Republic of Panama
| Panama also offers a safe place to invest as well as to
retire to. In addition it has a very modern and well planned infrastructure. Recreational opportunities abound in Panama to keep you both entertained and fit. Some of these are fishing, diving, surfing, birding as well as hiking in the many parks and jungle areas. The Panama Canal offers a multitude of adventures and the duty free zone is one of the best places to shop in world. I personally found the climate to be surprisingly pleasant and cool. |
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Perks for the investor in Panama:
• Dollar based economy.
• Democratically elected government.
• Average inflation rate of 3% in the past ten years.
• One of the lowest crime rates in the Americas.
• The most sophisticated Banking center in the area.
• The Panama Canal.
• Reliable and low cost labor and technology available.
• Modern communication system in place.
• A fully functional stock and debt market.
Incentives to investors in reforestation:
• The investment is tax deductible.
• Tax exemption on all the following taxes: Capital Gains, Income, Property,
transfer, dividend and sales.
• All equipment that is needed, can be imported free of tax.
• Exports to the US are tax exempt in the US.
• The right to residency with a $40 K investment.
Resident Visa Status:
• With a forty thousand dollar investment in reforestation eligibility
for a Resident Visa is offered.
Tax Benefits:
• Investment in reforestation and its industrialization are 100%
deductible from taxable income in the Republic of Panama.
• Interest payments, dividend payments and capital gains, from
reforestation related investments, are tax exempt in the Republic of Panama.
• Any equipment used to develop a reforestation related project, can
be imported tax-free.
• In Canada the investment is 91% deductible from taxable income.
Retirement Benefits:
• Discounts from 10% to 20% in restaurants, stores, and hotels.
• Overseas income is tax free.
• Income on investment accounts and CD's are income tax exempt.
• Plenty of medical facilities.
Here's a small sampling of the discounts you'll receive:
· Movies, recreational, and sports events: 50% off
· Public buses and trains: 30% off
· Boat and ship transportation: 30% off
· National airline flights: 25% off
· Hotels: Mon. - Thurs.: 50%; Fri.- Sun: 30% off
· Regular restaurants: 25% off
· Fast food: 15% off
· Hospitals (without insurance): 15% off
· Prescription drugs: 10% off
· Doctor visits and surgery: 20% off
· Dental work: 15% off
· Optometrist visits: 15% off
· Electricity (if under $50 per month): 25% off
· Telephone/water: 25%off
FOR MORE INFORMATION on Panama's Pensionado program, contact Greg Geurin,
in the Panama City International Living office: 17 Avenida Jose Gabriel Duque,
La Cresta, Panama;
Why Panama is an attractive place to live and invest.
From cities to beaches...mountains to tropical islands, Panama offers geographical
diversity few places can match.
Panama City is probably the least expensive First-World cosmopolitan city.
In fact, it's our top choice, if you're looking for inexpensive city living.
Here you'll find world-class restaurants, every imaginable luxury, hundreds
of multinational businesses...all at about half the price you'd pay in Miami,
or any other U.S. city for that matter.
It's not just Panama City's skyline (which is more reminiscent of Miami or
even New York than any Central American city we know) that looks First World...it's
that things here work. You can get through the airport quickly and efficiently.
The roads are pothole free. Your international phone calls go through the
first time every time. Panama City is efficient and reliable, unlike any other
Central American city we've been to.
Outside Panama City, this country offers some of the finest natural attractions
in the world...
* Because of its geographical position, Panama has recorded 940 bird species--more
than in all of North America.
* Panama has some of the most dense rain forests in the world...and you'll
find hundreds of beaches where you'll most likely have the whole place to
yourself. Inland, there are several mountains where you can see both the Pacific
Ocean and the Caribbean Sea.
* Panama offers some of the best whitewater rafting and deep-sea sport fishing
in the world.
* There are more than 1,500 islands off the country's coast, some of which
offer snorkeling and diving opportunities that rival any found in Central
America.
* Surfers should go to Playa Santa Catalina, where it's not uncommon to find
10-foot waves. In Panama's 12 national parks you can see sea turtles, crocodiles,
pumas, and jaguars, just to name a few of the native species.
* And, of course, there's the canal, one of the great engineering accomplishments
of the last century.
Yet, despite all of these attractions, Panama is still a relatively undiscovered
haven. In 1998, the last year for which the World Tourism Organization has
tourist figures, the country's total overnight visitor count was 431,000...100,000
of whom came from the United States. To put this in perspective: Panama gets
about as many American tourists in a year as Disneyland sees in three days!
A 25% discount on your cost of living
Panama isn't a dirt-cheap destination...but it is certainly affordable. You
can expect to spend about 25% less to live here than in the United States.
Groceries, for example, will cost about 20% less than in the States. You can
go to the movies for $3.75...$2 on Wednesdays.
Monthly fees for the brand new Summit Golf and Resort complex (with the top-rated
course in Central America, according to WorldGolf.com) are $135 a month, about
half of what you'd pay for a similar membership in the United States.
A new car will cost just about the same here as it does in the United States.
We picked up a new computer for the IL office (including a Pentium III processor,
128MB of RAM, CD ROM, a 30GB hard drive, standard software, and a 15-inch
color monitor) for $850.
Electronics, such as televisions and VCRs, are about the same price as in
the United States, maybe even a little cheaper.
Doctor visits are downright cheap. Our man in Panama, Greg Geurin, tells us
that his recent dentist visit cost only $35, for a cleaning and check-up.
Word on Panama is slowly getting out...
In the past few months alone, we've seen newspaper and magazine articles on
Panama from all over the world. This country is finally starting to get the
press coverage it deserved several years ago.
"Panama is the most beautiful treat in the world and almost undiscovered,"
claimed a recent article in Harper's Bazaar.
"Known mostly for its canal, Panama is, in fact, an undiscovered tourist
paradise," stated a recent travel article in the Boston Globe.
The New York Times, The Los Angeles Times, Modern Maturity, and National Geographic
have also featured long travel articles this year praising the undiscovered
delights the country has to offer.
And look at the recognition from various agencies around the world:
* The Tripartite Committee has ranked Panama #1 in the region for low cost
of living.
* Political Risk Services named Panama one of the top three countries in the
hemisphere for best-risk investments.
* According to Canada's Fraser Institute, Panama is at the top of the list
of the world's freest economies, ranked eighth with Australia, Ireland, the
Netherlands, and Luxembourg.
Many of the world's best companies have already invested here...
In addition to passing legislation to attract foreign businesses, the Panamanian
government has privatized most of its former state enterprises. Many big-name
companies from around the world have realized the potential of this country,
and have moved in...
* Cable & Wireless, a UK company, recently took over 49% of the National
Institute of Telecommunications with a bid of $652 million.
* Foreign companies, including Constellation Power (U.S.), Union Fenosa (Spain),
and Enron, bought up 51% of the country's power industry.
* Bell South bid $145.2 million for the right to use certain cellular bands
here.
* U.S. companies Mi-Jack and Kansas City Southern Railways bid together to
win control of the national railways. They will pay the government 5% of profits
and invest $60 million.
* The Hong Kong-UK company, Hutchison Whampoa, won the concession for two
important ports (Balboa and Cristobal) for the next 25 years. The company
will pay the government $22.2 million per year and will put in about $400
million in port improvements.
The point is, lots of big companies with lots of money have a lot at stake
in Panama. It's not the kind of place that's going to simply disappear from
the map. These companies realize that this is a sound investment in a quickly
growing, peaceful country. (Panama, in fact, has no military).
Tree Plantations I believe are a sound investment in Panama.
Costa Rica
Costa Rica offers a safe place to invest as well as to retire to. There are many recreational opportunities in Costa Rica such as fishing, diving, surfing, birding and hiking in the many parks. My personal favorite is visiting the wonderful natural hot springs.
SPECIAL ADVANTAGES OF OWNING A PLANTATION IN COSTA RICA:
1. By Costa Rican law the owner is exempt of all taxes on property. In addition
the income produced by the sale of the wood from the plantation is also completely
free of all taxation.
2. By Costa Rican law the owner is free to use the land, the wood and the
profit in any way he wishes. There is no need to obtain any permission for
cutting, transportation or industrialization.
3. By Costa Rican law, a plantation purchase price of at least US$100,000
permits the owner to obtain legal permanent residence status in Costa Rica.
This gives the owner all the rights of a Costa Rican citizen, except the right
to vote in national elections.
4. The plantation land acquired constantly increases its value in this fertile
and prosperous part of the tropics.
5. The investment in this zone of Costa Rica is safeguarded by the very stable
political conditions of the country. Costa Rica is well known as the Sentinel
of Democracy in Latin America and has a higher literacy rate than the USA.
Tree Plantations I believe are a sound investment in Costa Rica.
