A brief guide of Panama's best vehicles to relocate in our country as an entrepreneur or a retiree.

1. RELOCATION TO PANAMA Escobar, Della Togna, Icaza & Jurado Attorneys at Law September , 2011 – Panama City, Panama

3. Panama´s Overview

6. INCORPORATION IN PANAMA

7. The most common legal instruments for Incorporations in Panama: 1- Panamanian Corporations (Used to do business in Panama or to protect assets such as properties, any legal activity) 2- Private Interest Foundation (Asset Protection)

11. ASSET PROTECTION PRIVATE INTEREST FOUNDATIONS

21. OPENING BANK ACCOUNTS

25. PANAMANIAN TAX LEGISLATION & BENEFITS

32. R E A L E S T A T E R E L A T E D T A X E S Real Estate Tax Progressive Table / 1% condos Transfer Real Estate Property Tax 2% Capital Gains Tax 3%

33. TAX ABATEMENT – REAL ESTATE RESIDENTIALS: COSTS FROM UP TO YEARS UP TO 100,000 15 MORE THAN 100,000 250,000 10 MORE THAN 250,000 5 INDUSTRIAL, COMMERCIAL AGRO – INDUSTRIAL: 10

34. PANAMA AS TAX HAVEN Panama has triumphed in the process of not being considered a tax haven. Finally, after a successful negotiation and subscription of 12 double taxation agreements and the implementation of deep changes within the internal revenue and tax administration, the OCDE introduced our country into the so called “white lists”.

35. PENSIONADO PROGRAM BENEFITS Selective Consumption Tax (ISC) of 5% plus 7% Service Tax on cars (*) Import tax exemption for households up to US$10,000 Import tax exemption for household goods 25% discounts on utility bills 25% discount on airline tickets and 30% on other transportation 15% discount on loans made in your name 1% reduction on home mortgages for homes used for personal residence (The house has to be purchased at your name not a company or SA) 20% discount on doctor's bills 15% on hospital services if no insurance applies 15% off dental and eye exams 10% discount on medicines 20% discount on bills for professional and technical services 50% discount on entrance to movie theaters, cultural and sporting events 50% discount at hotels during Monday to Thursday, 30% on weekends, among others. (*) Law 33 of 2010

38. Escobar, Della Togna, Icaza & Jurado 47 th Street and Aquilino de la Guardia Ave., The Ocean Business Plaza, Suite 1003 Panama City, Panama www.edtij.com – info@edtij.com Tel.(507)340.63.24 Fax. (507)340.63.25