TABLE OF CONTENT

ABOUT BUSINESS PANAMA ...........................................................................04

LEADERSHIP TO SUCCEED .............................................................................06

PANAMA AT A GLANCE.....................................................................................08

PANAMA - A NATION OF HUBS AND CLUSTERS....................................10

PANAMA IN FOCUS
Competitiveness Report .....................................................................................14
Country Risk ...........................................................................................................16
Investment Rating .............................................................................................16
Fitch Ratings .......................................................................................................17
Moody’s ...............................................................................................................20
Standard and Poor’s .........................................................................................21
BICRAs (S&P) .....................................................................................................22
Sustainable Growth (IMF) ...................................................................................24
Doing Business Rankings (The World Bank) ................................................26
World Investment Report (UNCTAD) ...............................................................27
Container Port Traffic Index (The World Bank) .............................................28

ECONOMIC & INVESTMENT SECTORS

Hotels, Resorts & Casinos .................................................................................31
Panama as Headquarters for Multinationals ................................................33
Construction ............................................................................................................40
Airports, Ports & Logistics ..................................................................................42
Real Estate................................................................................................................49
Panama Silicon Valley...........................................................................................60
Panama Techno-Park............................................................................................61
International Financial Center ...........................................................................65
Banking .................................................................................................................65
Securities .............................................................................................................66
Insurance & Reinsurance ...............................................................................66
Trust Business ....................................................................................................67
Family Offices .....................................................................................................68
Finance Companies ..........................................................................................70
Leasing..................................................................................................................70
Remittance Houses ..........................................................................................70
Logistics ....................................................................................................................71
Agroindustry ............................................................................................................74
Mining, Oil and Gas ...............................................................................................76
Incentive Laws ........................................................................................................78
Investments under the Investment Stability Law ....................................78
Panama’s Film and Audiovisual Industry ...................................................80
Tourism .................................................................................................................80
Light Manufacturing .........................................................................................81
Renewable Energy ............................................................................................82
Reforestation .......................................................................................................84
PPPs .......................................................................................................................85

SPECIAL ECONOMIC AREAS

Special Economic Zones .....................................................................................87
BPOs and Call Centers .........................................................................................90
Petroleum Free Zones ..........................................................................................92
City of Knowledge ..................................................................................................... 94
Panama as a Regional Headquarters for Multinationals ............................ 95
International Techno Park ....................................................................................100
Private High-Tech Parks .......................................................................................101

BUSINESS ORGANIZATIONS
Legal Entities ............................................................................................................102
Partnerships.........................................................................................................104
Joint Ventures ......................................................................................................104
Corporations ........................................................................................................105
LLCs........................................................................................................................105
Business Licenses ..................................................................................................106
KYC ..............................................................................................................................106

IMMIGRATION & RESIDENCE

Friendly Country Residence ................................................................................108
Qualified Investor ...................................................................................................109
Reforestation Investor ...........................................................................................110
Retiree Pensionado Residence ..........................................................................110
Employment visa .....................................................................................................111

TAXATION
Taxable Income........................................................................................................113
Taxation of Dividend ...............................................................................................113
Capital Gain ..............................................................................................................113
Alternative Minimum Tax......................................................................................115
Incentives ..................................................................................................................115
Withholding Tax .......................................................................................................115
Other Taxes in Corporations................................................................................116
Compliance for Corporations..............................................................................117
Other Taxes on Individuals...................................................................................118
Tax Treaties ...............................................................................................................119
Information Exchange ...........................................................................................119

EMPLOYMENT
Employment ..............................................................................................................121
Salaries .......................................................................................................................121
Public Holidays in Panama ..................................................................................127
Vacations ...................................................................................................................128
Other Employee Benefits .....................................................................................128
Employment Termination ....................................................................................129
Liquidation Payments ............................................................................................129
Fair Grounds for Dismissal ..................................................................................129
Unfair Grounds for Dismissal ..............................................................................130
Labor Unions ...........................................................................................................130

SOCIAL SECURITY
Contributions............................................................................................................130
Salary ..........................................................................................................................131
13th Month Bonus ..................................................................................................133
Other Benefits ..........................................................................................................133
Maternity Leave .......................................................................................................133
Occupational Hazard .............................................................................................133
Funerals .....................................................................................................................133
Old-Age Pension .....................................................................................................133
Maximum Pension ..................................................................................................133
4. Doing Business Panama
Doing Business Panama 5.
6. Doing Business Panama
8. Doing Business Panama
Doing Business Panama 9.
10. Doing Business Panama
Doing Business Panama 11.
12. Doing Business Panama
Doing Business Panama 13.
14. Doing Business Panama
Doing Business Panama 15.
16. Doing Business Panama
Doing Business Panama 17.
18. Doing Business Panama
20. Doing Business Panama
Doing Business Panama 21.
22. Doing Business Panama
Doing Business Panama 23.
24. Doing Business Panama
Doing Business Panama 25.
26. Doing Business Panama
Doing Business Panama 27.
28. Doing Business Panama
30. Doing Business Panama
Doing Business Panama 31.
34. Doing Business Panama
Doing Business Panama 35.
36. Doing Business Panama
Doing Business Panama 37.
38. Doing Business Panama
40. Doing Business Panama
Doing Business Panama 41.
42. Doing Business Panama
Doing Business Panama 43.
Doing Business Panama 45.
46. Doing Business Panama
Doing Business Panama 47.
Doing Business Panama 49.
50. Doing Business Panama
Doing Business Panama 51.
52. Doing Business Panama
Doing Business Panama 53.
54. Doing Business Panama
Doing Business Panama 55.
56. Doing Business Panama
Doing Business Panama 57.
58. Doing Business Panama
60. Doing Business Panama
Doing Business Panama 61.
62. Doing Business Panama
Doing Business Panama 63.
Doing Business Panama 65.
66. Doing Business Panama
Doing Business Panama 67.
68. Doing Business Panama
70. Doing Business Panama
Doing Business Panama 71.
72. Doing Business Panama
74. Doing Business Panama
Doing Business Panama 75.
76. Doing Business Panama
78. Doing Business Panama
Doing Business Panama 79.
80. Doing Business Panama
Doing Business Panama 81.
82. Doing Business Panama
Doing Business Panama 83.
84. Doing Business Panama
Doing Business Panama 85.
Doing Business Panama 87.
88. Doing Business Panama
Doing Business Panama 89.
90. Doing Business Panama
Doing Business Panama 91.
92. Doing Business Panama
94. Doing Business Panama
Doing Business Panama 95.
96. Doing Business Panama
Doing Business Panama 97.
98. Doing Business Panama
Doing Business Panama 99.
100. Doing Business Panama
Doing Business Panama 101.
102. Doing Business Panama
Doing Business Panama 103.
104. Doing Business Panama
Doing Business Panama 105.
106. Doing Business Panama
108. Doing Business Panama
Doing Business Panama 109.
110. Doing Business Panama
Doing Business Panama 111.
112. Doing Business Panama
Doing Business Panama 113.
Doing Business Panama 115.
116. Doing Business Panama
Doing Business Panama 117.
118. Doing Business Panama
Doing Business Panama 119.
120. Doing Business Panama
Doing Business Panama 121.
122. Doing Business Panama
Doing Business Panama 123.
124. Doing Business Panama
Doing Business Panama 125.
126. Doing Business Panama
Doing Business Panama 127.
128. Doing Business Panama
Doing Business Panama 129.
130. Doing Business Panama
Doing Business Panama 131.
Doing Business Panama 133.
134. Doing Business Panama