Operational Costs in Panama

Operational Costs in Panama

Panama operational cost offers great advantages as a business, investment, or finance center, especially when compared to the rest of the US, Europe, and other leading jurisdictions. International companies often note that they receive great value for money when considering the skills and expertise present in the Panamanian market. Despite its size, Panama is a compelling alternative to other larger financial hubs in the US, Asia or Europe.

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 that 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.

Low Living Expenses

Panama has one of the lowest costs of living in the US, Asia, Middle East or EU. Rents are cheaper than in most other countries, and apartments are often fully furnished. Public transport and taxi fares are also lower. Some household and personal care items can be more expensive in Panama as the majority of products are imported, yet food prices are more or less the same as in other US or European countries.