• Investments in Panama


Profitable businesses in Panama

Profitable business ideas in Panama

Are you interested in investing in Panama and want to know exactly which the most productive sectors in this country? In Axia we will give you some references so that you know which are the most profitable businesses in Panama and you can dare to invest your capital taking a firm step and with confidence.

Unlike other countries in Central America, Panama’s economy is based on a large service sector that covers 80% of the Gross Domestic Product (GDP) and is the main recipient of foreign investment that has experienced enormous economic growth in the region. last decade. The economy grew by an average of 8.3% per year between 2004 and 2013, despite the global recession in 2009.

Know the strengths of the Panamanian market before investing

  • Panama uses the US dollar and there is no exchange control.
  • 100% foreign ownership is allowed.
  • There are no restrictions on the transfer and repatriation of capital and profits.
  • There is legislation that guarantees the incentives of legal, fiscal and tax security for investors.
  • Panama has not experienced great difficulties as a result of the global crisis.
  • It has had economic stability, with a historical record of low inflation and sustained economic growth.
  • It is strategically located on the main route of world shipping, provided by the Panama Canal.
  • It has a center for air transport.
  • It is one of the best countries for telecommunications connectivity in the world.
  • It registers a low level of unemployment, of only 4.1%.
  • Panama has modern and flexible corporate laws. The registration of a corporate structure in Panama takes around just a week.
  • Offers all the incentives available equally to Panamanian and foreign investors.
  • Panama to signed free trade agreements with the United States, Canada, Colombia, Peru and Chile.

Why Panama?

Selecting a jurisdiction a short distance from the coast is an integral part of establishing an offshore structure or financial account. The jurisdiction you choose must have at least the following 10 characteristics: 

  1. Fiscal Advantages – In Panama there are no taxes on capital gains in offshore investments, nor tax on the interests generated in offshore bank accounts and there is no income tax (for offshore companies), etc.
  1. Favorable Laws of Establishment of Companies – The laws of establishment of companies in the country, should allow you to maintain “Bearer Shares”, have directors of any country, without so many expenses, and be able to establish Private Interest Foundations as Panama does.
  1. Stable currency, without regulatory restrictions – the currency of the country should be stable and there should be no restrictions on the movement of funds within or outside the country and your offshore bank should be able to keep your money in any of the major currencies.
  1. Strict Privacy Laws – there must be strict privacy laws that protect your banking information and information in corporate books.
  1. Stable Government – The country’s government must be stable. The country must also be safe to visit.
  1. Stable Economics – The country’s economy must be stable with steady growth and low inflation.
  1. Excellent Banking System – The Banking System of the country must be advanced in areas of international banking regulation, infrastructure, government auditing and technology.
  1. Excellent Communication System and without Natural Disasters – The Communication Systems of the country must be technologically advanced compared to the countries of the first world and must be located in a region that is free of environmental / natural disasters (hurricanes, tornadoes, earthquakes , tsunamis, etc.), so that communications are never cut or problematic.
  1. Language Compatibility – The language of the country should be convenient for understanding.
  1. Compatibility of Time Zone and Nearby Location – The time zone of the country must be that which allows you to contact your offshore provider or financial institution, during your normal domestic working hours and travel to the country quickly (same day) if You need to urgently handle a business or financial need.

After careful research, you will find that Panama is the ideal jurisdiction for your ‘offshore’ needs, since Panama complies with ALL of the criteria mentioned above. The Law of Panamanian Companies, was enacted more than 80 years ago, and since then it has been copied by many of the other nations considered tax havens. It has also been one of the places of establishment of most popular companies in the world, with more than 500,000 registered entities and offers the Private Interest Foundations, which are part of the most used vehicles for asset protection and property planning available today.

List of profitable businesses in Panama

  1. – Infrastructure

Panama is halfway to the implementation of a large infrastructure strategy. They currently have a plan for public investment, where 55% is destined for social infrastructure. There are also important railway infrastructure projects in progress.

There are other infrastructure projects that offer opportunities for new investors and ensure a profitable business in Panama, such as:

  • Living place
  • Roads and urban planning
  • Technical and professional schools
  • Health centers
  • Liquefied Natural Gas (LNG)
  • Expansion of the port to support the expansion of the Panama Canal
  1. – Power and renewable energy

 In a recent study, Panama ranked as the third most attractive country for those who want to invest in:

  • Thermal solar energy
  • Wind power
  • Energy through clean coal
  • Clean energy through Liquefied Natural Gas
  • Hydroelectric power
  1. – Generation of electricity, transmission and distribution

Panama seeks to become an electric power center for the region. It recently completed the Central America connection and is carrying out a distribution line with electric interconnection between Colombia and Panama.

In August 2012, a new law was established to promote the construction and operation of natural gas-based power plants for the supply of electricity. So this area is a good opportunity for a profitable business for those looking to invest in Panama.

  1. – Agriculture

Panama seeks to increase support for the agricultural sector. It is necessary to raise productivity to meet the demands of the market and its progressive growth. There are excellent profitable business opportunities in Panama for investors who have the technology and ideas to help increase productivity in this area.

  1. – Education

Panama’s policies have encouraged English through training programs abroad in English-speaking countries. Additionally, there is the ‘Panama Bilingual’ project that began in 2015, where all teachers and students must be trained to learn English. This has created a number of profitable businesses in Panama, for private investors and for companies or institutions of higher education in the teaching of languages in Panama.

  1. – Ports and maritime

The infrastructure of the Panama Canal and its ports is the largest in Latin America. Greater Canal expansion will be needed to meet future demand. This includes maritime services around an extensive port infrastructure and distribution logistics related to these services. It also opens the opportunity for those who want to offer maintenance and cleaning services to the large number of ships that pass through there. Without a doubt, the Ports of Panama sector is one of the profitable businesses in Panama for those who want to multiply their assets.

  1. – Real Estate

Originated mainly by the great economic growth that Panama has had in recent years, this has resulted in a significant number of new residents and citizens, therefore, housing is required for the residence and holiday stays of these new inhabitants. It is necessary to increase the production of this sector to meet the high demand, so investing in Real Estate in Panama, is one of the best opportunities seen by the eyes of experts.

  1. – Tourism

Undoubtedly, the tourism sector is also a very profitable business in Panama, originated by the boom that this country has had. In this sense, the opportunities to undertake in this area overflow. You can invest in transportation for tourist purposes, tours and tours, resorts, restaurants, nightclubs, casinos, etc., with a high probability that your capital will strengthen quickly.

  1. – Transportation

Invest in the transportation sector in Panama, it will always turn out to be a very profitable business, you can set up a line of taxis or private transports, which go from airports and tourist hotels, any of these options is perfectly viable to ensure a good business since every day the population grows in this country.

Experts predict that Panama’s economic growth will remain strong in the coming years. If you are thinking of investing reliably, we invite you to take into account these recommendations of the most profitable businesses in Panama and ensure the welfare of your future and that of your family.

Panama offers the following benefits and advantages

Panama Has the Best Tax Platform for Offshore Businesses

Offshore or Non-Resident Panamanian Companies, and Private Interest Foundations do not pay taxes on any of their offshore entries (from a foreign source):

  • There are no taxes on income (offshore).
  • There are no taxes on capital gains (except in real estate sales located in Panama)
  • There are no taxes on bank interest.
  • There are no taxes on sales (offshore).
  • There is no tax on issues of corporate shares.
  • There are no taxes to shareholders.
  • There is no tax for the sale or transfer of shares (except when the sale of shares is for the transfer of real estate in Panama).
  • There is no tax for shares of capital.
  • There is no tax on offshore property (except in real estate located in Panama).
  • There is no state tax.
  • There is no tax for gifts.
  • There is no stamp duty.
  • There is no inheritance tax.
  • There is no inventory tax.
  • There is no municipal tax.
  • There is no state tax.
  • There is no federal tax.

Panama offers the most flexible and favorable company laws available in the world

Private Interest Foundations are also available, and they are one of the most used heritage planning structures in the world today.

  • Panama is the registered domicile with more than 500,000 companies and foundations, making it the second most popular jurisdiction to establish offshore companies in the world, after Hong Kong.
  • Panama does not require that the shareholders of the offshore Panamanian companies be registered in the public registry (however, the resident agent keeps a private registry).
  • Panama does not allow the “lifting of the corporate veil”.
  • The certificates of shares of Panamanian companies may be issued in registered or bearer form (anonymous form of ownership), with or without par value.
  • Panamanian companies do not require paid-in capital, nor is there a time limit in which the authorized capital must be paid in full.
  • The directors of Panamanian companies, officers and shareholders, can be of any nationality and residents of any country.
  • Neither directors nor officers in Panamanian companies need to be shareholders.
  • Meetings of directors, officers and shareholders can be held in any country and the accounting books can be kept in any country.

It is not necessary for interested parties to be present in Panama for the purpose of establishing a company.

Companies that conduct business outside Panama do not require a commercial license for commercial activities ‘offshore’.

The circulation currency in Panama is the US Dollar

The circulation currency in Panama is the US Dollar and it does not have control of currency exchange or exchange restrictions, so funds can enter and leave the country freely.

  • Panama uses the US Dollar as a legal trend (currency), installing tremendous monetary and fiscal disciplines, keeping inflation very low – below two percent in the last 40 years.
  • The dollar economy isolates Panama from global economic crises. During the Asian currency crisis in 1998, Panama became one of the healthiest economies in Latin America.
  • There are no currency exchange controls. Panama has no restrictions on monetary remittances abroad, including dividends, interest, branch profits and royalties.
  • There is no restriction on funds entering or leaving the country in any currency.

Panama continues to maintain what we consider to be the strongest bank confidentiality laws and corporate books in the world

Panama continues to maintain what we consider to be the strongest bank confidentiality laws and corporate books in the world, which are enshrined in its ‘Political Constitution’. It is clear that Panama remains the safest offshore financial center, where privacy and confidentiality is not only respected, but vigorously protected by Constitutional Law. Panama has undertaken to sign only the double tax treaties, which are beneficial for foreign investment in Panama. However, the bank secrecy laws in Panama remain in force.

  • Panama offers the best laws in the world in bank secrecy.
  • Panama offers the best laws in the world in terms of confidentiality of corporate books.
  • There is no ‘corporate veil lift’ in Panama.
  • Revealing banking information to third parties is a crime, punishable by imprisonment.
  • Panamanian companies offer “Bearer Shares”, allowing shareholders to remain 100% anonymous and private.
  • The Private Interest Foundation allows Private Documents of Protectorate and Wills, allowing the controllers (protectors) and beneficiaries of the Private Interest Foundation, to remain 100% anonymous and private.

Panama has what is considered by government analysts, the most stable government in Central and South America

  • Democratic government since 1990. The Panamanian government is headed by the Executive Body, which is composed of the President and two Vice-Presidents, democratically elected for a period of five years by direct vote.
  • Mireya Moscoso was the first woman President of Panama and brought the country into a moment of great historical importance, when the Panama Canal began a new era under the Panamanian administration. At the time of writing (June 2010), our current president is businessman Ricardo Martinelli (whose term ends in 2014) is a rightist, pro-business lawyer, with the commitment to make Panama “the best place to do business in the world”.
  • Panamanian militarism was abolished by constitutional amendment in 1994, and the government continues to have a unique security arrangement with the United States, due to the Treaty of Neutrality of the Panama Canal. As a result, the risks of returning to the beginnings of a military regime are virtually non-existent (Source: Euromoney Report / Lehman Brothers, Feb. 26, 1999).
  • Stable government with excellent government infrastructure.
  • Attitude and government policy in favor of trade.
  • Roman Law System.
  • Moody has issued Panama a sovereign ceiling rating of Ba1 and Standard & Poors has assigned a BB + default risk rating.
  • Panama is a quiet country, without military. Unlike many neighboring countries, the concern for personal safety is limited. Panama has the lowest level of crime in Central and South America.

The Panamanian economy is one of the most stable, prosperous and most advanced in all of Central and South America

Panama is home to the second largest distribution center and exchange center (free zone), in the world, followed by Hong Kong. In the Colon Free Zone of Panama, more than 1,500 international import / export businesses operate, more than 250,000 visitors are received each year, and more than US $ 11 billion are generated annually in exports and re-exports.