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Unit 3. Tourism business opportunities - Coggle Diagram

- - - - There are two ways to apply for an immigrant visa as an investor:
        
        Before the Panamanian consulates abroad, duly authorized to do so.
        
        The foreigner who is in Panama as a tourist or temporary visitor can obtain a change in his migratory status and apply for an immigrant visa as an investor. The Directorate General of Immigration can deny or approve the visa:
        
        If the visa is approved, the foreigner is given a provisional permit for one year, as long as he/she commits to employ, in the company to be created, no less than three Panamanians. Such permit is renewable annually, up to three consecutive times. Upon expiration of the provisional permit, and provided that the foreign investor effectively fulfills the contractual commitment acquired, he/she will be granted a definitive residence permit, with the right to a personal identity card.
        
        If the visa is denied, the foreigner shall be obliged to legalize his stay or to leave the country within a term that may not be less than three days or more than thirty days.
        
        Foreign investment must meet certain characteristics. The Law establishes a series of requirements regarding the equity capital that the foreigner must bring with him in order to invest in the country: *
        
        The foreign investor must bring with him his capital in cash. A foreigner who arrives in the country and obtains local financing for the creation of his business is not considered an investor.
        
        The capital may not be invested in any commercial, industrial or financial activity involving retail trade or any activity reserved by law exclusively to nationals. The foreign investor must previously specify in which business he/she is going to invest his/her capital.
        
        The amount of capital to be invested must be at least US$ 40,000.
      - Customs requirements.
        
        The documents required to process the importation of goods are the import declaration, commercial invoice, consular invoice, bill of lading, air waybill, packing list and clearance certificate (it indicates that the importer does not owe taxes to the National Government and is issued by the Ministry of Finance and Treasury).
        These documents must be presented in order to remove the merchandise from customs. However, if any of these documents is missing, the importer may obtain authorization to remove the goods from customs by depositing a security deposit.
- - - - The monetary unit is the balboa, divided into 100 cents, in parity with the U.S. dollar. The U.S. currency is legal tender in Panama by virtue of an agreement signed in 1904. Panama does not issue paper money, so the only bills circulating in the country are dollars; fractional currency of 1, 5, 10, 25 and 50 cents is minted.
    - - GMT-5.
    - - Banks: Domestic banks are open from 8:00 a.m. to 3:00 p.m. Monday through Friday; foreign banks are open from 8:00 a.m. to 1:00 p.m. Monday through Friday.
        Stores: Commerce remains open from Monday to Saturday from 09:00 to 20:00 hours uninterruptedly, in shifts, including Sundays in numerous cases.
        Public administration: From 08:00 to 12:00 and from 13:00 to 16:00 hours from Monday to Friday.
    - - The annual paid vacation period is 30 calendar days. Unlike Spain, there is no proper vacation month such as August. Schools and universities are closed between January and March. The first week of November and Carnival are not advisable for business trips.
- - - - Promoting the tourism activity in the Republic of Panama.
        
        Creates tax incentives for tourism industries.
        
        The Law provides for certain incentives in the tourism development zone in order to promote foreign investment in this field, including
        
        o Total income tax exemption for a period of 15 years.
        o Total exemption of real estate taxes for a period of 20 years.
        o Total exemption of import taxes for materials and furniture necessary for the construction and equipment of the investing company, as long as this merchandise is not sufficiently produced in quality and quantity in Panama.
        o Total exemption of taxes on the use of dock and airport, built by the investing company for a period of 20 years.
        o Total exemption of taxes on income, results of the interests that the creditors can generate in operations of tourist investments.