Panama is now one of the fastest growing economies in the region. The expansion of the Panama Canal and its major Colon Free Trade Zone are also significant in Panama’s success. Just the expansion of the Panama Canal alone has triggered billion dollar investments throughout all ports of the eastern United States.

All of these factors are currently precipitating significant growth in the real estate sector and offering investors prime opportunities to supply the huge demand for both commercial and residential property in Panama.

Panama has many advantages for real estate investment. For one, Panama City is a major world centre for international banking and related financial activity. Because Panama uses the US Dollar there is no need for currency exchange which allows cash to flow in and out of Panama freely, enticing investors to bring their banking activities to Panama.

Panama has created “Special Tourism Zones” which offer benefits and tax breaks for things like property and land tax exemption, income tax exemption for 15 years, 20 years import and sales tax exemptions, and 20 years income tax exemption for tourism investment activities.

Panama shows no signs of change in its upward progress. This year, 2010, Panama’s investment grade was increased to a BBB- by the prestigious Fitch Rating. It was the first time in Panamanian history that such a grade was given to Panama for foreign investment.

The International Monetary Fund (IMF) rates Panama as the fastest growing economy in Latin America, and a politically sound status, which is confirmed by the Political Risk Services (PRS) has places Panama in the top three countries of the hemisphere in terms of best risk-investment qualifications.

Panama has a democratic government with excellent infrastructure, including state of the art hospitals, excellent international schools, the most modern International airport in Central America, and has the most advanced telecommunications system in Latin America.

According to Canada’s Fraser Institute of Economic Freedom of the World, Panama came in eighth in the World after Australia, Ireland, Holland, and Luxembourg.

The Panamanian government has created incentive schemes that have produced over 40 decrees offering special import, tax, and operational advantages. These apply in particular to tourism, maritime, and real estate sectors.

In the Caribbean entrance of the Panama Canal is located the Colon Free Trade Zone, the second largest in the World and houses around 2,000 merchants, receiving over 250,000 visitors per year, mainly from the USA, Haiti, Jamaica, Costa Rica, Venezuela, Ecuador, and Colombia.

The low cost of living and tax exemptions make Panama a cost-effective location in which to invest. Its tariffs are the lowest in the region, helping to increase foreign investment in both the public and private sectors.

Around 80% of the Panamanian workforce speaks English, after Spanish. Most Panamanians living in the Banking district of Panama City are completely bilingual.

With all this in consideration it’s easy to see why Panama is such a wonderful place to be right now. Of all the nations in the Americas, Panama is still the prime location where real estate property investment can reach high potential. The Panama Network can also assist you with other types of investment opportunities as well in Panama. We are also part of the first investment agency in Panama, where we can assist you in your needs. The Panama Network also provides relocation services and places where you can integrate into the Expat and Panamanian Society. If you have any questions or comments please feel free to contact us.