Investing in Panama

Let’s review a few of the reasons Panama has such magnetism for qualified foreign investors. The country boasts a democratic elected government and enduring political stability.

The presence of US currency in Panama is a key factor in attracting foreign investment. Since Panama is on the dollar system, investors do not have to worry about having their money devaluated as in many Latin American countries.

The trend towards an open economy and possible trade pacts with such nations as the U.S. and Mexico are conducive to investment in Panama. There are also no government expropriation or interference as in many Latin American countries. Foreign investment is encouraged by a business oriented government. All investment is backed by a government that realizes the value of private business to a developing country. In 1946 Panama’s business oriented mentality led to the creation of the Colón Duty Free Zone, considered to be the second largest free trade center in the world, after Hong Kong. In addition, the Panamanian government offers foreigners who invest in Panama many attractive incentives such as legal residency and tax privileges.