Panama has been ranked as a favorite hotspot for relocation, for buying a second home and/or for investment opportunities in widely recognized periodicals such as the Wall Street Journal and International Living.

This is no coincidence! If you like to relax in palm-studded beaches, play world-class golf, breathe in the fresh, country breeze or invigorating, cool mountain air, enjoy exciting city night life, or are just looking for a great business opportunity, Panama has something to offer you.

One of the many key factors that contribute to Panama’s popularity is the economy’s reliance on the U.S. dollar as its official currency. This has allowed Panama to develop a world class international banking center, which has led to a secure economic environment in which little or no inflation occurs, making it an ideal place to maintain a high standard of living.

The country has excellent telecommunication infrastructure and an international banking center with a well trained and bilingual workforce.

Furthermore, the tax structure in Panama is based on the territorial system, which means that taxes are paid only on income generated within the country. Interest earned on bank accounts in Panama have no withholding taxes; and profits received from investments outside of Panama are also tax free.   In addition, most of the new homes and condominiums are tax exempt for 20 years.

Due to its strategic location, many major airlines have flights arriving and departing from Panama, making it easy to travel to and from most major cities around the world. Moreover, Panama has a democratic government and free elections take place every five years. It is considered the most politically stable and secure country in the region. 

Finally, Panama offers excellent financial advantages for foreign investors. Not only do you have the opportunity to enjoy a second residence abroad with a second passport or a tourist pensioner visa, but also benefit from the valuable asset protection and estate planning tools available, such as the Panama Private Interest Foundation.

When you combine all of these factors with the natural beauty of Panama’s cities, beaches and countryside, it is no wonder why so many foreigners have decided to come live, or have already invested, in Panama.