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