Investing in Panama is a subject often talked about within the international business community, especially for those in Latin America and the Caribbean. Panama has a versatile, diverse business community with investment options that run the gamut as far as industry, volume, type, and returns. One thing almost all investments in Panama have in common, however, is the future. Panama has had a unique economic situation since the transfer of the Panama Canal back in 2000, and more specifically, an economic surge over the last ten years. When the global economy was sinking (mostly) in 2008/2009, Panama was growing. Why? Well, it’s complicated.
Panama has the perfect recipe for sustainable international investment and economic growth
Panama’s economy grew during the global economic recession for a few key reasons. For starters, Panama is an essential route and trade hub, meaning that ship volume creates jobs, revenue, and ancillary investment. So, since Panama took control of the Canal, it has solidified an economic position that is (in theory) very tough to break, even under harsh global economic conditions. This type of stability builds on itself, and encourages growth around the services that either benefit off the Canal, or the Canal benefits off of.
This economic foundation allows for lots of positive future speculation and opportunities that come with it. Meaning, when you invest in Panama, you’re investing in a stability that almost guarantees future growth. The variables move, but the long-term opportunities are there, and that creates a lot of interest.
Where to invest in Panama for both future AND current returns
With all that being said about future investments in Panama, there are many current and short-term returns to be had as well. Some of the biggest areas where you can see this type of investment are in residential and commercial real estate, hotels/tourism, and financial services. As an international investor in Panama, you have many options when it comes to size of investment, and the legal process to get it all done efficiently, and in compliance with local rules and regulations. Panama, by design, has very open rules for investment, because encouraging foreign capital investments is critical to keeping the economy going, and building it even greater.
As a foreign investor, you can also fast-track your way to residency, plus obtain a number of tax-friendly benefits that will incentivize your investment by cutting down on expenses. Even if you don’t relocate to Panama, you can make your investments pay great returns from abroad, legally, and without too much heavy red tape or expense. To get this process started, we highly recommend starting by doing your due diligence in whatever business and industry you plan to invest in. Do the research first, and make sure to have a reputable investment lawyer look over any documents or financial strategies before making a commitment.