Panama Call Centers and BPOs: Nearshoring and Connectivity

Among several countries seeking to become nearshore suppliers — including Colombia, Costa Rica, Uruguay, and the Dominican Republic — Panama stands out as the home of one of the world’s most strategic commercial waterways. Unlike many Central American nations that face high transportation costs, infrastructure limitations, and bureaucratic hurdles, Panama provides a stable, business-friendly environment for investors and global service providers.

According to Nearshore Americas, Panama’s economy grew at an annual rate of 5.6% over the five years leading up to 2019, positioning it among the world’s fastest-growing markets. As an English-speaking country with modern infrastructure and global connectivity, Panama has become a prime nearshoring destination for technology, logistics, and business services.

Nearshoring is increasingly relevant in service sectors such as Business Process Outsourcing (BPO), where Panama offers multilingual professionals at competitive rates compared to onshore workforces. The services sector accounts for around 70% of Panama’s GDP, reflecting its strong international orientation and expertise in high-value outsourcing.

The term “Nearshoring” refers to outsourcing or relocating business operations to a nearby country. Following the COVID-19 pandemic, companies recognized the risks of over-reliance on distant suppliers and began diversifying their operations. Panama, with its strategic location and logistics infrastructure, naturally emerged as a leading nearshoring hub for the Americas.

Panama’s history as a global trade facilitator dates back centuries — from Spanish colonial trade routes to the construction of the Panama Canal. Today, the country has evolved into a multimodal logistics center and the leading logistics and maritime hub of the Americas, featuring five major shipping ports (three on the Atlantic and two on the Pacific). Its infrastructure and connectivity make it a top distribution platform for U.S., Canadian, and Latin American markets.

Law No. 52 of 2018 – Call Center Incentives

Law No. 52 of 2018 provides fiscal, migratory, and employment benefits to call centers established in Panama. Concessions for call center operations must be approved by the Public Services National Authority (ASEP). The legislation also allows for more flexible labor provisions than those applicable to other business activities in Panama.

Fiscal Incentives

• Exemption from direct and indirect taxes, fees, and charges (except those established by the law or ASEP).
• Income tax exemption for qualifying services.
• Reduced dividend tax rate of 5%, with a 2% complementary tax if no profits are distributed.
• Annual tax of 0.5% on company capital, capped at US$50,000.

Immigration Incentives

• Permanent Resident Permit for Call Center Investors: Available to investors with a minimum investment of US$250,000, valid for two years before permanent residency eligibility.
• Temporary Resident Permit: For foreign executives, experts, or technical staff, valid for the duration of the employment contract.
• Short-Stay Business Visa: For foreigners evaluating investment opportunities or conducting business related to call centers, valid for nine months.

LatAm Player

Panama’s evolution toward higher-value services has positioned it as a major player in Latin America. The country is advancing from BPO toward Knowledge Process Outsourcing (KPO), providing specialized services in finance, insurance, and banking. Thousands of professionals are now employed in this expanding sector, reinforcing Panama’s reputation as a top nearshoring center for the Americas.

Constantly Evolving

Major BPO providers such as Dell and Sitel operate in Panama, serving both local and international clients. The country also hosts numerous accounting and professional service firms, including the Big Four. Panama’s outsourcing ecosystem extends to back-office services such as invoice processing, account management, and data reporting. Shared service centers are increasingly delivering high-value business support functions including finance, HR, customer service, and procurement for multinational corporations.

Laws Discussed

Law No. 52 of October 17, 2018 — regulates call centers and establishes operational and incentive frameworks for companies in the sector.