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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 seventy-second regarding taxes viewed as an administrative burden.

Ease of Doing Business in Panama: the Numbers

Taxes and Panama Real Estate Investment

Panama is in the midst of a long term economic boom. With the highest per capita foreign investment in Latin America and high ratings for good governance Panama is seen a good place for investment in business and real estate. An issue that an investor should look at is if he or she wants to do business personally in Panama or invest in commercial property and let the locals deal with Panama’s laws and regulations. An example of doing business in Panama is the matter of paying taxes.

The Doing Business page on taxes lists fifteen taxes taking 482 full time equivalent hours a year to deal with for a medium sized company.

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. 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 taxes in a foreign country. Buying and leasing Panama commercial real estate allows your investments to grow with Panama’s economy while you avoid the headaches of running a business.

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.