Panama is a country of growth, that is privileged, and one of the countries with greatest development in Latin America; perfect to take advantage of all its investment opportunities. It is worldwide known for the Panama Canal, a marvel of engineering, as it allows the connection and communication between the Pacific and Atlantic seas, thus greatly benefiting global commercial activities.
Due to its geographical position, Panama’s economy is mainly oriented towards the development of services; which accounts for more than 80% of the gross domestic product. Services include the Panama Canal, the Colon Free Zone, banking and insurance activities, container and international shipping ports, registries, medical and health services, tourism and professional services, among others.
In Panama we have the best banks from almost all over the world, and we use the U.S. dollar as our legal currency. There are no monetary controls on remittances as outward flow of funds, and there are no foreign exchange restrictions, since we do not have a central bank. There is tax exemption on interests earned on time deposits and savings accounts. There is a territorial tax system (only transactions made within Panama are subjected to income tax) and there are tax incentives for a considerable number of activities. We have bank secrecy laws, which protect the right to privacy of financial center users, except in cases of investigations of criminal activities such as drug trafficking, money laundering, etc. There are no restrictions to investing in financial services. As an element of our service oriented economy, the country has many foreign and local insurance and reinsurance companies. The communication infrastructure has developed international security standards. Panama offers modern telecommunication systems and a well-developed infrastructure, supported by international connectivity, using fiber optic cables, submarine cables via the Atlantic and Pacific Oceans, as well as a variety of satellite-based systems. Telephone, cellular, internet, fax and other communication services are widely and easily available in the country.
In addition, Panama offers: the Panama Canal, a multimodal transportation and cargo center, and two international airports, among other facilities.
In Panama there is a combined legislation of special incentives in all areas of the economy and this, together with the political and economic stability, makes the country an attractive place to invest and/or to live. Panama is a country that offers an adequate legal, fiscal, financial and environmental framework for those who wish to live and invest in its territory. Panama offers its geographical position in the center of the Americas; the Panama Canal; financial stability (with the US dollar as legal tender); the existence of the largest International Banking Center in Central America; the Colon Free Zone (the largest in the Western Hemisphere and the second largest after Hong Kong); the construction and tourism boom (buildings and hotels that combine housing, business, leisure, beach and sports) and the flexibility in granting visas for retirees and pensioners (Canadians have chosen the country as the second best home to live in). Specifically, the Panamanian economy continues to grow, supported by the developments in construction, transportation and tourism. In recent years, billions of dollars have been transacted in the country, a clear indicator of foreign investors’ confidence in the Republic of Panama. In addition, the Constitution of Panama expressly provides that foreigners who are in the national territory will receive the same treatment as nationals.
Panama is worldwide recognized for having the highest standards for tourism security, as determined by the prestigious intelligence agency Pinkerton (the same grade granted to the United States). In addition, Panama has a well-developed health system (public and private) influenced by American standards.
The Panamanian legal system is based on the civil law system; however, some legal instruments such as: corporations, private foundations, trusts and other negotiable instruments have been obtained from other systems and incorporated into our legislation. – Constitutional protection for private property and market economy. – Privately owned utilities (electricity, telecommunications, ports, and highways) – Protection for contractual obligations – Freedom of place and legislation (contractual) – Constitutional protection for arbitration – Full constitutional protection of human rights. – Democratic stability, and no political discussions on the economic model.
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Areas of Practice
Carles Law Firm
Aquilino De La Guardia Avenue 47th street Bella Vista,
Ocean Business Plaza building, 15th floor, office No. 7
Call Us! (507) 340-6917
Carles Law Firm
Aquilino De La Guardia Avenue
47th street Bella Vista,
Ocean Business Plaza building,
15th floor, office No. 7 ¡Llámanos! (507) 340-6917 firstname.lastname@example.org