Stronger Financial Environment
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Panama has been officially removed from the European Union’s list of high-risk countries regarding the prevention of money laundering and terrorist financing. This decision eliminates regulatory barriers for conducting financial operations with European entities and enhances the country's image in international markets.
This achievement is the result of significant legal and institutional reforms aimed at strengthening financial transparency. Key measures include the implementation of a register of beneficial owners, the reinforcement of regulatory bodies, and increased cooperation with international organizations.
For investors, this removal represents a reduction in reputational risk and greater ease in establishing banking, commercial, and financial relationships linked to Panama. The country thus reaffirms its commitment to international standards and strengthens its position as a reliable destination for investment in the region.
National Infrastructure that Enhances Cébaco Escondido
Panama–Chiriquí Train
This railway project aims to connect Panama City with the province of Chiriquí, in the western part of the country. It will significantly reduce land transportation time, facilitating access for people and goods.Fourth Bridge over the Panama Canal
A key infrastructure that will cross the Panama Canal, improving connectivity between the capital city and the inland provinces. It will allow continuous vehicular traffic without relying on the Bridge of the Americas.Expansion of Regional Airports
Airports such as Santiago (Rubén Cantú) and Chitré are being modernized to improve their operational capacity, safety, and services for both domestic and international flights.Expansion of Puerto Mutis (Veraguas)
A strategic port in the Gulf of Montijo, near Cébaco. Its expansion will transform it into a logistics hub for maritime transport, fishing, nautical tourism, and regional trade.Cruise Terminals (Amador and Colón 2000)
Two modern terminals that boost the country’s cruise tourism: one on the Pacific side (Amador) and another on the Atlantic side (Colón 2000). They are key points connecting Panama with international tourist routes.Panama Canal
The Canal remains a logistical pillar of global trade and a key source of income for the country. Its infrastructure and connectivity also benefit tourism and real estate development projects.
Panama: Leader in Economic Growth in Central America
Economic stability and sustained growth make Panama a strategic destination for investment in Central America. According to the data shown in the chart, Panama led regional economic growth in 2022 with an impressive 6.0%, and although a more moderate growth of 4.0% is projected for both 2023 and 2024, it remains one of the highest in the region, consistently outperforming countries like El Salvador, Nicaragua, and Costa Rica.
This performance reflects the structural strength of Panama's economy, driven by key sectors such as logistics, commerce, financial services, and the Panama Canal. In addition, the country offers a business-friendly environment thanks to its political stability, use of the U.S. dollar as official currency, pro-foreign investment legislation, and international air and maritime connectivity.
Compared to its neighbors, Panama maintains a steady and robust growth rate, which reinforces investor confidence. While other economies face stagnation or slowdowns, Panama continues to stand out as one of the most dynamic and resilient economies in the region.
Tax and Economic Advantages of Investing in Panama
1. Territorial Tax System
In Panama, taxes are only paid on income generated within the country.
Profits earned outside of Panama are exempt from local taxation.
This benefits international investors who manage capital from abroad or sell outside the country.
2. Zones with Special Incentives
Panama has laws that promote investment in rural, touristic, or island areas.
Cébaco may be eligible for these incentives, provided development occurs under approved frameworks (such as sustainable tourism or foreign investment programs).
These incentives include tax reductions, streamlined registration processes, and operational benefits.
3. Tax Exemptions for Tourism
Income tax exemption for up to 15 years.
Import tax exemption on materials, equipment, furniture, etc.
Property tax exemption for up to 20 years.
4. Economic and Monetary Stability
Panama uses the United States dollar (USD) as its de facto official currency.
This provides:
Exchange rate security
Protection against devaluation
Greater confidence for international investors
5. Ease of Property and Business Registration
Panama offers a clear legal system for the registration of land, corporations, and projects.
Foreign investors have full ownership rights, with no need for a local partner.
The project can be operated through corporations, private foundations, or trusts, as appropriate.
Panama in the Context of MERCOSUR–European Union: A New Gateway to Global Trade
January 17 marks a key milestone for Panama, as it formalizes the signing of the Association Agreement between MERCOSUR and the European Union, a process in which the country participates as an Associate State of MERCOSUR. While Panama is not a direct signatory, its involvement in this landmark event underscores its growing integration into the regional and international trade framework.
This development strengthens Panama’s strategic positioning as a logistics, financial, and trade redistribution hub, leveraging assets such as the Panama Canal, world-class ports, free trade zones, and its global connectivity. Looking ahead, the signing of the agreement opens opportunities for Panama to expand its role in regional value chains, attract European investment, and deepen its ties with MERCOSUR markets, laying the groundwork for future, targeted trade agreements that enhance its international competitiveness.
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