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, doing business in Panama, contributing to 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.

The US Dollar is a Key Asset

The US dollar in Panama is a key asset that has been pegged to the US dollar at parity since the country’s independence in 1903.  US dollar bills are the primary legal tender in Panama, and in practice, the country behaves as a dollarized economy with the Panamanian balboa circulating alongside US dollars at an exchange rate of 1:1. Panama produces its own coinage but uses US dollars for all paper currency

The result of this style of dollarization has been an economy with no foreign exchange regulations and historically low inflation.

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.

Panama is 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.

State-of-the-Art Telecoms

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.

Living Comfortably

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.

BusinessPanama Group provides The Original One Stop Shop solution offering you the following services: 

  • Real estate agents to find a condo, home or property.
  • Incorporation of companies, LLCs, trusts, and foundations 
  • Bank account opening 
  • Applying for visas and residence permits for expats. 
  • Bank mortgage financing
  • Legal services for any other matters
  • Others