Author: Klaus Happ

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

Investment in real estate portfolio

Investors participate in Panama real estate portfolio.
In July 2017 “FRAPAN-Invest” and “arsago Real Estate” from Frankfurt have entered into a partnership for real estate investments in Panama (Link). We combine decades of real estate management experience with local market access and network in Panama. Now investors are investing in a diversified and profitable real estate portfolio.

In December 2017, we began to build up a diversified and profitable real estate portfolio in Panama, in which investors as limited partners participate. This portfolio enables investors to achieve steady and attractive rental returns in USD.

The planned allocation of the real estate portfolio in Panama is as follows:

Portfolio Allocation

We are currently buying in Panama’s prime locations, where employees of multinational corporations such as Nestle, Adidas, the United Nations (and another 250 multinational corporations in Panama) are looking for rentals. Our investments so far have focused on modern apartments in the skyline in the front row of the Pacific Ocean and on apartments in the unique UNESCO Old Town. The gross rental yields to be achieved in USD are around 7%.

Enclosed photos of a purchased UNESCO-Altstadt-Apartment (Link) and a purchased modern apartment (Link) to get an impression of our investments.

And this is the view of another apartment that we are about to buy:

Skyline Panama City

When selecting apartments, we pay attention not only to finding reliable and long-term tenants, but also to the value of the properties and their locations. We are currently buying modern apartments in the first row on the Pacific Ocean for about 2,500 USD per square meter. At the current exchange rate this is approximately 2,000 euros per square meter. Such prices in comparable locations will be difficult to find in other parts of the world. Against this backdrop, we will continue to focus on achieving lucrative price increases in the future when selecting properties for sale.

The demand for apartments is currently increasing in Panama City. This applies to both buyers and tenants. On the one hand, this is due to the low purchasing costs compared with other countries and the weak USD. For example, many Canadian investors are currently using the strong CAD vs. USD for their purchases and want to buy before the arrival of Chinese investors (who will soon receive their tourist visa). In addition, there are major infrastructure projects (2nd airport terminal, new cruise port, new metro line, new canal bridge, new event centre), which means that many new employees are looking for rented accommodation.

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate Investments in Panama

 

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. 

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate Investments in Panama

FRAPAN-Invest obtains broker licence in Panama

There is a slow bureaucracy all over the world, including in Panama… After countless documentaries and references, our company “FRAPAN-Invest” has officially received the real estate agent license in Panama. This should make us the only German real estate company with its own broker license in Panama.

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate Investments in Panama

Reduced property tax in Panama

Panama’s government has passed a new property tax law, which has brought the greatest tax benefits to real estate in Panama for years. Property tax is progressive and is based on the value of the property in Panama. As a result of the new regulations, the tax rate for an apartment with a value of e.g. USD 400,000 is reduced by 70% to an average of 0.63% per annum.

This is of course good news for property owners and investors in Panama, as it significantly reduces the tax burden and makes an investment even more lucrative.

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate Investments in Panama

Game Changer for our island project

The current developments and new contracts between Panama and China are an absolutely positive “Game Changer” for our island project “Isla Boca Brava”, which will increase the demand for our property immensely. During his trip to China last week, the President of Panama Juan Varela and the Chinese Head of State Xi Jinping signed a total of 19 agreements involving economic, political and tourist cooperation. Panama is supposed to be the gateway for China’s activities on the American continent and a free trade agreement between the two countries is also being negotiated. This is a milestone in the economic development of Panama, which is already considered to be the fastest growing country in the western world.

An important point within the agreements is that both countries want to build the first high-speed train in Panama and this represents a new stage in our island project “Isla Boca Brava”. Both countries have signed a joint agreement on this and are now starting a feasibility study.

This train will connect Panama City with our island project region “Chiriqui” and cover 450km in 2,5 hours. It is said to be a passenger and freight train. This will put our island region next to Panama City at the centre of tourism and economic activities. Our island property is only 40 minutes away from David, the provincial capital of Chiriqui, where is already an international airport and a train station in the future.

This will enable Chinese goods to be distributed from Panama to the countries of Central and South America, and the new railway line will play an important role in this topic. China estimates the volume of freight and economic activity that this new Silk Road between China and Panama entails at approximately $18 billion annually. For a country with 4 million inhabitants a large number…

This means that in the future our island region will have a completely different economic significance and will be much easier reached by considerably more people. This will increase the demand for good hotels, apartments and land. This is very good news for our “island project”, as this is exactly what we offer and we expect prices to rise.

Architecture Isla Boca Brava

Air China also announced during the Panama government’s visit to China that it will be flying twice a week from March 2018. Further Chinese airlines are to follow.

The real estate market in Panama is internationally one of the most interesting locations for real estate investments and we would like to be your local representative and take care of your real estate in Panama on a sustainable basis.

Profitable, safe and beautiful:
Real Estate 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.

The real estate market in Panama counts internationally as one of the most interesting locations for property investments. We would like to be your local trusted adviser and to take care of your investments in Panama.

Profitable, secure and beautiful:
Real estate 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.

Skyline Panama City

The real estate market in Panama counts internationally as one of the most interesting locations for property investments. We would like to be your local trusted adviser and to take care of your investments in Panama.

Profitable, secure and beautiful:
Real estate investments in Panama

 

 

 

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