Panama Business

So what can you expect?

* A 20 year tax holiday on all materials, appliances, furniture, equipment, vessels and vehicles (need to hold at least 8 people) in terms of import duties, taxes, or fees of any kind ... as long as the materials, etc., are not produced locally in sufficient quantity or quality. Any energy saving or safety device brought into the country enjoys the same tax benefits.

* A 20 year tax holiday on real estate property tax starting the date your business is registered with the National Registry of Tourism.

* No taxes or assessments on capital you’ve invested.

* An annual rate of 10% is allowed for building depreciation not to include the cost of the land.

* If you’ve invested in property considered a historic landmark by the National Institute of Culture, you’ll receive a 10 year holiday on property taxes, 30 years on improvements to the property, and 5 years on income taxes on the profits.

* If you’ve contributed towards the restoration, maintenance or lighting of historic landmarks, parks or public sites, you’re eligible for tax breaks.

* If you operate minibuses, limousines or boats for tourists, you can claim a tax holiday on import duties every three years to include their spare parts. Provide mass transportation for tourists at the airports, piers and/or hotels, and enjoy unlimited freedom from import duties.

* You’ll pay no import taxes for 3 years if you’re an approved company operating a restaurant, discotheque or nightclub.

* You can even get a 20 year tax holiday on income taxes from the interest you’ve earned as an investor in operations involving tourism.

And we’ve just scratched the surface but you get the idea ... consult a local lawyer well versed in Panamanian law and you’ll sleep well at night.