Panama Facts Summary
| Panama Fact Sheet | |
|---|---|
| Political | Transparent elections since 1990 |
| Smooth transition of power every 5 years | |
| Long tradition of openness to foreign investments | |
| Structural adjustments to the economy proven positive | |
| Bureaucracy reduced, but still a major factor | |
| Economic | US dollar is legal tender |
| One of the fastest-growing economies in the world with an average GDP growth of 10.8% over the past 8 years (except during the pandemic) | |
| Inflation rate: 1.9% (Q1 – 2024) | |
| Unemployment: 7.4% (Q1 – 2024) | |
| Foreign Direct Investment reached over USD 878.4 million (2024) | |
| Free trade agreements with more than 10 countries, including the USA | |
| Financial | No exchange or currency restrictions |
| Panama’s debt is ranked “Investment Grade” — only 3 countries in Latin America hold this status | |
| Moody’s raised Panama’s sovereign debt rating to Baa2 and confirmed its “stable” outlook | |
| Friendly investment landscape with solid trade frameworks such as the Investment Stability Law, Free Trade Agreements, and Bilateral Investment Treaties (BITs) | |
| Legal | No restriction on 100% foreign-owned real estate |
| BITs with multiple countries securing against expropriation and other risks | |
| One of the most flexible corporation laws in the world | |
| No restrictions on mergers, acquisitions, or joint ventures | |
| Enforcement of foreign judgments and arbitral awards | |
| Generous tax incentives for multinational headquarters, manufacturing, and assembly | |
| Tax | Depending on the investment sector, the following are available: |
| Exemption or discount from income tax | |
| Exemption from import tax on equipment and raw materials | |
| Accelerated loss carry-forward | |
| Accelerated depreciation | |
| No foreign exchange risk | |
| Absence of exchange controls | |
| No restrictions on company ownership and foreign capital | |
| Other Highlights | Panama is rated the third most competitive country in Latin America, according to the World Economic Forum |
| Ranked No. 1 place to retire in the International Living Annual Global Retirement Index 2023 | |
| Ranked fifth in Latin America for “Foreign Investment” according to the Global Opportunity Index 2023 (Milken Institute) | |
| Major multinationals such as Caterpillar, Procter & Gamble, 3M, LG, AES, TOTAL, Roche, Air China, Hershey, and Heineken have relocated their Latin American headquarters to Panama | |
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