The Covid-19 pandemic has affected practically all industries throughout the world. It appears, though, that tourism and hospitality have taken the greatest hit. Within weeks, the number of people traveling has decreased dramatically. Consequently, many have quickly lost their jobs, and countries and areas that heavily relied on income from tourism have suffered tremendous losses. Naturally, economies that reliant on these industries have been experiencing significant problems. But, the President of the Republic of Panama, Laurentino Cortizo Cohen, and the Ministry of Commerce and Industry (MICI), Ramón Martinez, have devised a plan to give the tourism industry a much-needed push. The plan that may spark more interest in buying real estate here and deserves many newspaper headlines – new decree boosts tourism in Panama.
About the new decree
Executive Decree No. 319 of 3 December 2020 includes a set of tax incentives aimed at kickstarting the tourism industry. This new act implies exoneration from income tax (ISR), import tax, and capital tax on special tourist products. It should encourage investment in tourism, which will result in the creation of new jobs in the country.
The new decree states that all activities related to tourism will be exempt from paying income tax for a minimum of 15 years. Moreover, the companies in the tourism industry will not have to pay tax on the capital for five years. This refers to what the decree recognizes as special tourist products. These products encompass anything that can be tourism-related: ecotourism, agro-tourism, health and sports tourism, amusement parks, national parks, private museums.
An opportunity for those interested in investing in tourism
Panama is famous for being a tax haven, which has been attractive to many and enticed them to seek permanent residency here. What is more, The Republic of Panama has several exciting programs that offer quick residency to investors. Perhaps, this decree provides another opportunity for foreign investment.
Anyone interested in pursuing this path, developing tourist activity in Panama while taking advantage of these generous tax incentives is free to do so, as long as they register with the National Tourism Register. However, the registration process will require some work. The registration form they must complete has to be accompanied by additional documentation. Here is some of what the hefty documentation needs to include:
- The application for entrepreneurship addressed to the Panama Tourism Authority (ATP) Administrator General
- Conceptual design plans signed by the architect
- The feasibility study of the project.
Relocating to Panama as an investor
We already know that Panama is alluring for many other things. Beautiful nature and warm climate first come to mind. However, there is so much more. This country offers a wide range of options regarding your preferred lifestyle. If you are looking for a peaceful place to settle down, you can easily find it. Alternatively, if the vibrant, cosmopolitan environment is calling your name, the capital is the place to go. Ultimately, you can enjoy spectacular scenery, incredible modern architecture, glorious weather without giving up any comforts you are used to at your current home. Best of all, you can do all that while substantially decreasing your cost of living.
These are just some of Panama’s attractive features, accompanying the tax avoidance (not to be confused with tax evasion! That’s illegal!). This could be a fantastic opportunity for US citizens looking to live here and anyone who has always wanted to move to warmer parts of the world and try their luck in the tourism industry.
Healthier life in Panama
One of the programs for acquiring quick residency in Panama is the Reforestation Program. It implies foreign investment in the form of buying a minimum of five hectares of land that will become a forest plantation. These reforestation projects have already seen some incredible effects as a few critical habitats have been reestablished. Moreover, some endangered species have lost that depressing epithet, while other species still at risk can be spotted occasionally.
Additionally, as one of the most prosperous Central American countries, Panama has superior water and sanitation quality. Moreover, Panamanian residents have been enjoying better-quality air than in many other places in the world. That said, the decree will contribute tremendously to the government’s Master Plan of Sustainable Tourism. Hopefully, it will continue and deepen its efforts in preserving nature.
Panamanian economic revival
The signing of the new decree boosts tourism in Panama, that is definitely true. Nevertheless, it does so much more. We can consider this an incredibly successful endeavor on behalf of the government of President Cortizo. These special tourism development ventures will further energize and advance Panama’s economic revival.
This decree enables Panama to receive and access investment via mechanisms that will allow for capitalization of all the projects and plans. As a result, there will be more labor opportunities, which will mean more economic stability for a significant number of Panamanian families.
Furthermore, this decree presents a significant contribution to implementing the government’s plan for the development of sustainable tourism. In addition, this plan aims at supporting and fostering entrepreneurship and private investment.
The government of Panama has taken some giant and essential steps toward the reactivation of the economy. Amid the Covid-19 pandemic, the tourism industry has sustained disastrous hits. As a result, this industry branch has almost ground to a halt in some areas of the world. While Panama hasn’t been an exception, the new decree signing represents a massive adrenalin injection that will kickstart the country’s tourism activity.
Several tax incentives will create favorable conditions for the development of tourism and attract private investment. Also, the new act unequivocally demonstrates stimulative tendencies towards fostering entrepreneurial projects. With all that combined, fertile soil for the creation of job prospects has formed. Ultimately, many Panamanian families will again stand on a more solid financial ground.
As the new decree boosts tourism in Panama, those considering acquiring residency in this gorgeous country can start packing their belongings that highqualitymovingcompany.com will then transport to their new home. Finally, those who are contemplating the possibility of contributing to the country’s economic revival by highly-incentivized investment in tourism can rest assured that Panama’s beauty will always attract tourists.