Global Location of Panama
A
trans‐con+nental
na+on
connec+ng
North
and
South
America.
Panama
is
bordered
by
Costa
Rica
to
the
northwest,
Colombia
to
the
south‐east,
the
Caribbean
Sea
to
the
north
and
the
Pacific
Ocean
to
the
south.
Important Locations in Panama
More
than
just
a
canal.
Why Invest in Panama?
Commercial
hub
of
the
Americas.
 The
strong
economic
performance
of
the
last
few
years
con+nues,
despite
the
deteriora+ng
global
environment.
 Panama
had
one
of
the
fastest
growing
economies
in
the
world
in
2007
(11.2%
real
GDP
growth).
 Factors
leading
to
Panama’s
strong
economy:
 The
Panama
Canal
expansion.
 Colon,
the
world’s
second
largest
free
trade
zone.
 Panama‐Pacifico
special
economic
zone.
 World’s
second
largest
offshore
banking
center.
 Second
highest
hotel
occupancy
rate
in
the
world.
 $7.2
billion
in
telecommunica+ons
and
hydro‐electric
projects.
 2
mul+‐billion
oil
refinery
mega‐projects.
 Expansion
and
beau+fica+on
of
the
Panama
City
Harbourfront
and
Ocean
Drive.
 Growing
tourism
industry.
 New
home
port
for
cruise
ships.
 New
interna+onal
airport.
Panama Facts & Figures
 Official
Name:
Republic
of
Panama
 Capital:
Panama
City
 Na+onality:
Panamanian
 Language:
Spanish
is
the
official
language.
However,
English
is
widely
spoken.
 Official
Currency:
Balboa,
which
is
pegged
1
to
1
to
the
US
Dollar.
 Popula+on:
3,309,679
(July
2008
es+mate)
 Government
Type:
Cons+tu+onal
Democracy
 Army:
Abolished
in
1990
Panama Canal
Passage
way
to
the
Americas.
 Panama
has
awarded
its
first
contracts
for
the
$5.2
billion
expansion
of
the
Panama
Canal
that
is
expected
to
create
80,000
new
jobs
and
bring
many
addi+onal
investments.
 The
project
was
approved
on
October
22,
2006.
 On
September
3,
2007
the
Panama
Canal
expansion
project
officially
started.
 Total
traffic
in
2007:
14,721
ships.
 The
Panama
Canal
generated
income
in
the
amount
of
$2.7
billion
in
the
fiscal
year
that
ended
September
30,
2008.
Once
the
expansion
of
the
Canal
is
completed,
its
shipping
capacity
and
revenue
will
more
than
double.
Panama-Pacifico
Special
economic
zone.
This
special
economic
zone
offers
specific
benefits
that
ensure
the
viability
and
success
of
any
mul+na+onal
company
located
here.
The
following
points
outline
why
some
of
the
world’s
largest
mul+na+onal
companies
are
moving
to
Panama‐Pacifico.
 Exempt
from
Import
Du+es,
Income
Tax,
Dividend
Tax.
 Exempt
from
Withholding
Tax
on
Interest
Income.
 Exempt
from
Capital,
Patents
and
License
Tax.
 Exempt
from
Real
Estate
Property
Tax.
 Exempt
from
Municipal
Tax.
 Exempt
from
Withholding
Tax
on
Royal+es
Paid
to
Foreigners.
 Exempt
from
Capital
Gain
Tax
on
Company
Stock
Transfer.
 Exempt
from
Stamp
Tax.
 Exempt
from
Special
Interests
Compensa+on
Fund
(FECI).
 HP,
Dell,
3M
and
Caterpillar
are
just
some
of
the
companies
that
have
relocated
to
take
advantage
of
this
special
economic
zone.
Banking Industry
The
Switzerland
of
the
Americas.
 Privileged
loca+on
and
business
climate,
as
well
as
the
compe++ve
services
provided
by
the
110
domes+c
and
interna+onal
banks,
con+nues
favouring
investors
of
all
countries.
 World’s
strongest
secrecy
and
anonymity
laws
make
it
an
extremely
popular
financial
and
offshore
hub.
 Panama
banks
have
collec+ve
assets
of
over
$75
billion
as
of
July
2008.
 Banking
assets
increased
26.4%
in
2008
compared
to
the
previous
year.
 Some
of
the
interna+onal
banks
with
a
strong
presence
in
Panama
include
HSBC,
Ci+bank,
Sco+abank,
BBVA,
BNP
Paribas
and
many
others.
The
InternaConal
Monetary
Fund
(IMF)
observed
that
Panama's
financial
market
has
not
been
adversely
affected
by
the
global
financial
turmoil,
and
commended
the
authoriCes
for
stepping
up
the
monitoring
of
banks'
asset
quality,
liquidity
and
risk
management.
Oil Refinery Projects
Helping
secure
the
Americas’
energy
demands.
Qatar
Petroleum
Interna+onal
 Panama
has
signed
accords
that
will
make
the
country
home
to
two
new
oil
refineries.
 Qatar
Petroleum
Interna+onal
is
developing
an
oil
refinery
in
Panama
with
an
opera+onal
capacity
of
350,000
barrels
of
crude
oil
per
day.
 The
Qatar
oil
refinery
is
an
$8
billion
project.
 The
construc+on
of
the
refinery
will
be
carried
out
in
the
western
town
of
Puerto
Armuelles,
located
close
to
the
border
of
Costa
Rica.
EDC
 DuTemp
of
the
U.S.,
ControlSud
of
Luxemburg,
and
Ecosel
of
Colombia
have
signed
a
deal
that
created
the
Panamanian
company
EDC.
 The
EDC
oil
refinery
is
a
$6.6
billion
project.
 The
construc+on
of
the
refinery
will
be
carried
out
in
the
northern
province
of
Colon.
Colon Free Trade Zone
The
Americas’
largest
free
trade
zone.
 The
Colon
Free
Trade
Zone
(CFZ)
is
the
largest
free
trade
zone
in
the
Americas
and
second
largest
in
the
world.
 Currently
occupies
400
hectares.
 Over
$11
billion
dollars
of
goods
are
trans‐shipped
through
the
CFZ
annually.
 Some
tax
and
other
benefits
are
as
follows:
 No
taxes
on
income
derived
from
export
ac+vi+es.
 No
tariffs
and
quotas
on
imports
and
exports.
 Highly
compe++ve
costs.
 Immigra+on
benefits
for
execu+ves
and
foreigners.
 Over
2,000
business
currently
operate
in
the
CFZ.
 Ambi+ous
5
year
expansion
project
is
currently
under
way
which
will
encompass
the
following:
 Increase
the
size
of
the
CFZ
from
400
hectares
to
1,200
hectares.
 Unite
exis+ng
infrastructure
and
transport
en++es
(mari+me
installa+ons,
airports
and
railroads)
into
one
permanent
en+ty
to
facilitate
the
transport
of
goods
from
coast
to
coast.
The
CFZ
will
be
converted
into
the
“MulCmodal
LogisCcs
Centre
of
the
Americas”,
aQracCng
new
investors
and
buyers
and
helping
to
increase
internaConal
commerce.
Growing Tourism
La+n
America’s
undiscovered
paradise.
 Panama
has
the
highest
tourism
growth
rate
in
all
of
La+n
America.
 Panama
has
had
a
steady
rise
in
property
values
because
of
its
increasing
popularity
as
a
re+rement
des+na+on.
 Panama
maintains
this
posi+on
due
to
its
poli+cal
stability,
stable
banking
laws,
warm
climate,
one
of
the
lowest
crime
rates
in
La+n
America
and
rela+vely
low
cost
of
living.
 Tourism
in
the
first
half
of
2008
was
up
13.1%
from
the
same
+me
period
in
2007.
Source:
Panama
Ministry
of
Tourism
 Star+ng
in
January
2009,
KLM
will
be
increasing
the
frequency
of
its
direct
flights
from
Amsterdam
to
Panama
City
from
3
to
5
flights
a
week.
Iberia
will
also
be
increasing
the
frequency
of
its
Madrid
–
Guatemala
City
–
Panama
City
flights.
Over
the
past
5
years,
35
new
hotels
and
resorts
have
been
built
‐
by
some
of
the
world’s
largest
hotel
chains
including
Hilton,
MarrioQ,
Holiday
Inn,
Sheraton,
Inter‐
ConCnental,
Melia,
Best
Western,
Courtyard,
Crowne
Plaza,
Radisson
and
Decameron.
Viva Panama
La+n
America’s
alterna+ve
to
Las
Vegas
and
Miami.
 Panama
City
is
the
most
modern,
exci+ng
and
sophis+cated
city
in
La+n
America.
 Panama
is
gaining
a
strong
stance
with
La+n
American
tourists
who
find
it
a
burden
to
obtain
a
U.S.
travel
visa.
 Its
dynamic
skyline,
modern
shopping
malls,
cosmopolitan
nightlife
and
casinos
are
viewed
as
La+n
America’s
answer
to
Las
Vegas
and
Miami.
 Panama
City
is
home
to
over
10
fully
equipped
casinos,
with
numerous
other
casinos
spread
out
across
the
country.
Donald
Trump
and
Hilton
Hotels
are
each
currently
building
5‐star
hotel
and
casino
projects
in
Panama
City.
Hotel Occupancy
Business
and
leisure
tourism
leading
the
way.
 Panama
hotel
occupancy
rates
are
the
second
highest
in
the
world.
 Panama
has
an
86%
hotel
occupancy
rate.
Source:
Panama
Ministry
of
Tourism
 Panama
City
showed
an
impressive
37.9%
increase
in
revenue
per
available
hotel
room
from
2007
to
2008.
 Even
with
the
downturn
of
the
global
economy,
it
appears
as
though
Panama
is
one
of
the
strongest
des+na+ons
for
tourism
in
the
Americas.
Tourists
from
Europe
and
Asia
are
likely
to
take
advantage
of
the
weakened
dollar
and
visit
Panama,
which
has
been
building
its
reputaCon
as
a
safe
and
easily
accessible
desCnaCon.
Infrastructure
Central
America’s
most
advanced.
 The
government
is
in
the
middle
of
a
program
to
priva+ze
the
na+on's
main
railway,
the
Panama‐Colon
Railroad.
 U.S.
companies,
Kansas
City
Southern
Industries
and
Mi‐Jack
Products,
are
inves+ng
$73
million
to
rebuild
a
rail
line
parallel
with
The
Panama
Canal
and
across
the
na+on.
 There
are
130
kilometers
(81
miles)
of
crude
oil
pipelines
in
Panama.
 The
interna+onal
shipping
terminal
in
Manzanillo,
in
the
Caribbean,
is
the
largest
container
port
in
La+n
America.
 Hutchison
Port
Holdings
of
Hong
Kong
has
ini+ated
a
$150
million
port
project
to
develop
a
port
facility
on
the
Pacific
side
of
The
Panama
Canal.
 At
a
cost
of
$189
million,
the
expansion
and
beau+fica+on
of
the
Panama
City
Harbourfront
and
Ocean
Drive
will
also
increase
the
value
of
proper+es
in
the
Panama
City
oceanfront
district.
Home Port Cruises
The
region’s
leading
departure
terminal
for
cruise
ships.
 Royal
Caribbean
has
established
a
new
home
port
in
Panama.
 This
will
anract
more
than
42,000
Central
and
South
American
as
well
as
European
tourists
hoping
to
avoid
+ght
U.S.
visa
requirements
necessary
for
Miami,
from
where
many
popular
Caribbean‐bound
cruises
depart.
 These
cruises
will
departure
from
Colon,
Panama's
main
Caribbean
port.
 More
than
$10
million
has
been
set
aside
to
construct
a
new
terminal
for
cruise
ships
next
to
the
Colon
2000
Port.
 The
cruise
ships
will
leave
Colon
on
seven
day
trips
and
set
sail
to
Cartagena,
Santa
Marta,
Aruba,
Curacao
and
Bonaire.
 A
mega
cruise
ship
port
is
also
planed
for
Panama
City
on
the
Pacific
side
of
the
Panama
Canal.
Real Estate Incentives
Panama
offers
an
excellent
offshore
plaoorm
for
real
estate
investment.
 Tourist
zones
are
granted
a
20
year
exemp+on
on
real
estate
taxes
and
a
15
year
exemp+on
on
income
tax.
 Non‐tourist
related
proper+es
are
exempt
from
property
taxes
for
10
to
20
years.
 Commercial
Buildings
–
10
year
tax
exemp+on.
 Residen+al
Property
–
20
year
tax
exemp+on
for
property
with
building
permits
issued
before
July
1,
2009
and
occupancy
permits
before
December
31,
2011.
 Foreigners
that
investment
in
real
estate
are
able
to
obtain
residency
visas
through
a
special
incen+ve
established
by
Panama’s
immigra+on
authori+es.
 Panama
has
no
restric+ons
on
foreign
investment
and
the
repatria+on
of
profits
earned
in
Panama.
Panama Offshore
100%
tax
haven
through
use
of
S.A.’s.
 Panama
has
a
number
of
offshore
benefits
that
protect
investor
assets
and
minimize
tax
burdens.
 The
use
of
Bearer
Share
corpora+ons
allow
shareholders
to
be
completely
anonymous
to
all
government
authori+es,
while
s+ll
maintaining
their
security
to
the
shareholder
through
the
use
of
Resident
Agents.
 Panama
has
an
official
en+ty
called
the
Private
Interest
Founda+on,
which
completely
protects
all
assets
that
have
been
under
its
protec+on
for
a
minimum
of
3
years.
 Secrecy
laws
similar
to
Switzerland
must
be
enforced
by
law
firms
and
banks
in
Panama,
therefore
protec+ng
iden++es
of
investors.
The
majority
of
investors
purchase
real
estate
through
an
anonymous
corporaCon
(S.A.),
which
is
held
in
bearer
shares
by
it
owner(s),
and
can
easily
be
transferred
or
disposed
of
by
the
private
sale
of
the
shares.
In
this
manner,
the
Panama
property
registry
has
no
record
of
Ctle
exchanging
ownership,
and
as
a
result,
cannot
enforce
Panama’s
2%
property
transfer
tax.
Famous people that have visited and invested in Panama
 Mel
Gibson
 Brad
Pin
 Angelina
Jolie
 Enrique
Iglesias
 Mick
Jagger
 Tom
Cruise
 Jimmy
Carter
 Toby
McGuire
 John
Wayne
 Chris+an
Dior
 Hans‐Adam
II,
Prince
of
Liechtenstein
 Sir
Brian
Pitman,
former
Lloyds
CEO
and
new
chairman
of
Lloyds
TSB.
 Mohammad
Reza
Pahlavi,
the
former
Shah
of
Iran
Cpanama
director
Yuri
Sapozhnikov
with
actor
Mel
Gibson.