Why Invest in Panama?

Fundamentals 2013
Political:	Transparent elections since 1990 Smooth transition of power every 5 years Long tradition of openness to foreign investments Structural adjustments to economy proven positive Bureaucracy reduced, but still a major factor
Economic:	US dollar is legal tender One of the fastest growing in the world with an average GDP growth of 7.3 per cent over the past ten years Inflation 3.9% Unemployment 4% (2012) Foreign Direct Investment $ $2,790 million Free trade agreements with more than 20 countries Canada/Panama (2013) Colombia (2013) USA/Panama (2011)  Peru (2011) Chile (2008) Taiwan (1982)
Financial:	No exchange or currency restrictions Moody’s raised score of Panama’s sovereign debt rating to Baa2 and its improved outlook for Panama from “stable” to “positive.” An economic landscape of friendliness toward foreign investment with healthy and rigorous trade agreements i.e. The Investment Stability Law, the Panama Trade Promotion Agreement (TPA), and the Bilateral Investment Agreement (BIT).
Legal:	No restriction on 100% foreign owned real estate BITs with multiple countries securing against expropriation and other risks One of the most flexible corporation laws in the world No restrictions on mergers, acquisitions or joint ventures Enforcement of foreign judgments and arbitral awardsGenerous tax incentives for relocating headquarters of multinationals
Tax:	Depending on the Investment Sector, the following Tax Incentives are available Exemption or discount from income tax Exemption from import tax on equipment and raw materials Exemption from income tax for creditors/banks Accelerated loss carry-forward Accelerated depreciation No foreign exchange risk Absence of exchange controls No restrictions on companies ownership and foreign capital Exemption from taxes for investments in tourism, maritime, real estate, mining, Colon Free Zone, exports and other markets
Other Highlights:	Panama is rated the second most competitive country in Latin America after Chile, according to the World Economic Forum  Panama has been rated as “One of the top retirement destinations in the world” The Heritage Foundation has ranked Panama N° 59 as one of the freest economies of 183 nations  International banking center  Panama has been awarded the second position in the ranking of Latin American nations providing better access to capital, according to the index published by the Milken Institute  2nd largest Free Trade Zone in the world, Colon Free Trade Zone registered 29,154 million dollars in commercial activity in 2011, a 25.8% increase on the previous year, despite adverse global trading conditions. World class infrastructure: $15 billion investment plan slated for completion in 2014, the effort includes a $2 billion metro line and other advancements to Panama’s transport infrastructure.  Caterpillar, Procter & Gamble, 3M, LG, AES, TOTAL, Roche, Hershey and Heineken are some of the most recent multinationals relocating their Latin American headquarters to Panama.