Panama's Economic Growth

Condo and commercial development is booming in Panama in efforts to meet the high demands for Panama condos and homes, hotels and tourist accommodations, infrastructure.  Many people who come to visit Panama also invest in Panama real estate and condos, become involved in construction and building, and take advantage of the great tax advantages and cheap labor available. The Panamanian Institute of Architecture and Urbanism shows that new construction of high-rise condos, luxury resorts, new commercial development and office space is the fuel that keeps the Panamanian economy alive and well.  Legislation has even been passed to further stimulate new construction which offers special tax incentives to builders. Developers of new Panama condos can receive great incentives and benefits based on these new legislations.  For example, builders working in designated “tourist” zones” are granted 20 year tax exemptions!!  In September 2006, new legislation was authorized providing 15 year tax exemptions for builders constructing new Panama condos and homes.

But wait, it gets even better…individuals and builders who do invest in Panama (i.e. building new condos and commercial builders) are now granted the possibility of work visas and citizenship! Having had a historically strong economy in Latin America, Panama has had steady growth, low inflation rates, and a growing population which is setting the area up for further success as a major economic powerhouse.  Economic growth was 6.3% in 2006, continuing a strong five-year upward trend.

One of the most important factors in establishing Panama as a hot spot for international trade was of course the Panama Canal.  This brought foreign trade, investment, and new residents to the area and further fueled the modernization of this once quiet little paradise.  The country’s key source of income is now tourism.  Panama boasts 700,000 visitors per month which has also brought with it a boom in construction--- hotels, condominiums, resort complexes and other services such as restaurants and shops.  As I have mentioned before, Trump’s investment in the area with the new luxury condo tower, Trump Ocean Club, has further spawned new credibility for the area.  More to come…