Panamas Tax Breaks and Booming Economy
Prospective investors in Panama, particularly those looking to escape the failing U.S. economy, will be encouraged by the new economic report which was compiled jointly by Panamanian advisory and financial services company, Indesa, and Deloitte Touche Tohmatus. The report predicts healthy GDP growth for Panama in 2008 with the economy expected to increase by between 7% and 8%. Analysts believe that the dynamic economy, with its range of important private and public investment projects planned for 2008, will help to offset the negative ripples from the U.S. economy. The biggest plus for the Panamanian economy is the massive expansion of the Panama Canal, approved in a referendum in 2006 and due for completion in 2014.
The Panama government has decided to restore the property tax exemption on all new construction with building permits issued before December 31st 2009. The decision was made to encourage Panama's booming property market to continue in the same vein. James Gonzalez, Market Analyst at Obelisk, says, "Panama is a stable environment and it is perennially popular with retirees from the U.S. who are attracted by the mild climate and low cost of living. Now that the government has reinstated the 20 year tax exemption for foreign buyers, the market will continue to boom."
Resale properties are also exempt from property tax, with the 20 year exemption starting in the year the property was built. This means real savings for those buying off-plan or resale property or building their own property in Panama and is proof that the government is keen to encourage foreign investment with tax incentives. The Heritage Foundation supports this in its Index of Economic Freedom, noting that Panama's investment climate is superior to those of its neighbours, with most sectors open to foreign investment.
Panama's property market has been booming for around 5 years and this looks set to continue thanks to huge investor interest from the U.S. Rental yields are impressive, especially in Panama City where they reach just over 11% on small units of 190 square metres, according to Global Property Guide.
With a favourable investment climate, tax breaks for foreign buyers, a booming economy and property market, Panama has the perfect property investment climate.
To find out more about Obelisk's investments, contact Obelisk free on 0808 160 0670 (UK) or 1800 932 514 (IRE). Email: info@obeliskinternational.com or visit our website: http://www.obeliskinternational.com.
For press enquiries, please contact Obelisk's Marketing Department on (+34) 952 820 319 or email: press@obeliskinternational.com
Panamas Tax Breaks and Booming Economy
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