Real Estate Panama, Investment opportunities

Law 41 includes tax incentives, visa assistance and other measures to encourage foreign investment in the country.

Seventeen multinational companies have moved their regional offices to Panama in response to the fiscal incentives brought about by Law 41, the Panamanian Ministry of Commerce and Industry (MICI) reported.

The Advantages for multinationals include the infrastructure for firms to use Panama as a back office to manage the rest of their operations and logistics in the region, the country´s strategic location, tax incentives, expedited customs procedures, and measures to cut red tape to provide visas for foreign-born executives. Any company with multinational operations based in Panama that provides services solely to their own affiliates, subsidiaries or parent companies can apply to take advantage of the exemptions offered under this law.

New firms in Panama

Panama is the only country in the region promoting these incentives to global businesses, according to Sousa, who expressed satisfaction with the result of the effort so far.

The deputy minister said other countries in the region would most likely enact similar laws, considering the significant success seen in Panama.

Sousa cited as an example of the law´s resounding results pharmaceutical giant Proter and Gamble, which moved its operations to Panama, bringing and hiring the most staff in the country so far.

The law has also attracted other international companies, inclu. Caterpillar, Roch, Merch, Peugeot, Hyundai Heavy Industries and Western Union.

"We have other companies aiming to take part, for which we are still in the process of accreditation, but from now until the end of this administration, we expect to see at least some 25 additional companies take advantage of the law," predicted Sousa.

One of the main requirements met by the 17 multinationals that have benefited from the law is an investment commitment, in total representing about of $1.3 billlion injected into the national economy.