This post is also available in: Spanish
By: Staff at Panama Offshore Legal Services
E-Mail: email@example.com Phone: (507) 227 – 6645
Why start an international business in Panama? There are several good reasons:
1. No Taxes: That is right. Companies who generate all their income outside of Panama will not have to pay income taxes. Few countries exempt income earned outside its borders from paying taxes. Paying no income taxes means earning bigger profits.
2. Favorable Time Zone: Panama is either in the U.S. Central or Eastern Time zone depending on when the U.S. has its daylight savings times. This makes it easier to communicate with customers in the U.S. along with the entire Western Hemisphere. Communicating with European countries which are five to eight hours ahead in time or with Asian countries 13 hours ahead requires early morning and night time Skype calls and text messaging.
3. Convenient International Airport: Panama City’s Tocumen International Airport has numerous daily flights to many airports across the Western Hemisphere. Direct flights save time and cost less. While there are limited direct flights to European cities the numbers are increasing this year.
4. The U.S. Dollar: Panama was the first country to have its currency tied to the U.S. Dollar in 1903. Having a strong currency without daily exchange fluctuations is good for business. It is easier for U.S. companies to open satellite companies and branches in Panama without having to worry about currency exchange rates.
5. Strong Banks: Panama has one of the strongest banking centers in the world with large amounts of cash in reserves with conservative and safe lending policies. Panama banks were not weakened by the 2008 global economic crisis which still plagues many countries and their economies.
6. Labor is Cheap: Panama’s highest minimum wage of only $2.36 an hour makes its labor force very cost effective.
7. Citizens from 48 Nations can Immigrate: Panama’s unique 48 Friendly Nations immigration visa program makes it easy for these citizens to become permanent residents by either starting a new business or buying an existing Panama business.
8. Cost of Doing Business: Panama’s Cost of Living standards are cheap when compared to the U.S., Canada, and Europe. Then same goes for running a business in Panama.
9. Panama City Resources: Panama City has the resources which every business needs. CPA’s, law firms, lots of university graduate workers, good internet connections, plenty of messenger services, plenty of good hotels, international restaurants, night life, health clubs, and in a few months a modern subway system.
Entrepreneurs considering starting an international based business in Panama should start by consulting with an experienced local law firm specializing in immigration, real estate, commercial, and labor laws.