“Panama is a tax haven.” – We come across this statement quite often in newspapers, news channels, discussions, debates, and where not. A tax haven country imposes no tax on its citizens.
Located in South America, Panama is a country of very much geopolitical importance because of the famous Panama Canal. The canal is of utmost importance for the international trading of goods and products. It put Panama, the country, on the map and desirable because of its strategic location.
Panama has been known to attract quite a lot of attention because of various factors. Let us explore why the world has its eyes on a small country in Latin America.
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Financial Stability
While the world has been going through a pandemic and inflation, the economic conditions of Panama are quite stable. Covid-19 hit the entire world hard, but the financial policies of the country were strong enough to let it jump back into the business in almost no time. This shows why Panama is an ideal place to invest in. Not to mention the tax rebates that come with it.
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Open Investment Laws
The famous Law 41 grants tax incentives to multinational companies who are trying to establish themselves. It comes with a special immigration and labor regime which also has a provision for visas for workers and their families. Also, there are various incentives for investment schemes for real estate and other fields.
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Strategic Location
As discussed earlier, the location of Panama and the Panama canal is such that they automatically become important to international trading. It is very close to the USA and has good connectivity to many major cities of the USA like Washington DC, Los Angeles, and others.
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Affordable Quality Labour
The flexible labor laws invite much business from around the world. The labor here is efficient and the labor cost is effectively lower compared to the countries nearby like the USA, Canada, and others. This is also why many MNCs like to invest in Panama for their trade.
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Stable Political System
Today, when major democracies of the world are facing issues within their respective countries, Panama is enjoying a healthy political system. The government of Panama always encourages public-private partnerships, which results in a healthy relationship between the public, government, and industry giants.
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Safe and Secure
The country has been rated as one of the safest places to live in Latin America. Because the country is economically and politically stable, it makes the place to be safe and secure for its citizens.
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Quality Of Life
Quality of life in any country depends on various factors. Panama is a country that has a perfect amalgamation of rural and urban life. The coastal location makes it warm and yet fun. One can enjoy the nightlife while spending leisurely time admiring the rich culture of the country.
Conclusion
Investing in a foreign country can be a difficult decision, but Panama has amazing laws and regulations for foreign investors, which makes the country highly desirable.
