Panama has long served as a gateway into Latin America and a key trading partner for North America and Europe. Ranked seventh out of 32 countries in Latin America by the World Bank for ease of doing business, Panama offers an accessible business environment and a wide array of opportunities for investment and growth.


Panama has quickly become a hub of economic opportunity in Latin America. Here are five reasons why companies should consider investing in Panama:


Panama boasts a robust digital infrastructure with strong connectivity thanks to the seven sub-maritime optical fiber cables (and growing) that allow us to offer unlimited bandwidth to businesses and academia with minimal risk of interruption by natural disasters. Its full compatibility with the US and the UK has allowed Panama to become a destination of choice for global telecommunication companies and data centers. Today, Panama is the link to 100% of regional internet traffic, 97% of international voice traffic and over 90% of electronic data transmission.

Dollarized economy

Panama was the first fully dollarized economy in Latin America. Importantly, some of the benefits of a dollarized economy include stability in terms of output and prices as well as a balance between revenues and expenditure of the government. Panama’s fully dollarized economy has low and stable inflation rates along with constant economic growth.

Global trade hub

As host to the Panama Canal, Panama is the only country in the world home to a terminal with access to two oceans. The Panama Canal, transporting 252 million long tons of goods in 2019, is a vital trade route that has spawned economic opportunities abound in Panama. One hundred and forty-four maritime routes and over 1,700 ports depend on the Panama Canal.

Tax incentives and special economic areas

Some companies may be eligible to pay no income tax in Panama. Panamanian policies also allow for special visas for employees of multinational companies to live in Panama. In addition, the Panama Pacifico special economic area, located on the west bank of the Panama Canal, offers its own unique benefits to multinational companies. More than 320 companies in the Panama Pacifico area have generated investments of approximately $900 million over the past twelve years.

Latin American country of choice for multinationals

Classified as an investment-grade country since 2010, Panama has built up strong partnerships across the international business world, with over 150 companies choosing Panama for its regional headquarters. To name a few, Procter & Gamble, Pfizer, and Nestlé all have operations and facilities in Panama.


Panama is among the top five countries in Latin America with the greatest potential to attract foreign investment, according to the Milken Institute. This is due in part to Panama’s robust regulatory environment to ensure transparency and fight money laundering.

Since 2016, Panama has joined several international partnerships to evaluate existing processes and develop the best possible transparency framework, including the Multilateral Competent Authority Agreement (MCAA), the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) and the Mutual Administrative Assistance in Tax Matters (MAC).

Panama’s well-developed Financial Services sector is another reason why Panama has become a desirable location for investment in Latin America. The sector has been a stalwart in Panama’s economy for decades, building wealth and generating prosperity due to Panama’s industry-friendly regulations, supporting services and experienced workforce.

The sector employs 26,000 Panamanians and provides the financial backbone for Panama’s micro, small and medium-sized enterprises, which comprise 90% of Panama’s businesses and 70% of Panama’s jobs.

Despite the challenges that Panama, like all countries, has faced during the pandemic, international markets have continued to recognize Panama’s political and financial stability. Not only has Panama been able to successfully mitigate the financial impacts of the pandemic, but just recently Panama’s National Bank issued a 10-year bond for $1 billion – and it was oversubscribed by close to $5 billion. This demand further solidified Panama’s standing to the world, demonstrating that the country’s economy remains strong and that investors trust Panama’s approach to financial recovery from the pandemic.

Our stability is also thanks in large part to our diversified economy which is less exposed to macroeconomic shocks than other economies in the region and ready to take on the challenges of a 21st century economy.


Reforestation funds

Panama offers a unique reforestation visa, providing permanent residency to anyone who invests at least $80,000 to purchase land that is part of a government certified reforestation project or forest plantation. Participants in the program can help reduce rainforest depletion while making a lucrative investment in sustainable lumber.


Precision agriculture

Farmers are already taking advantage of Panama’s plentiful natural resources, combined with the latest in farming technology, to maximize crop production and minimize costs. For instance, Agribotix LLC has partnered with the Inter-American Institute for Cooperation on Agriculture to help Panama’s farmers deploy agricultural drones, data and analytics to respond to environmental threats.


High Quality Produce

Approximately 30% of Panama’s land and 17% of the labor force is engaged in agricultural purposes, with production centered on items like sugar cane, bananas, rice, poultry and beef. Panama is built for experimentation with innovative, sustainable farming initiatives like a greenhouse by Ag Incotech that grows strawberries and is powered 100% by renewable energy.


Global Trade

The Panama Canal is at the center of Panama’s economic activity, accounting for almost 20% of GDP in direct and indirect contributions, attracting private investment and stimulating economic growth. The Panama Canal workforce currently includes over 9,500 employees.


Eco Tourism

Panama is proud to welcome visitors in our growing eco-tourism sector. Panama has 18 national parks, and 30% of the country, or 2 million acres, is either designated as national parks, tropical forest reserve or wildlife refuges.


Creative Economy

Panama has implemented a “National Strategy for Creative Economy” to foster the organizations that contribute to its cultural capital. Panama welcomes opportunities for investment in areas that provide societal value.


Panama’s banking industry, which contributes 8 percent to the republic’s GDP, is the most modern and successful in Latin America, second only to Switzerland in the world.


Panama receives more foreign direct investment than any other country in Central America, taking in $4.8 billion in 2019. To date, 150 International companies, including Dell, Halliburton, Western Union, 3M, and Procter & Gamble, have invested in Panama. 

There are definitely very clear factors that made Panama a good decision to strategically locate our Latin American HQ. The economic and political stability that the country enjoys, security, its financial services and definitely the easy air interconnection with the rest of the region. – Juan Fernando Posada
President, P&G Latin America
We decided to establish in Panama due to its economic and political stability, security, strategic geographic location and the availability of highly qualified professionals. This country has excellent conditions to attract investments. – Tom Sweet
CFO, Dell Technologies
Panama has been successful in establishing a robust institutional framework and a favorable economic environment that enable businesses like ours to grow. – Jae Hoon Kim
Chief Executive of Samsung’s Panama and Zona Libre subsidiaries.