Germany discourages business with Panama for paradise listing

A law approved by Germany last June introduces stricter fiscal measures in the relations between that country and those that are on the European Union’s blacklist of non-cooperative territories in tax matters, which includes Panama.

These measures would make Panama more expensive and therefore less competitive, as a recipient country of German investment and an exporter to the European country.

German investment in the country in 2019 was $767.2 million, in sectors such as the automotive, financial, gastronomic, marketing and hotel sectors, according to Propanamá.

Dani Kuzniecky, secretary of the National Commission against Money Laundering, said that when it comes to investment, two problems can arise: established German companies that decide to leave and those interested in arriving, who do not. Progress in evaluating the exchange of tax information would be key to avoiding the measures