Laurentino Cortizo Cohen, President of the Republic, signed legislation to create the National Authority for Investment Attraction and Export Promotion of Panama (ProPanamá).
But with both an appropriate and modern framework that will enable it to encourage international investors and act as a conduit to encourage tourism via an independent mechanism.
The legislation provided the legal basis for the Ministry of Foreign Affairs' Investment Attraction and Export Promotion Agency (ProPanamá) to be promoted to Authority.
This is to ensure its long-term viability and the strategic and channeled implementation of various initiatives to encourage investment and promote exports, a community partnership is being established.
As a result, a Board of Directors with private sector representation is established to respond effectively to the country's economic and social growth.
The ProPanamá will have independent citizenship recognition under public law, which has its patrimony, autonomy of its internal regime, and sovereignty in the performance of its duties, according to Executive Branch policy"
By the terms of the Law, recommendations are made by the Ministry of Commerce and Industries, with oversight provided by the Office of the Comptroller General of the Republic.
Attracting investments and promoting exports are aim strategies for internationalizing the country's profile and optimizing the efficiency of such services.
It concerns the development of the best programs that endorse the country to achieve accountability goals as well as investment.
This legislation establishes structural convergence of initiatives to strategically support the country's specific marketing strategy, effectively utilizing Foreign Service capital.
An efficient and simplified platform that allows it to attract foreign investment and promote exports, as well as a strategy and monitoring system based on results-related metrics.
The legislation establishes a State body with an efficient and modern framework that enables it to draw foreign direct investment.
Panama also wants to encourage exports through investor cooperation via the introduction of government policies aimed at developing measures, plans, programs, reports, and processes of development, provision of services, and negotiation.
The mission is to aspire to the country's economic and social progress, the expansion of specific industries, the productive incorporation of the country's economy, and the creation of new jobs.
If you're thinking of investing in Panama, there are a few factors to look about.
The Multinational Headquarters Act allows corporations to create their headquarters facility in Panama with the aid of tax deductions, and it also allows for the hiring of foreign employees underneath a special visa.
Normally, businesses in Panama have a 10 percent of foreign worker quota.
However, that does not apply to such organizations within this Act. This legislation provides foreign corporations with an advantage when investing in Panama.
Panama's economy draws foreign direct investment, and its core assets are:
The economic dynamism is expected to be 4% in 2021, and regulated inflation of 1.5 percent in 2020 (IMF) and a steady currency (in parity with the USD)
Tax reductions in the real estate market, along with a 0% VAT (IVA).
Trade credit provides 30-year mortgages and credit of up to 95% of the value of a property.
The real estate and tourism industries are increasing.
The simplicity with which tourism projects can be developed, particularly tax exemptions
The flexibility with which the manufacturing sector can be developed
The Panama Canal serves as a regional center for foreign trade, with free zones (including the Colón Free Zone, the world's second-largest import-export platform) and decent facilities.
Finance and banking industries of high quality, safe and appealing FDI
Panama's government and corporate community vigorously promote foreign direct investment. In general, the rules do not distinguish between domestic and international businesses.
Panama anticipates that the new Law would promote international investment and job growth by allowing multinational corporations to set up factories, and manufacturing facilities in Panama in return for tariffs, excise, labor, and immigration advantages.
From the excellence and creativity of the regimes in the Colon and Panama Pacifico free zones,
The unrivaled logistics situation and location make it advantageous for companies to transport their products through Panama to other countries in the region.
This regime is intended for new businesses that would like to maximize the benefits, as well as companies that are already licensed underneath the offices of multinational corporations (SEM) regime.
Then want to extend their business inside the same economic community under a new light-manufacturing section.
When an SEM company wishes to join this regime, it receives a "fast track" advantage to regime change.
This regime's goal is to reacquire the economy, stimulate industrial growth, create new employment, and focus on technological advancement.
The investment's legal sustainability is assured for a term of ten years. This ensures that the legal terms in which the organization began the project are upheld.
Until next time!