5 important reasons why you should invest in Panama

Panama is a country that, in addition to having a strategic location, constantly improves its infrastructure and talent to boost the country’s economic growth, connection with the rest of the world and business competitiveness. This leads it to have a mix of advantages that it offers to benefit foreign companies. Discover here some of the reasons why you should invest here.

1. Stable political system

Panama is a country known for enjoying a healthy political system; it is consistently rated by the World Bank as one of the most politically stable countries in Latin America. And it is the second safest country in Central America, as well as the fifth in America.

This is thanks to the government, who always tries to prioritize public-private partnerships, such as Panamá Pacífico, in favor of development and investments in the country. Its level of security is very good, and it also has a low incidence in natural disasters. That makes it not only an ideal country to invest, but also to live.

2. Open and secure investment climate

Annual economic growth in Panama is of 6%, one of the highest in Latin America. Also, the country has the best credit rating in all of Central America, even higher than Costa Rica, Honduras and El Salvador.

Also, the government has been responsible for creating laws to boost investment in Panama, as well as tax incentives. These laws also establish legal certainty to attract more foreign investors and they have been successful: Foreign Direct Investment (FDI) rates are always on the rise, promising highly profitable returns on future investments. In 2018, the level of FDI inflow in Panama went from $954.9 million to $1365.9 million in the same year. This data highlight the reason why Panama is an attractive jurisdiction to invest in.

3. High quality labor at an affordable cost

The country has attracted a significant talent pool from around the world thanks to its global environment and the flexible labor laws and regulations available under unique incentives. West, Center and East Panama is full of skilled labor that are also bilingual, learning English as a second language from young ages.

Also, labor costs are substantially lower than major economies in the region, such as Brazil, Mexico and the United States, being between 47% to 85% cheaper. While social security contributions are lower than Costa Rica, Argentina, Colombia and Brazil as well.

4. Strategic location

Panama connects East and West, North and South in the Americas by sea, land, and air. It has more than 1,100 international flights a week, with 83 direct destinations and 40 airlines at Tocumen International Airport, which is 28 km from Panama Pacifico.

Also, the country has the most active ports in Latin America, in both Pacific and Atlantic, creating an interoceanic region that is 80 km wide and concentrates almost 6% of all international trade. You will find the port of Rodmand at 5 km from Panama Pacifico, and Balboa at 7 km.

Panama Pacifico is also located 3 kilometers from the Pan-American Highway and 13 from downtown Panama City.

5. Benefits to establish new multinational companies

Thanks to the Law 41, we can grant certain tax incentives to all those companies that seek to establish themselves with us. Among these incentives you can find a special immigration regime and a special labor regime with a visa for workers that can be extended to direct family members. Thanks to these incentives you can find more than 100 multinational companies in Panama for their regional operations.

Your company can also be part of Panamá Pacífico and benefit from all our incentives and competitive advantages, in addition to the ones everyone can get in Panama.

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Source:
Proinvex
SEMANA
Biz Latin Hub