How to make Panama investments safer

This post is also available in: Spanish

By: Staff at Panama Offshore Legal Services

E-Mail: info@pos-inc.com Phone: (507) 227 – 6645

There are many investment opportunities in Panama. Foreigners unfamiliar with the way business is conducted in the country should be cautious, but too much caution may lead to lost opportunities.

Relying on advice from professionals in a foreigner’s home country regarding foreign investments may be a mistake. An attorney, accountant, or a financial advisor in Canada, the U.S., or the E.U. will naturally be familiar with their own country’s laws. However, when asked for advice about foreign investments, that expertise ends at the border. It is not uncommon that many advise against all overseas investments out of ignorance.

Foreigners need an advisor with local market experience and with the type of investment being considered. Advisors are hired to give advice and not to make investment decisions for the investor. Advisors in Panama need to do the due diligence research and investigations regarding the people promoting investments along with the ownership of the real property or asset being invested in.

Real property investment requires investigating the property developer, the project promoter, and the real estate company advertising the property and the ownership title to make sure there are no liens, title defects, or encumbrances.

Commodities such as gold and other precious metals, petroleum products, and food items investment requires a different type of due diligence investigation. There are many opportunities in Panama to buy and sell gold and silver requiring the investigation of the companies offering these opportunities and the market conditions and timing when to buy or sell.

A Panama gourmet coffee plantation sounds romantic but careful study must be made regarding the international coffee market along with land title and labor laws for the coffee pickers and processors.

The Panama Reforestation Visa Program provides permanent residency for the investor’s family for a minimum $80,000 USD investment. This requires hiring a good immigration law firm and researching the types of available woods and future market condition trends when the wood is ready to be harvested. The reforestation company, its government certification, and management history also need to be investigated.

Before making an investment in Panama hire a reliable law firm to conduct the necessary due diligence to minimize the risks.

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