Solid Economic Growth
Panamá has shown the best performance among
emerging markets in the region.
GDP Growth compared to other countries in the Region
6.0% 5.4% 5.3% 5.1%
4.7% 4.6%4.7% 2007
4.2% 4.0% 2008
4.0% 3.2% 3.3%
2.5% 2.5% 2.6%
El Salvador Colombia Panamá Costa Rica Guatemala Rep. Chile México
Infographics: National Investment Promotion Division
Continuous Economic Growth
During 2009 the world faced a financial crisis which reduced the world´s trade,
but Panama got over it, and became one of the few countries in the region that
has reported an economic growth of more than 2%.
Graphics: Dirección Nacional de Promoción de la Inversión
Construction industry represents approximately 5.8% of the GDP
2003 2004 2005 2006 2007 2008 2009
883.4 473.8 931.0 1,007.5 1,302.9 1,601.3(p) 1,548.8(p)
(p) Preliminary figures
Source: Contraloría General de la República
4.5% ECLAC Estimated Growth
The Economic Commission for Latin America and the Caribbean has estimated an
average of 4.1% growth rate for the region.
Panamá is above the average growth rate.
BBB- Fitch Ratings
Lower cost of financing
Higher degree of confidence in our
Ideal environment for generation of jobs
Panamá only country in Central America
Source:Diario La Prensa. March 24, 2010.
Infography: La Prensa
Foreign Direct Investment
2004 2005 2006 2007 2008 2009e
In the past 6 years, Panama has established itself among the leaders of the region, boosting sectors
such as Information Technology and Communications, Energy, Tourism, Real Estate, Multimodal
Transport and Logistics Center, Construction Sector, banking, among others.
Source: Contraloría General de la República de Panamá
Easy of Doing Business
Chile 42 Colombia 37
Colombia 53 Chile 49
El Salvador 72 Panamá 77
Panamá 83 El Salvador 84
Rep. Dominicana 86 Rep. Dominicana 102
Guatemala 110 Guatemala 112
Costa Rica 121 Costa Rica 117
Source: The World Bank. Doing Business Report 2010.
ATLANTIC Colon Container
Logistics Platform for the World
Panama Canal Balboa
Railroad/ Fiber optic cable
Panamerican Highway Howard
Privileged Geographic Position
Panama offers direct access to a market of more than
3.5 billion people.
Source: NAFTA, APEC, MCCA, CAN, CARICOM, EU.
Panama Canal T
Access to 144 In 2009,
maritime +14,000 ships
cargo of 298
routes in 80 transit the
Panama Canal Expansion Project
Investment investment of
(47 mile) Single- Two-way traffic
line track at strategic
linking Balboa locations.
and Colon Roads Network
3 main roads 2 highways
that connect Panamerican
all major Transistmica City and a
regions of Central new
the country connecting
Substantial investment in road K
Road to finish Key investments in added value
to logistics services:
A. Finish the Panama Colon
B. Rebuild the road
infrastructure in the Colon
C. Connect Howard with the
D. Finish the North highway
E. Connect Tocumen with the
Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 48
Panama is closer to the World
Tocumen International Airport
HUB of the Américas
Operational Airport Capacity
• 32 Boarding Positions • 66 Boarding Positions
• 32 Simultaneous • 70 Simultaneous
• 11 Simultaneous Operations • 20 Simultaneous Operations
• 5 Millions Passengers/Annually • 30 Millions Passengers/Annually
• Track length of 3,050 mts • Track length of 4,000 mts
Source: Tocumen International Airport Presentation
Expansion of the Airports Network
BOCAS DEL TORO
Source: Aeronautic Authority
Great Connectivity for Telecommunications
Panama is connected to the world through 5 fiber optic
The United Nations
Conference on Trade
Panamá as the country
with best connectivity in
Source: Transport & Cargo Magazine. Written by JAN.HOFFMANN Chief Trade Facilitation (UNCTAD)
• No central bank
• 90 national and international banks
• Total assets US$ 64,209 million (Jan. 2010)
• U.S Dollar base economy
Insurance & Reinsurance
• By February 2010, the premiums totalized
more than $ 139 million, 8.34% over than the
same period in 2009.
Creates the Special Regime for Establishment and Operation of the Multinational
Company Regional Headquarters
• Tax exemption on income, social insurance and
educational insurance, when their salaries come from
Tax incentives for foreign abroad (parent).
workers are: • Import Tariff Exemption for household goods when a
worker moves for the first time to Panama.
• Permanent Personnel – 5 years
• Temporal Personnel –3 months
(Renewable) 1 Time
Colon Free Zone
Decree-Law 18 of June 17th of 1948, by which the Colon Free Zone was
created as an autonomous entity of the State.
680 hectares, divided into two (2) commercial areas:
• the commercial area of showrooms in Colon (old city limits) and,
• commercial warehouse and storage area in France Field.
250,000 visitors come every year from all over the world.
Is the largest free zone in the Western Hemisphere, being the major trading
center for Latin America and the Caribbean.
Benefits and advantages of operating in the
Colon Free Zone
• 0% Taxes on profits from re-exports.
• 0% Customs duties in import and export quotas.
• 0% Billing taxes.
• Highly competitive costs.
• Migratory facilities for foreign executives.
• Purchase in one place only.
• Excellent assortment of products.
• Credit facilities.
Advantages • Clearance in less than 24 hours.
• From Colon, Rep. of Panama, located in the center of the Americas, you will have access
- Western Hemisphere -Europe
Exporters -Asia -Africa
Advantages - Australia
London & Business and
Special Taxation, Target activities
Economic Zone customs, labor, will be exempt
Panama as world class
adjacent to the immigration and from taxes in
master center with the Republic of
Canal, Railway, special business
developer of residential areas Panama
Ports and Regime
the project. of high level
Law No. 41 of July 2004.
Multimodal and Transfer of Services to Maintenance, Repair High Tech Product
Logistics Services the Aviation Industry and Overhauling of Manufacturing
Call Centers Office Administration Back Office Operations Data Transmission,
Radio, TV, Audio and
Off shore Services Stock Transfer Between Transfer of Goods and
Onsite Companies Services in the area.
City of Knowledge
Operates as a local node of
the global network of Established as a strategic focal
knowledge management, and point for regional operations
contributes to human of international organizations
Panama’s International Technopark
Panamá Business Accelerator
City of Knowledge Benefits
Fiscal Fiscal Fiscal
Exemption from all taxes, Transfer Tax Exemption of Exemption from any tax, fee or
contributions, tax or import duty movable tangible property and charge levied sending money
on machinery, equipment, services (ITBMS) on machinery, abroad, where such remittance or
furniture, vehicles, appliances and equipment, vehicles, implements transfer of funds takes place for
supplies needed and inputs necessary the purpose of the project.
The State shall grant special visas Labor
to foreign personnel who enter The companies affiliated with the
the country to help in the City of Knowledge are authorized
development project of the City to hire international staff as
of Knowledge. necessary to carry out their duties
EXPORT PROCESSING ZONES
• EPZ are Duty Free Zones of Free Enterprise,
specifically delimited, whose activities are – Exemption from export taxes and duties
the production of goods and services for on all goods or services required for its
– Tax on capital assets or property
• Categories: exemption
– Manufacture enterprise – Income tax exemption for warehousing
– Assembly services who have their desired effect
– Processing enterprises of finished or
semi-elaborated goods – Permanent Resident Permit as an
– Service export enterprise investor
– General services enterprises. – Temporary Resident Permit
• Exemption of Import and Land Tax for
• Exoneration of tax on capital gain.
• Exemption from payment of taxes of
docking and landing at docks, airports
or heliports owned by the company
• Exemption from Income Tax
• Rate of 10%, for the purposes of
calculating the depreciation on real
National Tourism Registry
$ 3,000,000.00 - Metropolitan Area
$ 50,000.00 - Rest of the Republic
Source: Law Nº 58 2006. G.O.25,701
Fuel Free Zone
Cabinet Decree No. 36 dated 17 September 2003,
regulates the activity of oil-free zones in Panama within
these areas there is a special treatment
Import, export, refine, process, recycle, mix, distribute,
transport and market petroleum products authorized.
Tax Regime: Free Zone, will not cause any tax, fee, levies
and other fiscal contributions reasons for introduction,
or re-export of crude oil and its derivatives
Social and Environmental
Transparent Sustainability Innovation
We promote the mining industry
development as a substantial element
in the social -economic and industrial
development of our country.
It is the main activity in terms of its
foreign exchange contribution to the
Source: National Direction of Minerals Recourses.
Investment Legal Stability
Guaranteed beneffits for 10 years:
• Legal stability
• Tax stability Law No. 54 -
• Tax stability in the municipal order 1998
• Stability of the customs that are
derived from the Laws
• Stability in the labor regime
Requirements for Investors:
• Investment Plan at least two
million (B/.2, 000.000.00) in
• Prove the amount of
investment and activity
Panama City Metro
• Currently representatives of companies from
Italy, Spain, France, Japan, Brazil, China,
Colombia, Germany, Mexico, like Panama, has
shown interest in participating in this project.
• The Swiss-Mexican-Panamanian consortium
PÖYRY Cal & Mayor & Geoconsult won the bid
to be the integrator advisor of the project.
• For the prequalification statement visit the
Investment: U.S.$ 1,000 - U.S. $1,500 millions
Extension: 14 km
Travel Time: 30 minutes.
New Convention Center
Will oversize our current convetion center
Will allow Panamá to take advantage of the
geographic position, holding all types of
mega events .
Aprox. Cost: 150 millions
Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 76
Governmental City and
Physical centralization of key government institutions.
Area: 64 Hectares 70 levels
Cost: $ 450 million. 100,000 m² of construction
Source: Government Strategic Plan 2010-2014. Gaceta Oficial Nº 26445-A Pag. 75- 76
• Increase transparency in government procurement
• Intensify the fight against corruption
• Products and services that are required by the
Panamanian public sector
• Get information about business opportunities
• Consult the time that it will make payments to suppliers
• Receive notifications to be affiliated.
Agency for Investment Attraction and
LOGISTICS TOURISM FINANCIAL SERVICES AGROEXPORTS