| Panama has been long known for its investor friendly | | | | well as social status of Panamanians. He brought |
| tax policies with many tax exemptions given to lure | | | | about land reforms, opened up universities to blacks |
| foreign business men, retirees etc. to invest in the | | | | and defended the rights of the indigenous Indian and |
| country. It has a strong financial network with over | | | | Creole populations who have for long been kept out |
| 80 national and international banks operating there. It | | | | of the mainstream economy by the white elite |
| has strict banking secrecy laws which keep the | | | | oligarchy. Most of Panama's white people live in the |
| investment details of individuals out of purview of | | | | area near the Panama Canal and many of them are |
| public scrutiny. Despite severe international pressure, | | | | extremely wealthy. A small group of Panamanians, |
| Panama has stuck to its policy of providing "level | | | | most of them wealthy whites, are called the elite. |
| playing field" to investors i.e. the sharing of banking | | | | Their families have had wealth for several |
| information will be strictly on reciprocal basis with | | | | generations. The elite take great pride in their |
| other countries. | | | | traditions, and they tend to avoid social contact with |
| Panama provides complete capital gains tax | | | | other Panamanians. This group includes many large |
| exemption to foreigners, the income earned abroad is | | | | landowners, and doctors, lawyers, and political and |
| tax free and even the interest income is tax free. It | | | | military leaders. The elite control Panama's economic |
| has a strong legal system which keeps frivolous law | | | | and political systems. Omar Torrijos fought against |
| suits against foreigners acquiring physical assets in | | | | the dominance of the white elite in the society. |
| Panama out of courts purview. Panama has a stable | | | | The canal is central to Panamanian economy, |
| democratic government and a growing economy. It is | | | | providing income to the tune of a billion dollars per |
| a republic as per its constitution and provides | | | | year to the government. The economy is growing at |
| complete religious freedom and freedom of speech | | | | over 6% fueled by a boom in construction activities. |
| to its citizens. Its asset protection laws date back to | | | | The real estate prices, though rising, are still |
| over a century and Panama provides statutory | | | | affordable compared to that in the U.S. The prices in |
| financial privacy and banking secrecy to investors. It | | | | the capital, Panama City, are almost half of that in |
| provides attractive incentive schemes to retirees | | | | Florida. Panama has unique relationship with the U.S., |
| deciding to settle down in the country. | | | | its biggest trading partner, right from the days of |
| Panama has strong independent government from | | | | building the canal in 1914. The present government |
| the days of its former ruler Omar Torrijos who was | | | | also has taken a pro business stance and wants to |
| responsible for securing the management control of | | | | continue its investor friendly tax laws. Panama would |
| the Panama Canal from the U.S. in 1979. He was a | | | | continue to be an attractive destination for foreign |
| dictator who did a lot to improve the economic as | | | | investments in the years to come. |