What Are the Best Central American Countries for Investments?
December 5, 2020 (Investorideas.com Newswire) There's no doubt that investors looking for great offshore opportunities would do well to turn their eyes toward Central America. Along with the fact that North American investors can visit with relative ease, there's the matter of so many types of investments to consider. No matter how you plan on structuring your offshore investment portfolio, there are plenty of ways to diversify and enjoy steady returns.
If you're serious about creating an offshore investment portfolio, consider what each of the following Central American countries has to offer. You will likely find that basing a portfolio in one nation while adding investments from a couple of other countries will provide the balance you have in mind.
Since Belize transitioned from British Honduras, the goal has been to make the nation one of the most appealing countries for foreign investment. You will find that banking laws in Belize make it favorable to establish checking accounts, time deposit accounts, and even investment accounts that are safe, stable, and provide a great deal of privacy.
Real estate is a significant investment opportunity in Belize. This ties back to the strong tourism industry within the country. Investing in hotels, resorts, and other temporary lodgings is possible. You may also think about making Belize your preferred choice for retirement living. Buy a home now and use it as a rental property until you need it. This approach will pay for itself while adding to your personal wealth.
You'll also find other investment opportunities to consider. Agriculture is a prime example, with plenty of farmland and crop development. A thriving industrial metals industry is also providing investors with consistent returns.
Agriculture has long been a major driver of investment within Costa Rica and continues to be worthy of consideration. Technology has come to the forefront in recent years as another opportunity. Some have begun referencing the country as the Silicon Valley of Central and Latin America.
A bonus of investing in Costa Rica is that foreign investors have the same ownership rights provided to nationals. If you decide to invest in commercial real estate related to an industry, it's easy to enjoy the same low tax structure that applies to real estate. If you like the idea of owning a home there for your eventual retirement, the low taxes will still apply.
Costa Rica also offers "free zones" for business investors. In effect, you would enjoy breaks on specific fees associated with owning and operating a business within one of those zones. Add in the fact that you may qualify for a 12-year income tax exemption, and it's easy to see how the chances to increase the return on your investments are quite high.
What sort of companies could you seek out for investments? Tourism, electronics, and medical instruments are examples of what to consider in addition to real estate.
El Salvador offers several financial benefits for foreign investors who want to establish business operations within the country. Those include tax incentives, breaks on costs associated with securing real estate, and a labor force ready to work. You'll also find that despite some political instability, the desire to work with those who wish to bring industry and jobs into the country is relatively high.
For those who wish to invest in existing businesses, there are several that deserve special attention. Food processing is one of the top industries in the country. The same applies to beverage, petroleum, and chemical production. All of these represent options that may fit neatly into your portfolio.
When evaluating investment opportunities, don't overlook clothing, especially garment manufacturers or textile companies that produce fabric for garments. Coffee and sugar cane remain two of the best options if you want to invest in an agricultural venture. Focusing on companies that produce capacitors in the electronics field is also a good option.
Honduras offers the benefits of a stable political climate, a strong culture that's inviting to foreign investors, and weather that helps to establish several business types. The country offers significant financial incentives to foreign investors, so it's a setting that deserves attention.
Overall, the costs associated with establishing a business in Honduras are competitive with other regional nations. It's not just tax breaks and incentives, although they figure prominently in the mix. Some incentives exist in specific cities and rural areas of the country. Those incentives may be ideal for those who wish to base a business within the nation.
Individual investors who are more inclined to look at opportunities that are already in place have plenty of choices. Specifically, the coffee industry has thrived for decades and shows no signs of slowing down. You will also find that bananas are a key investment opportunity, given the worldwide demand. Clothing-related investments are also worth considering in terms of textile plants and sewing factories.
No listing of investment opportunities would be complete without mentioning Mexico. Mexico has one of the best GDPs in Central America and is a haven for many expats. That has led to plenty of investment opportunities for businesses that cater to this particular population sector. From local businesses like bars and clubs to real estate holdings designed to fit into the budgets of those who retire in Mexico with more modest means, there are plenty of chances to create secure income streams.
Tourism is another investment opportunity that is to be noticed. With beautiful beaches and a rich historical heritage, Mexico is a favorite destination for many people. Investing in travel agencies, the hospitality industry, or any related business type that caters to tourists will likely produce steady returns.
Agriculture is another investment opportunity to ponder. Considered one of the world's most prolific food producers, Mexico produces everything from fresh fruits and vegetables to packaged foods and is sold in various nations. You would find that investing in one of those companies would allow you to enjoy steady returns from one year to the next.
Panama is among the Central American countries that have enacted legislation to attract business owners seeking to establish operations in offshore locations. That means plenty of tax incentives, some continuing long after the company is up and running. You will also find that living costs are lower than in some other nations. That can be helpful in terms of securing the resources needed for the operation.
One point to remember is that the government is known for experiencing a relatively high turnover. Even so, the economy remains fairly stable and has shown signs of at least modest growth even during worldwide economic shifts. That bodes well regarding your investments being able to weather rough times.
Regarding what industries might be a good fit for your portfolio, trading and transportation companies are good options. You will also find that financial institutions, including offshore banks and investment firms, are worth considering. Various types of commercial services also have excellent potential for individual investors.
Discover Investment Opportunities in Central America
If creating an investment portfolio that focuses on Central American opportunities seems enticing, now is the time to learn more about offshore checking and investment accounts that you can use to manage the portfolio.
About Luigi Wewege:
Luigi Wewege is President of award-winning Caye International Bank. He is also the author of The Digital Banking Revolution, now in its third edition, and has co-authored economic research presented before the United States Congress. He also serves as an Instructor at the FinTech School in California. Mr. Wewege holds an Italian MBA from the MIB Trieste School of Management with a major in International Business and a BSBA with a triple major in Finance, International Business, and Management from the University of Missouri-St. Louis.
About Caye International Bank:
Since 2003, Caye is the only International Bank headquartered on the beautiful island of Ambergris Caye in Belize, Central America. Caye's bank license permits it to conduct financial services with both individuals and corporations located outside of Belize. The bank offers a full range of traditional and non-traditional financial services and accounts in multiple currencies. An application for account opening is a simple process and can be facilitated online from anywhere in the world.
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