Mundo´s Freedom Rating (0 to 10)

Political stability

9.0

Personal safety

8.0

Investment potential

8.0

Lifestyle

7.5

Taxation

10.0

Political stability (absence of socialist and communist tendencies)

9.0

42.5 (out of 50) AAA

Mundo´s country rating is essentially a freedom index whereby our team of specialists rate a combination of freedoms which include freedom from violence and personal attacks, financial freedom from high taxes, business freedom from government interference and especially from socialism and communism.

Political Stability: 9

Panama has always been highly dependent on foreign investment. As such, the country welcomes investors with open arms as evidenced by the multitude of family offices, international banks and firms located within its borders.

Further, thanks to the fact that Panama is essentially an oligarchy of around 2,000 business families that support commerce and capitalism, the forces of socialism and communism are virtually unknown. Indeed, Panama has no really active communist party and the population generally understands that the future of Panama is tied to free market capitalism.

There are very few cases of government confiscation or interference with foreign investors.

Personal Safety: 8

Panama understands that its financial future depends on tourists and foreign investors, therefore foreigners are considered sacred cows and are protected as if they were rare species in a national park. The whole inner-city area of Panama City, Casco Viejo and areas where foreigners live and play are heavily protected by an elite motorcycled police trained by The Mossad.

Israel has had a special relationship with Panama and Panama has the largest number of synagogues per capita after Israel. Panama City and Costa del Este are extremely safe and in fact much safer than most cities in the United States and Europe. Indeed, Panama has escaped the influx of refugees, criminals and religious fanatics that has plagued Europe and the United states.

Panamanians as a people are gentle and peaceful, very much unlike their Colombian and Venezuelan cousins and even protests and demonstrations here occur very quietly and with almost no physical or verbal violence. Violent crime is very rare, however recently, with the influx of illegal Venezuelan immigrants into the country, it has sadly increased. The government is now tightening immigration controls on Venezuela.

Lifestyle: 7.5

Panama City is like a little Miami with less violence and far less tax. It has consistently been voted as the top retirement and living destination in Latin America by many international publications such as International Living. The city has a population of 1.5 million but punches well above its size and weight.

There are more high-class restaurants here per capita than anywhere in the world. Panama has magnificent Caribbean and Pacific beaches, it has some of the best fishing, diving, and jungle trekking spots in the world. Casinos are legal and Panama attracts beautiful women from all over Latin America to its nightclubs and bars, making it a top nightclub destination.

Mundo, however, is disappointed with the virtually complete absence of cultural activities such as theatres, ballets and music venues, further, Panamanian service leaves more than a little to be desired although this is all now changing and we hope that in the future we can review this. For now, we give it a 7.5.

Taxation: 10

No tax on worldwide and foreign sourced income except in some cases a small 5% dividend tax that can be reduced, if you have a good accountant. There are also tax-free incentives for businesses in areas such as tourism and farming, plus an increasing development of tax-free and customs-free free zones.

Well, what more can be said? Panama is one of the last countries on earth to provide fiscal freedom to its citizens.

Investment potential: 8

Any business planted in Panamanian soil will grow. The government has no interest in interfering or controlling business, or even helping it.

The government simply doesn’t care which, in our view, is a very good thing. However, since government departments are generally dysfunctional, you will need a Panamanian with good connections to help you get through the red tape and delays.

This is not difficult as Panamanian businessmen are generally open and friendly and want to work with foreign partners and investors, and, surprisingly, are trustworthy in general.

However, this comes with one caveat, Panamanian labor is notorious for its laziness and lack of skills, this is because this is a country which lacks a work culture. Any business that relies on local labor will face a difficult time.

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