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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 8th in doing business across borders and 28th in getting credit for doing business. Within the Western Hemisphere Panama ranks 11th overall out of 31 countries. Those interested in property investment in Panama should note that Panama ranks 75th in registering property.

Ease of Doing Business in Panama: the Numbers

Registering Property and Panama Real Estate Investment

Panama is the country at the South end of Central America. As the narrowest spot in the Americas it is the location of the Panama Canal which connects Atlantic and Pacific. Panama’s central location between North and South America makes Panama a transportation hub and a place for investment in transportation, repackaging and reshipping, and light assembly of parts. Panama has been doing business in oil transshipment since the building of Alaska pipeline and the need to move that crude oil to US gulf coast refineries. Panama may soon be doing business in refining oil near the deep water port at Puerto Armuellas. The Colon Free Trade Zone has been doing business in receiving, repackaging, and resending container shipments for years. It is said that 40% of South American bound container shipments pass through the Panama Canal.

Panama real estate investment has done well in the last years as North Americans have bought second homes and often taken advantage of Panama’s residency laws to retire in the tropics. Panama real estate investment continues to do well as Panama is making investment in a number of mega projects such as the Panama Canal Expansion.

The Doing Business website lists the steps involved in registering investment property in Panama. For a typical Panama City property this takes 46 days on the average and costs $350 plus 2.25% of property value as well as a 10% capital gains tax for sellers.

Doing business in Panama can be quite profitable. Doing business in any foreign country can present problems for the unwary. The best way to avoid dealing with business paperwork and employees in Panama may well be investment to buy, develop, and lease real estate. Your investment in Panama real estate will grow year by year and as Panama’s economy moves on your returns on investment will grow. As someone else stands in line to do paperwork you can walk on one of Panama’s many beaches. Let someone else deal with the paperwork while your investment grows with Panama’s economy.

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.