm year round climate and a variety of beautiful natural environments along with a bustling and exciting capitol city. Foreigners who are considering moving to another country because of the high cost of living, soaring taxes, or the cold weather, should think about what Panama has to offer.
If you are thinking about Panama Relocation please Contact Us for a personal consultation.