- Political and Economic Stability
Panama has maintained a stable democratic government since 1989, without significant political unrest. Additionally, Panama has experienced consistent annual GDP growth since 2005, along with low inflation rates. The official currency is the North American Dollar.
Panama is widely considered a “safe haven” due to its political and socioeconomic stability. It benefits from special treaties with the United States, ensuring protection in times of conflict. As the safest country in Central America, it attracts a diverse community of expats from all over the world.
- Ease of Establishing an Investment or Business
Establishing a business in Panama is a simple process. Forming a corporation in Panama takes only a few business days, and a business operations permit can be obtained online with a small setup fee or taxes. It is also possible to establish a sole proprietorship, with a commercial operations permit.
- Favorable Tax Structure
Panama offers a relatively simple tax structure for companies. The country imposes a low value-added tax (VAT) or sales tax of just 7%, compared to rates of 17-21% in neighboring countries. Corporate income tax sits at a modest 25% on net income after expenses, and taxes on dividends range from 5 to 10%. Panama follows a territorial tax system, meaning that the government only taxes income generated within the territory of Panama. Non-Panamanian income remains tax-free for Panamanian companies, residents and citizens. However, it is important to note that US persons residing in Panama are subject to worldwide income taxes by the US.
- Robust Banking System
Panama's banks are known for their strength and conservative lending practices, which contributes to their overall stability. The country's banking regulatory body ensures strict supervision of Panama's financial institutions.
- Advanced Infrastructure
Panama has high-speed Internet connections throughout the country and modern telephone equipment for international communication. It has roads in good condition, including 4-lane highways that connect the capital with the main provincial capitals and Costa Rica. The Panama Canal allows for the efficient transportation of goods, while domestic airports facilitate rapid domestic air travel.
- Free from natural disasters
Unlike many other regions, Panama is relatively free of natural disasters such as hurricanes, tornadoes or tidal waves. While minor earthquakes occur occasionally, they are rare and generally pose a minor threat.
- Bilingual environment
While Spanish is the primary language, English is widely spoken in Panama due to the significant English-speaking expat community. The United States' involvement in the construction and maintenance of the Panama Canal until 1999, when it was turned over to the Panamanian government, further contributed to the prevalence of English in the country.
- Proximity and Connectivity
Panama City's Tocumen International Airport offers direct flight connections to more than 100 cities around the world. Several international airlines serve Panama, ensuring convenient travel options for citizens of Canada, the United States, Latin America and Europe.
These factors make Panama an attractive destination to live and do business, offering a safe environment, favorable tax policies, stable infrastructure and a thriving international community.
- World Class Health
Panama is rapidly becoming a center for medical tourism in the region. This is due to the quality of its services, the level of professionals, the excellent infrastructure and the good relationship between price/technology/service.
It is common to find more than one famous international star on the streets visiting a restaurant or tourist site after having entered the country for some medical check-up or treatment.
Among the medical specialties most requested by tourists are neurosurgery, stem cell treatments and minimally invasive surgeries, in addition to dental services and plastic surgery.
Hospitals such as Punta Pacifica (John Hopkins), Paitilla, Nacional, San Fernando, Panama Clinic and others have the best technology available and comply with all the best certifications in the world.
Many Panamanian doctors are graduates of the best universities in the US, so language is not a communication problem.
- Cosmopolitan Life
The mix of tradition and modernity in Panama creates a dynamic lifestyle, with a wide range of cultural, gastronomic and recreational activities, ideal for residents and visitors alike.
Investing in Panama means betting on a booming country, where the combination of economic stability, cultural diversity, tax incentives and an enviable lifestyle make up a favorable scenario for the success of real estate and commercial projects.
- PEOPLE. Cheerful, fun and above all smiling. …
- HUB DE THE AMERICAS. One of the most connected countries in the world. …
- THE BEST PLACE BEYOND BACKING OUT. …
- PARADISE BEACHES. …
- BENEFITS BEYOND INVESTORS. …
- GOLF 365 DAYS A YEAR. …
- REAL STATE DEVELOPMENT.
These are 10 reasons why foreigners decide to invest in the country:
1.- Economic Stability:
Panama leads economic growth in Latin America, maintaining sustained stability and growth over the last decade. Its legal certainty and security levels are a magnet for living and investing with peace of mind.
2.- Cultural Diversity:
The joy and hospitality of Panamanians, added to the cultural fusion reflected in its architecture, gastronomy, music and art, enrich the experience of living and investing here.
3.- Global Connectivity: With the expansion of the Tocumen International Airport, Panama consolidates itself as a key hub in Latin America, offering direct connections to more than 89 international destinations, thus facilitating business and tourism.
4.- Ideal Retirement:
Panama is recognized for its benefits for retirees, guaranteeing a high quality of life for foreign residents, thanks to inclusive and advantageous public policies.
5.- Destination of Exotic Beaches:
Panamanian geography allows you to enjoy beaches in both the Pacific and the Caribbean, as well as more than a thousand islands, providing a paradisiacal setting for tourist and residential projects.
6.- Incentives for Investors:
With more than 40 incentive laws, Panama favors investment in various sectors, offering attractive tax and operational advantages that enhance the return on investment.
7.-Golf All Year:
The diversity of world-class golf courses in Panama, designed by figures such as Jack Nicklaus, provides a unique offer for amateurs and enhances sports tourism.
8.-High Quality Coffee:
The exclusive variety of Geisha coffee, grown in unique microclimates, positions Panama as a producer of one of the best coffees in the world, attracting tourism and international recognition.
9.- Real Estate Boom:
Strong foreign investment has boosted a vibrant real estate market, with modern urban and tourist developments that promise high returns in the medium term.
10.- Cosmopolitan Life:
The mix of tradition and modernity in Panama creates a dynamic lifestyle, with a wide range of cultural, gastronomic and recreational activities, ideal for residents and visitors alike.
Investing in Panama means betting on a booming country, where the combination of economic stability, cultural diversity, tax incentives and an enviable lifestyle make up a favorable scenario for the success of real estate and commercial projects.
