Why foreigners invest in Panama

This post is also available in: Spanish

By: Staff at Panama Offshore Legal Services
E-Mail: info@pos-inc.com.pa || Phone: (507) 227 – 6645

For the past 10 years, Panama has experienced near double-digit economic growth. Only now, the rest of the world is noticing. The World Economic Forum recently concluded a yearlong study measuring worldwide economic competitiveness, where Panama was ranked 9th for Foreign Direct Investments. In addition, Panama’s economic strength and competition ranked 1st in Central America and 2nd in all of Latin America, behind Chile.

What this means is that Panama attracts many foreign investors, because of its strong economy and ability to allow for a competitive business climate with less regulations than most Latin American countries. It also helps that Panama’s currency based on the U.S. Dollar gives it more stability than the other Latin American countries.

Panama also protects foreign investments better than most Latin American countries. Panama’s Constitution along with its Civil Code (which regulates commerce) and its Foreign Investments Act guarantees that foreigners have the same rights as Panamanians in regards to investments, commerce, and property ownership.

One does not have to look very far to see all the construction cranes in many parts of Panama City or go to the beaches to see the numerous new hotels, resorts, and condominium projects. Hundreds of multinational corporations have set up regional headquarters in Panama including BMW, Caterpillar, Dell, General Electric, Heineken Beer, LG, Philips, Procter & Gamble, Samsung, Sony, and the Regional Center for the United Nations. Panama’s Ministry of Trade & Industry announced last August that Microsoft is looking to become the 115th company with a regional headquarters here.

There are many opportunities for any foreigner to make investments in Panama. However, before you invest, we recommend that you consult with a local financial advisor and a reputable Panama attorney.


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