Doing Business in Panama: 12 Reasons for Doing Business in Panama
Invest in Panama Securely
Panama’s constitution recognizes that foreigners and Panamanians are equal and enjoy the same rights, aiding in the business success to the nation’s prosperity. This is why Panamanian political leaders are committed to developing key industries, such as finance, trade, shipping, infrastructure, real estate, hotels & resorts as well as encouraging more direct foreign investment into mining, petroleum, energy and ports & logistics services. Over the past years, both government and opposition have worked hand-in-hand to create the right legislative and regulatory framework for all these sectors to grow and prosper.
Business in English
International Panama uses English as an official language, alongside Spanish. Use of English is universal, making Panama instantly accessible to anyone conversant in English. Many Panamanians also speak a third language, usually Italian, German or French.
Panama’s ascent into an international finance center of repute has been one of the fastest and most remarkable growth stories since 1970. Recognized for its pro-business attitude, excellent regulation and competitive cost of doing business, Panama has become the go-to finance center for start-ups, growth minded entrepreneurs and Fortune 500 companies alike.
Innovation through Regulation
Panama’s financial regulatory framework is among one of the most robust in the world and is in process to adopt some of the OECD rules, while still being sophisticated enough to remain a flexible platform for the financial services industry. The proactive approach taken by the regulator – the Panama Banking Authority – has supported the country in becoming a leading financial center in the Americas.
Global Business Gateway
Panama’s internal market is relatively small, and the real opportunity lies in using the country as a stepping stone to markets in LatAm, US, Asia and Europe. Strategically located at the center of the Americas, between North and South America, Panama has historically been thelink between North, South, East and West. This is why so many investors see the benefits of using Panama as the first step towards success in surrounding markets.
Easy Access to World Markets
Panama also enjoys excellent relations with the US, LatAm, Asia, Middle East and the EU, making it an attractive base for companies from all over the world. In addition, Panama is a signatory to multiple bilateral investment protection and double taxation treaties, covering most of the world’s markets facilitating international business.
In overcoming its geographical limitations, Panama has built up one of the world’s best telecoms and internet infrastructures with an incredible 5 of the world’s intercontinental submarine fiber optic cables crossing Panama with North, South, East and West.
Growing Industry Cluster
In growing its financial services industry, Panama’s government has the support of a vibrant community of progressive-minded officials and committed business leaders. Today, a growing business cluster is driving productivity, new business and innovation within Panama’s finance industry. There are also many entities offering expert legal and support services to local and international clients.
Network of Worldwide Air and Sea Connections
Located on the main shipping routes, Panama has been a significant port for most of its modern history, with links to other major ports in the US, LatAm, Caribbean, Europe, Middle East and Asia. Panama’s airport labeled the “Hub of the Americas” is connected by air to almost every major city in US, LatAm, Caribbean, Europe, Middle East and Asia. The new Panama Canal is a strategic crossing point for the world.
Low Operational Overheads
What makes Panama particularly attractive to international companies is that overall costs are lower in Panama than in most other US, Asian, Middle East, LatAm or European jurisdictions. This means companies can offer their services to clients at an attractive cost rate.
Fiscally Efficient Framework
Panama offers a territorial tax system which means that foreign sourced income is not taxable. In other words, if you generate income from within Panama you pay taxes, but if your income is coming from abroad you do not pay taxes. In addition, companies benefit from a wide network of double tax treaties. This combined with a number of other incentives make the costs of doing business in Panama more than affordable.
Aside from being a great place to invest and run a business, Panama also offers an excellent quality of life. With its tropical environment, Panama is far more relaxed and reasonably priced than other US or European cities. Panama offers a safe haven to medium and high net families of other neighboring counties such as Venezuela and Colombia suffering from political instability. The country has your day-to-day needs covered, with some of the best medical care in the world and an excellent education system, whether private or public.
If you wish to do business or invest in Panama, we recommend you to download our Doing Business in Panama guide, which is absolutely FREE.
If you need help or have any questions, please contact us. The Business Panama Group has qualified professionals to assist you.
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