Property Investing in Panama

View a database of carefully selected investment property in Panama

SUMMARY : Panama City is one of the world's least expensive first-world cities. It is also among the most modern and prosperous cities in Latin America with over 3 million people. The city's array of tall skyscrapers is reminiscent of Miami. It boasts incredible shopping where almost any product from the U.S. may be easily found. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement.

Currency: (USD) Dollar

US Dollar: A global benchmark currency. Little or no exchange rate parity fluctuation against Middle East currencies. The cost of living is significantly lower than that of Western Europe.

Economic climate: The trend towards an open economy and possible trade pacts with such nations as the U.S. and Mexico are conducive to investment in Panama. There are also no government expropriation or interference as in many Latin American countries. A business-oriented government encourages foreign investment. A government that realizes the value of private business to a developing country backs all investment. In 1946 Panama's business-oriented mentality led to the creation of the Colon Duty Free Zone, considered to be the second largest free trade center in the world, after Hong Kong. In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.

Capital Gains tax: Since the enactment of Law 8 of 1956, successive legislation has been passed offering tax benefits to developers. It has been widely accepted that, as a result of these incentives purchasers of real property have also benefitted. This tax is applicable if there is a capital gain. This tax is also regulated by Article 701 and applied at a flat 10% rate, whether a corporation or an individual is acting as a seller, on the gain resulting from the price of the sale minus the price of the acquisition by seller, as well as registration, notary and real estate agent expenses. If there is no capital gain on the transfer of a property, the 2% transfer tax, is also paid in advance for the sale, levied on the difference between the price of the sale or an appraised value increased at a 5% yearly rate (whichever is higher) and the price of acquisition by the seller.

Popular investment areas: Panama City has become a cosmopolitan modern metropolis - there are many raise buildings overlooking the ocean and the Bay of Panama. Exclusive residential areas like Marbella, Paitilla, Coco del Mar, Punta Pacifica and San Francisco offer a good range of apartments and condominiums for sale. Suburban residential areas in the former Canal Zone like Amador Heights, Balboa, Albrook and Clayton offer large and attractive single-family homes and condominiums. Casco Viejo -- the oldest city on the Pacific Coast of the Americas -- has become a desirable place for real estate investment, encouraged by the Panamanian government Casco Viejo investment incentives for the restoration of the historic Casco Viejo district. Outside Panama City, there are beautiful real estate properties located in popular destinations including, Chiriqui, El Valle, and Altos de Maria. Known mostly for their cooler climates, incredible flora and quiet peaceful atmosphere, real estate in the highlands of Panama are ideal for those interested in retiring abroad. Bocas del Toro is another popular destination for Panama real estate. Most known for its crystal clear waters, rich Antillean culture, unique over-the-water architecture and laidback tropical atmosphere. In recent times, Bocas del Toro has become a booming center for European and American Expats, as well as an impressive number of tourists. Several of these destinations are also considered Tourism Development Zones, where additional tax benefits are granted to investors in hotel projects. Real Estate Values in Panama and primarily in these Pacific Coast Beach areas has been appreciating very steadily, and as interest and growth increases so to do the real estate values.

Price ranges: The Panamanian government incentives for the restoration of the historic Casco Viejo district encourage investment here, this area reminiscent of New Orleans or SoHo years ago abounds with shells of graceful buildings that are crying out for renovation. Outside of Panama City excellent real estate properties are available for developers and individuals. The more remote the location the more reasonable the cost but be aware that you may be far from utilities or roads. The real estate in Bocas del Toro offers beautiful Caribbean beach property. Here palm-fringed golden sands surround the islands and turquoise waters where the rain forest meets the ocean. Here families shop by boat, enjoy water sports and the natural beauty of this wonderful location - better yet it is still affordable.

Budgetary guide: Prices per square meter in Panama vary according to the location (city, mountain, beach). In the city, you may find prices starting 1000$ per square meter in a new condominium. In the mountain, the price may drop down to 20$...yes this is not typo however in those cases you might want to research the access possibilities to this property. Many areas in the mountains have no road of access and local transportation might not be available. In the beach, prices depend on the zone. An hour away from the capital prices start at 600$ per square meter depending on the quality of the beach and neighborhood.

Service Fees: Fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in Panama.The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include; (1) the legal property transaction fee of US$1200 (includes; title search, buy/sell contract, closing, & property title transfer service), (2) public registry title transfer fees of approx. US$2.50 per every US$1,000 of the sales price and – if applicable - the mortgage amount, (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction), and (4) incorporation fee of US$1000 to setup the Panama corporation. However, if the property is held by a Panama corporation already, and the buyer is purchasing the shares of the corporation, then the transaction is relatively simple because there is no registration of title transfer, meaning that there is no title transfer tax, and no public registry title transfer fees. In this case, the closing costs would include; (1) the legal property transaction fee (includes; title search, review of tax liabilities, purchase of shares contract, and closing for US$800), (2) change of directors / resident agent of the corporation (approx. $350), and (3) escrow fees from 0.5% to 1% of the transaction amount (vary depending on amount of transaction).The notary and public registry costs total up to approximately $200 to $300 depending on the particular transaction. Title transfer taxes are by law paid by the seller. Escrow fees (if an escrow company is used), are normally paid by the buyer, and range from one half of one percent (0.5%) up to one percent (1%) of the transaction.

Mortgages: Between 60% - 70% of the purchase price or appraised market value, whichever is the lesser. Interest Rate from 5.5% to 6.5%, plus FECI tax of 1% per year.

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For more information go to:
www.slampanama.com
www.pensionadovisa.com
www.strategicpointconsulting.com

Can Panama Become the Singapore/Rotterdam-style Hub for Latin America?

at 11:25 am by David

• Keynote: H.E. José Domingo Arias, Vice Minister of Commerce and Industry, Panama
• Keynote: Philip Yeo, Chairman, SPRING Singapore, Special Adviser for Economic Development, Prime Minister’s Office (view background presentation)
• Keynote: Frank Heemskerk, Member of the Board of Management, Royal Haskoning
• Moderator: Don Ratliff, Executive Director, Georgia Tech Panama Logistics, Innovation & Research Center

Frank Heemskerk: Happy to see economic relations between Panama and Netherlands growing stronger. President Martinelli is visiting Netherlands this year, discussing how to avoid double taxation between the countries. These have been some of the fastest negotiations ever.

Location is important, but it needs to be maintained and shared. The Netherlands’ success is a combination of location, business/tax climate, and quality of life. Education is very important and people want the best environment for their children. Freedom of press and freedom of speech — this is what people want. The Netherlands has met these goals and this the reason for their success.

Panama outpaces the Netherlands on GDP growth, but this an advantage to the Netherlands and to Singapore as it creates more wealth and more trade for the entire world.

José Domingo Arias: Panama has been developing it’s place as a trade and logistics hub for 400 years, starting with the gold trade from the continent’s Pacific coast to Spain. Terms have now changed. Trade comes from the west of the United States and travels to the east.

The Canal will expand its capacity to be able receive bigger ships. This takes a great deal of investment. Panama is already the eleventh most competitive country in the world, and offers the most efficient and competitive port in the Western Hemisphere. The free trade zone of Colon moves $20 billion in trade a year. The airport Tocumen is seeing 12 million passengers per year and expected to see this grow to 14 million. The government is also in the process of building the highway between Panama City and Colon and extending the highway across the country. The most important thing is that the government is doing all this with global commercial partners.

We are focusing on developing teaching and education in Panama, especially executive education. Most of these students are from the public sector. Our long term project is to renovate the country’s entire education system. Our private partners and universities have the capacity to identify their needs are and will handle their training.

Experience exchange with Singapore and the Netherlands is vital for us. We have studied their model. We are learning enormous amounts from Singapore in terms of technology, a field in which they have considerable experience. Someone from the private sector asked me what guarantees we could provide that we can deliver. Our prestige is on the line, and our style of the administration is to get things done.

Panel conversation: Success comes from collaboration of the private sector, the public sector, and investigations. The impressive thing about Singapore is they never stop trying to be the best, even though they are considered by many to be the best. Panama is trying to encourage entrepreneurship. How can it encourage creating a “critical mass” of ideas?

Will East coast U.S. ports on the East Coast be able to handle new big ships that will be passing through the expanded Canal? If not, this will be to Panama’s advantage as it mean ships will be unloading their cargo, although the United States will catch up eventually.

Panama is more of a logistics hub than a trade hub. Panama needs to build on this and improve. Suggestions include broadening the agenda using better social policy and better water management. Singapore and the Netherlands have been able to convince shippers of the value of going through Rotterdam’s and Singapore’s ports. They’re efficient, tariffs are cheaper, and they’re easier to use. Panama should follow these models.

More in http://www.as-coa.org/blogs/panama2011/

24 Feb 2011: Panama - Where the World Meets

PANAMA
WHERE THE WORLD MEETS

Thursday, February 24, 20118:00 a.m. to 3:45 p.m.Registration: 8:00 a.m. to 8:30 a.m.Presentation: 8:30 a.m. to 3:45 p.m.
Panama Marriott HotelSalon Campo AlegreCalle 52 y Ricardo AriasPanama City, PanamaMap of location

Panama is set to continue growing at one of the fastest paces in Latin America. For 2010, Panama’s growth is expected to be 7 percent, and the IMF and UN forecast the country will lead GDP growth in the region over the next five years thanks in part to its public investment plans, which is close to $20 billion for the 2009 to 2014 period. More than 40 multinational headquarters have moved their regional operations to Panama due to its economic and political stability and have taken advantage of its strategic position and government incentives to attract investment. By continued strengthening of its logistics sector, Panama may be well positioned to become the Singapore-style hub for Latin America, providing foreign investors with a high-standard regional platform to develop its products and services in order to reach other markets.
For the second consecutive year, AS/COA, together with the World Bank and the government of Panama, is organizing a conference to provide an in-depth analysis of these issues. This year, the conference will be focused on the country’s economic prospects and the efforts and challenges to improve its competitiveness in the logistics sector.
Please join us as we address these issues with a group of internationally recognized senior business executives, government officials, economists and investment analysts.
CONFIRMED SPEAKERS:
Ricardo Martinelli, President of Panama
Demetrio Papadimitriu, Minister of the Presidency, Panama
Alberto Vallarino, Minister of Finance and Economy, Panama
Roberto Henríquez, Minister of Commerce and Industry, Panama
Alberto Alemán Zubieta, CEO, Panama Canal Authority
Edgar Blanco, Research Director, Center for Transportation and Logistics, MIT
Tanya Avellán, Director, Central America, Coca-Cola FEMSA
Frank Heemskerk, Member of the Board of Management, Royal Haskoning
Samuel Israel, CEO, Latin America, DHL Global Forwarding
Felipe Jaramillo, Central America Director, The World Bank
Sergio Luna, Vice President, Department of Economic and Sociopolitical Research, Citi Latin America
Rubén Ramírez, Representative Director, Panama, CAF
Don Ratliff, Executive Director, Georgia Tech Panama Logistics, Innovation & Research Center
Stefan J. Roehr, Director, Latin America Supply Chain, Sanofi-Aventis
Jordan Schwartz, Lead Infrastructure Economist, Latin America and the Caribbean, The World Bank
Peter V.A. Shaw, Regional Credit Officer for Latin America, Fitch Ratings
Carlos Urriola, General Manager Manzanillo International Terminal and Senior Vice President, Stevedoring Services of America
Philip Yeo, Chairman, SPRING Singapore, Special Adviser for Economic Development, Prime Minister’s Office (view a background presentation on Singapore’s economic development)
Susan Segal, President and CEO, Americas Society and Council of the Americas
ACCESS THE AGENDA.*

To register go to http://www.as-coa.org/blogs/panama2011/

Widening of Panama Canal results in more spending elsewhere

The $5.25 billion being spent on widening of the Panama Canal is only the beginning of expenditures in the rush to accommodate giant container ships. Billions more dollars will be spent in the United States, as ports rush to expand facilities to receive the post-panamax ships passing through when the expansion is completed in 2014, one hundred years after it first opened.

Panama has been hosting delegations or port authorities and logistics experts from New York to Miami, including Savannah, and Atlanta, Georgia; Charleston, South Carolina; and Jacksonville Florida.

The widening will lead to the biggest shift in the freight business since the 1950s, when ships first started using giant containers of equal size.

Some of the ships known as post-Panamax can carry three times as many containers as the largest ships currently making the 48 mile transit.


The widening will also allow the U.S. Navy to transit some of its super sized aircraft carriers that currently have to make the long haul around the cape.

The expansion will enable products made in Asia to be sent directly to the East Coast instead of being unloaded on the West Coast and then sent east by train or truck.

A result could be a shift in business worth billions of dollars to ports, and big savings for companies like Ikea, Home Depot and Wal-Mart, always on the hunt for more efficient ways to serve shoppers in the Eastern third of the United States, where a majority of the U.S. population lives.

To capture some of the new traffic, almost every large East Coast port and those along the Gulf of Mexico have projects under way. Some ports that are too small to handle the giant ships are improving railroads and truck routes, making them more efficient in anticipation of an overall increase in the number of containers coming to the East says the New York Times.

Others want to dig deeper channels and become the leading port in their regions for companies operating the big vessels.

Containers have become the name of the game in shipping says a lead article. Although cruise ships and imports and exports of cars, oil and bulk agricultural loads like cotton and fertilizer still make up a good portion of port traffic, most of the growth is in containers filled with products that Americans like to buy.

The newest, biggest ships can carry the equivalent of as many as 15,000 containers that are 20 feet long. But they are also heavier, wider and require deeper water. In Savannah, for example, the water is only 42 feet deep. That is enough, with tidal variations, to handle ships loaded with 5,500 containers.

The port at Norfolk, Va., is 50 feet deep, and is the only one on the East Coast that can handle the biggest, fully loaded container ships.

The navigation channel that feeds the Port Newark-Elizabeth Marine Terminal in New Jersey is deep enough, but the Bayonne Bridge is not tall enough for the new container ships to pass under.

Officials at the Port Authority of New York and New Jersey are studying options. They might raise the bridge by 64 feet. A study estimated the cost at $1.3 billion.

As Savannah port officials are learning, digging up six feet of mud is not easy or cheap. Environmentalists are concerned that dredging will cause historic Savannah buildings along the shore to tumble into the water, suck sand from the shores of Tybee Island and ruin freshwater marshes.

The Corps of Engineers' environmental impact document, issued after a 14 yearstudy, suggested deepening but not widening the channel to protect the buildings along the shore and adding 3,000 acres of wildlife preservation land to help offset the impact on freshwater marshes.
http://www.dredgingtoday.com/2010/12/13/panama-canal-expansion-to-bring-major-benefits/

Panamapundit logs off

Panamapundit is the username of Sam Taliaferro in his Panama Investor Blog postings until his unfortunate passing away. In his blog he provided updates about business developments in Panama not readily available in English, analyzed from a pro-business perspective and his experience developing a resort community in Panama. He will be missed....

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Samuel Walker Taliaferro VII

June 10th, 1952 – February 17th, 2011

Sam Taliaferro, devoted father and husband, developer, entrepreneur and cherished friend to hundreds of people around the world, passed away early this morning after a two year battle with cancer.

Words like "pioneer" and "visionary" are used frequently to describe successful people but few truly deserve those titles as much as Sam.

http://primapanama.blogs.com/_panama_residential_devel/2011/02/samuel-walker-taliaferro-vii.html#tp

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An inventor by profession, Sam developed and patented numerous technologies used by fortune 100 companies throughout the world. He built a number of manufacturing operations to build these technologies, the last one in Costa Rica in 1995.

In 2000 he had an idea to create Valle Escondido, a residential resort community in the mountain highlands of Panama that would appeal to those looking for an exotic yet first world lifestyle. The small village where the project is located has become known throughout the world as a retirement/tourist hot spot due to his marketing efforts and the success of the development. It was rated the number one foreign retirement destination in the western hemisphere by the AARP in 2002 and one of the top five best lifestyle values in the world by Fortune Magazine in 2005. The success of the project lit the fuse that started the real estate boom (and bust) in Panama.

In 2005 Sam began writing the Panama Investor Blog which focuses on the country from an investors prospective and reaches people interested in Panama from all over the world. Current subscription is about 7000.

Sam and his wife Thalia also operate the Valle Escondido resort Golf & Spa located in the center of the residential project. The resort employs about 80 full time Panamanians and is one of the areas largest employers.

http://primapanama.blogs.com/_panama_residential_devel/who-is-sam-taliaferro.html

Abuses by Panama Immigration Directors reach Inter-American Courts

Abuses by Panama Immigration Directors against migrants now have resulted in a decision against the Republic of Panama by the Inter-American Court of Human Rights. Ecuadorian citizen Jesús Vélez Loor entered Panama in November 2002, when he was detained by the National Police border post in Tupiza, Darien. A detention order was issued by the then Director of Immigration - at the time Ilka de Barés, unnamed in the decision - and Vélez was mixed with the criminal population at La Palma jail. This was the 2nd time Vélez entered Panama without a permit, so he was convicted without due process under an administrative order to 2 years of imprisonment at La Joyita Detention Center.

Why are Panama taxpayers saddled with having to pay the penalties ordered against the Republic for abuses by unelected public officials ?

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UPDATES FROM THE REGIONAL HUMAN RIGHTS SYSTEMS UPDATES FROM THE REGIONAL HUMAN RIGHTS SYSTEMS

Inter-American court of human rights rules against Panama for torture and wrongful detention of Ecuadorian migrant

In November 2010, the Inter-American Court of Human Rights (Court) ruled against Panama in its first case addressing the vulnerability of irregular and undocumented migrants. The decision in Vélez Loor v. Panama came seven years after the Court issued an advisory opinion on the rights of undocumented migrants. The opinion concluded that all migrants, irrespective of migratory status, must be guaranteed due process of law and full “enjoyment and exercise of human rights.” The advisory opinion also stipulated that states must affirmatively act to avoid limiting or infringing on the fundamental rights of migrants.

In November 2002, Panamanian police arrested Jesús Vélez Loor, an Ecuadorian national, for entering the country without appropriate documentation. He was subsequently transferred to a detention facility and sentenced, without legal representation or awareness of the proceedings against him, to two years imprisonment for entering Panama illegally multiple times. Vélez Loor testified to the Court that while imprisoned, he was subjected to tear gas, burns, sexual abuse, and beatings resulting in a cracked skull. Desperate to ameliorate his situation, Vélez Loor started a hunger strike and partially sewed his mouth shut. After Vélez Loor had endured deplorable conditions and abusive treatment for ten months, the Ecuadorian Consulate and Panamanian immigration authorities arranged his deportation, sending him back to Ecuador in September 2003. Although he reported his torture and the Panamanian Office of Foreign Affairs initiated an investigation, Panama made no further efforts to investigate Vélez Loor’s abuse. Vélez Loor, still suffering medical and psychological trauma as a result of his torture and prolonged detention, continues to speak out about the severe violation of his rights in the hopes that what happened to him “never happens to anyone else again.” More information on his story can be found on his blog at http://jessloor.wordpress.com//.

In Vélez Loor, the Court found that Panama violated the petitioner’s rights to humane treatment (Article 5), personal liberty (Article 7), judicial protection (Article 25), and fair trial (Article 8) under the Inter-American Convention on Human Rights (Convention). It also found that Panama violated Vélez Loor’s rights under the Inter-American Convention to Prevent and Punish Torture. Additionally, the Court ruled that Article 67 of Panama’s 1960 Decree Law No. 16, which allows punitive sanctions for violations of migration laws, is incompatible with the Convention when used as a basis for arbitrary incarceration. Rather, the Court held that states should only detain migrants sparingly and on an exceptional basis, for the shortest time and least restrictive means possible. Moreover, if an administrative body orders detention, a judge or tribunal must be able to review the decision and the detained migrant must be able to contact and receive help from his country’s consulate.

The decision indicates the Inter- American System’s intolerance of discriminatory, abusive, and punitive treatment of undocumented migrants as part of states’ broader attempts to curb illegal migration. With more than 214 million migrants worldwide and estimates of upwards of 400 million in the year 2050, increased attention to treatment of migrants and reform of broken immigration systems will be crucial. In Vélez Loor, the Court ordered Panama to pay monetary reparations to Vélez Loor, further investigate his allegations of torture, implement capacity- building measures for officials to enhance the investigation of torture claims, and provide appropriate detention facilities for those migrants it determines require state custody.

Full text in http://www.wcl.american.edu/hrbrief/18/3hrsystems.pdf?rd=1

Panama and Qatar Sign Tax Agreement

After many announcements and press releases, the Qatar refinery in Panama has not broken ground yet. At least they signed a double taxation agreement...

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HH the Emir Sheikh Hamad bin Khalifa al-Thani and Panama President Ricardo Martinelli witnessing
the signing of an agreement on the avoidance of double taxation and prevention of fiscal evasion
with respect to taxes on income and the protocol between the governments of the two countries in New York.

www.gulftimes.com

See also:

Panamá y Qatar firman tratado para evitar la doble tributación
Qatar and Panama sign agreement

Panama and Cyprus Discuss Tax Agreement

Panama and Cyprus are both countries which rely heavily on maritime logistics, banking center and tourism.

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Meeting of President Christofias with the President of Panama
23/09/2010

The President of the Republic Mr Demetris Christofias had a meeting, yesterday, with the President of Panama Mr Ricardo Martinelli.

Present at the meeting was also the Government Spokesman Mr Stefanos Stefanou, the Permanent Representative to the UN Ambassador Minas Hadjimichael and the Director of the Diplomatic Office of the President, Ambassador Leonidas Pantelides.

After the meeting President Christofias made the following statement:

"I had a very cordial and friendly meeting with the President of Panama, which he requested. Panama is a friendly country to Cyprus, we are together at the Non – Aligned Movement for several years, with a very firm position on Cyprus issue. Of course, the President has reaffirmed his position that Panama stands by Cyprus in its effort to reunite the country and implement the international law and the UN Resolutions on Cyprus.

Moreover, we talked about the need to expand bilateral relations between the two countries. Agreements are underway about the avoidance of double taxation and, also, the abolition of visas in both countries. We also talked about the need to develop economic relations between the two countries. The distance is great and this is the only problem, but I believe that there is enough that connects us, which we should take into consideration."

Asked if the possibilities of cooperation between the two countries for shipping issues were discussed, the President of the Republic said:

"These issues were discussed a few times, they are on the agenda too, but I repeat, the distance is great. The Government of Panama is doing whatever possible to avert the docking of the ships under Panamanian flag, in Famagusta".
www .presidency.gov. cy

See also:
Panamá y Chipre firmarán tratado para evitar doble tributación
New Ambassador of the Republic of Cyprus to Panama - 03/11/2010

Панама корпорации закона

Панама

Официальное название: Республика Панама
Площадь: 77 000 кв. км.
Численность населения: 32 560 000 чел.
Столица: Панама
Государственный язык: испанский, английский
Денежная единица: бальбоас, доллар США

Общая информация.

Уникальное географическое положение Панамы, занимающей длинный узкий перешеек между Атлантическим и Тихим океанами, издавна делало ее оживленным морским торговым перекрестком. Уже в начале XVI в., вскоре после открытия перешейка Колумбом, конкистадор Бальбоа по заданию испанского короля приступил к поиску соединяющего океаны морского пути. Он вышел через горы и тропическую сельву к тихоокеанскому побережью, но пролива не обнаружил. Безуспешными оказались и последующие попытки. Так что возникший в 1519 г. на месте индейской деревушки город Панама почти 400 лет оставался не межокеанским портом, а сухопутной перевалочной базой для ценностей — прежде всего золота и серебра, отправлявшихся из колоний тихоокеанского побережья Южной Америки в Испанию.

Преимущества:

• Панама является офшорным центром уже более 75 лет.
• Нерезидентные компании освобождены от налогообложения.
• Соблюдается конфиденциальность информации о владельцах, акционерах, директорах.

Законодательство о компаниях General Corporation Law, 1927; Law Regulating Enterprises of Limited Liabilty No. 24. Тип безналоговой компании Limited Panamian Corporation (LPC) — компания с ограниченной ответственностью, Partnership - товарищество. Разрешенная деятельность Любая незапрещенная деятельность. Запрещенная деятельность Вести бизнес с резидентами Панамы, за исключением фирм, предоставляющих юридические, бухгалтерские, банковские, консалтинговые и др. услуги, администрирование трастами и фондами. Владеть недвижимостью на территории юрисдикции. Вести банковскую, страховую, экспедиторскую деятельность без получения специальных лицензий и разрешений. Налогообложение Полное освобождение SAFI от налогов. Ежегодные отчисления Лицензионный сбор 600 USD (300 агенту, 300 регистрационному органу). Валютный контроль Нет. Соглашения об избежании двойного налогообложения Нет. Срок и условия регистрации новой компании 10 дней. Требования к названию компании Возможно любое название, не зарегистрированное в реестре, указывающее на международный бизнес. Уставный капитал 10 000 USD, разделенный на 100 акций по 100 USD каждая Для Limited Partnership уставный капитал составляет 2000—500 000 USD Нет требований относительно минимального уставного капитала. Предложенный уставный капитал Акции без номинальной стоимости и на предъявителя должны оплачиваться полностью. Акции на предъявителя хранятся у агента. Акции Акции на предъявителя или именные, с номинальной стоимостью или без номинальной стоимости. Акционеры Минимально — один. Директора - количество - требования - полномочия Три директора. Нет требований к национальности и гражданству. Требования к собраниям - директоров - акционеров Нет требований к проведению собраний директоров и акционеров. Зарегистрированный офис Обязательно. Секретарь - количество - требования - полномочия Нет требований. Зарегистрированный агент Один. Необходимость - ведения бухгалтерии - сдачи годового отчета Нет. Нет. Нет. . Конфиденциальная информация Сведения о владельцах, директорах, акционерах.

Source: Tax Consulting UK.

Panama as Regional Business Hub

Because of the geographical position of Panama, located in the center of the American Continent, with access through land, sea and air, with a tropical year round climate, free of natural disasters. With an open service economy, capable human resources, dollarized economy, the international finance center, world class logistics platform and economic political and social stability, make Panama the ideal site for making businesses in the region.

WHY INVEST IN PANAMA?

Panama is a country with a service vocation, that possesses a privileged geographical location, that has allowed us to become one of the most important logistic centers of the Western Hemisphere for the storing and distribution of world cargo, a bridge for the mobilization of passengers to the entire American Continent and facilitator of efficient and modern communication services. As a commerce promoter, both nationally and internationally, Panama enjoys political, social and economic stability.

Panama has gone from being a bridge to becoming a logistic platform by air, sea and land, with the Panama Canal as main axis, transporting over 300 million of CPSUAB (Container, Bulk, etc.) presently serving more than 14,000 ships through 144 maritime routes and complementing with a system of container terminals in the Pacific and the Caribbean, that serve as cargo transship and redistribution, that recorded an annual movement of containerized cargo of 4.25 million TEU's, added to the inter-oceanic railroad that has a capacity 330,000 containers per year from one coast to anther. Panama also has the Colón Free Zone, the most important one in the Western hemisphere, with an annual trade exchange of over 19 thousand million dollars through its approximately 3,000 companies established in the Colón Free Zone. The development of the Panamá Pacífico Special Economic Area, in the former Howard Air Station, will serve as a space destined to the production of goods and high technology services.

We offer an efficient air service through the Tocumen International Airport, presently undergoing a remodeling process for offering a comfortable and safe atmosphere to all the travelers that visit our country and an expeditious and efficient attention to the transiting passengers, who do not go through customs or migration checks. From the airport the Copa Airline operates its Hub that offers more than 46 destinations to 25 countries in America and excellent connections, some of them with three daily flights to the most important cities of Latin America. In addition we account for with an excellent internal offer of direct flights to the principal cities of the interior of the country.

Panama has become the preferred center for the installation of five submarine optical fiber cables, turning into the ideal place for telecommunication companies and data centers since we have the advantage of offering great connectivity with North and South America, Europe, Asia and the Caribbean, advantages that companies have learned to use effectively, such as MCI, Cable & Wireless and Movistar that offer cellular telephony services and first quality internet to the international market.

Our prestigious International banking Center, with over 93 internationally renowned banks, reflected for the first Quarter of 2010, assets in the order of US$ 65,000 millions.

Our medical and health services are well known internationally and they have the two best private hospitals of the Central American region; equipped with the most recent medical technology, and they are affiliated to world famous hospitals such as the Baptist Hospital in Miami, Florida and the Johns Hopkins Medical Center in Baltimore, Maryland.

Our tropical climate and varied tourist offer sets us among those preferred for the travelers that can find in our country picturesque indigenous and colonial communities, white sand beaches and coral reefs with indescribable beauty, mountains with fresh climates and tropical jungles with an exuberant vegetation, habitat of innumerable flora and fauna species. And with our excellent highway network and short distances the country can be toured in only six hours.

For these reasons, Panama has been chosen by important multinational companies such as Samsung Electronics, Inc., DHL, DELL, Hutchinson Port Holding Group, HSBC, BICSA, SCOTIABANK, Assicurazioni Generali, American Life Insurance Company and many more, as main offices for their regional operations. In addition, some of the most recognized International Organisms such as UNICEF, UNDP, OAS, the Spanish Agency for International Cooperation (AECI, initials in Spanish), and the BLADEX [Latin American Export Bank] among others, have chosen Panama for establishing their operations.

Panama offers goods and services at reasonable prices as compared to its nearest neighbors, with Free Trade Treaties (TLC, for initials in Spanish) with Taiwan, El Salvador, Singapore and Chile. Furthermore, we are going through the final negotiations of a TLC with the United States and Central America and we are preparing our entrance in the G-3.

http://proinvex.mici.gob.pa

$2.6 billion in loan guarantees vs. 13,000 jobs

Right after the U.S.-Panama Tax Information Exchange Agreement was signed by Vice-President Juan Carlos Varela, he attended the signing of an agreement for the US $2.6 billion purchase by COPA airline (NYSE: CPA) of 32 Boeing (NYSE: BA) airplanes, with financing guaranteed by the U.S. Export-Import Bank http://www.exim.gov .

The same day that 13,000 jobs of the Panama financial center are put in jeopardy, a Panamanian multinational secures financing guaranteed by the U.S. taxpayer. Quid pro quo?

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Copa and Boeing sign largest ever Panama-US business deal

Wednesday, 01 December 2010 17:35


Panama's principle airline Copa, and the Boeing aircraft company signed a $2.6 billion dollars agreement for the purchase of 32 aircraft onTuesday (November 30).

It was the largest ever business transaction between the U.S. and Panama

The ceremony took place at the U.S. Department of Commerce, soon after the signing of a tax disclosure agreement between the two countries.
Panamanian vice president and foreign minister, Juan Carlos Varela represented the government at the ceremony along with the chief executives of both companies: Pedro Heilbron of Copa Airlines, and Jim Albaugh of Boeing.

The 32 aircraft will be delivered between 2015 and 2018, and are part of the planned growth of the company, said Heilbron.

Copa Holding's president, Stanley Motta, and Vice President of Finance, Victor Vial, shared details of the funding for the deal, which was supported by a group of international banks such as Citibank, JP Morgan Chase, BNP Paribas, and Bank Exim.

Motta said the loan was agreed at very low rates for the guarantees provided by the Exim Bank.

http://www.newsroompanama.com/business/2033-copa-and-boeing-sign-largest-ever-panama-us-business-deal.html

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EX-IM BANK SUPPORTS $132 MILLION US AIRCRAFT SALE TO PANAMA
Largest Ever Ex-Im Bank Transaction To This Country

The Export-Import Bank of the United States is providing a $113 million long-term guarantee to support the $132 million export by The Boeing Co., Seattle, WA, of four B737-700 aircraft plus two spare engines made by CFM International, Inc., Cincinnati, OH, to Compania Panamena de Aviacion, S.A. (COPA), Panama City. Each Boeing aircraft is also equipped with two CFM engines.

"This is the largest transaction ever authorized by Ex-Im Bank for a company in Panama," said Ex-Im Bank Chairman James A. Harmon. "We are delighted to finance US exports that support economic growth in this important Central American market while sustaining US jobs at thousands of Boeing subsuppliers at home."

Ex-Im Bank has supported Panamanian customers for over 50 years. This latest transaction is more than double the previous record-setter, a $60 million financing of a gas turbine export in fiscal 1994.
...

Full text in http://www.exim.gov/pressrelease_print.cfm/070FCCF7-0A18-EFDE-9CA82347DE2AAF8B/

http://mire.gob.pa/noticias/vicepresidente-y-canciller-varela-orador-en-firma-de-contrato-entre-copa-airlines-y-la-comp
http://www.dialogo-americas.com/en_GB/articles/rmisa/features/regional_news/2010/12/03/feature-03
http://www.ascendworldwide.com/2010/12/copa-airlines-completes-order-for-32-boeing-737ngs-valued-at-usd-26bn-seeking-financing-from-eximban.html
http://www.allbusiness.com/transportation/air-transportation-airlines/5896820-1.html

History of Real Estate Agents

December 28 in Panama is Innocents' Day which is similar to April's Fools Day and remembered with hoaxes. For the next time you are looking at properties in Panama with a real estate agent, here is a joke to share from Kelly's.com:

6 MILLION BC: God searches for a planet to establish life. Encounters real estate agent from "Lucifer's Planets & Gardens" who says "I've got a great deal on a fixer-upper just 90 million miles from the Sun."

5.9 MILLION BC: God buys the Earth and, after the closing, discovers it is a mass of molten goo. Angry, God confronts the agent and banishes him to spend eternity wearing polyester suits.

4 MILLION BC: God creates the ocean and the seas. By accident, a pool of pond scum transforms itself into the National Association of Realtors.

3.5 MILLION BC: God creates Florida.

3.49 MILLION BC: Thousands of real estate agents crawl out of the ocean to scout good condo locations. Market immediately crashes when agents realize that "snow birds" won't be invented for another 2 million years.

3 MILLION BC: A meteor crashes into Earth. The resulting crater creates a giant black hole filled with green ooze. The Multiple Listing Service is born.

2.45 MILLION BC: God makes Adam and Eve. However, delays in constructing Garden of Eden force Adam and Eve to live in an apartment eight months.

244 MILLION BC: Shopping for a move-up garden, Eve visits an Open Garden and encounters a fork-tongued real estate agent who tells her, "Garden, why would you want another one of those? I've got an entire apple orchard you can have real cheap."

243 MILLION BC: Adam and Eve become the first humans to truly understand what it means to buy from a real estate agent.

550 BC: Jealous of rising property values, real estate brokers in Greece devise a way to attack Troy by using a Trojan Horse.

42 BC: Cleopatra decides to build the Pyramids. Real estate agent and builder try to convince her that Squares would be much cheaper.

30 BC: Rome touted as "the hottest housing market in Europe" Thousands of buyers flock in to make deals with real estate agents.

29 BC: Rome real estate crashes. Julius Caesar calls a meeting of his advisors to see what can be done. Chief real estate broker Brutus suggests Caesar tours Rome to inspire consumer confidence. "Just lead the way," Brutus says, "I'll be right behind you."

500 AD: Middle ages bring major real estate slowdown. Agents are forced to take second jobs as undertakers. Scandal breaks out when agents are discovered to be removing gold fillings from dead people.

1308 AD: Real estate agent list a tower in Pisa, Italy as a "one of a kind property. Solid building guaranteed not to lean."

1492 AD: Christopher Columbus lands in America. However, he mistakenly believes he's in India, thanks to a bogus land survey provided by a Spanish real estate broker.

1620 AD: Pilgrims land on Plymouth Rock. First colonial real estate agent promises Pilgrims that Massachusetts is "always sunny and warm. Never drops below 70 I swear."

1621 AD: Giant blizzard nearly wipes out Pilgrims. Real estate agent is banished to New Jersey.

1626 AD: Manhattan bought for 100 beads and trinkets from the Indians. The Indians' real estate agent takes 6 beads as a commission.

l803 AD: Napoleon shocks and angers French real estate agents when he sells Louisiana to United States without an agent. At 515 million, sets record for largest "FSBO" (for sale by owner) sale in history.

1867 AD: United States purchases Alaska from Russia for 2 an acre, after Russian Czar is given advice by real estate agent that Alaska is "utterly useless" land with no value at all.

Why Tax Information Exchange Agreements Are 'Toothless'

Despite the ominous messages being communicated to the public, taxpayers have little to fear from the tax information exchange agreements (TIEAs) to which most tax havens have rushed to commit.

July 16, 2009
by Kristofer Neslund, CPA/DBA

.... the flaws in the Model TIEA overwhelm its positives.

Weaknesses

The OECD has frequently noted that havens that had agreed to adopt the TIEA failed to implement it. There is a real concern that some or many of the haven jurisdictions that rushed to announce their commitments to the TIEA were simply playing for time, hoping the furor will die down before they actually have to implement the agreements.

Domestic bank secrecy laws trump these agreements. Indeed, UBS has raised Swiss bank secrecy laws as its primary defense in the current John Doe summons enforcement proceeding.

Havens are exempt from supplying information they do not collect and they often collect little. The British Virgin Islands, for example, has more than 400,000 registered corporations but requires neither the identification of shareholders or directors nor the maintenance of financial records.

Severe procedural restrictions are imposed to preclude "fishing expeditions" — i.e., broad, general inquiries. Automatic information sharing is expressly excluded.

The requesting jurisdiction must:

- Identify a specific person,
- Identify the specific information sought and the tax purpose for seeking it,
- Identify why it believes the information is within the requested jurisdiction and
- Demonstrate that it has exhausted all other means for obtaining the information.

The result is a slow and unwieldy process that precludes serious real-time help to tax authorities. Offshore tax cases are complex and labor-intensive, taking 500 days longer than normal to develop. The cumbersome, low-yield information exchange process contributes to these delays and deters the IRS from aggressive enforcement. Even when the government has proven criminal activity, the process is ineffectual. The U.S. sent tax information requests to Switzerland after UBS admitted to criminal activity; it received back only 12 names (out of an estimated 52,000 U.S. accounts holding $15 billion). It is not surprising that there are only a few dozen TIEA requests each year. To be of genuine value, information sharing needs to be comprehensive, real-time and automatic.

Critics argue that the havens' rapid adoption of Model TIEA is little more than public relations, allowing them to make a show of cooperation while going about business as usual, supported by governments that are more than happy to have their taxpayers believe that offshore tax evasion has become much more dangerous.

The OECD's Model TIEA seems to have adopted a lowest-common-denominator approach — offering minimal effectiveness to gain widespread acceptance by havens, in turn allowing world leaders to proclaim a global assault on offshore tax evasion. Given the sharply opposed interests of some of their members, the TIEA's endorsement by the G-7, G-8, G-20, United Nations and EU is supportive of this view.

The establishment of a low information exchange standard for the international community could backfire. Tax havens — little deterred by their TIEAs — are likely to assert that, by having implemented the benchmark standard, they have ceased to be "tax havens." The Bahamas' ambassador to the U.S. has suggested as much on behalf of the Caribbean TIEA adopters. This assertion may be hard to counter without embarrassment; and it may become very difficult to sanction adopting havens when it becomes obvious that their behavior has not changed.

Conclusion

There are many reasons not to engage in offshore tax evasion, but the Model TIEA is not one of them.

The public has been led to believe that all it takes now to open the international information floodgate is a simple request by a tax authority. Not so. The Model TIEA is a slow, largely ineffectual, resource-intensive process that seems unlikely to be used much more in the future than it has been in the past, despite the increased number of haven jurisdictions adopting it.

Tax practitioners should be rendering advice based on the reality, not the perception, of these agreements.

Kristofer Neslund, CPA/DBA, LLM, JD, is an associate professor of taxation at the Golden Gate University.
Read the full text in http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/Tax/Toothless.jsp

U.S., Panama Sign New Tax Information Exchange Agreement

The U.S. has Tax Information Exchange Agreement (TIEAs with the following offshore financial centers:
Bahamas
Barbados
Bermuda
Cayman Islands
Costa Rica
Dominica
Gibraltar
Grenada
Jersey
Liechtenstein
Netherlands Antilles
St. Lucia

The TIEAs with Antigua and Belize were terminated.

Fortunately, Panama law allows entities to redomicile corporations and foundations to other countries...

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In a ceremony at the U.S. Department of the Treasury on Tuesday, November 30, Treasury Secretary Tim Geithner and Panamanian Vice President and Minister of Foreign Affairs Juan Carlos Varela signed a tax information exchange agreement (TIEA) between the United States and Panama.

A press release on the TIEA can be viewed at link; the full text of the TIEA can be viewed at this link; and the TIEA Joint Declaration at this link.

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The Department of State has the honor to refer the Embassy of the Republic of Panama to the
Agreement between the Government of the United States of America and the Government of the
Republic of Panama for Tax Cooperation and the Exchange of Information Relating to Taxes
(“the Agreement”), signed today, and to confirm on behalf of the Government of the United
States the following understandings reached between our two Governments (“the Parties”):
1.
With respect to subparagraph 1(a) of Article 3 (Taxes Covered) of the Agreement, it is
mutually understood by the Parties that the term “all federal taxes” includes the following
taxes imposed by the United States:
2.
With respect to subparagraph 1(b) of Article 3 (Taxes Covered) of the Agreement, it is
mutually understood by the Parties that the term “all national taxes” includes the
following taxes imposed by the Republic of Panama:
(a)
Income Tax
(b)
Real Estate Tax
(c)
Vessels Tax
(d)
Stamp Tax
(e)
Notice of Operations Tax
(f)
Tax on Banks, Financial and Currency Exchange Companies.
(g)
Insurance Tax
(h)
Tax on the Consumption of Fuel and Oil Derivates
(i)
Tax on the Transfer of Movable Goods and the Provision of Services
(j)
Tax on the Consumption of certain Goods and Services
(k)
Tax on the Transfer of Immovable Goods
3.
With respect to Article 9 (Costs) of the Agreement, it is mutually understood by the
Parties that costs that would be incurred in the ordinary course of administering the
(a) Federal income taxes;
(b) Federal taxes related to employment;
(c) Federal estate and gift taxes; and
(d) Federal excise taxes.

domestic tax laws of the requested State shall be borne by the requested party when those
costs are incurred for purposes of responding to a request for information. It is also
mutually understood by the Parties that all other costs are considered extraordinary costs,
and shall be borne by the requesting party. Examples of extraordinary costs include, but
are not limited to, the following:
(a)
fees charged by third parties for research and copying documents;
(b)
fees for non-government counsel or experts appointed or retained, with the
approval of the competent authority of the requesting Party, for litigation in the
courts of the requested party related to a specific request for information;
(c)
fees and expenses of a person who appears for an interview, deposition or
testimony relating to a specific information request. The fees and expenses will
be the ordinary amounts allowed under the laws of the party in which the
interview, deposition or testimony is held or taken.
The competent authorities shall consult with each other in advance if extraordinary costs
are likely to exceed $1,000, or in the case of subparagraph (c) of this paragraph, $100, in
order to determine whether the requesting Party will continue to pursue the request and
bear the cost.
4.
The Government of the United States of America and the Government of Panama intend
that the Agreement enter into force as soon as is practicable following the enactment of
any legislation by Panama that is necessary under its domestic laws in order for Panama
to comply fully with the terms of the Agreement. The Government of Panama expects
that this legislation will be enacted before the end of 2011. As soon as practicable after
such legislation has been enacted, the Government of the United States and the
Government of Panama intend to take such actions, including exchange of notifications,
as are necessary to cause the Agreement to enter into force in accordance with its terms.
5.
The United States understands that, with respect to the necessary legislation referred to in
paragraph 4, Panama intends to enact legislation requiring the identification of the
owners of bearer shares. The United States further understands that such legislation:
(a)
will require resident agents acting for Panamanian entities to obtain and
maintain in their records information sufficient to identify the owners of
those entities, even in cases in which shares of those entities are issued in
bearer form, including, where the owner is a legal person, information
sufficient to identify substantial owners of that legal person. For this
purpose, a resident agent will not be required to obtain and maintain
information sufficient to identify substantial owners of legal persons in
cases where the resident agent acts for a professional client that is part of

an organization that is required to maintain information on such entities
and that has agreed to make available such information to the resident
agent when requested;
(b)
will require resident agents to produce ownership and client identity
information in their possession in response to a proper request under the
Agreement, whether with respect to newly-formed entities or entities in
existence at the time the legislation is enacted; and
(c)
will require resident agents to obtain such ownership information with
respect to entities existing at the time the legislation is enacted within a
five year period from the date of the enactment of the law.
6.
It is mutually understood that under laws currently in effect, each party is authorized to
obtain and exchange information, including information held by financial institutions and
other fiduciaries, pursuant to a request under a tax information exchange agreement,
regardless of whether the requested party has a domestic tax interest in such information.
7.
Under section 274(h) of the U.S. Internal Revenue Code, an individual may deduct from
income expenses incurred with respect to attendance at a conference or convention held in
Panama in the same manner and to the same extent the individual would be permitted to
deduct such expenses with respect to attendance at a conference or convention held in the
United States, provided that there is in effect between Panama and the United States a tax
information exchange agreement meeting the requirements of section 274(h)(6). It is
mutually understood that the Agreement is intended to meet those requirements.
8.
It is mutually understood that the entry into force of this Agreement does not prevent the
Parties from discussing the possibility of an agreement for the avoidance of double taxation
in the future.
The Department has the further honor to propose, on behalf of the Government of the United
States of America, that the present note and the Embassy’s affirmative reply thereto confirming
that the Government of the Republic of Panama shares these understandings shall constitute an
agreement between the two Governments on these points which shall enter into force on the
same date as the Agreement.
Department of State,
Washington, November 30, 2010

Say goodbye to your BVI bearer shares on December 31, 2010

Many users of British Virgin Islands (BVI) International Business Companies are not aware that by December 31, 2010 they must have turned in their bearer shares to an authorized custodian. An additional tax of One Thousand Dollars (US$1,000) and a custodian fee must be paid every year. Alternatively, shareholders can amend the company charter to prohibit bearer shares and replace any bearer shares for shares made out to a nominee.

Resident Agent / Offices of British Virgin Islands (BVI) Companies are required to remind customers to comply with the BVI BC Act 2004 in relation to bearer shares and the possible consequences of not complying with the new regime which took effect from January 1, 2010.
The consequences for companies that did not comply with the new regime of bearer shares, as confirmed by the BVI regulator, include among others:
- the loss of all rights which a shareholder may have as such("disabled bearer shares") .
- The payment of the cumulative difference between the rate applicable to government companies without bearer shares and the new government rate for companies with bearer shares in custody.
- Fines by the BVI Financial Services Commission (BVI FSC) for breach of the law.
BVI Service providers and Resident Agents reserve themselves the right to provide services such as restoration, change of registered agent, amendments to the charter and articles of association of companies, or to sign documents for companies with disabled bearer shares.
As for companies which nominee director services are provided, information of the new shareholders must be provided, in order to prepare the necessary documentation and to comply with the requirements of the law. Nominee directors who do not receive said information on time, are likely to resign as directors of these companies.
For more information on BVI companies see :
BVI INternational Financial Center www.bviifc.gov.vg/

BVI Financial Services Commission http://www.bvifsc.vg/
Offshore Structures http://mypanamalawyer.blogspot.com/2010/10/are-offshore-structures-for-you.html

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7 May 2004
PRESS RELEASE
BVI PREPARES TO IMMOBILISE BEARER SHARES
ENCOURAGES APPLICATIONS FOR “CUSTODIAN” STATUS FROM JULY

The BVI is poised to take a major step in July towards immobilising bearer shares by starting the applications procedure for custodians of bearer shares.
New legislation will ultimately require all bearer shares in BVI International Business Companies (IBCs) to be held by a custodian and thus immobilised. Companies formed before 1 January 2005 will have until 31 December 2010 to comply.
Companies formed after 1 January 2005 must comply from their date of formation.
To enable custodians to be in place by 1 January 2005, the BVI Financial Services Commission will consider applications to act as custodians from 1 July 2004.
Those eligible to apply as an “authorised” custodian will be service providers licensed under any BVI financial services legislation, as well as bodies corporate incorporated or formed outside the BVI that are not resident in, and do not have a place of business in, the BVI.
Those eligible to apply as a “recognised” custodian will be investment exchanges or clearing organizations that operate securities clearance or settlement systems in a jurisdiction which is a member of the Financial Action Task Force.
All applicants to be “authorised” custodians will have to satisfy the Financial Services Commission that they meet certain “fit and proper” criteria and have the necessary systems in place for safe custody of their bearer shares.
For bodies corporate, the Commission will consider the prudential regulation and anti-money laundering regulations with which the bodies have to comply.
The Commission may attach conditions to its approval and vary or revoke these.
To assist potential applicants for custodian status, the Commission has issued a new Aide Memoire, entitled, Criteria for Approval of Authorised Custodians of Bearer Shares of BVI Incorporated Companies. Besides setting out the criteria the Commission will use when approving custodians, the Aide Memoire addresses, inter alia, the duty of custodians and the grounds on which the Commission may revoke approvals.
Commenting on the new bearer shares regime, Robert Mathavious, Managing Director and CEO of the Financial Services Commission, said, “These measures enable the BVI to comply with all international standards, including the 40 anti-money laundering recommendations of the Financial Action Task Force. They are the result of close cooperation between the BVI private sector, government and regulator. The Commission encourages all potential custodians to apply from 1 July.” NOTES TO EDITORS 1. The Aide Memoire is available on the Financial Services Commission’s website at www.bvifsc.vg 2. The International Business Companies (Amendment) Acts of 2003 and 2004 provide the legal framework for immobilising bearer shares. The Acts are due to come into force on 1 January 2005.
3. The Financial Services Commission (Amendment) Act of 2004 addresses the regulatory framework for immobilising bearer shares, in particular the rules governing custodians. It is due to come into force on 1 July 2004.
4. IBCs will be able to amend their Memoranda of Association to state that they are authorised to issue only registered shares and that these may not be exchanged for bearer shares. They will be required to file this statement with the BVI Registrar of Companies, along with a declaration that they have no bearer shares in issue.
5. The new rules are the result of extensive consultation with BVI service providers. They are based on the recommendations of a private sector panel that the Financial Services Commission convened to examine the issue.
6. Although the IBC (Amendment) Act of 1993 envisaged a deadline for immobilisation of bearer shares of 31 December 2004, the private sector panel recommended a seven-year transition period before the new legislation took effect. A further IBC (Amendment) Act of 2004 gave effect to this recommendation, setting a new deadline for immobilisation of 31 December 2010.
7. Most of the 500,000 IBCs registered in the BVI currently have the power to issue bearer shares. Whether they have in fact issued these and have bearer shares outstanding is not certain.
8. Bearer shares are not unique to BVI IBCs. They are widely used in Europe by non-listed companies and are also popular in Latin America, the Far East and some US states.
http://www.bvifsc.vg/Default.aspx?tabid=134

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If you need a Resident Agent or Custodian for the bearer shares of your BVI company, contact us through our website, by email, Bitwine or Skype

U.S.-Panama Business Group Gears Up For Washington FTA Lobbying Push

Inside U.S. Trade - 10/22/2010
Posted: October 21, 2010

U.S.-Panama Business Group Gears Up For Washington FTA Lobbying Push

A U.S.-Panama business group is planning a new push to lobby the Obama administration and Congress to secure the approval of the long-stalled U.S.-Panama free trade agreement, according to a Panamanian private-sector source.
The U.S.-Panama Business Council will hold meetings in Washington on Nov. 18-19 with U.S. lawmakers, State Department officials and members of the U.S. private sector, this source said. He did not provide further information on what the group planned to discuss during these meetings.
Panamanian sources said the primary obstacle to the passage of the U.S.-Panama FTA remains the demand by the U.S. that Panama sign a tax information exchange agreement (TIEA) with the U.S.
Panamanian Vice President Juan Carlos Varela and U.S. Trade Representative Ron Kirk discussed the tax transparency issue during a Sept. 30 meeting in Washington, according to USTR spokeswoman Nkenge Harmon.
The two officials also discussed U.S. concerns with "certain aspects of Panama's labor regime," Harmon said in an e-mailed statement.
One Panamanian source said during this meeting the U.S. sought to entice Panama into signing a TIEA by saying that in exchange it would allow a tax deduction for U.S. business travelers who visit Panama for conventions, seminars or other meetings.
Such a deduction is currently available for domestic travel, as well as travel to Canada, Mexico, Costa Rica, Guyana, Honduras and some Caribbean destinations, according to Rebecca Wilkins, senior counsel for federal tax policy at Citizens for Tax Justice. However, this deduction is not available if such meetings are held on cruise ships, Wilkins said.
Such an agreement would require the Panamanian government to hand over information on Panamanian bank accounts used by U.S. persons upon request by the U.S. government, which goes against current bank secrecy laws in Panama, they said.
Panama is currently listed on the Organization for Economic Co-operation and Development's "gray list" because of its status as a tax haven. In order to secure removal from the list, a country needs to implement 12 TIEAs or Double Taxation Treaties (DTTs) with full tax information exchange provisions (Inside U.S. Trade, June 11).
As of Oct. 20, Panama had signed nine such DTTs, according to a press release from the office of Panamanian President Ricardo Martinelli. Panamanian sources said three additional DTTs have already been negotiated and their signing is expected before the end of the year.
According to one Panamanian source who opposes the signing of a TIEA with the U.S., a recently passed U.S. law already would require some Panamanian banks to report information automatically on U.S. account holders.
The Hiring Incentives to Restore Employment (HIRE) Act, which President Obama signed on March 18 and is slated to go into effect on Jan. 1, 2013, includes provisions that will require foreign banks that do business with U.S. banks to report information on U.S. account holders in one of two ways, according to Wilkins.
The first option is for these banks to submit a Form 1099 to the Internal Revenue Service that would report the income earned on the U.S. account. The second option is for these banks to fulfill more stringent reporting requirements contained in the HIRE Act, under which the banks would not have to report the total income on the account but would have to provide information on the maximum amount in the account and the aggregate amount of transactions on the account.
In both cases, the banks would have to report the name, address and taxpayer identification number of the U.S. account holder.
Asked if these reporting requirements would make information exchange provisions in the TIEA redundant, Wilkins said this would not be the case. While the HIRE Act provisions would be helpful because they could aid the U.S. in identifying tax evaders by name, the TIEA provisions are also necessary because they allow U.S. authorities to request Panamanian authorities hand over any information about U.S. account holders upon request, Wilkins said.
One Panamanian source said the government had recently implemented a change to its law that would allow Panama's tax agency to gather information on account holders if such information is requested by a foreign government under the DTTs Panama is signing with other countries. He explained that this change was necessary in order to implement the tax information exchange provisions chapters of these DTTs.
TIEAs spell out in great detail the procedure for exchanging tax information between two governments. For example, the TIEA between the U.S. and the Cayman Islands consists of 13 detailed articles in information exchange.
By contrast, the OECD Model Tax Convention Article 26 Panama wants in a DTT with the U.S. is comprised only of five sections outlining basic commitments (Inside U.S. Trade, June 11).

See full text in
http://insidetrade.com/Inside-US-Trade/Inside-U.S.-Trade-10/22/2010/us-panama-business-group-gears-up-for-washington-fta-lobbying-push/menu-id-710.html

Read Also:
Un Acuerdo con Pocos Beneficios
http://competenciafiscal.blogspot.com/2010/06/un-acuerdo-con-pocos-beneficios.html

Nov 17, 2010 'Panama Week' planned in Washington, D.C.

'Panama Week' planned in Washington, D.C.

The new version of "Panama Week" will take place starting Nov. 17 in Washington, D.C.

Félix Carles, president of the U.S.-Panama Business Council, said the motto of this year's event is "Panama, changing world trade."

One of the objectives of the event is to promote the ratification of the free trade agreement between the two countries that is still waiting to be discussed by the U.S. Senate.

It will also emphasize the role of the country as a maritime center, the progress of the Panama Canal expansion and the modernization of Tocumen International Airport.

The Panama Tourism Authority will also discuss its master plan at the event, which is aimed at increasing the number of visitors to the country.
http://mensual.prensa.com/mensual/contenido/2010/09/30/hoy/english/news_4891.asp

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PANAMA WEEK 2010
Panama: Changing Global Commerce
Venue: Washington Hilton Hotel, 1919 Connecticut Ave., NW, Washington, D.C

For registrations and sponsorship opportunities contact UNITED STATES-PANAMA BUSINESS COUNCIL (USPA)
5353 Memorial Drive #2041, Houston, Texas 77007
Tel. (713) 426-0554 / Fax. (713) 426-0375 / E-mail: Panamerica @msn.con http://uspanama.webs.com/pwsponsorlevels.htm

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November 1, 2010

Dear Friends of Panama and the United States

The U.S.-Panama Business Council (USPA) was created in 1994 with the mission of strengthening relations between the United States and Panama, and promoting business opportunities between the two countries. During its sixteen years of existence the Council has organized hundreds of programs and events which have greatly contributed to enhancing relations between the two countries.

Every year the Council organizes a comprehensive program in Washington D.C. entitled Panama Week. This year Panama Week will be held on November 18-19 in the Nation's Capital, coordinated by both the U.S. and Panama USPA associations. We anticipate a strong attendance this year, and several high profiled speakers that will address the numerous business opportunities offered by Panama.

Panama's excellent economic climate has produced positive news over the past five years with annual growth close to double digits. Even in 2009, when the world was impacted by a financial crisis, Panama still registered economic growth. The Panama Canal is undertaking an ambitious expansion, unemployment has decreased dramatically, the country attained investment grade and recently a $13 Billion investment plan was announced for the next five years.

An updated program is enclosed and periodic updates will be published in USPA USA website http://uspanama.webs.com/pwprogram.htmSeveral Ministers from Panama will be attending the program including Minister of Commerce and Industry H.E. Roberto Henriquez, Minister of Tourism H.E. Salomón Shamah, Minister of Energy H.E. Juan Urriola and Deputy Administrator of the Panama Canal Authority Jose Barrios Ng. The traditional black tie Gala Friendship Awards Dinner will be held on the evening of Thursday, November 18th and H.E. Jaime Alemán, Ambassador of Panama to the United States, will be the Keynote Speaker.

We avail of the opportunity to thank sponsors for their generous support. Please review the website for additional information. Should you have any questions you may contact Amb. Juan B. Sosa at (713) 426-0554. We look forward to see you in Panama Week 2010.

Best regards,

Amb. Juan B. Sosa President, USPA (USA)
Amb. Roberto Alfaro President, USPA (Panama)

Nov 1 - 6: Panama Week in Hanoi

The first Panama cultural week is being held in Hanoi from November 1 to 6 to celebrate 35 years of diplomatic relations between the two countries.

The event includes a photo exhibition titled “Discovering Panama” and the Panamanian Film Week will be held at National Library of Vietnam and Hanoi Cinematheque respectively.
During the Panamanian Film Week, “The Fists of A Nation” (Los Punos de Una Nacion, 2005, 73 min) and “Blood is Blood” (Sangre es Sangre, 2008, 25 min) will be screened on November 5 &6, 2010.
The “Panama Week” organized by the Embassy of the Republic of Panama also marks the capital’s 1,000th anniversary.

http://en.baomoi.com/Info/1st-Panama-cultural-week-in-Hanoi/11/78088.epi

From Panama Embassy:The “Panama Week” organized by the Embassy of the Republic of Panama will take place in the first week of November to celebrate 35 years of diplomatic relations. During the “Panama Week”, the exhibition of Photography and Craft titled “Discovering Panama” and the Panamanian Film Week will be held at National Library of Vietnam and Hanoi Cinematheque respectively.
Schedule:Exhibition of Photography and Craft: Discoverying PanamaTime: 01 – 06 Nov 2010, 8 am – 8 pmNational Library of Vietnam31 Trang Thi, Hoan Kiem, Hanoi
Panamanian Documentaries Time: 05 – 06 Nov 2010

Hanoi Cinematheque 22A Hai Ba Trung, Hoan Kiem, Hanoi
During the Panamanian Film Week, “The Fists of A Nation” and “Blood is Blood” will be screened.
Film: The Fists of a Nation Screening time: 05 – 06 Nov 2010, 7.30 pm



Film: Blood is Blood Screening time: 05 – 06 Nov 2010, 9 pm

http://hanoigrapevine.com/2010/10/panama-week/

Panama and Taiwan start talks for signing of Double Taxation Agreement

Photo: With this meeting the Panamanian delegation, lead by the president, Ricardo Martinelli concludes its Asian tour. Photo / Courtesy of the Presidency

During a meeting with Panamanian businessmen and Taiwan, the president, Ricardo Martinelli, announced that the two countries begin talks on signing an double taxation agreement.

"Panama respects foreign investment and we are open to receive new investments," said Martinelli to Taiwanese businessmen who mentioned that with the signing of the Free Trade Agreement, Taiwan companies have invested heavily in developing the service transportation, technology, among others.

On another topic, Martinelli presented to entrepreneurs in Taiwan's competitive advantages offered by the country to foreign investment.

"In Panama they have opportunities to invest in agriculture, real estate, among other areas, where already several companies that have entered this Asian country," he said.

For its part, Taiwan's deputy foreign minister, Thomas Hou Ping-fu noted that Panama is Taiwan's staunchest ally in Central America that have maintained diplomatic relations for more than a century and that these bilateral ties have increased after the entry into force the Free Trade Agreement between both countries, as Taiwanese investments in Panama have increased by over 215 million Dollars.

More on Taiwan-Panama business
http://aprochipa.blogspot.com/search/label/negocios

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