Panama has been a popular destination for foreign investment due to its stable political environment, pro-business government, valu🐬able real estate market, and growing economy.

However, according to the United States Department of State, before making investment decisions, foreign investors should be aware of Panama's March 2024 investment downgrade, general fiscal challenges, effects of social unrest that occurred from 2022 to 2023, and a new administration that took office in 2024.

That said, here are six ways to invest in Panama from abroad:

• Purchase stock issued by Panamanian companies
• Purchase American Depositary Receipts (ADRs)
• Buy an 澳洲幸运5官方开奖结果体彩网:exchange-traded fund (ETF) with some exposure to Panama
• Invest in Panamanian real estate
• Invest in the Panama Pacifico Special Economic Area
• Start a business in Panama

1. Purchase Stock in Panamanian Companies

Panama’s stock market exchange is called Latinex, formerly Bolsa de Valores de Panama. This exchange trades stock, corporate debt, and government securities.

Although relativ🍌ely new and smaller in size than other stock exchanges, such as those in New York, Latinex is growing rapidly. As of 2024, it had 260 listed companies.

Capitalizing on the importance of Panama's economy in the region and the growing status of its capital market, Latinex plans to "cater to issuers and investors from across the region and beyond."

"This strategic approach will allow Latinex to consolidate as a platform connecting key players, further strengthening our position in the regional and international financial landscape."

2. Purchase a Panamanian American Depositary 🌞Receipt

Investors living in the U.S. can also in♓vest in Panamanian countries by buying an American depositary receipt, or ADR.

As of the end of 2023, there were two available Panama ADRs on U.S. exchanges: Banco Latinoamericano de Exportaciones y Importaciones, S.A () and CopaHoldings S.A. ().

3. Buy ETFs With Exposure to Panama

Typically, one of the simplest ways to gain exposure to an individual countryಞ is to invest in a Uﷺ.S.-listed ETF that either specializes in or has high exposure to that country.

There is a wide choice of ETFs that offer some (potentially minor) exposure to Panama, along with other countries. But at this time, none f꧑ocus solely on Panama.

Still, you can examine the holdings of ETFs that come up in your Pa🐓nama search results to determine the amount of exposure to Panamanian companies an ETF offers.

Then you can decide if that meets your investment goal. Also, keep an eye out for increasing weightings in ETFs as Panama's business and political stature grows.

If investing in debt ETFs interests you, the Invesco Emerging Markets Sovereign Debt ETF is one of several that include Panama. It tracks a theoretical portfolio of government bonds issued by emerging market countries, including Panama.

4. Invest in the Panamanian Real Estate Market

Much of the growth in real estate investment in Panama has been attributed to the iꩲncreasing number of retirees moving to the area and the milder tropical weather.

Panama offers a retirement incentive that includes the import of tax-free household goods and many discounts on hotels, restaurants, movies, and other professional services.

The country has many different real estate companies that can help foreig🐷n investors choose the right property. Knowing Spanish is not a necessity, as many of the real estate firms are accustomed to English-speaking investors.

Broadly, Panama offers a solid opportunity for real estate investments due to its economy, investor-friendly policies, demand for rental properties, and tax incentives that include a low capital gains tax rate.

Depending on the type of construction and the value of the property, investors may get up to 20 years of property tax exemptions.

5. Invest in🔯 the Panama Pacifico Special Economic Area

The Panama Pacifico Special Economic Area is designated for the production of goods and services that add value to Panama’s economy. It's located at the former Howard Air Force base and provides foreign investors with several incentives.

Some fiscal incentives include exemption from certain import, levy, real estate, stamp, commercial and industrial taxes. Panama also offers several labor incentives, such as fixed rates for overtime and holiday hours for employees, and exemptions for hiring foreign laborers.

Panama encourages international trade, corporate offices, call centers, aviation services, film production, and more in this special zone.

6. Start a Business in Panama

Panama is a very popular place for companies to establish their headquarters, due to the 澳洲幸运5官方开奖结果体彩网:favorable tax laws and financial privacy.🌳 Offshore companies and their owners are exempt from corporate, withholding, income, capital gains, and estate taxes.

Take note that Panama places certain iไmportant restrictions on businesses that, as a prospective foreign business owner, you should be aware of.♋

According to the U.S. Department of State, approximately 200 public and private sector professions are open only to Panamanian nationals. These include medical practitioners, lawyers, engineers, accountants, and customs brokers. Nor can you open a retail business.

To begin the process, you must register your business with the government. Visit the Ministry of Commerce and Industry’s website to find relevant information, and to complete other steps that may be required. Look fo🍸r the link to translate site pages, if need be.

You will need to obtain a commercial license and a tax ID number. And you must pay for all municipal taxes, along with any necessary permits required for your type of business.

Panama maintains strict financial privacy laws that allow a corporation and its members to remain completely anonymous if need be. Additionally, Panama has few tax treaties with other countries, so offshore banking has little to no reporting requirements associated with it.

The Bottom Line

Panama offers prime opportunities for investors and, in fact, attracts billions of dollars in 澳洲幸运5官方开奖结果体彩网:foreign direct investment (FDI) annually.

You can invest in Panama by buying shares of stock issued by Panamanian companies, ETFs with some exposure to Panama, real estate in Panama, or by openinཧg a business there. ADRs are also an option if any are listed on U.S. exchanges at the time that you wish to invest.