COMPLETE

PRESENTATION
GUIDE
PANAMA
 WHY PANAMA?
IT IS SAFE
According to Pinkerton National Detective Agency,
it is one of the safest countries for tourists and
residents. There is legal, political, economic and
financial security.
HAS GREAT ATRACTIVE PLACES AT
A SHORT DISTANCE
It is very easy to be in Panama City and then
travel, in less than 15 minutes, to exotic tropical
places. The country has mountain refuges,
paradisiacal beaches at both oceans, active
indigenous cultures, a cosmopolitan life of the first
world, in addition to outnumbered historical sites. It
offers many activities such as diving, golf, sport
fishing, and we may not leave out mentioning the
mayor attraction and one of the wonders of the
world: the Panama Canal.
IT IS THE BEST PLACE FOR
ECOTOURISM
Panama counts with accessible tropical rain forests,
been a land bridge connecting the two Americas.
National parks cover 5 million acres and, as an
indicator of its biodiversity, there are more than
954 registered bird species.
IT HAS A WIDE VARIETY OF
BEACHES AND ISLANDS
More than a thousand paradisiacal islands
distributed along both coasts.
USES THE US DOLLAR
Panama uses the dollar as legal tender. Prices in
Panama are one of the best in the market, thanks
to its recent promotion as tourism destiny.
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 WHY PANAMA?
IT HAS HIGH STANDARD
INFRASTRUCTURE
The country has the second largest Free Trade
Area in the world. The city has high standard
infrastructure and a banking center with more than
72 banks, prestigious hotel groups, restaurants and
shopping malls.

IT HAS WORLD CLASS FISHING,

IT IS AN ADVENTURE PARADISE
DIVING, AND SAILING It has fascinating places for “canopy”, trekking,
kayaking and surfing; first class experiences for
Panama has 250 worldwide fishing records. It those looking for adventures.
offers exclusive areas for diving such as: Coiba
National Park, Archipelago Las Perlas, Bocas del
Toro islands, Portobelo, and historical diving at the
Panama Canal. It counts with Marinas and
facilities for yachts and sporting vessels.

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 GEOGRAPHIC
LOCATION

“PANAMA BRIDGE OF THE WORLD,

HEART OF THE UNIVERSE”
Panama has an advantageous geographic location
which has given, throughout the years, the
opportunity to be a center for international trade
at world level.

LOCATION
The Isthmus of Panama is located between Central
America and South America. To the north it limits
with the Caribbean Sea, to the south with the
Pacific Ocean, with Colombia to the east and to
the west with Costa Rica.

MAIN ATTRACTION
Since 1914, one of the main attractions in Panama
has been and still is its Canal.

Since Charles V, the Isthmus of Panama has been spotted as a privileged location unique in the world.
Since the 16th century, Panama has been considered for the creation of a canal that would unite both
oceans.

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ECONOMY

Panamanian economy for the 2006 period,

measured by the Monthly Economic Activity Index
(IMAE), registered a growth rate of 6.92%.

This behavior is the result of the good performance

on economic activities of businesses, hotels, and
restaurants, entertainment, agriculture, construction,
financial intermediaries, transport, storage and
telecommunications. Thanks to the good
administration of a Democratic Government, at this
moment, Panama goes through a good momentum
for its economic and political activity.

PANAMA: GENERAL ECONOMIC INDICATORS

YEARS
Indicator Unit 2003 2004 (p) 2005 (p) 2006 (e)
Total Population Personas 3,116,277 3,172,360 3,228,186 3,283,959
Econ Active Population Personas 1,318,003 1,374,148 1,408,903 1,433,244
GDP Millones de dólares 12,182.8 13,103.8 13,939.5 15,481.0
GDP (%) 4.2 7.6 6.4 6.2
Per capita GDP en dólares 3,909 4,131 4,318 4,483.4
Per capital GDP (%) 2.3 5.7 4.5 4.0
Unemployment (%) 13.6 11.8 9.6 8.6
Inflation (%) ... 0.4* 2.9 2.0
Imports Million Dollars 3,124.9 3,592.2 4,155.3 4,508.5
Exports Million Dollars 798.7 890.3 963.7 1,026.3

* Change of base year of the consumer price index from 1987 to 2002
Source: General Comptroller's Office of the Republic

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 COLON FREE TRADE ZONE

ORIGIN
Law No. 18 of June 17, 1984, which creates
the Colon Free Zone as an autonomous state
institution.

MAIN CHARACTERISTICS
• More than two thousand established
• Second largest in the world, after Hong companies
Kong’s
• Business transactions for over 14,000
• Biggest movement of containers in America million dollars

• Tax free imports and re-exports of • Its main customers:

merchandise
o Imports from: Switzerland, Taiwan,
• An area of more than 400 hectares Hong Kong, Italy, United States of
America, among others.
• 45 hectares for industrial zones o Re-exports to: Guatemala, El
Salvador, Honduras, Costa Rica,
Ecuador, Mexico, Venezuela,
Colombia, among others.
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 PANAMA CANAL

GENERAL INFORMATION MAIN USERS

United States of America 69%
• Inaugurated on August 15, 1914.
People’s Republic of China 18%
• It has an approximate length of 80 Japan 17%
kilometers between the Atlantic and Pacific Chile 10%
Oceans, and it takes around 8 to 10 hours South Korea 8%
to cross it. Peru 7%
• Vessels from all over the world transit Ecuador 6%
through the Canal on a daily basis. Canada 5%
Panama 5%
THE CANAL IN NUMBERS Mexico 4%

4.2% World Trade REFERENDUM FOR THE EXPANSSION

11% Total USA Trade
69% Transit through the Canal is either
originated in or has as its final destiny the United • A referendum for the Expansion of the
States. Canal and a Third Locks Proposal took
place on October 22nd 2006; a total of
76.83% voted YES.

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 PANAMA CANAL

ADMINISTRATION
The Republic of Panama assumed the total
administration, functioning and maintenance of the
Panama Canal on December 31st 1999.

LAW
According to the Constitution, the Canal constitutes
an inalienable patrimony of the nation, for which it
cannot be sold, handed over, mortgaged, neither
taxed nor transferred in any other way.

INVESTMENT
Nearly ten million dollars are invested annually on
updating programs for personnel on the functioning
and administration of the Canal.

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WHY TO INVEST
IN PANAMA?

HISTORY
Panama has always been an extraordinarily
fortunate country; since America’s discovery the
great discoverer Christopher Columbus, during his
voyage to The Indies, was attracted by the
enchantment of the breeze of one of its ocean and
Vasco Nuñez de Balboa was the discoverer of the
Pacific Ocean in 1513.
ECONOMY
The construction of the first Interoceanic Railroad of
the world, between 1849 and 1950 by the New No central bank has existed since 1930, been the
Yorker “Panamanian Rail Road Company”, brought US Dollar the legal tender, so there are no
together both oceans by land. devaluations.

In 1914, Panama made its dream of uniting the
waters of these two oceans with the construction of
the Panama Canal, an exceptionally marvelous
piece of engineering work.
PANAMA BLESSED LAND
Panama has always been a blessed land where no
natural disaster of consideration takes place, that
being a great advantage for the adequate
functioning of the Panama Canal and the railroad.
Panama has offered the lowest inflation rate in the
hemisphere for the past 50 years, even lower than
that of the United States of America. In addition, it
is one of the most important centers for the
incorporation of companies, having law firms with
offices all over the world.
This has lead us to keep one oft the most stable
Financial and Banking Centers in the world, with
more than 72 local and international banks with
more than 51 billions in assets, and a wide
monetary and credit base which is backed by the
legal use of the dollar.

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 10. 20% off on all prosthesis prices, as well
INCENTIVES FOR as assistance devices and accessories.

THE RETIRED
Panama is considered as one of the most attractive
countries for retired persons, pensioners and old
age individuals worldwide, with a plan for fiscal
incentives and programs for pensioners that offer
discounts on ground and air transport, cinemas,
medicines, restaurants, shopping, and others.

International publications, magazines of important

recognition such as Fortune Magazine, Newsweek
and the New York Times, among other, refer to
Panama as “The Dreamed Paradise for retired
citizens and pensioners of the entire World”.

DISCOUNTS
1. 50% off on cinemas, theaters, sport
events and public entertainment tickets.

2. 25% off on individual meals on The (American Association for Retired

restaurants. People) and International Living have considered
Panama as one of the 4 best places in the world to
3. 15% off on the total bill for hospital live outside de Unites States.
services in private clinics.

4. 10% off in drug stores, on the cost of

medicines.

5. 20% off on fees for general and

specialized medical consultations, and
surgical procedures, as well as 15% off
on dental services and 15% off on
opticians.

6. 25% off on monthly consumption of

electricity.

7. 25% off on telephone services.

8. 50% off on Hotels and Resorts from

Mondays to Thursdays, and 30% on
Fridays, Saturdays and Sundays.

9. 15% off in fast food restaurants

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PANAMA’S
LEGAL AND
FISCAL FEATURES
1. GENERAL INFORMATION WHEN
PURCHASING A PROPERTY
• Equality before the law and Security:
Foreigners may buy real estate in the
Republic of Panama under the same rights
and security offered to nationals.
• Costs for the Buyer: The costs assumed by
the buyer of a property when closing the
operation correspond to notary services,
registration fees, legal fees and banking
related expenses.
• Costs for the Seller: The real estate transfer
tax must be paid by the seller. This tax
corresponds to two percent (2%) of either
the sales price or the registered property
value (whichever higher).
• Ownership: The buyer acquires the real
estate when the ownership deed is duly
registered in the Public Registry.
Registration takes approximately 10
working days, but an alteration fee of two
hundred and fifty US dollars (US$250.00)
may be paid, in addition to the
corresponding registration fee, so that the
Public deed is given priority.
• Corporations (Companies): It is possible to
use a Panamanian company or another
“offshore” vehicle or foundation to hold the
ownership of the real estate. The cost for
the incorporation of a company or foundation
goes up to approximately one thousand US
Dollars (US$1000.00) including expenses.
• Exonerations: Properties enjoy real estate
tax exoneration over a period of time,
depending on its value, as follows: up to one
hundred thousand US Dollars
(US$100,000.00) have 15 years of
exoneration; more than one hundred
thousand US Dollars (US$100,000.00) up to
two hundred and fifty thousand US Dollars
(US$250,000.00) have 10 years of
exoneration, and those priced above two
hundred and fifty thousand US Dollars
(US$250,000.00) have 5 years of
exoneration. Projects that obtained their
construction permits before September 1st
2006 will enjoy 20 years of real estate tax
exoneration, regardless of the value of the
property, as long as the improvements are
registered before August 31st 2007. An
extension until 2015, subject to approval, is
in the process of being passed by the
Assembly. Once the exoneration period
expires, the real estate tax is the only tax
applicable to the ownership of a property,
which is relatively low, with a progressive
rate that is mainly of one point cero five to
two point one percent (1.05% - 2.1%) over
its registered valued.
2. MIGRATION VISAS
• Investment: Foreigners investing a minimum
of forty thousand US Dollars
(US$40,000.00) and a maximum of one
hundred and fifty thousand US Dollars
(US$150,000.00) may apply for
permanent residence 4 years after having
applied for residence visa. Five years after
having a permanent residence, it is possible
to apply for Panamanian nationality.
• Property: A foreigner that acquires a
property on his/her personal name, valued
on a minimum of two hundred thousand US
Dollars (US$200,000.00) and that may
give proof by means of the migration
institutions of his/her economic solvency,
may request permanent residence 1 year
after the resident's visa application, and
may apply for Panamanian nationality
after 5 years of having permanent
residence
• Property: A foreigner that acquires a
property on his/her personal name, valued
on a minimum of eighty thousand US
Dollars (US$80,000.00) and a long term
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 deposit, of at least 2 years, in a local bank transport, fixed telephone lines, books and
for a minimum of one hundred and twenty medical services, which are not subject to
thousand US Dollars (US$120,000.00) this tax, neither is the selling of real estates.
may apply for permanent residence 1 year
after the residence visa application, and
after 5 years of permanent residence may
apply for Panamanian nationality.

• Rent: A foreign pensioner or retired from a

foreign government, international entity or
private enterprise, receiving a monthly
income or pension of at least five hundred
US Dollars (US$500.00), may request a
tourist pensioner’s visa, with the same
benefits indicated in the previous point.

• Rent: A retired foreigner holding a long

term deposit in the National Bank, of a
minimum duration of 5 years, generating a
monthly interest of at least seven hundred
and fifty US Dollars (US$750.00), may
request a retired rentier’s visa, and would
have the right to import, tax free, articles
for domestic or personal use for a
maximum of ten thousand US Dollars Note: “The present document is merely informative
(US$10,000.00). Also, would have the and may undergo changes without previous or
right to import a new car, every two years, subsequent notice, so we suggest you consult with
tax free. legal advisors in the Republic of Panama. This
document is not nor has the intention of being a legal
opinion and the issuing company would no be held
3. OTHER INTERESTING FACTS responsible for its content.”
• Patrimony taxes do not exist.

• Territoriality Principle: Income obtain by a

natural o juristic person, as a result from
activities completed, fulfilled o that have
effects outside the Republic of Panama, are
not subject to any type of taxes. These
incomes do not generate dividends’ taxes.

• Tax Declaration / Tax Return: It is not

required to present any tax declaration,
report or annual declaration for incomes
resulting form foreign sources.

• Taxes: A Transfer of Goods and Services

must be paid – ITBMS- (IVA in Spain and
VAT in USA). This tax is generally applied
to the transfer of goods and services, at a
rate of five percent (5%). There are many
exemptions, such as food, medicines,
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 TOURISM
PANAMA CITY
THREE CITIES IN ONE
• The old city of Panama
• Colonial Panama
• Modern Panama
THE OLD CITY OF PANAMA
The City of Panama was founded on August 15th
1510 by Pedroarias de Avila.
You may explore the ruins of the old city which was
sacked by the Pirate Henry Morgan in 1671.
COLONIAL PANAMA
After been destroyed by Morgan, the Pirate,
Panama La Vieja was moved to the Old Quarter of
the City of Panama, site declared world heritage by
UNESCO in 1977, and where Saint Joseph’s Church
with its gold altar, the National Theater, the
Cathedral and the Bovedas stand out. In the same
place, the Panama Canal Museum, and the
Presidential House, head office of the central
government, are located.
MODERN PANAMA
In today’s city, buildings of great height, big
shopping malls where international brands are
found, luxurious hotels, casinos, first class
international cuisine restaurants, and an exciting
night life stand out. Hospitals associated to the main
medical centers in the United States of America.
PANAMA AND ITS PEOPLE
In Panama, it is evident that the most valuable thing
a country has is its people. Panamanians are
characterized for been helpful, thoughtful, kind,
among others, but most important is that you can
make of this country your home. Panama is based on
a multicultural history.
TROPICAL CLIMATE
Where the temperature has an average of 30°
Celsius all year long.
GASTRONOMY
Panamanian gastronomy, just as its culture, has
been influenced by its condition as a country for
transit of cultures. The regional and the
international have created a unique and widely
varied gastronomy. You may find restaurants and
chefs from all over the world that would satisfy the
best tastes. Both oceans provide Panama with the
most exquisite seafood transforming its cuisine into
an unforgettable gastronomic experience.
GOLF COURSES
World class level golf courses, with exclusive
designs distributed along the geography.
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 BEACHES
• PARADISIACAL
• WHITE SANDS
• CRYSTAL WATERS
• VIRGIN

Given the proximity of the Pacific Ocean and the

Caribbean Sea, you may enjoy the pleasures of
both seas the same day.

PANAMANIAN CARIBBEAN
In the Caribbean Sea we have beaches in Bocas
del Toro; in the Region of San Blas.

Its great coral reefs and crystal waters and a

great marine fauna stand out.
PACIFIC COAST
The most extensive and fitted beaches in the
country are found in the Pacific Ocean’s coast.
Few areas close to urban centers offer beautiful
beaches like ours in the Pacific Coast.
There is a variety of white sand beaches bathed
by blue waters and great tropical vegetation on its
surroundings.
In the Pacific, the Archipelago Las Perlas is found,
where the famous Island Contadora stands out.
PROVINCE OF PANAMA
In the province of Panama we have the beaches:
Naos, Farfan, Kobbe, Venado, Veracruz, Punta
Chame, Nueva Gorgona, Coronado, San Carlos, El
Palmar, Rio Mar, Corona, among others.
In the province of Cocle we have: Santa Clara and
Farallon.
In the province of Los Santos we have: Uverito, El
Rompio, Pedasi, Venado. In the province of
Veraguas we have: Santa Catalina, Mariato and
in the province of Chiriqui we have: Las Lajas.

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 NATIONAL
PARKS
METROPOLITAN NATIONAL PARK
The Metropolitan National Park, a tropical rain
forest within the limits of the city of Panama, where
the Smithsonian Institute carries on investigations
on tropical rainforests. This is the home for more
than 200 different bird classes, monkeys, reptiles
and other animals.

SOBERANIA NATIONAL PARK

At only 20 minutes by car from Panama City and
30 minutes from Colon, along the Panama Canal,
Soberania National Park is located, full of history,
nature and beauty; where the historic CAMINO DE
CRUCES is found.
CHAGRES NATIONAL PARK
The Chagres National Park is located 30 minutes
by road from Panama City. It has with a mountain
region of a dense rainforest and an important
river.
VOLCAN BARU NATIONAL PARK
The Volcan Baru National Park, one the most
beautiful regions of our country, often referred to
as “America’s Switzerland”, where the coffee
plantations that produce the best coffee beans in
the world are located.
NATIONAL PARKS
DARIEN NATIONAL PARK
Darien National Park, an important lung for
America. This immense park, with great
unexplored extensions, has more than 300 bird
species.
BASTIMENTOS NATIONAL PARK
Bastimentos National Park, located in the
province of Bocas del Todo, it is the first marine
park in the country. In this site, a great variety of
marine turtles exist; they lay there eggs in the vast
white sand beaches of this park.
AMISTAD NATIONAL PARK
The Amistad Nacional Park is one of the biggest
in Panama, including the largest and most ancient
primary rainforest in the country, with nine
ecosystems going from the tropical to the sub
alpine.

BARRO COLORADO ISLAND

Barro Colorado Island is located in Gatun Lake,
along the Panama Canal. It is a Smithsonian
Institute’s research station. The island is used by
scientists from the entire world to study the tropical
fauna and flora.

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COME AND
DISCOVER
PANAMA!
• USA TODAY – “Panama: So hot right
now… Less pricey real estate, far lower
cost of living…Come on down: The price is
right…”
• London Financial Times – “While Costa
Rica is a great success story, it is hardly an
undiscovered gem. That description may
apply more outside its southern border in
Panama”
• Boston Globe – “…An undiscovered tourist
paradise.”
OTHER BENEFITS

• Paradisiacal and virgin places

• White sand beaches
• Exuberant flora and fauna
• Dense tropical forests and mountains for
ecotourism
• Marvelous islands, rivers and lakes
• Historical sites such as the Metropolitan
Cathedral, National Theater, Presidential
Palace, the Museum of Religious Art.
• Museums such as Reyna Torres de Arauz,
Natural Sciences and Panama Canal
Museum.
• Eco Tourism sites such as Amistad
International Park, and Volcan Baru
National Park.

All these place give an aggregated value and

capital gain to your property.

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