A Few Reasons To Do Business in Panama
Panama Welcomes Foreign Investors With Open Arms and Great Tax Breaks!
If you’re the entrepreneurial type, you might already be aware of how business is booming in Panama. But in case you haven’t heard… business is booming in Panama!
Over the last few years several laws and provisions have been passed to allow for smoother sailing where running a business in Panama is concerned. This includes large and small tax breaks in Panama, special deals for movie production, and provisions for relocating your existing business to Panama should you be in the market for a new home
Whether you’re still in the prime of your career, looking to move, shake and make history, or you’re a retiree with more time on your hands than you’d originally thought, Panama might be just the place to make your dreams come true!
With its central location and the Panama Canal which is a gateway to the world, Panama is quite literally the hub of the Americas. This is just one reason Panama makes an excellent place to embark on the dream of business ownership. Panama City is just a 5 hour flight from New York, and 7 hours to Brazil. Numerous daily non-stop international flights are available, making this gorgeous country with so much to offer, a very accessible place to call home. The favorable labor costs, incorporation laws, banking system, and ever growing international market (with ultra-easy access to the Panama Canal of course), all make Panama worth a serious look.
The cost of living in Panama is considerably lower than that of other worldwide powerhouses, which translates to unskilled labor costs at around just $3 an hour. Even skilled positions such as upper management and executive roles still average 60-70% cheaper than in many other parts of the world. Couple that with the English language being spoken almost as fluently and prevalently as their native Spanish, and it’s a one-stop-shop for many businesses looking to cut labor costs while still retaining high service levels for their English speaking customers. Panama also has the stable currency and low inflation rate that help feed the notion that this is an economic powerhouse that is only getting stronger and more capable of expanding.
If a small business is on your mind, Panama’s new regulations certainly favor you as well. Panama has one of the lowest tax structures in the world, and income taxes don’t even start accruing until around $11,000 per year. It’s even allowable to write off the mortgage costs of the family home, up to $15,000 annually, assuming your business is set up in the proper way. While it does seem easier and cheaper to open a business in Panama, and that is true for a lot of companies, you must consult and retain a business lawyer! To ensure that you get all the benefits coming to you and that you are set up in the right way, it’s a very important step in the health of your burgeoning business.
In only 10 years, Panama has nearly doubled the size of its economy, making it a huge player in the Latin America/Caribbean region, trailing only Chile in terms of size and market competitiveness. It has averaged a staggering 7-10% growth each year for the last decade, and will only continue to grow when the Panama Canal expansion, which is set to double the canal’s capacity, launches full scale in 2016. By many accounts it appears that life is good in Panama, and that even better is yet to come. It’s a great time to be in business in Panama, join the party!