Why Panama for Business
Panama is the natural connection point between the Americas. With a dollarized economy, territorial tax system, and over 35% of Central America's FDI, the country offers competitive advantages that are hard to match.
Strategic Geographic Position
Panama is the natural connection point between North and South America, with direct access to the largest markets on the continent.
- ◆Panama Canal — 6% of global maritime trade passes through here
- ◆Direct flights to all LATAM capitals, 10+ U.S. cities and 5+ European capitals
- ◆Time zone GMT-5 — overlaps with all of the Americas during business hours
- ◆No natural disasters — outside the hurricane belt and active seismic zones
- ◆Carbon-negative country — one of the few in the world with a positive environmental balance
Dollarized and Stable Economy
The US dollar has been legal tender in Panama since 1904. This completely eliminates currency risk for international companies.
- ◆2nd highest GDP per capita in Latin America
- ◆1st in GDP per capita PPP in LATAM
- ◆Investment grade by Fitch, S&P and Moody's
- ◆70+ international banks — the largest banking center in the region
- ◆7 submarine fiber optic cables — world-class connectivity
Territorial Tax System
Panama operates under a territorial tax system: only income generated within the country is taxed. Foreign-source income is 100% exempt.
- ◆0% tax on foreign-source income
- ◆23 free trade agreements — preferential access to global markets
- ◆18 double taxation treaties — avoid paying taxes twice
- ◆Special regimes: SEM, EMMA, Free Zones
Multinationals that Chose Panama
Over 35% of Central America's foreign direct investment is concentrated in Panama. These are some of the global companies already operating from here:
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