After a long and arduous year for both Panama’s business community, and the Panamanian people, the country is finally starting to re-open and get back to normal. The COVID-19 pandemic hit Panama very hard, and limited the travel, investment, and day-to-day business activity to the point of a near-complete halt. Now that Panama is opening for business again, there is lots of optimism in the air for the future. It is truly a buyer’s market out there, and with things getting back to normal, some see the potential to catapult new growth.
Panama still offers tremendous value to those who want to keep more of their money and other assets protected. Panama still has some of the best business-forward laws for investors in the world. Panama is still a hub for logistics, trade, and banking, all just a 3-hour flight from Miami, and all using the US dollar.
Where will the opportunities arise from in 2021 and beyond?
While there’s no exact science to predicting the future growth of Panama coming off such a volatile year, there are many signs as to what the future holds for potential investment. The services industry needs to rebound in Panama in order to get the country moving in the right direction economically, and that could spell big opportunities for cash injections and new investments. Buying into an existing services business in Panama is probably going to be the most common opportunity you’ll see this year and next. Meaning, you can invest in a cash-flow business that had good revenue pre-pandemic, but needs more capital to get back to where they were, or improve.
Not only can this type of investment stimulate cash flow, but it can also be an opportunity to grow the business bigger, as the contracted market will start expanding and competition will be less than it was previously. If you diversify your investments into multiple cash-flow businesses in multiple sectors, you can create powerful revenue streams for the same reasons. Again, it’s a buyer’s market, but also a market that’s desperate for innovation and new ways to do business post-COVID-19.
Invest capital in Panama to protect your capital, and watch it grow as a result
Another big opportunity to invest in Panama is to create a Panama corporation to hold your foreign assets and let your money work for you. Without even personally ever having to live in Panama or run an office in Panama, you can create a Panama corporation and have your assets earn more money than they would in the United States, Europe, or Canada. You can also bond your assets together with multiple investors in a trust, and use that Panama trust to do international business that if managed in your home country would cost you more. Not only is this a wise money move from a holdings perspective, but you can create, fund, and manage other investment businesses in Panama with your Panama corporation too.
With taxes in North America going up, and inflation looking to rise over the next year, now is the time to make the smart move and invest in Panama. The post-pandemic Panama will offer some unique opportunities that haven’t been available in over a decade, with lots of potential to scale at will, or as your finances allow you to. For more information about how to get started with investing in Panama, contact us TODAY.