Panama a country of business opportunities

Panama is a country of business opportunities. Panama is a small country located on the narrow isthmus between North and South America. In terms of economic growth and transformation in many economic sectors, Panama has the potential to outperform many developed countries.

Despite the COVID-19 pandemic, the country is still in the lead and has not lost its leading position in the Latin American region. Panama has a strong interest in professionals and investments that can contribute to the country’s economic growth. The government is happy to welcome the expats who want to start their business or move it to Panama, as well as the people who want to move to the country.

Learn more about Panama

Panama may seem quite distant to Europeans, but it is a country with great prospects, especially for international business in Panama. Before making the final choice and deciding to move to another country, it is necessary to prepare and gather reliable information about the advantages and disadvantages of living in Panama.

Panama can be exactly the country that will change your life for the better and become your second home. When you have to choose where you want to live, you must decide for yourself in which part of the country you would like to settle. A lot depends on your habits and the lifestyle you are used to. Consider the cost of living in Panama.

Panama City is not just the capital of the republic, it is the capital of Panama, where more than 50% of the country’s total population is concentrated. Panama’s urban population is 70%, the highest number in Latin America.

The density of the Panamanian population is more than 50 people per square kilometer. Given that most of the population is concentrated in the center of the country, there is a large unpopulated area. As of 2020, Panama’s population is more than 4 million people.

Spanish is the main language. English, which is particularly popular among expatriates, is gradually becoming part of the mainstream. In particular, communication in English extends to the business sector, which plays an important role in the country’s economy. Doing business in Panama in English is a big advantage.

The culture of native Panamanians is associated with the conventional concepts that describe the most important things in life. Great emphasis is placed on family values that shape social behavior. Panamanians hold on to those traditions, which can still be seen in clothing, dance and music, not only when celebrating national and religious holidays, but also in everyday life in Panama.

As mentioned above, Panamanian society is multi-ethnic. Expats from North America, Europe and Asia have long settled here. People in Panama are very friendly and helpful.

Why is Panama attractive for international business?

To attract foreign investment, Panama has long developed tax and corporate laws. Thanks to the territorial tax system, the country receives new investment inflows, creates new jobs and offers favorable conditions for international business.

The strict offshore legislation allows foreigners to register offshore companies whose interests are safely protected by the government. According to tax regulations, Panamanian taxation applies to income received in the country.

If a Panamanian corporation is engaged in international business and operates on foreign exchanges and markets, such corporation shall not pay taxes in Panama, except for an annual franchise of US$300.

It should be noted that fast growing companies can enjoy the environment that Panama can offer in various areas. In addition, the world famous reconstructed Panama Canal, Colon Free Zones and other free zones can be used.

The financial sector in Panama has great potential. There are over seventy banks there, one can find many world famous brands among them.

Panama’s banks have a good reputation in the global financial market and a high capitalization. Today, banking institutions in Panama can compete with the Swiss banks.

Foreigners’ assets in Panamanian banks are well protected by the country’s laws. Banks only disclose information about the account owner in exceptional cases after permission from the Panamanian court. Actual business with the Panamanian bank account will not face any problems and obstacles in carrying out their international transactions.

The country considers it unnecessary to produce its own money, so it uses the US dollar throughout its territory. Panama uses the balboa, equal to one US dollar, as its national currency.

This fact is a great advantage for international business as there is no need to worry about currency fluctuations. Panama has no currency rules and restrictions. Thus, a businessman or investor need not worry when traveling in or out of the country.

Healthcare in Panama

The level of health care in Panama is very decent and it is highly valued by foreign retirees. The country has both public and private hospitals, including branches of famous American clinics with modern equipment.

The cost of medical services in Panama is significantly lower than in the United States, Canada or European countries. Therefore, medical tourism is becoming more popular in the country. Foreigners come here for treatment combined with holidays on Panama’s wonderful beaches.

Panama’s appealing transportation system

Panama has one of the highest rates of flights between the capitals of the different continents if we take the Latin American countries. The only one that Panama is second to is Bolivia’s capital, La Paz.

The number of international flights to and from Panama City is far greater than those offered by countries such as Mexico, Peru, Brazil, Chile and others. The Panama Canal is of great importance to both the country and the world. It shortens the time it takes the ships to get to America from Asia.

The Panamanian government undertook a reconstruction to expand the Panama Canal in late May 2016. Today, the canal’s capacity allows more vessels of larger tonnage to pass through the canal than in the past. In addition, the transport infrastructure is being expanded throughout the country, with new roads and bridges being built every year.

Panama is a great place to live and go on vacation

Panama’s climate and nature are a special subject, as they are among the most striking advantages of this country. Despite the country’s small size, nature is lavish and rich. Unique places can be found literally everywhere.

Panama has around 1,500 islands where you can find the real wilderness. In Panama, it is quite realistic to buy an island to build your own house and enjoy it. In addition, the country has more than 4,000 km of coastline along the Pacific Ocean and the Caribbean Sea. It is the only country in the world where you can reach the Pacific beaches and swim in the Atlantic within a few hours.

The best beaches in Panama are known to many Americans and Europeans. Many of them have bought properties on the coast and used them for permanent residence or holidays.

However, there are places where the beach facilities are still under development. So the further you move from the capital, the wilder the beaches become. The variety of beach resorts in Panama allows you to choose a resort to suit every taste. It is not difficult to find deserted beaches or even deserted islands.

For example, if you live in Panama City, it will only take a 100 km trip by bus or car to visit the coast and relax by the sea on pristine beaches. Those who love to surf can find beaches where the waves are good for both beginners and experienced surfers, with the long and high waves.

In recent years, certain Panamanian beaches have become venues for international surfing competitions. Some of these include sport fishing competitions. This type of entertainment is gaining popularity among the expats who come to Panama to get records and enjoy their time. The country is very rich in flora and fauna, which can only be found here.

When we talk about the nature of Panama and its climate, we would like to note that it is a country where summer never ends. The only difference is that it can be rainy or dry. But even if we look at the rainy season, we can say that the rain is not pouring down hard. Mostly they only last a few hours and then the sun comes out and as a result you can often see a rainbow.

Panama is known for being located in a favorable climate zone free from hurricanes and tornadoes, which are often observed in other tropical countries. In addition to the plains on both coasts of Panama, mountain ranges run through the center of the country.

Panama’s highlands are another highlight of the country. Such cities as Boquete, Volcán, El Valle, Cerro Punta and Santa Fe are very popular among expats and foreign retirees who want to settle in Panama. This is because the climate in the mountain areas is milder and cooler, and it is suitable for those who cannot tolerate hot weather.

The climate in the mountainous regions is often called the eternal spring, as the average temperature here is 72 F. These cities are close to the border with Costa Rica and further away from the capital of Panama.

Panama is the best country for emigration and permanent residence/citizenship

One should not miss the business opportunities in Panama. Having a business in Panama allows you to obtain a residence permit. 5 years later you can get the Panamanian passport.

The condition for expats who wish to obtain a residence permit is that they simply have to buy property in the country.

Residency investment programs in Panama

There are different types of visas that allow foreigners to qualify for a residence permit, temporary or permanent. Here are the most popular Panamanian investment residency programs: Friendly Nations Visa and Economic Investor Visa.

Another visa program that has attracted the attention of expats looking to obtain Panamanian residency by investment is the Qualified Investor Visa. This program, as well as the Friendly Nations Visa, offers not only simplified requirements for foreigners, but also permanent residence status without the need for temporary residence.

The pensionado visa is of particular interest to foreign retirees from the USA, Canada and European countries. This visa allows the retirees to reside in Panama while enjoying all the public benefits that reduce the cost of living by 10 to 50%.

Thanks to the fact that the country is developing rapidly, the standard of living in Panama today matches the comfort of the developed countries. The cost of living in Panama, a high level of infrastructure development allows foreign retirees and expats to receive services and goods at a lower price than in their home country.

That’s why Panama regularly ranks as one of the most attractive places for retirees. However, this type of visa is not suitable for obtaining Panamanian citizenship. There are other visas for the purpose of obtaining another passport, such as those listed above.

Property in Panama

Those who have decided to choose Panama as a place to do business and a second home will be interested to know that the country has enormous real estate potential, both for business and residence. The country’s government has provided attractive conditions for investors who want to build residential or commercial properties.

Today, real estate market prices in Panama are the most attractive in the Latin American region. Real estate investment can be not only a necessity for living in Panama, but also a valuable asset. This applies to both rental properties and properties for sale.

Whatever the main reason for moving to Panama is, whether it is for a job or business, it is necessary to think about the place to live. Initially, an expat can stay in a hotel until they decide on a rental or private property.

Panama, especially the capital, offers a selection of hotels and rooms that will satisfy the most demanding expats. You can find hotel rooms for every taste and of a suitable size. In most cases, expats are advised to rent a home first, without rushing to buy it.

Such advice is related to the fact that a person who has just arrived needs to settle, get used to the environment, understand where they feel more comfortable, in a big city or a small town, far from center.

Meanwhile, buying property is already a way to obtain residency in Panama. But before you decide to buy an apartment or a house, it is necessary to familiarize yourself with the rules for buying property and the laws of the country. Panamanian civil law has a number of peculiarities that you have not come across before.

To do that, you need to get more information and preferably from different sources. Therefore, the final decision on the purchase should only be made after consultation with a competent expert.

Should you have questions about living in Panama as an expat, about opening a bank account, investments and other questions, please feel free to send us an e-mail at kgn@kgn.dk or call us. We will provide free advice along with the actual assistance and services you may need.