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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 eighth in doing business across borders. Panama ranks twenty-eighth in getting credit for doing business. Within the Western Hemisphere Panama ranks eleventh overall out of thirty-one countries. Panama ranks one hundred sixteenth for enforcing contracts.

Ease of Doing Business in Panama: the Numbers

Enforcing Contracts and Panama Real Estate Investment

Panama’s economy is thriving. Panama has the highest per capita foreign investment in Latin America. With high ratings for good governance Panama is seen a good place for investment in business and real estate. An issue one need look at for any investment in a foreign country is ease of enforcing contracts under local law.

The Doing Business website provides insight into the ease or difficulty of enforcing commercial contracts in Panama. The website notes that, “This is determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the moment a plaintiff files the lawsuit until actual payment.”

Enforcing a contract in Panama takes 31 legal procedures over an average of 686 days from filing. The average cost of legal procedures is half the average claim. Comparison figures for the United States are thirty legal procedures and 180 days to trial and judgement with another 90 days to enforcement of judgement. A table of US costs shows total suit costs to run 9.4 % of a claim.

Panama’s economy is thriving. Doing business in Panama can be very profitable. 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 profits from high end sales to wealthy retirees, Panama’s strong tourist industry, and the purchases of Panama’s and all of Latin America’s increasingly well to do middle class.

Investment in real estate in Panama with competent advice such as from ABPanama has proved to be profitable for years. Having someone with local experience 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 sue someone in a foreign country for breach of contract. At the same time Panama commercial real estate investments will grow with Panama’s economy for the foreseeable future.

For more information on real estate investment in Panama contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate portfolios.