Page 193 - Caribbean-Central America Profile 2018

PANAMA

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Official Name: Republic of Panama
Capital: Panama City
Nationality: Panamanian(s)
PANAMA
Official Language: Spanish
Population Total (millions): 4.03 (2016 est.)
Size: 29,340 square miles
Currency: Panamanian Balboa (PAB);
U.S. Dollar (USD)
Internet Domain: .pa
International Dialling Code: +507
Electricity: 100 volts/220 volts/60 cycles

COUNTRY OVERVIEW INVESTMENT INCENTIVES
q Panama’s strategic location Traditionally, Panama has maintained a rather liberal regime for foreign investment and investment in
between two oceans and the financial instruments. There is no formal investment screening process by the Government of Panama,
engineering marvel of its Canal although the government tends to monitor large foreign investments.
defines this Central American
country’s place in the world. With an open service economy, economic political and social stability, a dollarized economy, an international
q The Panama Canal bisects the financial center, and a world class logistics platform make Panama the ideal location for investors.
isthmus at its narrowest and lowest INVESTMENT STABILITY LAW
point, allowing passage from the The objective of the Investment Stability Law is to promote and protect the investment carried out in
Caribbean Sea to the Pacific Ocean. the sectors of economic activity in the country. It was created by means of Law 54 of July 22, 1998, it
q The transit of thousands of establishes that the foreign investors and the companies where they participate, have the same rights
ships through this waterway is and obligations that the national investors and companies have, without more limitations than those
the country's main engine for established in the Political Constitution and the Law, including what is referred to the commerce and
economic growth. industry freedom, and the exportation and importation.
q The capital is Panama City. Permitted Activities:
Panama’s growth is likely to remain • Tourism
one of the highest in Latin America in • Agricultural Exports
the medium term. For 2017 and 2018 • Mining
the forecast remains at 5.4 percent, • Commercial and Oil Free Zones
the highest in Latin America. • Constructions
• Electric Energy Generation
Public investments should also remain • Industrials
high, with planned construction of • Forestry
the second Metro line and expected • Export Processing Zones
additional traffic generated by the • Telecommunications
expanded Canal. Private investment • Ports and Railroads Development
should also remain strong. Prospects for • Irrigation and efficient use of the hydraulic resources Projects
high growth in the coming years are also
supported by emerging opportunities Benefits:
for private sector-led growth in key • Juridical Stability unless causes are related to public utilities or social interest
sectors, such as transport and logistics, • Tax Stability in the national order
mining, financial services, and tourism. • Tax Stability in the Municipal order
One of Panama’s main advantages • Stability in the customs regimes that are derived from the Special Laws.
is its strategic location that together SPECIAL ECONOMIC ZONES
with political stability and the Panama has created laws and regulations allowing local and foreign investors to establish companies
dollarized economy continues to in segregated special areas with a variety of fiscal, migratory and labor incentives with the main
bring investors and companies objective of developing different kind of activities and to promote international trade, manufacturing and
from all over the world which have complimentary services. These Special Economic Zones are:
chosen to transfer their headquarters • Colon Free Zone
to Panama or open branches in the • The Panama Pacifico Special Economic Area
country. • Free Zones
• City of Knowledge

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