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Panama Real Estate Investment and Trading Across Borders
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.
Ease of Doing Business in Panama: the Numbers
Category |
% Rank 2009 |
% Rank 2008 |
% Change |
Doing Business |
81 |
76 |
-5 |
Starting a Business |
32 |
35 |
+3 |
Dealing with Construction Permits |
73 |
70 |
-3 |
Employing Workers |
172 |
172 |
0 |
Registering Property |
75 |
68 |
-7 |
Getting Credit |
28 |
25 |
-3 |
Protecting Investors |
104 |
101 |
-3 |
Paying Taxes |
172 |
171 |
-1 |
Trading Across Borders |
8 |
9 |
+1 |
Enforcing Contracts |
116 |
117 |
+1 |
Closing a Business |
72 |
77 |
+5 |
Panama Real Estate Investment and Trading Across Borders
Panama’s high ranking in trading across borders should not come as a surprise. Panama is the site of the Panama Canal linking Atlantic and Pacific. It is also centrally located in the Americas with its Tocumen International Airport rapidly becoming the hub airport for Latin American and North American travel. Roughly five percent of world sea trade passes through the Panama Canal and that figure may well double with the completion of the Panama Canal Expansion.
The Colon Free Zone has been in operation since the 1940’s receiving and reshipping merchandise from all over the world to points throughout the Americas.
The World Bank Group’s web page for trading across borders for Panama looks at the times required and costs of importing and exporting a standard shipment of goods. Regional and United States figures are given in comparison.
World Bank Group’s Doing Business Study Trading Across Borders |
Indicator |
Panama |
Region |
USA |
Documents for Export |
3 |
6.9 |
4 |
Time for Export |
9 days |
19.7 days |
6 days |
Cost to Export/Container |
$729 |
$1,229.80 |
$990 |
Documents for import |
4 |
7.4 |
5 |
Time for Import |
9 days |
22.3 days |
5 days |
Cost to Import/Container |
$879 |
$1,384.30 |
$1,245 |
For those interested in Panama real estate investment, tying into Panama’s position in world trade is a good idea. When the USA ran the Panama Canal there was no development not related to managing the canal with the exception of jungle warfare training facilities for the US Armed Forces. Since Panama took over the Panama Canal in 1999 Panama has been developing the land along the Panama Canal for multiple uses. Facilities for container shipping, assembly facilities and more are in the works.
Real estate investment along the old Panama Canal Zone will tie nicely into Panama’s forte of shipping and receiving international goods.
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 strengths of Panama’s economy such as its high ranking in trading across borders.
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 business customs 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.
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