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Business Outlook or why Mundo Loves Panama

The recent Panama Papers scandal and the hysterical and histrionic film Panama Papers has tried to disrupt the image of a country that is in Mundo´s view simply the best destination in Latin America.

The audience that actually believe that low tax jurisdictions are “bad places“ should be forced to stay in the ghettos of Spain or Paris, or to be in these high tax socialist countries during the multiple riots and social distress these countries will soon face and are already facing.

Intelligent people with money from Europe, South Africa, America, Canada, China, Mexico, Venezuela, and Ecuador, and in fact all the places plagued by the cancer of socialism, are running to Panama and this trend will continue.

Mundo is bullish on the future of the Panamanian economy for several interconnected reasons. Recently a number of events have occurred that have started to turn Panama back to its former glory, and most experts and financial analysts predict that this economic renaissance will strongly continue over the next ten years. These include:

1. Recently, Nito Cortizo has been elected president of Panama. Nito comes from a Jewish business background and has vowed to increase Panama´s reputation and standing in the business world. Since Panama has a strong middle class and has always been pro-business, also having the biggest Jewish community in Latin America, it is expected that the environment created by president Cortizo will increase foreign confidence and lead to a return in foreign investment.

2. Panama has been removed from the OECD blacklist as it has agreed to comply with OECD standards and BEPS substance initiatives. Nevertheless, it has been allowed to maintain its territorial taxation system i.e. no tax on worldwide income.

3. Panama has only territorial taxation, this means that companies and individuals with tax residency in Panama have zero tax on their worldwide personal and corporate tax. Panama also has no inheritance tax, death duties and is free of many of the world´s most unattractive taxes. Indeed, in this respect Panamanians enjoy an income and lifestyle very similar to Hong Kong, Singapore and Switzerland.

4. The President of China has visited Panama and has concluded a number of deals including a 14 billion infrastructure development into Panama, with consequential real estate projects by China’s biggest developer. Chinese banks are now opening branch offices in Panama.

5. The pope has visited Panama, thus bringing the attention of the world´s catholic community on this small country and adding to an increasing tourism wave.

6. The Canal has been widened to accept bigger ships and twice more volume in shipping.

7. The biggest copper mine in the world has now started production in Panama.

8. Panama has one of the most enviable and beautiful lifestyles on earth. Multiple clean unpolluted and uncrowded beaches, great diving, great seafood, and wonderful eco-tourism opportunities as good as Costa Rica, if not better. There are dozens of foreign schools ranging from English and American to Chinese Japanese, French and Italian, meaning that expats have a huge choice of schooling for their children. Panama has more restaurants per capita than any other country in the word as well as a fantastic nightlife, clubs, and casinos plus a 16^th century old city which thrives with nightlife all night long.

9. Opening a business is easy with no currency controls, low administration compliance, and, due to the shortage of skills in Panama, almost any business that is opened will achieve success. This is coupled with extremely friendly and easy migration and residency programs. Thanks to these programs, entrepreneurs, businessmen, skilled professionals, and investors are welcome and can expect high returns and great lifestyle.

10. Medical facilities are on par with the best that the United States has to offer. There are numerous international hospital facilities in Panama City, including Johns Hopkins hospital. Many doctors are graduated from top American medical schools.

11. Panama has no communist or socialist leanings, its population is almost fully employed with major government housing subsidies similar to Singapore and virtually free schooling and health care, all paid for largely by the canal and the middle class. Large entrepreneurs are very much in control of the country and its future direction. Investors are welcome and supported and wealth is admired. The population is aware that low taxation benefits them, and they support it. The chances of a Venezuela, Ecuador or Argentina happening in Panama are much smaller than the same situation happening in France, Germany or even the United States.