Panama, despite its small size, is an attractive jurisdiction for companies because of the many advantages it offers. These benefits vary depending on the type of legal structure chosen by the company. Panama is also an attractive destination for foreign direct investment. The country is characterized by political stability, a strong economy, and a strategic location that is ideal for trade. The Panama Canal provides access to markets in Latin America, North America, and Europe.
Panama offers a favorable tax system that does not tax income earned outside the country. This makes Panama an attractive place to do business, especially for companies that derive most of their profits from abroad. However, to take advantage of this benefit, companies must comply with certain requirements such as having a minimum of 3 directors.
Panama’s services sector is the largest sector of the country’s economy and employs more than half of the population. It makes a significant contribution to the country’s GDP, contributing about 75%. This contribution is distributed among different types of legal structures, including companies, corporations, partnerships, etc.
Panama is an attractive country for foreign investors due to its trade liberalization policy, numerous free trade agreements, and the presence of free economic zones. For example, the Colon Free Trade Zone is the second largest in the world and has an annual trade turnover of over 10 billion dollars.
All of this makes Panama one of the most open economies in the world, making it attractive to foreign investors, and an ideal country to start a business company.