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Why Invest in Panamá?

1. US Dollar
2. Stable and Growing Economy
3. Safety and Political Stability
4. The Panama Canal
5. Top Retirement Destination
6. First Class Healthcare
7. Great Climate
8. World Class Attractions
9. Great Educational System
10. American Style Infrastructure
11. The Panamanian People
12. Colon Free Trade Zone
13. International Banking Centers
14. Transportation Infrastructure
15. Low cost of Living

Linking the Americas and narrowly dividing the Atlantic and Pacific Oceans, Panama has long been an international crossroads for investors, traders and travelers alike. Today, its free trade zone is surpassed in volume only by Hong Kong and its international banking center has more than 100 financial institutions representing over 30 countries. In 2005, the AT Kearney / Foreign Policy Magazine Globalization Index ranked Panama first in Latin America based on such factors as trade, and investment flows and Internet usage.

Panama is one of the world's most visitor-friendly countries. It's people are warm, friendly and unspoiled. Panama has always been an international crossroad. Panamanians are accustomed to meeting people from other lands and English is our second language. If you are thinking of retirement, or simply having a vacation residence, don't hesitate to discover this hidden paradise.

1- US Dollar

The Balboa is Panama's currency since 1904, but there is free circulation of the US$ currency since the signing of a 1904 Agreement with the United States of America. Exchange Rate: US$1.00 = B/.1.00 (fixed exchange since1904). Back to Top

2- Stable and Growing Economy

According to The Fraser Institute in Canada, Panama is at the top of the list of the world's freest economies, ranked eighth with Australia, Ireland, the Netherlands, and Luxembourg. Panama's economy is stable and growing at a very healthy pace - 4.5% in 2004, 6.4% in 2005 and 8.0% for 2006. According to Reuters, Panama is one of Latin America's fastest-growing economies, spurred by increased canal traffic, a booming construction sector, buoyant banks and increased exports of tropical fruit. On October 22, 2006, an approximate 77% of Panamanian voters approved the expansion of the canal during a nation wide referendum. This USD$5.25 billion project is aimed at doubling the capacity of the canal and attracting an incredible 40,000 jobs during the estimated timeline of seven to eight years. With the free U.S. dollar circulation since 1904, Panama's economic stability provides very low inflation rates and virtually no currency fluctuations. Political Risk Services named Panama one of the top three countries in the hemisphere for best-risk investments. Back to Top

3- Safety & Political Stability

One of the first things foreigners who live in Panama will tell you is how safe they feel. In Panama City, petty street crimes that hinder tourists in other countries are uncommon. Panama City, like every big city has some neighborhoods best to avoid, but in general you can go about Panama City day and night without worrying. This is true for most of the country with few exceptions.

Panama is a Democratic Republic. After the removal of Manuel Noriega in 1989, Panama's growth has been steady with an increase in investments and employment year after year. As in Costa Rica, the national police replaced the military, and there has been no political unrest since. Panama has the global responsibility of keeping the Canal running smoothly and cannot afford to risk it altering its political stability. Panama has a democratically elected president and historically the most stable economy in Latin America. The present administration of Martin Torrijos has excellent relations with the United States, is pro-business and working hard to create transparency and good governance. Back to Top

4- The Panama Canal

In a referendum held in October 2006, nearly 80% of the population voted in favor of the $5.25 billion project to expand the capacity of the Panama Canal, ostensibly doubling the capacity of the canal both in volume and traffic. The Panama Canal plays a significant role in the country's economy and has contributed an average of six percent of Panama's GDP since the 1980s.

The U.S. presence in the isthmus led to the creation of a new Panama, a truly unique country in the Americas which finds itself today with the largest merchant fleet in the world, its second most important banking center after Switzerland and home to the second largest free trade zone after Hong Kong. Additionally, canal traffic and revenues have almost doubled since the American departure and the new ports in the entry cities of Panama and Colon are two of the most modern and efficient in the world.

The former military bases that housed the U.S. Southern Command have been transformed to Ciudad del Saber (City of Knowledge) where universities and educational institutions from all over the world have established a research and education center (for additional information, please review http://www.cdspanama.org/).

Other military facilities, such as Amador located in the Pacific entry of the Panama Canal, have been transformed to tourism centers with plenty of restaurants, boutiques, yacht piers and the Convention Center that recently hosted the Miss Universe Pageant. Nearby, the Biodiversity Museum, soon to be Panama City's hallmark, is being constructed under the watchful eyes of world renowned Architect Frank Gehry.

Additionally, the construction of an oil refining complex valued at over $20 billion dollars is underway off the Atlantic coast of Panama. These critical developments will fuel job creation, increase trade and investment and serve as an engine for continued economic growth.
Investment opportunities include:

* The future construction of the third set of locks, which will include the necessity for additional water resources, expanded hydroelectric power generation, the expansion of the entrances to the Canal and the deepening of Gatun Lake and Culebra Cut.
* Contracts related to the Panama Canal operation (provisions, equipment, material, construction, consulting etc.)
* Ship owner's services, servicing of vessels, ship repair and maintenance, container repair, intermodal cargo services.
* Provision of concessionary services to the ports (power, water, fuel, material, food, banking services, telecommunications, maintenance and repair, dredging)
* Services to passengers and crewmembers transiting the Canal, which in 2000 numbered 255,571 and 458,134 respectively.
* Services to smaller ships, such as yachts and motor cruisers, which totaled 1,748 in 2001.
* The relocation of approximately 8 to 10 thousand persons, as a result of Canal expansion, requiring housing and infrastructure.
* Cruise ship reception and tourism. Back to Top

5- Top Retirement Place in the World

The Pensionado Program
Panama is rated as the number one place in the Americas for retirement by Modern Maturity magazine (the AARP magazine with the largest circulation of any consumer magazine in the world--upward of 20 million subscribers) and International Living's Global Retirement Index 2005 rated Panama number-one--the best place in the world to retire. Conde Nast Traveler selected Panama as one of the six best places for a second home in the Americas. Its close association with the United States has led to a lengthy history of economic stability and very low interest rates, making this the ideal retirement destination. Of extreme importance to those baby boomers researching Panama is the best Pensionado (Retiree) Program in the world. By applying for the Pensionado Visa you will be granted permanent residence in Panama, regardless of whether you decide to stay here permanently or visit for a few weeks or months. The Pensionado Program entitles you to the following perks:

* 50% off from entertainment (movies, theatres, sporting events, concerts, etc.)
* 30% off bus, train and boat fares
* 25% off airline tickets
* 50% off lodging (hotels, motels, etc.) Mondays through Thursdays
* 30% off lodging (hotels, motels, etc.) Fridays through Sundays
* 25% off restaurant meals
* 15% off fast-food restaurants
* 15% off hospital bills (if no insurance applies)
* 10% off prescription medicine
* 20% off doctors' consultations
* 15% off dental and eye exams
* 20% off professional and technical services
* 50% off home closing costs
...and more.

Other benefits include the importation of all your household goods free of all taxes and as a retiree you can import a car every two years free of import taxes (other taxes apply). Back to Top

6- First Class Healthcare

With local health facilities linked to top U.S. hospitals such as Johns Hopkins and The Cleveland Clinic, medical care in Panama is excellent, at a portion of U.S. costs, and exemplified by humane treatment and not by commercial exploitation. As a matter of fact, the latest fad is for many people to come to Panama for medical tourism. It is easy to find a Panamanian doctor or dentist that is US trained and speaks English. Prices run about 50% less than the US. Back to Top

7- Great Climate

Unlike the popular retirement destinations in Florida and the Southeastern coast of the United States, Panama is outside the hurricane belt providing significant savings in expensive hurricane and associated flood insurance and no stress related to these impacting natural disasters. When compared to the U.S. west coast, it is important to note that Panama has had no major earthquakes. And when matched up to the Midwest, Panama has none of the tornadoes or blizzards common to the area.

The beaches and lowlands in Panama City have a year-round warm climate. Some places like Panama City are humid but that is easily remedied with air conditioning. Evenings and early morning temperatures are perfect for walking or running. In the mountains and highlands climate year-round is cool-- no air-conditioning needed. Back to Top

8- World class attractions

* Deep Sea Fishing
* Diving
* Sailing
* Surfing
* Golfing
* Mountain Excursions and Activities

Panama has it all - beach, lakes, mountains, rainforest, a sophisticated capital city, fine dining, golf, sportfishing, Indian culture, and history. The narrow isthmus is only 50 or so miles wide. This means a beach is never more than an hour away. With both a Pacific and a Caribbean coastline, Panama has thousands of miles of beaches and the Pearl Islands with over one thousand islands. Piñas Bay in Panama's Pacific holds 170 world fishing records. Panama offers fabulous diving in both the Pacific and Caribbean. Punta Catalina and Playa Venado in the Azuero Peninsula are regarded among the top surfing spots in the world. And beyond ocean sports, there are plenty of golf courses from ocean to ocean to cater to your specific desires. All close by. Back to Top

9- Great Educational System

Panama City boasts an excellent private school system. Education is offered in English, French, Italian, and Mandarin and there are several bilingual schools (Spanish/English).
There are more than five private universities in Panama, plus a major Catholic university and the state institution, the University of Panama. Skyline can offer assistance in searching for a suitable school or academic program for you or your family. Back to Top

10- American Style Infrastructure

Panama City, with it's Manhattan-like skyline, the buildings, stores, shopping malls and many neighborhoods will remind you of the U.S. All resulting from 100 years of an influential American presence in the Panama Canal. Back to Top

11- The Panamaniam People:

* Friendly & Helpful
* Highest Bilingual Population in Latin America
* Respect, Admiration and Curiosity for Diversity

People starting small companies or major investments find it a pleasure to do business in Panama because so many business people have degrees from international institutions and have actually worked for the Americans in the former Canal Zone. They understand foreigners and know how to work with them.

One of the most common things you will hear from retirees is how friendly and helpful they find the Panamanian people. They feel safe and welcomed. Many are well traveled and say there is no place in the world they would rather be. With the highest bilingual population in Latin America, the three million inhabitants of Panama are hospitable and warm. Panama is truly the melting pot where there is mutual respect, admiration and curiosity for diversity. Back to Top

12- Colon Free Trade Zone

The Colon Free Zone offers key advantages for the international firms that wish to improve their presence in the Latin American markets, the most significant of these advantages being:

* Geography Position of Panama - Panama's strategic location Is ideal to forward goods to the Central American, Caribbean, and South American regions.
* Warehousing - The establishment of a warehouse in the Colon Free Zone allows reception of goods from various sources and to fill orders of the buyers from one single point and under one invoice.
* Proven Experience - Branches of multinational firms as well as local companies that provide the warehousing and forwarding services on behalf of foreign corporations operate in this zone as early as the late 1950's.
* Transportation Connections - The presence of three main ports at both ends of the Panamá Canal, a modem airport, and surface transportation to Central America, all with excellent frequencies and international connections, allow orders to be shipped quickly to their destination.
* Express Import and Export Procedures - The documentation required to enter and exit goods is simple and expeditious. Merchandise that transits through the Colon Free Zone are not subject to import or export taxes.
* Capital Flow - The movement of funds in and out of Panamá is not restricted, and it occurs mainly in U.S. dollars.
* Fiscal Incentives.- The net earnings on the reexport operations are exempt from income tax, as well as the dividends declared on such earnings. Back to Top

13- International Banking Centers

Panama has the most modern and successful international banking center in Latin America, with more than 85 banks from 35 countries represented. Some of the banks present in the center are: HSBC, International Commercial Bank of China, Citibank, Bank of Nova Scotia, BBVA, Banque Rationale de Paris (PARIBAS), among others. Back to Top

14- Transportation Infrastructure

* Ports - Close to 14,000 ships cross the Panama Canal every year with over 192 million tons of cargo and 700,000 passengers and crew onboard.
* Highways - Panama has approximately 11,300 Km of asphalted concrete roads that include The Panamerican Highway, The Northern and Southern Corridor, and The Madden Colon Freeway.
* Airports - Panama has 27 public and 41 private airports. From these public airports, 5 have immigration and customs services. The two main Airports are: Tocumen International Airport and Marcos A. Gelabert, both located in the Capital City, providing services to both National and International flights. Tocumen International Airport is being developed as an international and regional hub for both passenger traffic and cargo. Back to Top

15- Low Cost of Living

Panama has one of the lowest costs of living in all Central and South America: A U.S.-style home can be built for about $40-50 per square foot; unskilled labor costs $6.40 per day; a full-time live-in maid costs $200 to $250 a month; a beer at a bar costs $1-2; a cup of coffee, 50 cents; a haircut and shave can cost as little as $5. Back to Top