Key benefits of opening a company in Panama

Panama has positioned itself as the meeting point for international businesses in Latin America, and this is no accident. Its set of competitive advantages is precisely designed to attract and facilitate the growth of foreign companies.

Strategic location and unbeatable connectivity

The Panama Canal makes the country a logistics hub between the Atlantic and Pacific oceans, but its value doesn't end there. Panama has the most important air hub in Latin America, allowing direct connections to Europe, North and South America. This strategic location provides access to key markets in a matter of hours.

Economic stability and favourable investment environment

Panama has maintained sustainable economic growth for more than a decade, backed by a stable currency (the U.S. dollar) and a robust financial system. This creates trust for investors and companies seeking to carry out operations in a predictable jurisdiction.

Legal and business infrastructure designed for global businesses

Since 2022, Panama has updated multiple legal frameworks for facilitate foreign investment and simplify the business registration. In addition, its digital platforms make it possible to carry out procedures efficiently from abroad, saving time and operating costs.

Environment free of unnecessary red tape

One of Panama's great attractions is its commitment to reducing administrative obstacles. The process for Open an international company in Panama can be completed in a few days with the appropriate documentation, and many services are already enabled online.

Panama as regional corporate headquarters

Many multinationals already operate from Panama due to their cosmopolitan talent, flexible customs regime and low comparative cost compared to similar global centers. Having a regional office in Panama allows you to centralize operations for Latin America and optimize decision-making.

In short, if you are looking for a safe and efficient international expansion, Panama represents an ideal combination of logistics, modernity and stability. It's an especially attractive option if you're thinking about your company's future in 2025 and beyond.

One of the most powerful elements that make Panama an attractive destination for foreign investment is its territorial tax regime. Unlike other countries, Panama does not tax revenues generated outside the country, which represents a significant advantage for entrepreneurs and companies that operate internationally.

How does the Panamanian territorial tax system work?

In simple terms, this system means that only taxes on income generated within Panamanian territory. If your company provides services outside of Panama or sells products in international markets, You should not pay taxes on those profits in Panama.

Tax advantages for foreign entrepreneurs

• International earnings exempt from income tax.
• There are no taxes on dividends from foreign sources.
• Absence of capital gains taxes on activities outside the country.
• Freedom to repatriate capital without fiscal restrictions.

This tax scheme makes Panama an ideal hub for housing holding companies, global consulting companies, technology companies, international trade and more.

Strategic use of the tax regime with legal compliance

It is important to understand that these tax advantages for foreign entrepreneurs are perfectly aligned with international law, and Panama has agreements for fiscal cooperation and financial transparency. This allows you to operate with legal security and without conflicts with international regulations.

In addition, by taking advantage of the Panamanian territorial regime in combination with well-designed international structures, many companies optimize their global tax burden without the need for aggressive practices or regulatory risks.

Who can benefit from these benefits?

Virtually any global business can benefit from this system, but it's especially useful for:

• E-commerce companies with cross-border operations.
• Consultancy firms and agencies with foreign clients.
• Technological startups that provide digital services at an international level.
• Import/export and global logistics companies.

In conclusion, Panama's tax regime is not only attractive because of its competitive rates, but also because of its practical, clear and favorable approach to the growth of foreign companies. If you're wondering Why opening your company in Panama in 2025 is a great idea, your tax system will undoubtedly be one of the key factors.

One of the biggest attractions for those who want Open a company in Panama is the existence of free zones strategically designed to encourage foreign investment and the development of global business. These areas offer logistical, fiscal and legal benefits that reduce operating costs and increase the international competitiveness of companies.

What are free zones in Panama?

Panamanian free zones are delimited areas where companies can operate with special regulation and obtain significant tax exemptions. They function as spaces for international trade, warehousing, light manufacturing and the provision of global services.

The best known is the Colon Free Zone, the second largest in the world and the most important in the Western Hemisphere. There are also other areas such as Panama Pacifico, ideal for technology, logistics and corporate services companies, which benefit from a strategic location a few kilometers from Panama City and the Canal.

Advantages of operating in a Panamanian free zone

• Tax Exemption: Companies located in free zones are usually exempt from foreign income tax, import tax and ITBMS (local VAT), depending on the type of activity.
• Customs facility: Import and export procedures are streamlined, which benefits companies that need a constant flow of merchandise.
• Modern infrastructure: These areas have first-rate facilities, high-level logistics connections and access to key modes of transport, such as ports and airports.
• Skilled Labor: The zones offer access to local and international talent, thanks to legal frameworks that facilitate the hiring of foreign personnel.

For example, an international logistics company may set up its head office in Panama Pacifico, importing products without paying tariffs, and then redistributing them to Latin America with great efficiency and lower fiscal costs.

A particularly favorable environment for foreign investment

Free zones not only reduce the tax burden, but they also provide a more streamlined framework for business records and business authorizations. This allows a global entrepreneur or a international company be operational in much less time than in other jurisdictions.

Thanks to these benefits, Panama continues to consolidate itself as a highly efficient node for multinational operations, especially in logistics, e-commerce, pharmaceutical distribution, light manufacturing and digital services. The combination of modern infrastructure, special tax regimes and a safe environment make the country a strategic bet for business growth in 2025.

In addition to commercial and fiscal facilities, Panama offers a series of migratory options that allow entrepreneurs and investors to obtain legal residence in the country, which is a great added benefit for those who want to combine business development with an extended stay, family relocation or access to one of the most open markets in Latin America.

Who can choose to reside in Panama for investment or business?

There are different programs of residence for investors in Panama, designed both for entrepreneurs who wish to operate businesses in the country and for passive investors. Some of the best-known programs include:

• Permanent Resident as a Qualified Investor: It requires a minimum investment of USD $300,000 in real estate, shares in Panamanian companies or fixed-term deposits. It offers immediate permanent residence.
• Investor Visa in Multinational Company Headquarters (SEM): For executives of foreign companies with operations established in Panama under the SEM regime.
• Residency for Economic Reasons as an Investor: It allows you to establish local companies with a minimum capital of USD $160,000 and apply for temporary and then permanent residence.
• Visa from Friendly Countries: Available to citizens of more than 50 countries (including the US, Spain or Germany), it allows you to establish companies and obtain temporary residence, with the option of permanent residence.

These programs have been designed to attract talent, capital and new business ideas, facilitating the migration process for those who wish to develop foreign businesses from Panama.

Additional residency benefits for entrepreneurs and investors

Obtaining residence in Panama not only allows you to live and operate legally, but also to access strategic points such as:

✔ Legal and economic stability: Ideal for families looking for security in investment and in their living environment.
✔ Tax benefits in line with the territorial regime: Taxes only for income generated within the country.
✔ Access to banking and financial services: Easier to open accounts, finance projects or create corporate structures.
✔ Possibility to apply for residence for immediate family members: Spouse and minor children, under the same benefits as the primary applicant.

For example, if you're a digital entrepreneur looking to operate from a location with strategic location and a good business climate, you could establish a company in Panama, apply through the Friendly Countries program or as an Economic Investor, and in a matter of months have legal residence.

This migratory scheme reflects Panama's commitment to attracting and retaining international talent. In addition, it adapts very well to the pace required by global entrepreneurs with expansion plans or international companies who need strategic leadership on site.

In the next section, we'll explore simple and concrete steps for open your foreign company in Panama in 2025, from legal registration to initial operational decisions.

One of the great advantages of opening a company in Panama is that the legal and administrative process is relatively streamlined, especially for foreign investors. Although it is always recommended to have legal advice to ensure that you comply with each step correctly, it is possible to have a clear and elementary picture from the start.

Next, we explain to you How to open an international company in Panama in 2025, in a simple way and without going into unnecessary technicalities.

1. Define the type of company that fits your needs

The most common type of legal entity for foreign investors is the SA (S.A.). This model offers asset protection, ease of administration, and is widely accepted in international operations. There are also options such as Limited Liability Companies (S.R.L.) if your business structure is different.

2. Reserve a legal name

Before registering your company, you must choose an available name and reserve it in the Public Registry of Panama. This name must be unique and not affect the rights of third parties.

3. Write and sign the company's statutes

The articles of association define the internal functioning of the company, who are the shareholders, how decisions are made and other legal aspects. To be valid, they must be drafted by an attorney and submitted to a notary.

4. Register the company in the Public Registry

With the notarized statutes, the application for registration is submitted to the Public Registry of Panama. This step formalizes the legal constitution of your company in the country.

5. Get your RUC (Single Taxpayer Registry)

Every business in Panama must have a tax number assigned to it. This RUC is obtained from the Directorate General of Revenue (DGI) and is essential for your local and international operations.

6. Request the Notice of Operation

This requirement authorizes your company to operate commercially in Panama. The request is made through the digital portal of the Ministry of Commerce and Industries (MICI).

7. (Optional) Register in a free zone

If your company has an export or digital profile, or is looking for benefits of free zones in Panama, you can register your business within areas such as the City of Knowledge or the Colon Free Zone. These offer additional tax incentives and preferential access to international markets.

Required basic documents:

• Copies of members' or shareholders' passports
• Test of address abroad
• Bank or business reference
• Declaration of business activities

Many of these steps can be done remotely and with legal representation, significantly facilitating the process for global entrepreneurs and digital nomads.

Unlike other countries, Panama allows you to open a foreign company without requiring immediate residence. However, as we saw in the previous section, accessing permanent residence for investors is possible and recommended if you plan to operate from the country or expand your regional presence from here.

With a clear legal structure, well-defined tax incentives and an efficient process, Panama in 2025 is positioned as an ideal territory for global entrepreneurs who seek to establish a strategic presence in Latin America.