Investment in Panama Panama has a legal structure and land title system is similar to that of the United States and creates a unique opportunity for foreign investors to safely and confidently enter the market in the early stages of the country’s transition to a world destination. Panama City’s historic district of Casco Viejo offers an example of the explosive growth in real estate, where residential and commercial properties have reached values parallel to New York, Paris and London. Panama enacted Law No. 80 in 2012 to promote foreign investment in tourism. This law provides 100 percent exemption from income tax and real estate taxes for 15 years, duty-free imports for construction materials and equipment for five years, and a capital gains tax exemption for five years.  Additionally, Panamanian residency, and even a passport can be granted based on the size and type of investment.