Panama2Stay

Property Tax Change

Panama has just revised the property tax law to reinstate the 20 year tax ememption for new

construction homes or condos. The change extends the time for completing construction until

December 31, 2009. If you buy a resale that qualified for the tax exemption, the remaining

tax exemption time is transferred to the resale buyer. Land is not tax exempt if the value

is over $30,000.

Market of the Month

Panama is "Market of the Month" for October on the U. S. government's website  www.Export.gov.

The report shows Panama economic growth and highlights the country's popularity as a business

and investment destination. There are numerous major project that will fuel economic growth.

Maritime Opportunities:

The Panama Canal expansion which is estimated to cost over 5 billion.

Port Expansion of existing ports costing over 700 million.

New port on the Pacific side located at the Canal entrance.

Energy Projects:

Twelve hydroelectric projects in the approval stage with an estimated investment of 680 million

over 5 years.

Two regional refineries under consideration that would have an investment of over 10 billion.

Brazil's Petrobras wants to process ethanol in Panama which is a pefect redistribution point

for ethanol moving between North, Central and South America.

Telecommunications:

Two new cellular concessions will be given in 2008.

Panama is developing the call center industry. Dell has a large operation.

Panama is a submarine fiber optic cable crossroads with five major cables passing through Panama.

osAmericans Traveling to Panama for Health Care

Americans are starting to travel to Panama for health care to alleviate insurance woes, high prices

and delays for treatment back home. Panama has U.S. trained doctors, state of the art hospitals

and much lower costs than the U.S. It is closer to the U.S. than Thailand or India. Doctors fee's

run about  half the U.S. cost and hospital stays may be up to 80% less. The recently opened

Punta Pacifica Hospital is affilated with the prestigious John Hokins Medical Center in Baltimore.

New Cruise Line Home Port

Royal Caribbean will have a home port in Panama at Colon. Enchantment of the Seas will offer

17 week long sailings from Colon beginning in December 2008 to April 2009. The ship will call

at ports in Columbia, Aruba, Bonaire and Curacao.

Fuel Project for Panama

Brazil President Luiz Inacio Lula da Silva was in Panama to promote the gas alternative and biofuel

ethanol. Brazil's Petrobras wants to process ethanol in Panama and build an ethanol pipeline from

the Pacific to the Atlantic coast. Lula sees Panama as the perfect redistribution point for ethanol

moving between North, Central and South America.

General Noriega's Future

General Noriega, the former dictator of Panama will be released from the U. S. Prison this fall.

France and Panama are competing to get Noriega. There is a U. S. extradition hearing on August 28.

France wants to jail him up to 10 years and Panama wants to try him for past crimes in Panama.

Panama has said he will be thrown in jail upon his arrival. Noriega seems to think he has a better

chance in Panama to stay out of jail or worse.

United Nations locates to Panama

Nils Kastberg, the regional director of the United Nations International Children's Emergency Fund(UNICEF)

said that Panama will become the United Nation's regional headquarters for Latin America and the

Caribbean. The UN will locate in the City of Knowledge(Ciudad de Saber) in the former U. S.

Fort Clayton in Panama City. Nils Kastberg said that Panama's security and political stability were

primary reasons for establishing the the UN headquarters in Panama.

Panama President Martin Torrijos told media that the UN move consolidates Panama as a center

of regional agencies and international organizations, and confirms the quality of Panama's legal system

and infrastructure.

Panama Visa

                         

Panama recently changed the  law for a tourist visa to 30 days

from 90 days. You might be able to get an extension from their

immagration but it won't be easy. They are trying to control undiserables

from entering the country. Oppostion to this change is strong because of the affect

on foreign retirees or investors needing time to look for property and winter time vacationers

from up North who spend more than 30 days in Panama. Panama's National Assembly meets

in September and legislators are vowing to correct the problem. There is also some

thought that the 20 year exemption on property taxes might be extended.

New GDP Projections

Two consulting firms have raised their projections for Panama's GDP growth

for 2007. Indesa a Panama firm 's report  projects Gross Domestic Product

(GDP) to grow 11% in 2007 from an earlier projection of 7.3% for 2007.

Deloitte's , 2007 winner of the title of "world's best financial assessment firm," report projects

Panama's GDP will grow 10% in 2007. The offset to this is that Indesa expects inflation

to reach 3% in 2007

Panama Canal Expansion Starts

Panama's most exciting and controversial project is finally starting

according to Dani Kuzniecky, President of the Panama Canal Authority

Board of Directors. A Panama-based company called Constructors Urbana, S. A. (CUSA)

offered the lowest bid - $41 million to complete the first phase of dry excavation

required for the project. There were 10 groups submitting bids. CUSA's proposal needs

to still be examined by the Canal Authority to ensure it complies with all requirements

listed in the public offer.