Panama Investor Blog

Electrical interface: It is expected that Panama and Colombia will be connected by 2018

By 2018 it is expected that Panama and Colombia are connected by electrical interconnection, so said the president of Colombia, Juan Manuel Santos.

Santos told reporters said some studies for the interconnection will be in October this year. "The timeline presented to us is that some studies will take a year, then the construction process and implemented, so we hope that in 2018 we have connected to Panama and Colombia will be in October," he said.

 

For his part, President Juan Carlos Varela Varela said that coordination with security agencies of both countries plan to provide security to the construction site of this important project, as well as near the inhabited areas.

The project involves the construction and operation of a transmission line to direct current electric power with a 300 to 400 megawatts and a length of 590 kilometers, of which 310 are developed in Colombia and the rest in Panama.

Other topics addressed by the leaders was boarder security, tourism promotion and cooperation on trade and investment.  

For sightseeing, the two countries agreed through increased connectivity of several cities in Colombia to Panama by air, especially at the airport in Rio Hato, to 120.7 kilometers west of Panama City, and by sea between the cities of Cartagena and Colon.

The Price of Modernization in Panama

Currently, Panama has approx – 420,000 indigenous – who live in protected areas.

These areas are approximately 30% of the total territory of Panama, where 12% of the population have their own rules, principles and values.

Here is a video about the construction site of Barro Blanco, a hydroelectric dam in the Chiriqui Province of Panama. The dam has been the subject of significant controversy for years, as the construction project threatens the local population of the Ngäbe-Buglé, an indigenous tribe of Panama. According the Ngäbe, the dam will displace thousands of local inhabitants and impacts thousands more who rely on the river for potable water and fishing.

 

There is a “conflict” in process – a conflict of basic human needs in Panama.

SHELTER - WATER – FOOD – ENERGY and SECURITY are areas in which Panama must improve and develop to become the supposed “dragon” of the Americas.

 The Price of modernization in Panama is the continuous threat towards biodiversity.

A possible “threat” in the future may be the population growth of the indigenous – permaculture and bio-technology must be taught to grow organic food - as it is a must if they wish to conserve their protected areas in a sustainable manner considering how fast they are growing.

MEF blames "World Economic Crisis" for $2.7 Billion loss in Panama Canal Operations between 2014 - 2019

The Ministry of Economy and Finance foresees a loss of approx. 2.7 Billion Dollars due to the World Economic Crisis and delay of the expansion between 2014 and 2019.

According to studies presented by the MEF last April in regards to the period between 2014 and 2019 the Panama Canal will represent approx 7,2 Billion Dollars income to the Nation – This is being compared to the what the Authority of the Panama Canal (ACP) in 2006 presented for the expansion of the canal saying it would represent approx 10 Billion Dollars for this same period.

According to the chronogram agreed in the construction and design contract of the third set of locks, the expansion should have started operations in October 2014, but because of delays it will be operative beginnings of 2016.

With this known, the government of Juan Carlos Varela will not be receiving $653.8 million which were planned to have for 2015 and another $765 millions less in 2016. Amounting to $1.4 Billion loss, because of the "World Economic Crisis" and delays of expansion detween 2015 and 2016. No more than $400 million loss each year between  2017 - 2019 expected. 

 

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Coffee - "The Best of Panama 2014" hits average price per pound $34.61

Chiriqui: Valley of the Moon is where the best coffee of Panama is produced, thanks to its biodiversity and fertile earth located at the skirts of the Volcan Baru.

Panama Prensa –  A total of 46 batches of the best Panamanian coffee will be offered in the second electronic auction "the best of Panama" on August 26th with a base of $ 4 per pound price, confirmed today the Specialty Coffee Association of Panama.

The Association noted that the contest for the batches obtained XVIII last international coffee cupping Panama over 85 points corresponding to 14 lots of washes Geishas, ​​Geishas Natural 7, 7 and 18 Traditional Traditional Natural Washed be included.

 

The traditional coffee varieties include Bourbon, Typica, Pacamara, Caturra and Catuai added the Association.

Plinio Ruiz, President of the Association, explained that this second auction this year is to expand the sales channel, using the electronic auction to the future Panama place all production of specialty coffee processing in demanding international markets.

"The Best of Panama 2014" achieved the best average price of $ 34.61 per pound and producers are now ready for a second auction where they hope to get very good prices.

This week the second electronic auction aimed and international buyers have begun to compete for enrollment each batch of coffee for auction.

Want to invest in coffee? Let us know, and we will help you find available land for the production of high quality products.

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Transactions in Expo Chiriquí exceed 10 million dollars

There were Approximately 12 million dollars in banking and real estate transactions, in the second version of the Expo Chiriquí fair which occurred on July 2nd and culminated on Sunday July 6^th.

The fair offered about 70 projects to visitors and buyers according to informed, Ramon Horseman President of this event which was made altogether with the Panamanian Chamber of Construction and Grupo Trac.

Expo Chiriquí is not only a real estate fair, since also it contemplates other sectors like transport, hotels, services; what in opinion of its directors, it activates the economy to the being contracted to people and companies of the region in this scope.

 The number of visitors goes up to around the 10 thousand people.

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Panama – A Promising Economy

 Panama continues to impress us. With more and more to offer every day, its economy looks very promising in the near future. Investment bank JP Morgan, highly recognized worldwide, estimates that this 2014, economic growth in Panama will be 6.5%, which will be in line with the country’s potential growth. This growth is partially supported by the Canal Expansion, but also due to the major public infrastructure investments and developments. Financials services, transport, communications and fisheries were the main drivers of the economical activity in the first trimester of 2014.

 With all of this said, the rate can and might be slightly lower than the projected by the MEF (Ministry of Economy and Finance), the ELAC (Economic Commission for Latin America, the World Bank, and the Chamber of Commerce of Panama, among others, who speculate the increase of 7%.

 “According to information published by the Financial Capital website, and according to statements Ucelli Franco, JP Morgan analyst, “Our current forecast is that the Real GDP (Gross Domestic Product) will expand 6.5% in 2014, in line with the potential growth of the Panamanian economy has been estimated by the International Monetary Fund (IMF). This growth will be supported by the Canal expansion and the development of other important public investments in infrastructure, two internal processes that continue to protect Panama from the adverse effects of external shocks. “

Projection JP Morgan confirmed, Panama continue the cycle of economic slowdown has been experiencing for two years, which has meant a cut of two percentage points in the annual growth rate of the country in that period: GDP expanded 10.2% in 2012 and the rate dropped to 8.2% in 2013.”

For more information go to http://mef.gob.pa/

Short summary of Panama Advances:

https://www.youtube.com/watch?v=WwWUq5iET74

 

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1903 → PANAMA: "abundance of fish, trees and butterflies" What is Panama Now?

Panama is one of the most Economically Stable places where Multinationals can have their Operations.

Why Pursue a Citizenship in Panama?

 

 Well there are many reasons. And this we know. But there are as many correct answers to that question as there are people who ask it. The answer is highly subjective, depending on the individual’s circumstances and what he or she is seeking. Panama has the whole package, but still we must consider many factors when explaining why. When considering factors that range from one’s family and financial situation and climate preference to language ability. Panama and Uruguay are the countries that now offer the most welcoming and fastest laws for foreign residents.

 

For many reasons the Republic of Panama is ideally suited for the offshore investor who wants strong financial privacy and no local taxes, corporate or personal. Panama and its territorial tax system impose taxes only on earnings from within the country. Its offshore professional community is one the best. South of Miami, Panama is the leading banking and financial center in Latin America with over 80 banks, many local branches of global banks. It has strong financial privacy laws and its asset protection laws go back to the 1920s governing creation of corporations, trusts and, since the 1990s, private family foundations.

 

The country is classified in the category of investment grade by credit rating companies like Standard and Poor's, Moody's and Fitch Ratings, and the GDP has enjoyed a sustained growth for more than twenty years in a row (1989). Making it a wise decision to come and invest in Panama. 

 There are many and varied programs for foreigners who wish to make it their home. All resident visa applications must be made through a Panamanian attorney. In recent decades, Panama deliberately has positioned itself as a first-class retirement haven, with some of the most appealing programs of special benefits for foreign residents and retirees anywhere in the world. Whether an individual may want to become a citizen of Panama depends on their financial and tax situation. Foreign persons residing in Panama are exempt from income taxes on all earnings unless the income is from within Panama. Citizens pay taxes of up to 30%. Official foreign resident status usually is sufficient since it grants virtually all rights, including property ownership, as well as an identification and travel document (but not an official passport).    

This country offers several kinds of visas for person of high net worth, persons seeking to invest, wealthy retirees, entrepreneurs of all kind like agricultural or business investors, and those who simply want to become a resident or citizen. Also, there’s the “ Pensionado Program” which offers tax exemptions and discounts of many services and goods along with immediate residence to qualified retirees. Nevertheless, it does not provide a citizenship. A visa is however available for foreign nationals who have invested in businesses in Panama, that leads to eventual citizenship. It is known as the “Immediate Permanent Resident Visa” 

 

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Some say it's the "safest investment" you can make...

Panama is one of the most Economically Stable places where Multinationals can have their Operations.

Panama has played its cards right when it comes to business, because of the enacted tax breaks and broad economic incentives it is becoming an allure for companies looking to relocate.

There are many exemptions and benefits offered by the Law 41. It exempts money earned abroad from income tax. This is the biggest benefit that multinationals get especially that they only operate in Panama but render services abroad. Panama's infrastructure and location also allows these corporations to operate from a strategic point without undergoing the usual red tape for foreign owners and CEO's.

Hiring personnel and staff have also become easy through the said law. It allows international companies to hire foreign born employees without worrying about immigration restrictions. This even includes visa assistance to employee's families which allow them to stay in Panama even without obtaining work permits.

It is also a big plus that the country uses the US dollar as its official currency. Multinationals have the convenience of being in a global banking hub, as well as having a strategic geographical location which connects the North and South America.

Companies from around the world have already began their Latin American presence in Panama.

A few companies that have decided to benefit from Panama's laws include: Procter and Gamble, Caterpillar, Dell, Hyundai Heavy Industries, , Western Union, 3M, Vanity Fair, Peugeout, Roche and Merck.

Executive relocations mean furnished rental demand and increased home sales in certain sectors of Panama City for example in Panama Pacifico. 

The Panamanian Government has made key decisions to continue alluring foreign investment, with its continuous pursuit to improve infrastructures around the country such as airports, metro system, bridges, roads and more – We see a bright future in Panama for the decades to come. That is – if, we began to improve the overall distribution of resources to continue receiving the waves of people entering Panama and thus be more self-sustainable, independent and free when uncertain times come (we all remember the world economic crisis and to many degrees people believe we are yet to experience the unfolding of the global monetary system) – time will tell. 

Until then, Panama seems to be in an advantageous country for business - because of its geographic position, strategic importance (Panama Canal) and continuous economic growth.

The Panama Canal: Money making Machine

Ocean Reef – A beacon of Luxury in the City of Panama

 Have you ever dreamed of living on mainland, and yet reap all the benefits of living on a high-end gated community in an island, 360 view of the ocean with your yacht docked next to your home, viewing the entire city and yet not be in it? Well, we can help you with that and make that dream a reality. Panama has evolved in the real estate market, and demand for exclusive and luxurious homes continues to grow. Following the road past Punta Pacifica in Panama City you will find something truly spectacular. An artificial island built right on the corner of this area was created to satisfy a need of land and is now one of the most exclusive places to live in Panama. The development consists of two islands (originally 3 named La Niña, La Pinta and La Santa Maria named after the 3 ships used by Christopher Columbus) and a marina, all connected to the mainland. So far, the first island on the west has been successfully built and about 80% of the lots have been sold. This first one has a total surface of 87,552.96 mts2 and 72 lots for sale.  The second island of 103,251 mts2 is designed and scheduled to start construction within a year or so.

 

Ocean reef residents, club members and guest will enjoy a host of sumptuous amenities in a development that has much to offer. Lush landscapes, parks and recreational areas like tennis and others are featured prominently through the project. The two islands will be connected to the mainland by two bridges, making the commute to and from the mainland in the 160-meter (525 feet) bridge in only 5 minutes. It has a gate with 24 hour restricted access and monitored by trained security staff that will ensure the safety and privacy of the residents. We believe some homes will build a wall around it to increase safety, but diminishing the view. After all it is an island, so security must be a priority.

 

Having most of the lots and homes surpass the 1 million price tag makes this area a prime sector, where only a select few will manage to be part of, if they act quickly. We recommend checking this out, for it’s an investment worthwhile. Lots for the second island are increasing in price since demand is high. Out of the 72 lots available on the first island only hand full are left and surprisingly more than 90% of buyers have been Panamanian. Designs for homes are spectacular, and the marina will be something out of this world for it will be a Residential Marina and there will be limits on transient vessels and short-term rentals. The residents at Ocean Reef will have priority over non-resident whose lease agreements will be revocable with timely notification. An underground passageway was created to access the marina without having to drive above ground; a fleet of electric vehicles will be used for suppliers and workers.

 Grupo Los Pueblos are the ones who made this Island a reality since they focuse on innovative and unique developments of the highest standards and great magnitude. They have limited the development to 138 lots between both islands, unless a 3^rd or 4^th are created in the future. Over the years they have built thousands of homes and condos, several shopping malls, offices, and mixed-use complexes in Panama. Without doubt they are experts in real estate and construction management giving their costumers a sense of confidence in their investments. With this Master piece development, perhaps now Panama has made a statement and can be taken more accurately when referred as the Dubai of America.

 

 

For more information check out their website, or feel free to contact us!

Retirement has a Throne

Every year a country of this Planet is proclaimed the #1 place to enjoy the rest of your life after retirement, and its no big surprise that Panama earned this title amongst our civilization. The Annual Global Retirement Index (now on its 23^rd year) ranks the best international retirement destinations, and together with factors provided by InternationalLiving.com ranging from the price of groceries and average temperature, to utility costs and the friendliness of locals, the editors assess the results. After they do all the math, the result concludes that there is simply no other place where retirees can get more for their buck.  PANAMA is the place to be!

Panama is rapidly becoming a Capital for the world to invest into and this brings lots of incentive programs to make it a place worthy of spending the rest of live in. Having the American dollar as a currency and English as a widely understood language, it’s a magnet for retirees moving from the US and the world. This Central American nation has several significant reasons for obtaining this title, such as its pensioner residence program that offers discounts on real estate loans, medical expenses, pensioners entertainment expenses and much more. But most significantly the immigration process has been simplified for foreigners.

Panama has introduced new visas in the past year, that have made it easier to gain residence; and having a population of around 4,000,000 with a growth of 75,000-80,000 a year, has been a factor that encouraged major advances in infrastructure and boosted the economy in many ways. But besides many factors that make this country a “Happening” place, the low cost of living, the heavenly climate found across the country and the incredible scenery all around are key factors of this judgment.  

Some quotes from an Article on Forbes regarding this announcement are:

 

“If you’re planning to retire abroad—because you want to live better for less, diversify your investments or enjoy a greater degree of adventure—you should consider Panama…”

 

“Panama ranked No. 1 this year because it offers a “great combination of variety and value,” “No matter what it is you’re hoping to find, Panama is a good place to look for it.”

 

The Top 10 places on the list were:

1- Panama

2- Ecuador

3- Malaysia

4- Costa Rica

5- Spain

6- Colombia

7- Mexico

8- Malta

9- Uruguay

10- Thailand

Contact us if you are considering Panama for your next social or economic adventure! – we will gladly help you out, and point you to the right direction based on what you desire.