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The World Bank Group’s Doing Business website ranks countries for ease of doing business. Panama ranks 81st out of 181 economies ranked. Panama ranks twenty-eighth in getting credit for doing business. Panama ranks eighth in trading across borders. Within the Western Hemisphere Panama ranks eleventh overall out of thirty-one countries. The following table gives an overview of several facets of doing business and a ranking for Panama.

Ease of Doing Business in Panama: the Numbers

Panama Real Estate Investment and Closing a Business

Everyone starts a business with the intent of succeeding. Nevertheless small businesses often do not succeed. Then the question is how to get out of contracts, unload fixed assets, and do so in a reasonably short time. Perhaps a better question is how to avoid the problem of a failed Panama business investment in the first place.

The World Bank Group’s web page info on closing a business ranks Panama seventy-second of 181 economies. In the case of a bankrupt business the average time to settle is two and a half years with the cost of doing so being 18% of residual assets and 34% for recovery on remaining assets.

Comparable figures for the United States for one and half years to settle, 9% of assets cost to settle and 76.7% of assets recovered.

Investment in a business in Panama can be very profitable. However, doing business in any foreign country can have its pitfalls. An alternative to a hands-on business in Panama is targeted investment in real estate. With competent local advice such as from ABPanama investment in Panama real estate can tie into the strengths of Panama’s economy such as its service sector. Panama real estate has done well for a decade. Panama commercial real estate will follow the path of the expanding Panama economy to long term growth and prosperity.

Panama’s economy is growing in the ten percent per year range and promises to keep up a steady growth for years to come. Panama has the highest rate of foreign investment per capital in Latin America. With recent changes in credit laws Panama’s small business community has become eligible for credit where before many business people were forced to deal with street lenders at exorbitant rates for their loans. This last factor may well be more important than the Panama Canal Expansion and the influx of North American retirees driving the high end housing market.

Local experience matters. Having someone competent and trustworthy manage your real estate portfolio is a wise decision. Investment in Panama real estate and leasing to local businesses avoids any number of problems dealing with local laws and regulations as well as having to deal with closing a failed business in a foreign country. Buying and leasing Panama commercial real estate allows your investments to grow with Panama’s economy.

If you are interested in targeted real estate investment in Panama, contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.