Political system and foreign policy

Panama is a presidential democracy, with the president elected directly every five years. The country has a firm democratic tradition and institutional stability, making it a predictable and safe environment for business. In foreign policy it maintains good relations with a wide range of countries and international organisations.

• A country committed to free trade.
• Supports both bilateral and multilateral trade agreements.

Tax regime and advantages

Panama taxes on a territorial basis: only income from Panamanian sources is taxed. Profits earned abroad are outside the Panamanian tax net, even for companies domiciled in Panama, and there is no inheritance tax at all. Capital gains on Panamanian assets — the sale of a property or a shareholding, say — are taxable: the territorial regime covers foreign income, not all income indiscriminately. How your own case works out also depends on the tax rules of your home country; we are glad to go through it with you.

Company formation and citizenship

Setting up a company in Panama is quick and efficient, with simplified paperwork and minimal requirements. An entity can be incorporated in a very short time, so business can start without delay. Citizenship depends on the individual case, but Panamanian nationality usually takes several years. In the meantime the country offers visas and residence options for those who want to live and work in Panama while the application runs its course.

Colón Free Trade Zone

Panama is home to the Colón Free Trade Zone, one of the largest duty-free zones in the world. It is a major hub for trade and distribution, easing the movement of goods between the Americas and the rest of the world. With modern infrastructure and a strategic location, Panama serves as the gateway to the Latin American market and a connecting point for international trade.

A growing economy

Panama’s economy has grown steadily in recent years, driven by tourism, logistics, banking and financial services. A stable currency (the US dollar), developed infrastructure and an open trade policy have made Panama a regional commercial hub and a magnet for foreign investors.

At Gregůrek Consulting we offer a full range of services to support companies expanding into Panama — from residence formalities to advice on setting up companies. Our team of specialists is ready to help at every step and to give you the footing you need to succeed in this promising market. Get in touch and discover what Panama has to offer.