Panama, the southernmost country in Central America, is surrounded by the waters of the Atlantic and Pacific Oceans, bordering Costa Rica and Colombia. Its territory is crossed by the Panama Canal. Panama is known for its natural beauty, diverse plant and animal life, and rich culture. The capital, Panama City, is the largest city and is home to the majority of the country’s 3.9 million residents. The national currency is the balboa, but the U.S. dollar is also widely used.
Despite its compact size, Panama is an attractive jurisdiction for companies due to the variety of benefits offered. These benefits depend on the chosen legal structure of the company and include attractiveness for foreign direct investment. The country is characterized by political stability, a strong economy, and a strategic location ideal for trade.
The main stock exchange in Panama is the Panama Stock Exchange (BVPSI). In 1970, the government began to actively promote offshore banking by granting tax-exempt status to international operations and eliminating other forms of regulation. This led to a significant inflow of foreign capital, and by the 1980s Panama had become an important financial center in Latin America.
Panama offers an attractive tax system that exempts income earned outside the country from taxation. This makes it an attractive place to do business, especially for companies whose profits come largely from abroad. However, to take advantage of this benefit, companies must meet certain requirements, such as having at least three directors.
The service sector in Panama is the largest in the economy and employs more than half of the population. It contributes significantly to the total GDP, accounting for about 75%.
Panama’s gambling jurisdiction offers infrastructure and resources comparable to the U.S. but at a lower cost. With minimal government intervention and a favorable banking industry for gambling, Panama attracts many entrepreneurs looking to start a business. Tax policies allow companies in the online gambling industry to pay almost no taxes when accepting foreign bets.
The country’s government issues gambling licenses for casino operators, software developers, and service providers in the gambling industry. These licenses allow for a wide range of businesses, including casinos, lotteries, and other gambling entertainment. Panama’s infrastructure provides an extensive set of services for online gambling operators and suppliers, such as dedicated racks with high performance, private cloud services, dedicated servers, and other hosting options.
