The Republic of Panama provides unique benefits for all kinds of investors.
There are many qualities that distinguish this small but very important isthmus, and a great part of them are directly focused on promoting the development of companies and businesses.
With over 35 years’ experience, at Grupo VerdeAzul we know the Panamanian market well. And here we wanted to share with you some key facts that will motivate you to invest in this extraordinary country filled with opportunities.
It is a leader in Direct Foreign Investment, receiving 45% of the total amount allocated yearly to Central America.
Because of its stable economy, it is one of the countries with the most convenient tax schemes in the region. Its territorial tax system taxes domestic income only, excluding any foreign income.
It has the most (20) regional commercial agreements in the area.
Through the connectivity of its market, investors can access 60 countries and 1,3 billion consumers in all the region.
According to the World Bank, it is one of the countries with the most growth over the last decade worldwide.
Its dollarized economy for over 100 years provides a unique stability.
- Inflation is historically low and stable, with an 0,4% average.
Just like London or New York, its banking and financial system is highly regulated and competitive. There are over 100 active banks and financial institutions in the country.
It has areas with special tax regimes that are of great value for investors. There is de Colon Free Zone, se second largest in the world, and Panama Pacifico Special Economic Area, both of the covering both coasts of the Panamanian isthmus. There is also Ciudad del Saber, or City of Knowledge, located on the former Clayton military base, where technology and service based start-ups are developed.
It has commercial ports in the Atlantic and the Pacific, which collectively transit over 7 million containers every year. Its cruise ports on the Caribbean side have provided another push for the local tourist industry. Overall, Panama’s ports are one of the most dynamic in Latin America.
The country is now “the hub of the Americas”, with connections and direct flights to 90 destinations in 35 countries from its Tocumen International Airport.
Other airports, such as the Marcos Gelabert for domestic flights from the capital city, or the Enrique Malek on the border town of David, and the Scarlett Martínez in the Pacific beach area of Río Hato, have improved air transportation throughout the country.
Its multimodal logistics industry has grown with firm steps over recent years, allowing for the management, transportation and distribution of all types of goods along the region from Panamanian territory.
The Metro de Panamá subway system, operating in Panama City, represents a great improvement for local public transportation. At the moment, Line 1 and its 14 stations have been completed, and Line 2 is set to begin operations in 2019.
Digital communications have improved throughout the country with a constant government investment in information and communication technologies, making Panama one of the nations with the best connectivity within the region.
Society and tourism
Panama boasts one of Central America’s best quality of living.
According to a recent study by the United Nations, Panama is in the top 30 of the happiest countries in the world.
It has become one of the main destinations to retire or to buy a second home. Expats from North America and Europe are more common every day.
It is one of the safest countries in Central and South America, with a low crime rate in comparison to its neighboring nations.
Panama City has been called “Latin America’s Dubai” because of its cosmopolitan lifestyle and its skyline filled with modern skyscrapers.
Private health care is one of the most efficient in the region, with modern hospitals and skilled doctors with international standards.