Panama Fact Sheet
01. POLITICAL STABILITY
The country constitutes an economic and financial center backed by the United States of America, complying with the highest international standards.
The army has been abolished.
It is one of the most important banking centers in the world (backed by 87 international banks).
02. ECONOMICAL STABILITY
2% interannual inflation.
7.6% growth in 2005.
The country in Latin America with the greatest economical development in 2007 will be Panama, according to the projections of the International Monetary Fund (IMF) and the Economic Commission for Latin America and the Caribbean (ECLAC).
There are no devaluations; the currency is the dollar of the United States of America.
Panama and its Canal are a strategic priority center for the USA, insuring an institutional stability.
Pleasant climate and absence of earthquakes, hurricanes and other natural disasters.
In the report, Perspectives of the World Economy published by the Fund in its webpage, www.imf.org, it is emphasized that the development of Panama next year will be of 6.1%, a rate higher than Argentina (6.0%), Chile (5.5%) and including Venezuela (3.5%), leader in 2006 of the regional expansion, but which will strongly decrease in 2007* (refer to chart).
No other economy in the American continent, except the Caribbean island of Trinidad & Tobago (6.9%) will grow more than Panama, according to the economists of the Fund.
03. TAX ADVANTAGES
0% Real-Estate Transfer Tax on the first purchase; 2% in future purchases.
IVA (real estate transfer tax) 0% in real properties
Exemption of 10 to 25 years in the Real Estate Tax (IBI, in Spanish).
04. SAFE AND EFFICIENT PROPERTY REGISTRATION SYSTEM
The Notarial system guarantees and legalizes the titles on housings and buildings.
The Property Registration System publicly certifies the ownership of the real estates and can be accessed on-line from any part of the world.
30-year mortgage credits (evidences the confidence the banking system has in the future of the country).
70% credits on real estates.
05. DEVELOPMENT OF REAL-ESTATE SECTOR
Significant volume of new constructions for all social areas.
Incredible low prices with great architectural and construction qualities.
Increasing demand of real estates by foreign investors.
Affluence of American pensioners retiring in Panama.
Significant increase expectations in prices backed by the immediate sale of all new real-estate projects.
Only place in the Western world still preserving a quality-price/square meter relation.
06. OPPORTUNITY FOR TOURISTIC PROJECTS
Non-developed touristic market
Great opportunities to take advantage of non-exploited touristic resources
Flexible labor law.
**FOR MORE INFORMATION CONTACT**
MARIA LORENA CUMMINGS
REAL ESTATE LAWYER