GENERAL

Status: Independent Republic
Location: Central America, bordered by Costa Rica in the north west and Columbia in the south east. Panama is bisected by the Panama Canal
Area: 77,000km2
Capital: Panama City
Population: 2,450,000
Business Languages: Spanish, although English is widely spoken
Currency: US dollar (known locally as the balboa; the Panamanian Government only issues balboa coins with values of less than US$1 which circulate alongside and at a parity with US coins)
Time Zone: GMT –5. Eastern Standard Time
Business Hours: Mon to Fri am 8.00am to 1.00pm, 2.00pm to 5.00pm
Climate: Panama has a tropical climate: the wet season lasts from May to mid-December, the dry season from January to mid-April. Temperatures range from 20ºC to 3ºC throughout the year.

IMPORTANT CONTACTS

Ministry of Commerce and Industry
Peru Avenue at Cuba Avenue
Panama City
Tel: + 507 27 4222

Panamanian Chamber of Commerce and Industry and Agriculture
Ave. Cuba & Ecuador
33A-18
PO Box 74
Panama 1
Tel: + 507 227 1233
Fax: + 507 2274186
Email: eciap@panama.phoenix.net
Web: http://www.panacamara.com

Panamianian Association of Business Executives
Calle 42 y Avendia Balboa
Panama City
Tel: + 507 27 3511/ 27 3686

Private Enterprise National Coundil (CONEP)
Calle 41
Edificio Cacicienda
Detras de Colegio Maria Inmaculada
Panama City
Tel: + 507 25 5197/ 25 5306

EXPAT EMPLOYMENT DETAILS

All foreign residents require a work permit, but there is little problem in obtaining these. The law states, however, that no more than 10% of the total payroll of a company may be foreign.

COMMUNICATIONS

Panama City is served by 26 international and domestic airline through Tocumen International Airport. Panama has a good road network which covers 9,000km. The country’s main ports are Colon/Cristobal and Balboa/Panama City.

POLITICAL AND ECONOMIC STABILITY

Panama has served as an international financial centre for more than 60 years. The country is currently recovering from the economic and political crisis of 1987-1989. During the period 1986-1989, Panama experienced political upheaval culminating in the intervention of the US army in December 1989 to arrest and extradite General Manuel Noriega. Since that time the democratically elected Government has mad significant efforts to stimulate the economy by reducing the influence of the state. This has resulted in a mini-boom within Panama’s private sector. On 8 May 1994, Dr Ernesto Perez Balladares was elected the new President of Panama.

KEY ACTIVITIES

Panama’s key activities are shipping, banking and offshore companies. Panama’s economy is heavily dependent on the services sector and the Panama Canal, which generates approximately US$330m each year. The country’s principal exports are bananas, seafood, sugar, rice and beef.

ADVANTAGES OF PANAMA

  • Banking law introduced in 1970 strengthened the country’s banking system
  • 183,000 active offshore companies
  • Although Panama has fairly high rates of tax internally, its status as a tax haven depends upon the principal that income received by a Panamanian corporation from sources outside Panama is exempt from tax

The content of this factfile is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances from a local lawyer or accountant.