AUGUST 2010 |www.opp.org.uk Panama Fact File


• Panama is said to be where Costa Rica was 10 years ago - Latin Business Chronicle has predicted that Panama will be the fastest growing economy in Latin America in the fi ve-year period 2010–14.


• Weather. Tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May.)


• Language. Spanish (offi cial), English 14% … many Panamanians are bilingual.


• Tourism in the Republic of Panama has grown rapidly during the past 5 years due to the government offering tax and price discounts to foreign guests and retirees.


• The volume of tourists arriving between January and September 2008 totalled 1,110,000 - an increase of 13.1% (128,452) over the previous high of 982,640 during the same period in 2007. The arrival of tourists from Europe to Panama grew by 23.1% during the fi rst nine months of 2008 - most were Spaniards (14,820), followed by Italians (13,216), French (10,174) and British (8,833). Europe has therefore become one of the key markets to promote Panama as a tourist destination.


• Population of around 3.5million. All foreign and national investors who buy Panama real estate are guaranteed equal rights by law.


• Currency. US dollar. Economy is the 3rd largest in Central America - fastest growing and largest per capita consumer levels in region.


• Real Estate Law . Panama’s Law No. 8 is still the most modern and comprehensive law for the promotion of tourism investment in Latin America and the Caribbean. In so-called Special Tourism Zones, Law 8 off ers incentives such as 100% exemption from income tax, real estate tax, import duties for construction materials and equipment, and other taxes. Panama has declared diff erent parts of the country as Special Tourism Zones … these off er multiple tax exemptions and tax holidays.


• Property tax. Any property in Panama with a registered value of $30,000 is not subject to property tax. Owners of property of a higher value are liable for property taxes. This tax will be under Normal Tariff (article 766 of the Tax Code) and Preferential Tariff or TPCA (article 766-A of the Tax Code.)


INDUSTRY


Developer profi le


MARKET SNAPSHOT Panama | 31


• “A Retirement Destination.” To qualify for the advantageous Pensionado visa, buyers must: a) Be in good health and free of AIDS (blood test at a local lab costs $25 and doctor’s exam is $10); b) Have an up-to-date passport; c) Have a verifi able minimum monthly retirement income or pension of $500 from a government or private company fund. For dependents (such as a spouse or children), you must show an additional $100 of income per month for each. If you do not meet the monthly pension requirement, you can instead deposit $200,000 in the National Bank of Panama. The interest from this account is proof to the government that you will be guaranteed a steady monthly income; d) Have a clean police record for the past fi ve years.


Overseas visitors to Panama – country of origin:


Country of origin


Canada USA


Mexico


Costa Rica Argentina Brazil


Colombia Venezuela Spain Italy


France UK


TOTAL Volume of


Visitors 2008 44,171


272,386 51,533 65,438 23,598 18,603


213,776 34,403 22,242 19,784 15,775 9,404


1,575,051 % 2.8


17.3 3.2 4.1 1.5 1.2


13.6 2.2 1.4 1.3 1


0.6 Volume of


Visitors 2009 37,849


234,190 44,904 37,759 41,998 24,338


177,224 162,581 25,200 13,399 11,166 12,682


1,562,884 %


2.4 15


2.8 2.3 2.7 1.5


11.3 10.4 1.5 0.8 0.7 0.8


Reasons for visiting Panama(source: National Tourist Offi ce) 54% for recreation 33% for business 6% for conference


Tourism is worth 2,334,900,000 = 9.7% GDP


Key airlines serving Panama. Copa Airlines, Continental Airlines, American Airlines, Delta Airlines and Iberia … all of which have daily fl ights into Tocumen International Airport (17km from Panama City).


Panama


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