Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
Escape Artist
  • Features
    • Interviews
    • News
    • Field Notes
    • Trending
  • Your Escape Plan
    • Finance
    • Real Estate
    • Second Citizenship
    • Events
    • Shop
  • Destinations
    • Europe
      • France
      • Germany
      • Italy
      • Portugal
      • Scandinavia
      • Spain
      • United Kingdom
      • Rest of Europe
    • Central America
      • Belize
      • Costa Rica
      • El Salvador
      • Guatemala
      • Honduras
      • Nicaragua
      • Panama
    • Others
      • Africa
      • Asia
      • Australia
      • North America
      • South America
  • Travel Tips
    • Know Before You Go
    • Packing List
    • Food + Culture
    • Health + Wellness
  • Subscribe
👤

THE NUMBER ONE SOURCE FOR EXPATS, DIGITAL NOMADS, AND DREAMERS.

This field is for validation purposes and should be left unchanged.
  • Your Escape Plan

Small Business in Panama

  • BY EA Editors
  • April 22, 2012
Total
0
Shares
0
0
0

Part 1 – An extraordinary economic growth spurt continues

November 3rd is a national holiday in Panama, celebrating the country’s independence from Columbia in 1903. In 2003, one hundred years later, GDP growth began to skyrocket in Latin America. By 2012 Panama outpaced ahead of all other countries in the region with a 9.5% growth rate, compared with the regional average of 3.5%, and is showing no signs of slowing its pace.

The average per capita income in Panama has risen dramatically from $4,138 in 2003 (World Bank) to $15,300 in 2012 (CIA). This means that consumers have more disposable income and are able to spend more on discretionary goods and services. Small businesses are capitalizing on this increase.

Over the past ten years, Panama has experienced considerable growth in both the foreign and small business sectors. According to the Panamanian government’s five-year Economic Development Strategy for the period 2010-2014 (Hess), the four pillars of growth driving the economy in Panama are tourism, logistics, agriculture, and financial services. Service-based businesses represent 80% of Panama’s GDP. With attractive government incentives in place for small businesses, Panama is an exciting option for today’s entrepreneurs.

For foreign nationals, starting or investing in a small business in Panama does have its challenges, however. To be granted an immigration visa under the Small Business Investor Visa Program, a micro-business requires an investment of at least $40,000, and a small business an investment of at least $150,000. These businesses are also required to hire at least three Panamanian citizens.

Another challenge is the labor law requiring that 90% of a company’s workforce be comprised of Panamanian citizens, foreign individuals married to Panamanians, or foreign individuals who have resided in the country for ten or more years. Although there are some exceptions and waivers available, this rule has proven problematic for businesses which require labor pools with specific skill sets.

Panamanian law also stipulates that all employees receive a minimum of 30 days paid vacation, time off for 11 national holidays, as well as an annual bonus of one-month’s pay (known as the 13th month). There are restrictions on the types of businesses that foreign nationals can own, including retail and media enterprises. And only Panamanian citizens are allowed to practice certain licensed professions such as those in the fields of law, accounting, or real estate. A recently-ratified Trade Promotion Agreement (TPA) may ease some of these restrictions in the future.

Despite these hurdles, the surging economic growth in Panama continues to make it an attractive destination for small business owners. With the minimum wage set at $1.40 an hour, labor is extremely inexpensive. Panama is also in the Eastern Standard Time Zone, the same as New York City, which makes dealings with US companies easier. The future economic growth prospects in Panama, along with its influx of foreigners and its growing middle-class consumer market, will likely to continue to attract entrepreneurs and small businesses well into the future.

Author Bio

Debbie Fishell has been a full time resident in the Barú District of Panamá since 2014. She travels extensively throughout the country, researches, and stays up to date with new developments in Panama for her website about the ‘Up & Coming’ town she now calls home www.visitPuertoArmuelles.com  In addition, Debbie is the creator of the first Panama Calendars, depicting the country’s diversity in photos. Debbie can be contacted at Editor@visitPuertoArmuelles.com or Google+ (https://plus.google.com/u/0/+DebbieFishell )

If you’re interested in buying a home abroad and want to weigh up your options, visit ECI Developments, who specialize in creating exceptional residence and resort communities across the world.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Previous Article
  • Your Escape Plan

Pirates of the Pacific – Expats in Ecuador

  • BY EA Editors
  • January 24, 2012
View Post
Next Article
  • Your Escape Plan

Freedom Is Yours! Will You Take It?

  • BY mhollen
  • January 24, 2013
View Post
You May Also Like
Buying a Property abroad
View Post
  • Your Escape Plan
Why More Investors Are Buying Homes Offshore
  • BY EA Editorial Staff
  • October 8, 2025
Best Places to Live in Spain: A City-by-City Guide for 2025
View Post
  • Spain
Best Places to Live in Spain: A City-by-City Guide for 2025
  • BY EA Editorial Staff
  • October 8, 2025
Hungarian Citizenship by Descent Journey from Amercia
View Post
  • Second Citizenship
Our Journey from America to Hungarian Citizenship
  • BY Ethan Cohen & Learn Hungarian Anywhere
  • October 1, 2025
The Tale of the Tael - A timeless store of value across centuries
View Post
  • Finance
The Tale of the Tael’s: A Hard Lesson about Hard Money
  • BY Michael Checkan
  • September 24, 2025
Craggy cliffs and quiet harbors frame life in the Isle of Man
View Post
  • Your Escape Plan
Life and Opportunity on the Isle of Man
  • BY Aneesa Marufu
  • September 19, 2025
Central America’s strategic position is reshaping the global offshore banking map
View Post
  • Plan B
The Future of Global Finance Runs Through Central America
  • BY Luigi Wewege
  • September 17, 2025
Tokyo's infamous cherry blossoms.
View Post
  • Japan
How I Built a Life in Tokyo in 3 Months
  • BY Annie Nagel
  • September 8, 2025
Global Diversification Tips from Experts
View Post
  • Plan B
Staying in One Country Could Be Your Biggest Financial Risk
  • BY Isha Sesay
  • September 3, 2025
Trending Posts
  • 1
    • Mexico
    Top 10 Things to Know if You’re Moving to Mexico
    • September 26, 2025
  • Hungarian Citizenship by Descent Journey from Amercia 2
    • Second Citizenship
    Our Journey from America to Hungarian Citizenship
    • October 1, 2025
  • Abkhazia jewel of Soviet summer escapes 3
    • Field Notes
    Secrets of the Soviet Riviera
    • October 3, 2025
  • Summer in Lapland: Lapland’s wild landscapes glow under the endless Arctic sun 4
    • Field Notes
    Before the Snow Falls in Lapland
    • September 29, 2025
  • Onu building with flags under a blue sky in New York 5
    • News
    Latest News: Fault Lines, Flotillas & Frontiers
    • September 25, 2025
InterNations
Know Before You Go
  • Best Places to Live in Spain: A City-by-City Guide for 2025 1
    • Spain
    Best Places to Live in Spain: A City-by-City Guide for 2025
    • October 8, 2025
  • Expat Child Syndrome 2
    • Wellness
    The Untold Story of Expat Kids
    • October 6, 2025
  • Abkhazia jewel of Soviet summer escapes 3
    • Field Notes
    Secrets of the Soviet Riviera
    • October 3, 2025
  • Hungarian Citizenship by Descent Journey from Amercia 4
    • Second Citizenship
    Our Journey from America to Hungarian Citizenship
    • October 1, 2025
  • Summer in Lapland: Lapland’s wild landscapes glow under the endless Arctic sun 5
    • Field Notes
    Before the Snow Falls in Lapland
    • September 29, 2025
Learn More
  • About us
  • Contact
  • Advertise
  • Subscribe
Why Subscribe

The newly imagined Escape Artist brings you fresh content with a global focus, and sharp, up-to-the-minute coverage of the joys, challenges, and opportunities of life abroad.

For a limited time, we’re offering a special discount on all subscription deals, so be sure to lock-in these incredible savings and start receiving top-notch travel and expat content today!

Sign up for the EA Newsletter

Get important news delivered directly to your inbox and stay connected!

This field is for validation purposes and should be left unchanged.
Escape Artist
  • Terms & Conditions
  • Privacy Policy
  • Cookies Policy
  • Disclaimer

Input your search keywords and press Enter.

Newsletter Subscription
Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/