Paying less tax is not the only advantage to adding an offshore element to your investment portfolio. It's a form of diversification... And it offers you wealth protection against local economy fluctuations...

So, Insider Secrets set out to find the most favourable location for your offshore investments...

We found it in this gateway of Central and South America...

Aided by a stable, pro-business government, its friendly tax and regulation system has helped to establish the country as one of the most modern and respectable business and financial centres...

It has the world's largest registered merchant fleet. And around 13,000 ships pass through its canal every year, carrying 192 million tons of cargo. By navigating the 64-km waterway, a cargo vessel bound from Japan to the eastern seaboard of the United States can reduce its journey by about 4,800 kilometres.

It's not just a pretty canal!

I'm talking about Panama of course!

Since there is no government-controlled central bank printing notes, Panama has had very little problem with inflation. Unprecedented in the region, the US dollar is the effective currency in all but name (the balboa is the "official" currency), lifting investor confidence...

In March this year, Panama received an upgrade to the credit rating on its debt to investment-grade. Fitch Ratings upgraded its long-term foreign currency and local currency Issuer Default Ratings...

These upgrades reflect a sustained improvement in public finances, underpinned by recent tax reforms, and the economy's resilience to the global financial crisis and associated recession.

The bill responsible for these tax reforms abolishes more than 30 taxes. Provisions in the bill will enter into force on 1 July 2010.

What does Panama offer you for your investment?

* Significant tax breaks for companies setting up in the growing number of 'free trade zones'...
* Free Zone companies benefit from reduced rates of income tax on earnings derived from re-exports...
* Tax credits for the employment of domestic labour...
* There are no typical bureaucratic requirements such as licensing and guarantees for companies...
* Improvements to property authorised by construction permits are exempt from real estate taxes for a period of 10 to 15 years...
* A great deal of emphasis has been put on building up a modern, hi-tech telecommunications infrastructure, with firms having ready access to high-bandwidth fibre-optic networks... Allowing for the efficient running of business...
* Unlike other countries in the region, Panama is less prone to natural disasters such as hurricanes and earthquakes, minimising the risks of frequent and prolonged down time.
* And the new bill contains provisions for the creation of an administrative court which will host tax appeals...

These are all attractive propositions investors should consider when planning an offshore portfolio...

PFC subscribers can download their report on the Four Essential Secrets You MUST Know Before Investing in Any Offshore Location by logging on to www.fsp.co.za and accessing your Personal & Finance Confidential page - at no charge.

If you haven't yet subscribed to Personal & Finance Confidential, don't delay any longer, subscribe now to access this report and so much more!

Pascale Barrow
Managing Editor
Personal & Finance Confidential

source: http://www.investorsoffshore.com/