Why Panama?

Panama has a highly developed international banking system, with more than 80 national and international banks operating in the country. This robust banking sector provides efficient and effective financial services, including trade financing, credit facilities, and treasury management. The efficiency and strength of Panama’s banking system facilitate international business operations, enabling companies to manage their finances with greater ease and security. Additionally, Panama’s banking regulations comply with international standards, ensuring a secure and reliable financial environment.

Panama offers a range of tax incentives and benefits for qualifying companies, especially those operating within the Colón Free Zone and other special economic zones. These benefits may include exemptions from income tax, import duties, and other fiscal charges. These policies are designed to attract foreign investment and promote the development of the country’s logistics infrastructure. Companies that take advantage of these incentives can significantly reduce their operational costs, thereby increasing their competitiveness in the global market.

Panama uses the U.S. dollar as its official currency, eliminating currency exchange risk for international companies operating in the country. This dollarization provides economic stability, which is highly valued by investors and multinational businesses. It also simplifies financial and commercial transactions, making operations more predictable and secure. A dollarized economy is especially attractive for companies seeking a stable and reliable environment for their investments and logistics operations.

Panama’s customs regulations are relatively straightforward and are designed to facilitate international trade. The country has implemented modern and efficient customs procedures that reduce clearance times and minimize bureaucratic obstacles. Companies operating in Panama benefit from fast and efficient processing of their imports and exports, which enhances supply chain fluidity. The transparency and simplicity of the customs system also contribute to a business-friendly environment, attracting more companies to establish their logistics operations in the country.

A logistics platform is the combination of infrastructures, technologies, processes, regulations and human capital that make the movement, transformation and storage of products possible. Much of the logistics platform in Panama has been developed to support international trade.
Panama has a set of logistics components that have functioned organically for more than a century in a coordinated system.

These components include ports, airports, special economic zones, and an interconnection network that includes main highways such as the Trans-isthmic Highway and the Pan-American Highway, corridors and highways, which are well intertwined, making the country an important hub for regional and international trade.

The geographical location of Panama, together with the expansion and continuous development of large infrastructures, motivate both nationals and foreigners to see the country as a great center with distribution potential for the markets of the United States, Canada and Latin America.