When looking for foreign investment options, the best place
to start your search is the country’s government. After
making this search, more and more people are making their
investments in Panama. Among the factors to consider when
deciding to invest in Panama, or any other country, are currency,
access to capital, economic freedom, and investment laws.
When looking at these criteria, investing in Panama is sound
The currency of Panama has been the US dollar since 1904,
although it is referred to as the Balboa for nationalistic
purposes. Because Panama does not have a central bank to print
its own money, government spending is tied to tax and non-tax
revenues, as well as the government’s ability to borrow.
While this sounds like a problem, it presents no serious issues
in an economy the size of Panama’s. In addition, having
the US dollar as its currency for so long has placed Panama
ahead the world in the increased use of the American dollar.
There is also virtually no exchange risk to foreign companies
and investors due to this association. All of this adds up
to make investing in Panama very comfortable and easy for
people from both the US and Europe.
Access to Capital
Investing in Panama is also easy because Panama is near the
top of the list of countries with the best access to capital,
ranking below only Brazil and Chile in all of Latin America
according to a report by the Miken Institute in 2005. Among
the things considered by this report were economic development,
banking development, capital markets, international recognition
and sovereign risk. This is crucial information for the retiring
person investing in Panama. The security of knowing that the
Panama is viewed as an excellent investment location can be
Investing in Panama also makes good sense due to its standing
as one of the world’s freest economies. Panama belongs
to the World Trade Organization (WTO) and is a beneficiary
of the Caribbean Basin Initiative (CBI). Panama has been negotiating
a Free Trade Agreement with the United States, and has initiated
formal discussions pertaining to free trade agreements with
numerous countries and regional groups. Panama had an inflation
rate below 2% for 40 years and it was on 2.3% in 2005.
The ability of foreign investor to enjoy equal rights concerning
investments and business practices is another important factor
for investing in Panama. The government’s position has
been to create an environment for foreign investment that
doesn’t require special authorizations, permits, or
prior registration. The law provides a 10-year stability for
registered investments that guarantees legal, tax, customs,
municipal and labor rules will remain in effect. Volatility
in government policy can put investments at risk, but such
laws make Panama an excellent place to invest.
Considering all of the factors involved, investing in Panama
is a great opportunities for professionals and retirees alike.
Stability, growth potential, and freedom make this tropical
paradise and great place to put your money. Investing in Panama
is safe, easy and profitable.
For more information about investing in Panama, including
Panama real estate, offshore bank account, offshore corporations
and even hedge funds, please
contact us for more information.