Category: Economy & Politics

Panama expands strategic relationships worldwide

About 80% of Panama’s economy is dominated by the service sector and benefits greatly from foreign direct investment. The country continues to develop its economic and political relations in order to bring tourism, capital and companies to Panama. This in turn leads to increased demand for real estate in Panama, both from buyers and tenants.

After Panama established diplomatic relations with China in June last year (Link) and since then has greatly expanded economic relations, Air China has been flying to Panama City twice a week since April 2018. Chinese investors are now arriving directly in Panama (link) due to the first easing of entry requirements for Chinese.

In February, the delegation led by President Varela visited the leader of Dubai. In addition to political and economic representatives, the management of the Dubai sovereign wealth fund were also present at the meeting in Dubai. Key topics were investments from the Arab region in the areas of infrastructure, real estate, trading and energy. Both countries are the logistics and trading centre (Panama as Hub of the Americas) on their respective continents and now want to bundle their geographical and strategic strengths.

In mid-May, the President of Panama, Juan Carlos Varela, met with British Prime Minister Theresa May. It was the first time in history that a Panamanian head of state met a British Prime Minister. The aim of the talks with Theresa May, other ministers, companies (including British Airways) and British investors was to further strengthen and expand economic, political and tourist relations.

After these summits, the Panama delegation continued its trip to Israel to discuss the same topics with Prime Minister Benjamin Netanyahu and economic representatives.

This progress in Panama’s economic and political relations is fundamentally very positive for the real estate market in Panama.

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

Business Consulting Panama

Klaus Happ supports with his business consulting for Panama those companies that want to become commercially active or expand their business in Panama. Due to his experience and contacts he supports to find interesting business opportunities and partners in Panama. As a business consultant for Panama he carries out together with a business law firm in Panama City, which is historically very well connected in the country (in business, politics and to the important families of the region).

Panama is the fastest growing country in the western world (GDP growth since 2002 approx. 8% p.a. / according to the IMF for the next four years at approx. 6% p.a.) and has the USD as its national currency. These are two important characteristics of a country in which growth and legal security provide a good basis for commercial activities. In this context, more than 130 multinational corporations have their headquarters for Central and South America in Panama and use the country as a “Hub of the Americas” due to its outstanding geographical location. Panama serves not only as a safe investment location, but also as a starting point for expanding business activities to other Latin American countries.

The following objectives are the goals of the business consulting Panama:

  • Diversification of the business portfolio
  • Panama as “Hub of the Americas” offers access to all of Latin America
  • Participation in economic growth in Panama
  • Investment security through Western structure and political stability with USD as currency

Our service

  • Advising international companies on their planned business activities in Panama
  • Business and delegation trips to Panama to discuss concrete project implementations with Panama’s decision-makers from business and government
  • Presentation of interesting projects in Panama before they are put out to tender
  • Mediation of potential joint venture partners in Panama
  • Legal advice on the establishment of a company and the tendering process
  • Networking and lobby work
Event with ambassador Dr. Guido Spasadfora

(Event with ambassador Dr. Guido Spadadfora)

In particular, the following projects and topics in Panama are interesting for companies:

  • Infrastructure and Logistic Projects
  • Panama Canal Projects (industrial / logistics parks, container port, energy and water projects)
  • International Airport Panama City (Planning & Construction of an Airport City, Industrial Park, etc.)
  • Smart City & Intelligent Traffic and Parking Solutions
  • Renewable Energies
  • Recycling, environmental and water systems
  • New copper mine
  • Tourism

Klaus Happ
Klaus Happ is married to a Panameña, lives in Frankfurt and is in Panama every two months. Until 2017, he worked for 23 years as a capital market specialist at UBS and Dresdner Bank. Since 2017 his real estate company “FRAPAN-Invest, Corp.” has been operating in Panama and he is the Managing Director of the German real estate holding company “arsago Panama”. Since 2017 he has been advising German companies and has travelled to Panama for various delegations and entrepreneurs, including “Bayern International”. Together with the ambassador he was Panama’s representative at the “Central America Day of the German Economy in 2018” (Info-Link) and the same at the “Panama Business Forum in Hamburg 2019” (Info-Link) and in Frankfurt 2019 (Info-Link). Furthermore, he accompanies companies from Panama (e.g. Panama Pacifico) to expand their business in Germany.

Business Consulting Panama: We support you as a professional and experienced partner

Tax evasion in Panama as a criminal offence

The Panamanian government has presented a bill to make tax evasion in Panama a criminal offence. In the future, tax evasion from USD 300,000 onwards is to be punished with 1-3 years imprisonment. After the OECD withdrew the country from the tax havens list in June 2017 and agreed tax agreements with various countries, Panama continues to work on improving transparency. 

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

„Bavaria International“ about excellent investment conditions in Panama

Bavaria International reports about the excellent economic and legal conditions in Panama for investors and entrepreneurs, including their experiences. Bavaria International is a company of the Free State of Bavaria and is responsible for the international economic relations of the Bavarian economy. Under this link (page 18, available only in German) you will find the very well researched report.

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

Partnership between Panama and China

Having now opened an embassy in Panama, China has announced large-scale investments which will see direct flights between both countries and also high-speed Chinese trains opening up Panama`s transport network. In future, China wants to use Panama as its hub of the Americas.
These represent decidedly positive changes for Panama`s economy and real estate market alike.

A lot has happened in 2017 concerning the relationship between Panama and China, things which could hardly have been predicted at the beginning of the year. To start with, China revealed infrastructure projects in Panama to the tune of 2 billion US dollars. This includes the construction of a container port on the Canal for 900 million, a thermoelectric power station for a further 900 million and the most state-of-the-art conference centre in Central America (200 million).
After diplomatic relations between the two countries were taken up in June, both governments have greatly increased their levels of cooperation. Over the last few weeks new embassies have been opened in both locations and talks have now begun regarding the first direct flights. This will serve to bring both Panama and China (including their investors and tourists) even closer together.
Asian banks are additionally showing interest in opening subsidiaries in Panama City`s financial district. Should China receive authorisation for the planned high-speed train project in Panama, a new milestone for the infrastructure of the nation will be reached. Faster journeys throughout the country will result. So too, it would mean an absolute game changer for our Boca Brava island plans, as our plot is only one hour away from a proposed station in David, the provincial capital of Panama`s most beautiful state. An international airport already exists there.

China Foto

China is currently preparing everything on a political and economic level so that Panama will become its entry gate to Latin America. It sees Panama as its hub of the Americas, a trading and logistics platform which it can use for its activities in the region. Panama itself is the ideal partner for China on the American continent for many reasons: the US dollar currency, legal and political security, geographical location, excellent infrastructure and openness to foreign investors. Panama`s exports to Asia grew by 23% in 2016, and the mutual existing potential is enormous.

Panama`s President Juan Carlos Varela recently gave an interview at the United Nations in New York on the partnership with China and the future of his country. You can find the interview here.

The arrival of Chinese investors is going to have a very positive effect on real estate market prices in Panama, as the Chinese will discover a market with currently attractive prices. Apartments on the Pacific promenade of Panama City offer a wonderful view of the ocean, the Canal gateway and the islands. Investors can purchase accommodation here for an average of 2500 dollars per square metre. Such prices are extremely hard to find in comparable settings in other parts of the world.

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

Tax Agreement between Germany and Panama

As announced some days ago, Germany and Panama have signed a new tax agreement. This provides for an automatic exchange of tax and financial data from 2017 on. The agreement complies with the international standards of the OECD. Panama wishes to free itself from the reputation of the “Panama Papers” and this represents a further step in the right direction, following the OECD decision to remove Panama from its list of tax havens. With this, two important preconditions have been created for a pending double tax agreement between Germany and Panama.

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

OECD takes Panama off tax haven list

The OECD (Organisation for Economic Cooperation and Development) officially removed Panama from its international list of tax havens at the end of June 2017. The OECD explained this as being part of the good development and cooperation of Panama with regard to tax transparency and international relations. The country itself has signed numerous agreements with various nations over the last months (eg with Germany in June 2017) in terms of exchanging tax information. The OECD has furthermore given Panama its second-best rating status, that of “highly respectable”.

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

Highest GDP per head in Latin America

Panama`s economy has been growing at an average rate of 8.5% per annum since 2002. The International Monetary Fund predicts an average annual growth of 6% over the next four years. Due to its sustainable and strong economic development, Panama will show the highest GDP per head (economic performance per inhabitant) in Middle and South America come 2018. It will displace Chile as the leading nation.
(Source: La Tercera/IMF).

 



FRAPAN-Invest

Klaus Happ’s company “FRAPAN-Invest” advises investors who want to invest in real estate in Panama. Furthermore, Klaus Happ will be happy to advise you personally on the subject of “Plan B in Panama”.

The real estate market in Panama is internationally one of the most interesting for investments. We would like to be your trusted local partner and assist you with the initial purchase. Additionally, we can take care of your real estate in Panama in a sustainable way.

Profitable, safe and beautiful:
Investments in Panama

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