Panama's Has Growing Economy
The Republic of Panama, a globally recognised international business center, has the fastest growing economy in Central America and offers excellent
political stability. Panama's economy has steadily increased despite the economic crisis suffered throughout Latin American and much of the world
and its Stock Exchange is the fastest growing in the region with an average total trading volume of US$900 million.
Panama has Bilateral Trade Agreements with over 20 countries globally and has taken steps to ensure that the current trends of economic growth and
stability continue. The Political Risk Services (PRS) have placed Panama in the top three countries of the hemisphere with the best risk-investment
qualifications. According to Canada's Fraser Institute (Economic Freedom of the World), Panama ranked eighth on the list of the world's freest economies,
along with Australia, Ireland, the Netherlands and Luxembourg.
Tax Advantages
Income derived from within Panama is subject to capital gains tax and income tax. However, corporations and individuals do not pay tax on any
income derived from abroad, nor do they have any reporting requirements on income derived from abroad to the Panamanian government. Since the Princess Project timber is to be sold to an American company, this income will not be liable for tax within Panama.
Panama also offers excellent tax advantages for investments in forestry sectors. Specifically, what is known as a Forestry Visa can be obtained by
investing in a forestry project in Panama. This visa is beneficial to investors wishing to achieve tax residence in Panama, a popular option with high
income individuals. Our partner can recommend a qualified tax adviser to explain the details of Panamanian residence and its potential tax advantages.
SIPP Qualified
SIPPs (self invested personal pensions) are an increasingly popular way of investing money. They offer up to 40% tax relief and most people under 75
qualify to contribute to them. You can contribute up to the amount of your
salary every year and, once in a SIPP, your money will grow free of capital gains tax. Furthermore, at any age between 55 and 75, you can usually take
out up to 25% of the value of your SIPP tax free. You get a pension allowance every year-so as not to lose your annual allowance you must act before the deadline.
Please consult your Financial Adviser or SIPP provider regarding placing your forestry investment into a Self Invested Pension Plan. The Princess Project is not a collective investment scheme.
Tax Advantages:
Commercially managed woodland in the UK is currently free of inheritance tax, provided it has been owned for a minimum of two years. It also
qualifies for capital gains tax rollover relief provided the subject of investment is commercial with an established trading activity. Income
derived from commercial woodland is free of income and corporation tax too, so a return of 5% from timberland is the equivalent of a return of over 8%
from any other investment to a higher-rate taxpayer. For information on UK tax breaks, please contact your financial adviser or accountant.
Information provided here has been sourced from third parties and investors are advised to contact their accountant or financial adviser with any
questions. The information below is not to be taken as financial advice and we, nor our partner, are not responsible for its accuracy.
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