How to Expand Your Business in Latin America from Panama

Panama has evolved in recent decades to become one of the most important business centers in Latin America. Thanks to its combination of fiscal benefits, political stability and regional connectivity, it has earned a reputation as the ideal gateway to Latin American markets.

Strategic location with unparalleled connectivity

Panama is located at the geographical center of the American continent, serving as a natural connection point between the north and the south. This not only facilitates physical logistics, but also regional management from one place.

El Panama Canal is a key asset, allowing for fluid trade between oceans and facilitating exports to multiple markets from a single location.

International financial and commercial center

Panama is home to more than 120 multinationals that use the country as their regional base to manage operations in Latin America. From international banks to technology firms, everyone takes advantage of the country's favorable corporate environment.

Open economic policy and dollarization

Unlike other countries in the region, Panama uses the U.S. dollar as legal tender, reducing exchange rate risks for investors and facilitating international transactions.

The country's economic policy promotes foreign investment, allowing for creation of companies in Panama in an agile way, with tax exemptions when operating from free zones or generating income outside the country.

Ease of structuring international businesses

Panama allows businesses to be structured from local entities or a offshore company, which is useful for those who want to centralize their corporate structure with international projection.

Legal security and political stability

With one of the most stable democracies in the region and clear laws that protect business interests, Panama provides the ideal environment for investing without uncertainty.

• Free Trade Agreements with key countries such as the U.S. US, Mexico, Colombia and the European Union
• High banking and the possibility of opening corporate accounts with foreign currencies
• Modern laws for fiscal and legal protection of foreign investment

It's not just about where to register your company. It's about where you can operate your regional growth more efficiently and with less friction. And for that, Panama makes a big difference.

Panama's appeal as a center for business expansion is no accident. Its policies continue to evolve to remain competitive in 2025, offering a set of advantages designed to attract and facilitate foreign business presence. Next, we analyze in detail the key benefits offered by the country, divided into three categories: fiscal, logistical and legal.

Tax advantages that boost profitability

One of the biggest incentives for create a company in Panama is its territorial tax regime, which means that only income generated within the country is taxed. Foreign income, such as income from exports, online services or regional operations, is exempt from local taxes.

In addition, there are areas such as the City of Knowledge, Panama Pacifico and the Colon Free Zone, which offer special tax regimes with additional exemptions.

These are some of the tax benefits in Panama which are still in effect in 2025:

• Foreign Income Tax Exemption
• No taxes on dividends from abroad
• Low annual maintenance costs for companies in Panama
• Simplified procedures for tax residency in Panama

This makes Panama a very efficient environment for those who seek to structure their operations from a fiscally optimized base.

Modern infrastructure and regional access

The logistics infrastructure is another major attraction. Panama has:

- Two ports in the Atlantic Ocean and two in the Pacific connected by road and rail.
- Tocumen Airport with flights to the main cities of the continent.
- Efficient last-mile logistics thanks to its central position.

These conditions make it easier to do business throughout the region under a centralized structure, reducing operating costs and delivery times.

Agile legal system and business protection

The Panamanian legal framework facilitates foreign investment. The constitution guarantees economic equality between nationals and foreigners. In addition, the process for open a bank account in Panama has been streamlined in recent years with advances in digital compliance.

Entrepreneurs can establish offshore companies in Panama with a flexible structure and legally reinforced confidentiality. For face-to-face transactions, local public limited companies or mixed companies are options that can be adapted to multiple sectors.

In 2025, Panamanian authorities have reinforced transparency without compromising competitiveness, creating an attractive balance: complying legally without losing efficiency.

Beyond the statistics, the important thing is that the system works: opening a company takes a few days, operating costs are lower than in many other regional jurisdictions, and the environment remains pro-business.

If your intention is structuring your international business from Panama in 2025, you will find in these advantages a solid foundation, both at a fiscal, operational and legal level.

If you are thinking about create a company in Panama to use it as a strategic base in Latin America, the process is simpler than many imagine. Panama has developed an agile and accessible corporate framework, ideal for both large corporations and foreign entrepreneurs looking for an efficient international structure.

Choose the right type of company

The most common form for international business is SA (S.A.), thanks to its flexibility and shareholder protection. There are also other figures such as limited liability companies, private foundations and offshore companies, depending on your business objectives.

Steps to open a company in Panama

1. Hiring a local lawyer: Required by law. He will help you draft the social pact and register the entity.
2. Choose company name: It must be unique and approved by the Public Registry.
3. Drafting the articles of association: They include the structure of the company, planned activities and powers of the director.
4. Submit a request to the Public Registry: Once accepted, your company is legally constituted.
5. Get a RUC: The Single Taxpayer Registry is necessary to operate legally before tax entities.
6. Open business bank account: Although it may take time, there are banks that offer fast processes if you meet international compliance requirements.

Estimated time and key considerations

The entire process can take between 5 and 15 business days, depending on the preparation of documents and banking procedures. It is important to have:

• Local legal support with experience in companies in Panama
• Shareholder and final beneficiary documentation
• A tax address within the country (service offered by many law firms)

Outstanding benefits: Creating a company in Panama allows access to tax benefits significant (such as exemption from taxes on foreign income), take advantage of the logistics infrastructure of the country and benefit from its network of trade treaties with more than 20 countries. In addition, it facilitates the subsequent request of tax residency in Panama for entrepreneurs looking for a stable base of life and operations.

Once your company is formalized, you are now in a position to operate in multiple Latin American countries from a reliable and competitive center. This paves the way to the next phase: establishing yourself in Panama as an entrepreneur.

Panama is not only attractive to business in Latin America, but also for businessmen who want to establish themselves physically and fiscally in the country. La permanent residence for foreign investors and entrepreneurs, it is designed precisely to facilitate this type of strategic movement.

Available options for entrepreneurs

There are several ways to obtain residency, but one of the most accessible for entrepreneurs is the visa of Business Investor. This program allows foreigners to obtain legal residence by investing in an active Panamanian company.

General requirements for this modality

• Minimum investment: USD $160,000 in company capital or assets.
• Company Registration: Your company must be duly registered and active in the Public Registry and have a Notice of Operations.
• Recruiting staff: It is necessary to employ a minimum of five Panamanian citizens in your company.
• Personal documentation: Current passport, clean criminal record, financial receipts and health certificate.

Additionally, you must demonstrate that your business has real economic activity and is not just a passive company. This reinforces the criterion of tax residency in Panama, key to benefiting from their territorial regime.

What if you're just starting your company?

You don't need to have years of operating. You can start the residency process along with the process of creating your company, as long as you meet the investment requirements. Other vehicles such as the creation of offshore companies or international structures are also accepted, as long as they comply with current transparency standards.

Time and duration of the permit

Once all the documentation has been submitted, the process can take between 3 and 6 months. First, a two-year provisional permit is granted, followed by permanent residence. You can also apply, in parallel, for a tax resident card and work permits if you need one.

Establishing yourself in Panama as an entrepreneur doesn't just offer fiscal and legal protection, but rather simplifies the management of international operations. From global billing to legal presence to sign contracts and open bank accounts, having a personal base in Panama is an increasingly common strategic decision in 2025.

In the next section, we show you how you can carry out this entire process with reliable support, avoiding common mistakes and accelerating your path to regional expansion.

Expanding your business in Latin America from Panama may seem complex at first. There are legal procedures, residency requirements, bank account opening processes, and corporate structures that must be properly configured. This is where a specialized legal team makes all the difference, and at Limitless Legal we combine local experience with international vision so you don't have to worry about technical details.

We understand that each business is unique and that there is no generalized formula for structuring the expansion of a company in Panama. That's why we customize each legal, tax and immigration advisory process based on your company's real objectives.

Comprehensive advice from creation to regional expansion

The first thing we do is help you understand how to use Panama strategically. Whether you're looking to create a offshore company in Panama, establish a tax residence or open a business bank account, we guide you step by step.

Our services are focused on offering a 360° solution that covers:

• Constitution of companies in Panama adjusted for operational or international asset holding purposes.
• Opening of bank accounts in Panama for companies, with prior preparation of all required documentation.
• Personalized advice regarding Panama tax benefits depending on your business model and your country of origin.
• Processing of the permanent residence for foreign entrepreneurs, including options through investment or corporate structure.
• Legal design for regional expansion taking advantage of Panamanian free trade agreements.

Avoid costly mistakes and save time

One of the most common mistakes when trying create a company in Panama without advice it is to use generic structures that are not adapted to the type of operation or country where the business is going to be developed. This can lead to unintended tax consequences or compliance issues in the medium term.

Limitless Legal works with an interdisciplinary network of lawyers, accountants and immigration experts to ensure that each step is aligned with both Panamanian regulations and international requirements. In addition, we maintain clear and constant communication throughout the process, in Spanish or English.

Transparency, Simplicity and Strategic Approach

We don't sell pre-made “packages”. Our goal is to provide you with a functional, clear and explained solution without unnecessary technicalities. From technology startups, family investment funds, e-commerce or logistics companies: we understand the different needs to structure your expansion from Panama to Latin America.

Thanks to our experience with international companies and individual entrepreneurs, we know how to simplify complex processes without losing legal rigor. We want you to focus on growing your company, while we take care of the legal side.