Panama is one of the countries that is currently being considered by the wealthy class of Latin America exploring the idea of emigrating from their countries due to concerns over increased taxation. Panama is a country close to theirs, has a similar culture and offers a favorable tax jurisdiction.
Unfortunately, one of the effects of global crises is the widening of the disparity gap between rich and poor. In response to the budget deficit caused by the pandemic and trying to stabilize the state coffers, many Latin American governments are proposing new tax regulations for the wealthy class.
Given this fiscal uncertainty that is beginning to emerge and in order to protect their patrimony, the wealthy are looking at other horizons. Panama’s strong dollarized economy and favorable fiscal policies makes it an attractive option.
Although Panama has not escaped the effects of the Covid pandemic, financial experts continue to see it as one of the countries that will recover the fastest. Bank of America estimates for 2021, Panama’s Gross Domestic Product will have recovered to 5.5%.
The country is expected to maintain its investment grade status, backed by growing economic diversity, market-friendly policies, stable government and strong focus on investor incentives.