Panama has emerged as a prime destination for multinational companies seeking to establish their Latin America headquarters. The strategic location, robust infrastructure, favorable business environment, and attractive tax incentives make Panama a compelling choice for companies looking to expand their presence in the region. In this article, we will delve into four competitive advantages that Panama offers: strategic location, robust infrastructure, tax and fiscal incentives, and business friendly environment.
- Strategic Location: Located at the heart of North and South America, Panama boasts a strategic geographic location that facilitates access to key markets in the region and beyond. The Panama Canal, a vital maritime route connecting the Atlantic and Pacific Oceans, plays a crucial role in global trade, making Panama a natural hub for logistics and distribution activities.
- Robust Infrastructure: Panama is renowned for its modern infrastructure, including world-class ports, airports, metro, and telecommunications networks. The Tocumen International Airport in Panama City is a major aviation hub with direct flights to major cities in the Americas, Europe, and Asia.
- Business Friendly Environment: Panama is characterized by democratic transitions, political stability, transparent legal framework, ease of doing business, and outstanding quality of life. Even being considered as the 3rd best place in the world for retirees (according to International Living)
- Tax and Fiscal Incentives: Panama offers competitive corporate tax rates, with income derived from foreign sources being tax-exempt. Additionally, Panama has a territorial tax system, meaning that companies are only taxed on income generated within the country. This incentivizes companies to base their regional headquarters in Panama while conducting business across Latin America.
Panama offers a compelling value proposition for multinational companies looking to establish their Latin America headquarters. With its strategic location, robust infrastructure, favorable business environment, and tax incentives, Panama provides a solid foundation for companies to thrive and expand their operations in the dynamic Latin American market. The experiences of companies like P&G, DHL, Maersk, Dell, among others, highlight the tangible benefits of choosing Panama as a strategic business hub in the region.
