• Full country name: Republic of Panama.
• Area: 78,200 km2 (30.420 sq miles).
• Population: 3.2 million (1.7% annual growth rate).
• Capital City: Panama City (1,653,220 population).
• Languages: Spanish (official), 14% speak English and Indian dialects.
• Religion: There is absolute freedom of Religion in Panama. The majority are Roman Catholics. However, due to the diversity in our country, there are numerous churches, temples and synagogues.
• Government: Constitutional democracy.
• Annual Growth: 8.0%
• Inflation: 2.9%
• Countries with greater trade exchange: USA, Central America and Caribbean.

Communication Structure

Panama offers modern telecommunications systems and a well developed infrastructure, supported by international connectivity using fiber optic cables, submarine via the Atlantic and Pacific and through a variety of satellite systems. Telephone, cellular, Internet, fax and other communication services are widely available in the country. Panama also offers: the Panama Canal, a transoceanic railway, information center and two international airports, among others.

Economy

Due to the geographic location, Panama's economy is mainly oriented to the proper development of services, with more than 80% of gross domestic product. Services include the Panama Canal, the Colon Free Zone, banking and insurance, container ports and international ships, medical and health services, tourism, professional services, among others.

Finances

• Banks from all over the world are established in Panama.
• The United States dollar as the legal currency.
• The absence of a central bank, no currency controls on remittances of funds abroad in the country and no foreign exchange restrictions.
• Tax exemption on interest earned on time deposits and savings accounts.
• Territorial tax system (only the transactions in Panama are subject to income taxes) and tax incentives for a considerable number of activities
• Laws to protect banking secrecy, protecting the privacy of users of the financial center, except in cases of criminal investigations of activities such as drug trafficking, money laundering, etc. No restrictions on investment in financial services.
• No restriction on investing in financial services.
• No tax on capital gains in securities registered.
• Presence of foreign companies and large local insurance and reinsurance.

Investment in Panama

In Panama there is combined special incentive legislation in all areas of the economy and with it political and economic stability makes the country an attractive place to invest and / or reside there. Panama is a country that offers an appropriate legal, tax, financial environment for those wishing to live and invest in the territory.

The geographical position at the center of the Americas, having the Panama Canal, financial stability (with the U.S. dollar as legal tender), the existence of the largest international banking center of Central America, the Colon Free Zone ( the Western Hemisphere's largest and second after Hong Kong), the boom in construction and tourism (buildings and hotels that combine housing, business, relaxation, beach and sports) and flexibility in the granting of visas, specially for retirees (the Canadians have chosen the country as the second best home to live. The Panamanian economy grew by 2.1% in the first 9 months of 2009 because of many aspects, such as: construction, transportation and tourism.

In recent years, Panama has been a businesses center with billions of dollars in earnings, clearly showing how the foreign investor trusts in the Republic of Panama. Actually, Panama's Constitution expressly indicates that those foreign who are in the country receive the same treatment as nationals.

Legal System

The Panamanian legal system is based on civil law system, however, some legal instruments such as: corporations, private foundations, trusts and other negotiable instruments have been obtained from other systems and incorporated into Panamanian’s legislation.

• Constitutional protection for private property market economy
• Privately owned utilities (electricity, telecommunications, ports and roads)
• Protection of contractual obligations
• Freedom of venue and law (contractual) Constitutional protection for arbitration
• Full constitutional protection for human rights
• Democratic Stability, and no political discussion on the economic model.

Security and Health

Panama is recognized worldwide for having the highest rating for tourist safety, as determined by the prestigious Pinkerton Intelligence Agency (the same grade given to the U.S.) In addition, Panama has a well developed health system (public and private) influenced by U.S. standards.