Panama Laws Take Real Estate Market by Storm

The Panama real estate market will be taken by storm! At the end of last year, the Panama National Assembly passed Law 41 which should encourage further growth of the real estate market in the country. The country’s economy has already been on the increase in recent years, and the new law will further the interest in Panama especially amongst property investors.
The new law exempts any multi-national company from paying tax to the Panama government even if they are working for a company based elsewhere in the world. Even if they are based in Panama, they will be exempt from paying local taxes if they are providing services to a company abroad. Under Law 41, foreign nationals are also able to be hired by a licensed corporation in Panama and allowed to live and work in the country in managerial positions.
The new law will encourage many foreign companies to set up in Panama, and will increase the number of foreign nationals living in the country. New office spaces and homes will be required, and rent and sales in the country will increase ten-fold. The demand for real estate will be high, and investors are keener than ever to buy in this expanding market.
Panama has already seen a high growth in the property market in recent years due mainly to their constructive economy. The country’s increase in tourism has also promoted the need for new infrastructure in the area. With the new law in place, Panama’s real estate market will reach a new all time high.
The two world-renowned companies HP and Caterpillar are set to move to Panama, with many other companies sure to follow their lead. The number of office spaces sold in the country in the last few months has been extraordinarily high, and there are almost no Class A offices left to sell in the area. Companies have to rent an office which has resulted in an increase in the rental costs. Rental costs have gone up by almost 20% in the last year, which is quite a large increase.
Knightsbridge Investment Group states that it is the best time for companies to move to Panama, especially with the new law in place. Investors are flocking over to Panama to cater for the ever increasing amount of real estate in demand. The prices in the country are still relatively low, and companies can buy a square metre for approximately $2,200. Lease rates for Class A office space is currently between $16 and $20 per square metre per month.
These prices are set to go up fairly soon with the increase of companies and workers relocating to Panama. Law 41 has encouraged many large international companies to set up in Panama and has opened their doors for foreign nationals working in management positions for these corporations. Panama is seeing a great demand for all kinds of real estate and infrastructure causing investors to flock in from around the world. The much asked question is whether the prices will remain reasonable or whether the demand will lead to a sharp increase in price as well?