The Republic of Panama is a country located in the southeast of Central America, in the isthmus of Panama, that unites South America with Central America. It limits the North with the Caribbean Sea, the South with the Pacific Ocean, to the East with Colombia and to the West with Costa Rica. Its mountainous territory is only interrupted by the Panama Canal. It has a population of over 4 million inhabitants, which half live in the metropolitan area of its capital, Panama City. Its official language is Spanish. Its legal tender currencies are the US Dollar (USD) and the Balboa (PAB), which is pegged to the Dollar at a 1:1 ratio.
Its economy is one of the most stable in Latin America. Its main economic activities are financial, tourism, logistics services and to a lesser extent agriculture and livestock. Regarding the primary sector, most of its agricultural production is destined for export. Its main crops are sugar cane, bananas, rice, maize, coffee and tomato. Panama also exports a wide variety of timber, where mahogany stands out.
Its conglomerate of transport and logistics services is oriented towards world trade, whose epicenter is the Panama Canal, where there are ports of transhipment of containers, free zones of commerce, railroad and the largest air hub of passengers of Latin America.
Tourism represents one of the main activities, with over 2 million tourists per year, mainly for business, beaches and commerce. Most of the tourists come from the US, Canada, Europe, Central America and South America.
The jurisdiction is also the largest financial center of Latin America. Offshore corporations benefits of advantages such as access to complete banking and financial services, confidentiality, freedom of capital movement and total tax-exemption provided that they exclusively do business outside the territory. Other common legal entity is the Private Interest Foundation, which is fully tax-exempt and is commonly used as a holding entity, for asset protection (tangible or intangible), for confidentiality and privacy, estate planning, tax planning or philanthropic reasons.
Panama has also several residency programs for entrepreneurs, investors and retirees. At Flag Theory, we offer internationalization options to build your life internationally and diversify your personal finances and business, to increase freedom, privacy and wealth. Here, you can find why and how to set up an offshore company in Panama, open an offshore bank account, investment opportunities and why and how to get residency and eventually citizenship in this Latin American country.